Do you fear that embedding payments will be too expensive? Too hard? Too time-intensive? Don’t worry. There’s a way to drive more value and more revenue without having to invest in substantially more overhead.
If you’re just beginning your Embedded Payments journey and need to understand more about the different payment models available for software companies, read How Embedded Payment relationship models have evolved to get a comprehensive overview of the three most viable options.
If your software company is looking to move beyond the referral model, there are a few things to consider. PayFac®-as-a-service allows software companies to earn a bigger slice of revenue from payments and control the merchant experience without the underwriting and compliance risk and operational requirements of becoming a full PayFac®.
Now that you’re considering PayFac-as-a-service for your company, there are 5 questions you should be considering to inform your strategy.
1. Are you looking to control more of your payments process to deliver a better customer experience?
When you manage your payments under the integrated referral model, you have limited control over your customer’s onboarding process and payments experience. This can increase the risk of your customer having a disjointed payment experience. With PayFac-as-a-service, you have the option to use a white-labeled solution that operates cohesively within your platform. When you control the entire experience, from marketing to selling to pricing, and onboarding, you create customer stickiness and enhance the user experience.
2. Do you have existing merchants processing payments within your platform?
If a substantial amount of your customers process payments regularly, there’s potential for your company to capture more of that revenue by bringing payments inside your platform. Embedding payments provide multiple benefits to your software. The value-add of offering payments in your software enhances the overall experience for your customers. They get the benefit of a service that helps them run their business better and you get the benefit of generating more loyalty leading to a more profitable customer base.
3. Are you monetizing payments within your platform?
Many software companies start with a integrated referral model for payments which means you send your customers to your payment processor of choice. The payments partner handles everything related to setting up payments for your customers and they control the entire experience. Your customers are working directly with the payments company and many software companies love the referral model, but if you’re looking to build more value into your software, it might be time to move to a new model.
By moving to PayFac-as-a-service, you can build a new revenue stream for your business and be the face of the payments experience. Taking control of payments will allow you to brand the experience in-line with the rest of your software. You’ll also take on many of the functions the payments partner was doing for you so it’s important to be prepared to take on more responsibility.
4. Can your current sales and support staff assume additional but limited payment operation responsibilities if trained?
Implementing an Embedded Payment solution shouldn’t be an administrative and resource-intensive headache for your company. With Payrix Pro, Payrix’s PayFac-as-a-service offering, just two to three people within your company are required to implement and manage the solution. These people are typically from across your technical, customer experience, and payments commercialization teams. And because these teams likely already operate in your business, you can start capturing revenue from payments without additional headcount. Payrix’s payment experts are available every step of the way, ensuring integration and launch go smoothly and everyone has the resources they need to make your Embedded Payments solution a success.
5. Are you open to working with payments experts to develop payment strategies that increase adoption across your user base?
Every software company is different, so your payment strategies should be different too. Once you’ve mapped out your customer’s payment needs, you’ll need to work with a payment expert to understand the best way to implement PayFac-as-a-service in your business. By working with a white-glove service provider who allows you to tailor the solution to your unique needs, you’ll be set up for success and get the best return possible on your investment now and into the future.
Prepare for your PayFac-as-a-service journey with Payrix
There’s a lot to think about when you’re considering changing your payments business model. However, with the right partner at your side, you’ll have the expertise you need to build a new revenue stream that doesn’t require large overheads or heavy administrative and compliance burdens. Payrix Pro, our PayFac-as-a-service offering, helps software companies across a range of industries to gain greater control and visibility over their onboarding and payments process without the resourcing requirements of becoming a full PayFac®.
Click here to learn more about your options with PayFac-as-a-service and how Payrix can help. But if you’re ready to be a full PayFac®, we can help too.
