According to McKinsey, digital payments around the world are increasing, growing at a compound annual rate of 13 percent and spanning the range of payments, from credit and debit cards to online and touchless card-present methods. This growth, and the potential to increase independent software vendor (ISV) and value-added reseller (VAR) recurring revenue, should warrant making digital payments a part of your growth strategy. And your payment partners can help you do it successfully.
How Payment Partners Help Your Business
Your payment partners help your business provide merchants with streamlined solutions to accept all digital payment types while managing back-office operations across channels efficiently and profitably. But you can leverage your relationships with payment companies to benefit your business in additional ways.
- New revenue streams
With the right payment partner, you’ll receive a competitive percentage of the fees charged on each transaction. While your share of the fees is just a few cents per transaction, when the volume of transactions your clients process increases, you’ll build a substantial passive revenue stream that can invest in your growing business.
- Payments and industry expertise
Your clients see you as a trusted advisor, but it can be challenging to have all the answers all the time. Leveraging your payment partner’s expertise allows you to focus on what you do best while relying on their knowledge to provide your clients with the payments information they need. Additionally, you’ll benefit from being the first to know current and future trends in payment technology. You can then apply this to improve your own products, meet future demand, and gain a competitive edge for both you and your clients.
- PCI compliance and fraud protection
The variety of options in payment choice increases both the threat of fraud and the complexity of complying with security standards. By leveraging payment partners’ expertise, you can ensure that your clients meet regulations regarding how businesses accept, process, store, and transmit payment data while mitigating the risk of fraud.
- Collaborative marketing and promotions
The best payment partners are committed to helping you grow your business – and not just from payment residuals. Look for partners that elevate your brand by promoting your business within their ecosystem. Additionally, ideal partners will have the resources to help you market, sell, and deliver digital payment solutions.
- Stickier relationships
Your expertise and software solutions, coupled with payments, give merchants the tools they need to craft in-demand customer experiences and maximize revenues and profits. As a total solution provider that delivers value, you’ll build stickier relationships and experience less client churn.
Foster Mutually Beneficial Relationships
While there are many benefits to leveraging a payments partner, the market is becoming more saturated and competitive. With payments companies continually contacting you to discuss partnership, it’s essential to know what to look for in a partner. Insist on a partner that:
- Constantly innovates: Look for a payments partner that continually evolves, adapts, and adds technology as behaviors and demands change.
- Delivers exemplary customer service: The service that payment partners provide reflects on your business. When merchants encounter any issues with processing payments, know that you and your clients will reap the benefits of their service experience. Ensure that your provider’s service aligns with what you strive to deliver.
- Expands your network: The opportunity to connect with other partners in the ecosystem will allow your business to grow in both knowledge and revenues. As relationships develop between your business and other partners in the network, there is potential to explore new and lucrative business initiatives.
- Invests in your success: Your partner should communicate beyond the “plug-and-play” mentality of payment aggregators. The best payment providers will be great at building relationships and keeping you abreast of industry trends, product updates, and resources for selling and servicing solutions.
- Helps you market your offerings: Your payments partner should be willing to discuss how it will support your go-to-market strategy and create a plan that benefits you both.
- Provides you and your clients with choices: The best payment partners offer the options consumers demand. The more variety – and willingness to adapt the product to future demand – the more attractive and profitable your total solution offering will become for your clients. Additionally, a processor-agnostic and hardware-agnostic platform will give you and your clients the freedom to deploy the optimal solution.
The Road to Mutual Success
SVs and VARs who want to stay ahead of the curve, remain competitive, enhance their brand, and increase profits must form relationships with payment partners that lead to long-lasting success.
Ready to learn about a payment partnership that will help you gain an edge? Contact Datacap Systems.
