How Do You Integrate ISV Payments into Your Platform?

Imagine building a SaaS platform, like an ERP, CRM, or marketplace, and allowing users to accept payments directly within your product. That’s where ISV payments come into play.

ISV payments, or payments integrated by Independent Software Vendors, let software platforms process transactions without sending users to outside payment gateways. It means payments happen right inside your platform.

This is important because it makes things easier for customers, simplifies financial processes, and can create new ways to earn revenue. Users stay on your platform, transactions are smoother, and the overall experience improves.

What are ISV Payments?

ISV stands for Independent Software Vendor. Simply put, an ISV is a software provider that builds applications for businesses or consumers. When these platforms integrate payments directly into their software, they become ISVs that can handle transactions on behalf of their users.

By embedding payment functionality, these platforms can allow users to pay, subscribe, or complete purchases without leaving the app. Integrated payments can also support B2B transactions, enabling businesses to send and receive payments, such as invoices or recurring fees, directly within the software they already use. This creates a seamless experience and keeps customers engaged within the platform.

Examples of ISV Payments

• A POS software acting as an ISV by adding card acceptance directly within its system.
• A gym management app embedding subscription billing to allow members to pay seamlessly through the app.
• A marketplace offering in-app checkout, enabling buyers to complete transactions without leaving the platform.

Why Integrate ISV Payments?

• Enhance user experience: Customers can complete payments smoothly without leaving your platform or having to switch to another app, making transactions faster and more convenient.
• Unlock recurring revenue: Subscription-based payments and automated billing can be collected directly within the software, helping you generate consistent revenue while reducing manual effort.
• Increase platform stickiness: When users can complete all tasks, including payments, within your platform, they spend more time engaging with your services and are more likely to return regularly.
• Improve data insights: You can monitor and analyse customer transactions in detail, gaining valuable insights into payment behaviour and trends to make informed business decisions.

Razorpay’s ISV program empowers SaaS platforms, marketplaces, and vertical software companies to monetise payments. By integrating Razorpay, businesses can handle card, UPI, and wallet transactions, manage subscriptions, and track all payments in one place, making the process simpler for both the platform and its users.

Partner with Razorpay to turn payments into a revenue stream while ensuring your users enjoy a seamless checkout process.

How Do You Integrate ISV Payments into Your Platform?

• Define your platform’s payment needs: First, decide what kind of payments your users will make. Will they pay once for a service, subscribe on a recurring basis, or make payments from other countries? Knowing this helps you choose the right setup.
• Choose a payment provider: Look for a provider that supports ISV integrations, such as Razorpay. A good provider will offer tools specifically for software platforms, making it easier to manage payments within your app.
• Use APIs or SDKs to embed payment flows: Once you have a provider, you can use their Application Programming Interface (APIs) or Software Development Kits (SDKs) to add payment options directly into your platform. This means users can transact without leaving your app.
• Configure compliance and onboarding: Make sure you complete all necessary KYC checks and set up proper settlement processes. This keeps your platform secure and meets legal requirements.
• Monitor transactions with real-time dashboards: After integration, keep track of payments, settlements, and user activity in real time. This helps you spot issues quickly and manage your finances smoothly.

Razorpay makes this process easier with developer-friendly APIs and SDKs. You can test your payment flows in a sandbox environment before going live, which reduces mistakes and ensures a smooth experience for users. The fast merchant onboarding also allows your platform to start processing payments quickly, so your users can pay without delays.

Benefits of ISV Payment Integration with Razorpay

For Platforms

• White-labeled or co-branded payments: Platforms can offer payment solutions under their own brand or in collaboration with Razorpay. This ensures a consistent, professional experience for users while maintaining the platform’s identity.
• Earn commission on transactions: By processing payments directly through your platform, you can generate additional revenue from each transaction, turning payments into a new income stream.
• Faster go-to-market with pre-built APIs: Razorpay provides ready-to-use APIs that allow platforms to integrate payment functionality quickly and efficiently. This reduces development time, lowers costs, and helps you launch new features faster.

For End-users

• • Embedded, frictionless checkout: Customers can complete transactions directly within the platform without being redirected to external gateways. This reduces drop-offs and makes payments faster and more convenient.
  • Multiple payment modes: Users have the flexibility to pay via UPI, credit or debit cards, wallets, or Buy Now Pay Later (BNPL), ensuring they can choose the method that suits them best.
  • Secure, PCI DSS-compliant transactions: Payments are fully secure and adhere to global industry standards, protecting sensitive customer data and giving users confidence while transacting.

Common Challenges in ISV Payment Integration

• Compliance and RBI regulations: Platforms must follow all rules set by the Reserve Bank of India to ensure payments are secure and legal. Meeting these compliance standards can be complicated, especially when handling large volumes of transactions.
• Merchant KYC onboarding: Verifying merchants and completing their KYC is often time-consuming. Platforms with many merchants can face delays and errors if there is no streamlined process in place.
• Managing multiple payment modes: Modern platforms need to support various payment methods such as credit and debit cards, UPI, wallets, and sometimes international payments. Coordinating all these options while keeping the user experience smooth can be challenging.
• Settlement reconciliation: Ensuring that all transactions are accurately recorded, processed, and settled with merchants requires careful tracking. Mistakes in reconciliation can lead to financial discrepancies and affect trust.

Razorpay helps platforms overcome these challenges with practical solutions. It offers ready-to-use APIs that simplify adherence to RBI regulations and features efficient partner onboarding to speed up merchant KYC verification. Additionally, tools like “Smart Collect” enable the smooth handling of multiple payment modes within a single system, while an analytics dashboard delivers detailed, real-time insights into transactions and settlements, ultimately reducing errors and saving time.

Best Practices for ISV Payment Integration

• Map payment needs to user journeys: Take the time to see how your users move through your platform and when they need to make payments. By matching payment options to their actions, you make it easier for them to pay at the right moment, which makes the process more convenient and natural.
• Offer multiple payment options: Give your users the choice to pay in different ways, like UPI, credit or debit cards, wallets, or Buy Now Pay Later. Letting them choose their preferred method makes the experience flexible and comfortable for everyone.
• Keep UX simple and frictionless: Focus on designing the payment experience so that users can complete transactions quickly and easily. Avoid extra steps, long forms, or redirects to other sites, so users can finish paying smoothly without confusion.
• Leverage analytics to optimise flows: Keep track of how people use your payment system and study the data. This helps you find where users face problems or delays and allows you to improve the process so that payments become faster and easier over time.
• Razorpay supports ISV integration with a sandbox environment for testing and detailed developer documentation. Platforms can experiment, validate workflows, and ensure smooth deployment before going live.

FAQs

What does ISV mean in payments?

In payments, it refers to software platforms that integrate payment processing directly into their product, allowing users to complete transactions without leaving the platform.

How do SaaS companies benefit from embedding payments?

Embedding payments allows SaaS platforms to let users transact directly within the app. This simplifies billing, speeds up transactions, improves customer satisfaction, and opens new revenue opportunities through integrated payment features.

What regulations apply to ISV payments in India?

ISV payments in India must comply with the Reserve Bank of India (RBI) guidelines. Platforms need to ensure secure handling of payment data, complete merchant KYC, follow transaction monitoring rules, and adhere to settlement and reporting requirements

Can Razorpay help with onboarding ISVs quickly?

Yes. Razorpay offers partner onboarding tools that simplify and speed up the merchant KYC process. This allows platforms to integrate ISV payments quickly, start processing transactions faster, and provide a smooth experience for their users.

What revenue models can platforms use with ISV payments?

Platforms can earn through transaction fees, subscription charges, or a combination of both. Some platforms may also offer premium payment features for added value, creating multiple revenue streams.