Are you ready to understand the world of embedded payments? Buckle up because we’re about to bust some common myths that are keeping businesses stuck with costly and inefficient payment models. From security concerns to tales of tangled transactions, we’ll break it all down so you know exactly what to do next if you’re considering implementing embedded payments. Keep reading to learn more about embedded payments and debunk some pesky misconceptions that may be holding you back.
Myth 1: You need to have an entire payments team or be a payments expert
This is only true if you want to be a full payment facilitator (PayFac®). Being a PayFac® essentially means you become the payments company so you’ll need a full team, payments volume, and an investment for developing the technology to take this step.
But with other embedded payments models, such as PayFac-as-a-service, you can partner with experts who will guide you through the payments process. This will give you the benefits of a partner who truly guides your team through the process and equips you with everything you need to know based on your level of embedded payments understanding.
Your solutions experts will help you navigate a number of decisions that need to be made, including marketing payments, pricing, selling, and servicing. In short, with a full-service embedded payments provider, you’ll have an expert team at your disposal who can help a few key people in your company to make embedded payments much simpler.
Myth 2: It takes a long time to embed payments in software
With the right team, you can embed payments faster than expected. It doesn’t have to take months. In fact, you can be up and running within just a few short weeks. The timeline depends on your team and your goals as a business. Our payments experts will work directly with you to address those needs and develop the plan that works for your business.
What’s most important is setting up the right embedded payment model for you and making sure you work with a provider who can grow with you as your needs change.
Listen to one of our recent podcast episodes to learn more about what to expect when implementing payment facilitation software.
Myth 3: It’s not worth the investment
One of the best things about embedded payments is that the resource investment required is relatively low. PayFac-as-a-service gives you more control over payments without the significant investment that becoming a full PayFac® requires. Once you’ve made the initial investment to embed payments, day-to-day activities for your payments operations manager can be focused on adoption and revenue generating activities.
And because embedded payments can be a great revenue generator, especially if your platform services an industry with large user and transaction volumes, you can quickly start seeing a return on investment (ROI).
In some cases, your payment revenue can surpass your SaaS revenue.
Myth 4: You can’t change your payments monetization model
Embedded payments should offer flexibility. You may opt for referral only when you’re first starting to monetize payments, perhaps progress to PayFac-as-a-service and eventually graduate to becoming a full PayFac if or when the time is right.
Of course, it might seem overwhelming to take on more responsibility with payments, but doing so also has benefits. At Payrix and Worldpay for Platforms, we’ve built our payments program to allow you to grow at a pace that’s just right for you or stay where you’re comfortable if it meets the needs of your customer base. Being able to “graduate” up the payments value chain gives your business the freedom to design and change your payments experience while closely supported by a team of experts.
Myth 5: It’s hard to move existing merchants to a new provider
People are creatures of habit, so getting merchants to switch to a new provider might be challenging. That’s why it’s important to get expert help with the best strategy based on your business.
Organization, planning, and communication are essential so that you can control the customer experience and limit any business disruptions. The right embedded payments provider will help you with this entire process, so you can keep your customers happy and maximize the ROI of your solution.
Implement the right payment model for you
Embedded payments may seem complicated at first glance, but in busting the myths above, hopefully we’ve helped you better understand how they can be implemented in your business with ease. Remember, embedded payments aren’t nearly as complex or as scary as they seem. Armed with this newfound understanding, you can confidently embrace the future of seamless transactions, leaving those misconceptions in the dust and building a new revenue stream in the process.
