In a market shaped by fierce competition, emerging technologies, and dominating customer expectations, B2B software companies have evaluated many angles of differentiation to keep the attention of their customers. Among the most recent strategies proving successful for software companies is Embedded Payments. In fact, a recent report from IDC estimates that by 2030, 74% of global digital payments will be processed through platforms owned by non-financial institutions, including software companies. Compared to other strategies to generate additional revenue streams, Embedded Payments offer a streamlined path for pulling in new income.
But there’s much more to Embedded Payments than their monetisation value.
What are Embedded Payments?
Embedded Payments are the integration of payment acceptance or payment processing into an existing software platform.
How can software companies embed payments?
Payment facilitation-as-a-Service (PayFac-as-a-Service)
What are the benefits of Embedded Payments?
We’ve touch upon a few benefits of Embedded Payments throughout this blog already, but let’s dive a little deeper into the advantages. Embedded Payments can be extremely rewarding (and lucrative) for software companies that embrace their potential, positively affecting things like the customer experience, brand stickiness, revenue, and more.
Gain greater control of the customer experience
Boost user acquisition and retention
Access valuable insights
Get dedicated support
Generate new revenue streams
Despite the known advantages to embedding payments, there is no shortage of Embedded Payments myths floating around. So, chances are if you’re thinking it, we’ve probably heard it. In fact, we’ve had many myth-busting conversations over the years with our software company customers and on our PayFAQ: The Embedded Payments podcast, discussing everything from security concerns to being locked into a single payments monetization model. Allow us to ease your mind and demystify Embedded Payments for you by reading our software payment myths blog post. We’d hate to see these common misconceptions hold you back from growing with Embedded Payments.
How do software companies make money with Embedded Payments?
Software companies are becoming increasingly more aware of the massive revenue opportunity that exists by monetising payments within their platform, but how are they making money with Embedded Payments?
In this blog 'Turn your transactions into profits with embedded payments", will give you clearer sense of where the revenue sharing opportunity lies for software companies who embed payments.
Why an Embedded Payments provider is a game changer for software companies
Software companies are adding Embedded Payments to their platform for a variety of reasons, including the ability to deliver a more seamless and desirable customer experience, grow revenue, and enhance security, just to name a few. But navigating the world of digital payments can be a tricky business, which is why partnering with an Embedded Payments provider is critical to success. Regardless of the Embedded Payments model that makes sense for your business, a strategic partner will provide you with the clear roadmap to meet (and exceed) your goals.
The flexibility of Embedded Payments has definitely made an impact on the lives of families using HubHello. We were able to create a seamless experience for the end user because of the modern API solutions. They’re really easy.
CEO | HubHello
Take HubHello, a leading early childhood education and care platform in Australia. HubHello uses Worldpay for Platforms to embed payments directly into their software. The solution gave HubHello the benefits of a full payments facilitator without the time and compliance burden of building and maintaining the infrastructure in-house. David Salajan, CEO of HubHello, said, “The team was easy to talk to, and from the technical front, they were willing to adopt their technology to suit our needs, which was very attractive to us.”
HubHello added Worldpay for Platforms in order to simplify payments for families and streamline collections for services. The platform supports more than 6,000 early childhood services and over 200,000 families nationwide, and the integrated payments experience removed paper direct debit forms and manual data entry, replacing them with a seamless, fully online flow. Families can update payment methods, make payments, and manage details via web or mobile, while services benefit from automated collections and improved cash flow.
Since launching the integration, HubHello has expanded its use of payments beyond childcare fees. Their feedAustralia program can buy groceries for services, and a new shopping experience will let services and families purchase learning resources and supplies directly through the platform. David added, “The tools that you get right off the shelf – billing, maintaining client records, etc. – are plug-and-play ready to go.”
For even more real-life Embedded Payments success stories
How to implement an Embedded Payments strategy and what to expect
Embedded Payments can open doors for software companies, delivering opportunities to:
- Generate new revenue streams
- Take control of their payment experience
- Create greater long-term value for their customers
Implementing an effective Embedded Payments strategy begins with understanding the options and identifying the model that best aligns with your business goals, customer needs, available resources, payments knowledge, and appetite for risk and responsibility.
We’ve covered a lot in this blog post. So, if you walk away with anything let it be this. Embedded Payments provides software companies with easy transactions and potential profit boosts—all in one place.
Have we piqued your interest? To learn more about the different models of Embedded Payments and discover which model might be best for your current and future growth goals, check out our eBook: A complete guide to Embedded Payments.
The Complete Guide to Embedded Payments
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