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Navigating Payments

Does your company have software that processes transactions that leaves you wondering about becoming a payments provider?

Contrary to what many payment experts will say, there are a variety of ways to monetize payments with differing models, each with their own set of rules/regulations, risks, and rewards. The Strawhecker Group (TSG) can help clients identify and assess needs and provide support, such as:

  • How to become a payments player
  • Payments education
  • Benchmarking data
  • Revenue and pricing strategies
  • Risk/Underwriting review and compliance audit
  • Operational review and audit
  • Legal, compliance, and audit advisory
  • Strategic roadmap (sponsors selection, RFP)
  • Supplier RFP, vendor recommendations
  • Technology audits and gap analysis

Read on to see how TSG has guided hundreds of software companies through expertise, industry contacts, and comprehensive data. Also, download a brief case study about an ISV that generated millions of dollars in recurring revenue.

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Drive Growth Through the Monetization of Payments

The continuous adoption of integrated software solutions among business owners has created a large opportunity for independent software vendors (ISVs). Effectively implementing payment processing capabilities can ultimately allow ISVs to monetize payment volumes through their platform, which helps drive revenue and increase overall market valuation.

Expertise

TSG has serviced leading software companies and is well positioned to build-out your go-forward plan while helping you avoid barriers to entry. TSG can assess your current situation, review relationships, and develop a roadmap to your financial and operational objectives.

Industry Contacts

TSG knows the providers and can pin-point the appropriate partner to create a cohesive solution for you and your customers. Blaze a new trail with an experienced guide that will reduce complexity, speed up implementation, and maximize your investment.

Comprehensive Data

TSG’s AIM platform provides access to dynamic market data to drive pricing strategies, understand the competitive landscape, and achieve higher profitability.


Monetization Models

As software companies look to monetize their payments, implementing a payments monetization model is a decision that should be carefully planned and evaluated. ISVs must first determine their risk tolerance and the amount of resources they are willing to dedicate to such a pivotal undertaking before considering a single model. Download The Four Models of Payment Monetization to learn more.

Referral Model

The referral model is perhaps the most commonly executed model as it is the simplest to implement, but it is also the least lucrative. Under this model there are very few regulatory requirements, liabilities, and close to no resource requirements on the side of the ISV.

Retail ISO

For ISVs looking for a bit more control of their client’s experience, becoming a registered retail ISO is a more attractive option, from a financial perspective. This model has drastically higher upside from the referral model, but also comes with increased responsibilities, resources, and infrastructure required.

Payment Facilitator

This model requires in-depth understanding of the payment’s ecosystem and chain of risk. ISVs attempting to successfully implement this model should be prepared to make substantial investments into technology and talent to support such a significant undertaking. 

Wholesale ISO Model

The wholesale ISO model is very similar to the payment facilitator model, with a few distinct differences. This model brings full fiscal liability, compliance with data security standards, and full support of sales, underwriting, fraud, and more.


Case Study: Revenue Driven Payments

An ISV processed billions of dollars through its solution every year and wanted to drive revenue in payments. The company, which had no experience in payment processing, wanted to provide an integrated payment solution that would provide a seamless customer experience, increase tenure, and provide additional revenue opportunities.

Complete the form to download the brief case study to understand the process TSG used to guide the ISV and how it turned into millions of dollars in recurring revenue.

Let's Talk About Monetizing Payments

Please email or call 402.964.2617 to discuss with TSG today. Based on your firm’s needs, TSG can provide actionable insights to maximize the benefits of integrated payments among software solutions.