Payments as a growth strategy

Steven Velasquez, Senior Vice President and Head of Partner Business Development
U.S. Bank | Elavon

As the worlds of technology and financial services converge, the pace of innovation is increasing exponentially. The advent of AI, cloud-based, headless architecture, and ‘everything-as-a-service’ presents a challenge to ISVs looking to adapt to a rapidly changing ecosystem and remain competitive in a crowded marketplace. So, how can you future-proof your business for scalable growth and differentiate yourself from the competition? Let’s take a look.

Changing market dynamics

Developing a high-quality software solution that addresses specific market problems is fundamental, but reaching a wider audience, scaling your operations, and optimizing your revenue potential often means partnering with technology providers that can provide additional value. Integrating payments is one such use case. However, simply offering payments within your software solution has become table stakes. Beyond offering payment processing functionality, ISVs need to embed more value throughout the payments lifecycle to provide a seamless, and connected, end user experience.

Whether it’s offering flexible lending solutions via API integration or providing alternative payment methods, embedded finance means increased revenue streams, stronger company valuations, and stickier relationships with your customers. In fact, embedded finance is outpacing ISV market growth. By 2030, embedded finance will account for $320 billion in revenues worldwide.[1] ISVs that understand this, and take advantage of payments, banking, and money movement capabilities set the stage for their success.

Understanding vertical use cases

Banking and money movement APIs enable ISVs to rapidly build and test functionality to address, and exceed, quickly changing marketing expectations. In a general sense, it can mean managing same-day ACH transactions, sending real-time payments/disbursements, originating check payable requests, and accessing important account information to move money.

Of course, how these APIs add value is dependent on your industry and the market challenge you are trying to solve. For example, a healthcare software solution’s main goal may be to streamline revenue cycle management and automate time-consuming and arduous manual processes. Imagine the additional value provided to the end user with embedded FBO functionality. The ISV can now provide a secure, digital, and seamless process for insurance claim disbursements.

In the home services vertical, you may want to offer your merchants the ability to offer flexible lending options for large ticket home improvement purchases. An integrated point-of-sale lending solution provides financing options for consumers while providing instant merchant funding – all while providing you with an additional revenue stream and helping your merchants generate more sales. It’s win-win.

Putting it all together – U.S. Bank | Elavon

Backed by the strength and stability of U.S. Bank, Elavon can provide the best of both worlds – the financial services infrastructure of one of the country’s most established banks and the agility needed to navigate the competitive software industry and constantly evolving payments industry. Whether you’re new to the industry or a seasoned ISV, we’ll help you build your long-term strategy. Decades of experience working with partners has enabled us to develop an exceptional implementation, training, and incubation experience that enables you to achieve your maximum potential as a partner with us. It's why more than 1,000 integrated partners, 1,700 financial institutions and 350 ISOs/MSPs trust us to grow their business. Find out what’s possible. Call us at: 800.725.1243.