What are integrated payments?
Integrated payments are payment processing capabilities that are incorporated into a software company’s platform to provide their user base with the ability to accept and manage payments for their businesses. The setup connects payment processing with a point-of-sale (POS) system software that can sync with other business-critical systems and streamline processes.
By integrating payments into their solution, software companies can provide their customers the benefit of handling payments directly within the platform they’re already using. Without integrated payments, software users typically rely on a third-party provider outside of their business management platform to process payments. The biggest downside to this approach is a poor user experience. Often, software customers have to hop from system to system and spend time reconciling their payments against their sales.
3 things you should know about integrated payments
1. Integrating payments is the first step for software platforms wanting to integrate financial services. Payments can act as a launchpad for embedding a variety of other financial solutions such as lending. Learn more about Embedded Finance.
2. Offering payment processing as a feature of your software is an integral part of providing a market-leading user experience to customers that’s unified and seamless. Discover the impact integrated payments can have on the user experience.
3. Payment fraud is an unfortunate yet unavoidable part of integrated payments and various other forms of payment processing. Partnering with a sophisticated payments provider and understanding the common types of fraud is essential for ensuring prevention and protection of your user base. Learn about common types of payment fraud and how to stay vigilant.
What’s the difference between integrated payments and Embedded Payments?
Integrated payments are just one type of a broader set of solutions called Embedded Payments. Embedded Payments are delivered by payment providers like Worldpay for Platforms, and are typically offered as three different models:
- Integrated payments
- Payment facilitation (PayFac®)
- Payment facilitation-as-a-Service (PayFac-as-a-Service)
Each model of Embedded Payments has its own set of features and benefits, but also its own levels of risk and reward. Within the Embedded Payments structure, integrated payments are also known as referral partnerships. Compared to the other Embedded Payments options, it’s the fastest model to begin monetizing payments, with the least amount of risk and responsibility. To activate this model, software companies must work with a payments partner to integrate processing capabilities. Software companies won’t be responsible for architecting the payment user experience alone — they leave that to the payment processor.
Learn more about the difference between integrated payments and Embedded Payments.
Examples of integrated payments
The types of payment processing capabilities integrated into a system can vary, and largely depend on the needs of a software’s customer base. Software companies will most certainly offer online or eCommerce payments, also known as card-not-present payments. But, they can also offer in-store or in-person payments, also known as card-present payments. Card-present payments are useful for their customers accepting payments in storefronts, via mobile businesses (e.g. food trucks), or at events. Common examples of integrated payments include:
Learn more about integrated payment options.
Integrated payments FAQ
What are the benefits of integrated payments?
The incentive for software companies to integrate payments is based on several benefits, including these:
1. Add value: Software companies that add payment processing into their environment add value to their platform and can attract more customers with a more robust offering that meets their payment needs.
2. Increase revenue: Integrating payments offers software companies the opportunity to also monetize payments. By earning a share of the processing fees on every transaction your customers process through your platform, you can create a new revenue stream and generate recurring cash flow. This is ideal for software companies looking to scale.
3. Increase customer loyalty: The demands of today’s consumers have created a need for businesses to offer more payment acceptance methods than ever. This means software companies have an opportunity to deliver on those needs. By integrating the payment processing types their users rely on to create an ideal customer experience, they can add value to their platform and give users a reason to stay.
What is the process for integrating payments?
Software companies that want to integrate payments can do so by finding a payments provider that offers payment processing capabilities and technology that can be seamlessly integrated into the platform experience. The ideal payments partner will offer clear implementation and ongoing support for their integrated solutions and for your software customers.
Learn more about what to expect from a payments integration here.
How can I get started with integrated payments?
Get started with integrated payments, or discover more about other Embedded Payments solutions by finding a payments provider that can can deliver on these key areas:
1. Platform technology: Leverage technology that can transform your platform
2. Business development: Partner with like-minded individuals who support your growth
3. Software support: Fine tailored solutions to meet your needs and goals
4. Customer support: Ensure your customers are always prioritized
5. Technical implementation: Work with dedicated experts to enhance user experience
6. Security, risk, and compliance: Security is crucial – don’t leave it to chance
7. Impact and growth potential: Optimize your market presence
Learn more about what to look for in your search for a payments partner.
Terms related to integrated payments
Learn more about integrated payments
- Glossary: 117 software-led payments terms to know
- Why your software payment processing should be an embedded experience
- Embedded Payments explained: Everything software companies need to know
- How to evaluate integrated payment solutions
- Integrated Payments vs Embedded Payments: What’s the difference?
- Benefits of Integrated Payments for Merchants
- Why and how Integrated Payments solved a business need
- Why Eyefinity chose to partner with Worldpay
- How to pick an Embedded Payments model | Episode 21
