Choosing the Right Embedded Payments Partner: Key Considerations for ISVs to Maximize Success and Profitability

by Kelley Ganas | Mar 6, 2025

The right payment processor can enhance your software’s value proposition, improve merchant adoption, and create new revenue streams. But with so many options, how do you choose the right embedded payments partner?

Here are the key considerations every ISV should evaluate when selecting a payment processor.

Frictionless Merchant Pricing and Sign-Up Process

A long, complex onboarding process can be a deal-breaker for ISVs and their merchants. A payment partner should offer a seamless sign-up experience, transparent pricing, and minimal manual intervention for new merchant activations. For merchants, cash flow isn’t just important, it’s everything. Delays in receiving funds can disrupt operations, limit reinvestment opportunities, and even put businesses at risk of failing. Many small business owners operate with tight margins, meaning every transaction counts. If merchants have to wait days or even weeks to start accepting payments, they may abandon the process altogether. The faster you can get them their funds, the happier they’ll be.

“Merchants expect the funds processed from a card to be deposited into their bank accounts as quickly as possible.” (PayNation, 2024)

A frictionless sign-up experience ensures merchants can start processing transactions quickly, leading to faster revenue for ISVs. BOLD ensures that ISVs and their merchants can focus on growth without complications.

Support for Multiple Payment Methods & Future-Proof Solutions

Beyond onboarding, ISVs also need to think about how their merchants accept payments. Customers expect to pay how they want, whether it’s credit cards, debit cards, digital wallets, or virtual cards. However, businesses today are also exploring alternative payment solutions such as ACH, bank transfers, real-time payments (RTP), and Buy Now, Pay Later (BNPL) services. ISVs must ensure their embedded payments partner can accommodate a wide range of payment preferences, including emerging payment methods, to meet evolving customer expectations.

“According to a recent Forbes survey, 53 percent of respondents use digital wallets more often than traditional payment methods, so it’s important to choose a payment processor that supports virtual card capabilities.” (PayNation, 2024)

When evaluating a payment processor, ISVs should look for a partner that supports all of their unique and complex use cases and payment flows. Including but not limited to attended and unattended self-service, mobile and softPOS applications, plus pay-by-app, e-commerce, recurring payments, and broad omnichannel payment flows. The processor should also offer a seamless integration process to ensure merchants can provide a smooth checkout experience across all channels. Future-proofing is critical; ISVs should choose a provider that continuously innovates, ensuring compatibility with emerging technologies such as tap-to-pay and embedded finance solutions. By selecting a payment partner with broad payment method support and a commitment to innovation, ISVs can enhance merchant adoption, reduce churn, and stay competitive.

Transparent Pricing & Revenue Share Opportunities

Pricing models can make or break a partnership. Look for a processor that offers clear, competitive pricing and revenue share models that help maximize profitability. Unexpected fees or complex rate structures can create frustration, erode margins, and make it difficult to scale.

“Make sure your payment processor explains the total cost of payment processing, including interchange fees, transaction fees, monthly fees, chargeback fees, and sometimes also less obvious costs, such as membership fees, set-up fees, and Payment Card Industry (PCI) compliance fees.” (PayNation, 2024)

Beyond transparency, a strong revenue share program can significantly enhance an ISV’s profitability. Payment processing should not only be a necessary function of your software but also a strategic revenue driver. When assessing potential partners, ISVs should evaluate the percentage of revenue share offered, how payments are structured, and whether real-time transaction-level reporting is available to maintain full financial visibility.

The importance of transaction-level transparency isn’t just a best practice, it’s why BOLD Integrated Payments exists today. In 2009, our Chief Strategy & Quality Officer, Gary Liu, founded BOLD after discovering a major gap in his own payment processor’s reporting system. Instead of detailed, transaction-level insights, he was only provided with aggregated data, making it impossible to audit charges properly or understand the true cost of payment processing. Recognizing that ISVs and merchants alike need clear, actionable financial data to run their businesses effectively, Gary built BOLD with transparency as a core principle, ensuring that every partner has access to real-time, transaction-level reporting.