Worldline, a leader in payment services, has unveiled FlexPricing, a new initiative aimed at independent software vendors (ISVs). This offering introduces innovative options for ISVs to structure their pricing strategies, potentially increasing their revenue streams. By leveraging FlexPricing, software vendors have the chance to charge percentage fees on bank transfers and implement various custom fees, streamlining their billing processes through Worldline.
In the past, payment services for ISVs largely revolved around static pricing models, limiting their ability to adapt to dynamic market demands. Previous reports have shown a growing trend among ISVs and marketplaces to integrate embedded financial products. With approximately 65% of ISVs without payment capabilities planning to adopt such products, the introduction of FlexPricing appears timely. This trend reflects a broader shift towards enhancing financial product offerings among ISVs worldwide.
How Does FlexPricing Benefit ISVs?
The introduction of FlexPricing allows ISVs to capitalize on significant revenue opportunities by charging percentage rates on Electronic Funds Transfer (EFT) and Automated Clearing House (ACH) transactions. Moreover, ISVs now have the flexibility to customize fee structures, such as introducing annual or integration fees tailored to their business models. Worldline’s management of billing processes further reduces operational burdens for companies, offering a streamlined and consolidated invoice experience for clients.
Why is FlexPricing Ideal for Integrated Payment Platforms?
FlexPricing is particularly beneficial for software platforms that have embedded payment solutions. ISVs handling bank transfers or serving membership, payroll, and subscription-based clients are well-positioned to leverage this feature. By utilizing FlexPricing, these partners have a significant potential to increase their revenue-sharing amounts, with some estimates suggesting a tripling in revenue potential.
Research from PYMNTS Intelligence and Carat from Fiserv highlights that more than 80% of ISVs anticipate an increase in revenue share from payment acceptance in the coming year. This aligns with the growing importance of embedded finance for innovation among ISVs, with sectors like logistics and wholesale trade recognizing its role in customer satisfaction and competitive growth.
Embedded finance, including features such as loyalty programs, buy now, pay later options, and business credit, is increasingly pivotal for ISVs. The integration of digital wallets has also become critical for enhancing payment acceptance capabilities, underscoring the strategic role of embedded finance in modern business operations.
FlexPricing represents a strategic move by Worldline to cater to the evolving needs of ISVs. By enabling flexible pricing and easing billing complexities, this offering supports ISVs in optimizing their revenue models. As the payment landscape continues to shift, tools like FlexPricing allow ISVs to remain agile and responsive to changing market conditions. For ISVs, understanding and adopting such tools is crucial to maintaining a competitive edge in the rapidly evolving financial ecosystem.
