John Newton – Vice President of Sales, Strategic Partnership Channel, First American Payment Systems
If one-to-many isn’t part of your ISO’s growth strategy, it should be.
The days of selling on price and free equipment are in the rearview mirror. Product parity has leveled the playing field, with market compression and lower pricing margins making it even harder for ISOs to turn a healthy profit.
Integrated Software Venders (ISV) are changing the payment landscape by incorporating payments into a wide variety of software and hardware solutions. In most cases, when working with ISVs, integrated payments accentuate the value proposition of the software itself.
ISOs that are successfully winning against flat production and attrition are doing so by changing their sales process and targeting the ISV space. This approach provides additional revenue opportunities for both the ISO and the ISV and increases the value of the relationship to the merchant.
How are ISOs changing their sales strategy?
It starts by changing the focus on who to target. The ISV becomes the prospect in a one-to-many sales strategy. When payment solutions are integrated into an ISV’s software program, ISOs enrich their pipelines and close more deals.
Each time the ISV sells their primary product with an integrated payment solution, your ISO gains a new merchant utilizing the ISV’s sales personnel and resources. This allows entry into new markets and the ISV becomes a force multiplier by exponentially expanding your reach.
What do ISOs stand to gain from this approach?
Instead of relying on a sales force that specializes in selling individual merchant accounts, you can leverage a software sales force that reaches a multitude of merchants with a single touch.
ISOs currently following this approach are breathing new life into their organizations, marked by sustainable growth in revenue and new merchants. With this strategy, all parties benefit from an integrated solution. ISOs supply the value of payments expertise, ISVs gain value and new profit centers, merchants gain efficiencies and consumers enjoy a seamless experience at the point of sale.
What should an ISO look for to get in the ISV game?
Effective ISV integrations require active collaboration and flexibility between the ISV, ISO, and processor. It’s essential for the ISO to have the right marketing plan, tools and support to partner with the ISV. The ISV must have the right integration tools for payments, such as Rest API, and for reporting, such as webhooks. It’s imperative that all parties be in sync with communication, expectations and timelines to ensure a successful partnership.
Targeting ISVs can be extremely lucrative and impactful in growing your ISO. However, choosing the right processor is the first and arguably most important key to success. Choose a partner that has all of the technology solutions and APIs to support you, is sophisticated enough to customize a solution that fits your ISV integration needs, and a partner that can draw on deep experience to get your ISV opportunities off the ground quickly.
To learn more about a partnership with First American, contact firstname.lastname@example.org.