ISOs and ISVs Team Up for Payments Growth

Building a payments strategy that scales means bringing together the reach of Independent Sales Organizations and the software depth of Independent Software Vendors, a combination the industry now sees as essential for growth.

Why the two sides need each other

More than 90% of U.S. small firms rely on ISV solutions for daily tasks, according to a recent analysis. That makes software the primary driver of payment adoption, leaving pure processing offers thin on value.

ISVs deliver the applications merchants run, while ISOs contribute payment expertise, distribution channels and support services. When the two collaborate, merchants receive a single, integrated experience that handles sales, finance and back‑office needs.

Many software providers focus on niche verticals but lack the sales force to push adoption. Conversely, sales organizations often have broad merchant networks yet miss differentiated technology. The partnership lets each fill the other’s gaps.

Five ways the partnership fuels growth

First, revenue streams broaden. By bundling software such as accounting tools or industry‑specific apps with processing, partners earn recurring fees beyond transaction charges.

Second, merchants gain more value. Integrated solutions can add point‑of‑sale lending, money‑movement features and other services that cover the entire customer journey.

Third, churn drops. When financial services sit inside the core workflow, merchants become more dependent on the platform, which tends to keep them longer.

Fourth, strengths complement each other. Software creators bring innovation and integration skill, while sales groups supply payment knowledge and established market routes.

Fifth, market demand is rising. Cloud‑based tools, AI and digital transformation efforts are pushing businesses toward vertical software, opening space for joint offerings.

Choosing the right payment partner

For a sales organization eyeing new verticals, the partner’s flexibility and support matter as much as technology. A partner that offers robust APIs, an integrated payments ecosystem and lending solutions can accelerate time to market.

One example is the suite that includes banking and money‑movement APIs, an integrated payments platform and the Avvance™ point‑of‑sale lending product. Such tools let partners launch quickly and expand revenue opportunities.

Experience matters, too. Over 1,000 integrated partners and 350 ISOs/MSPs indicate a proven implementation approach.

That said, the collaboration feels like two puzzle pieces that don’t quite match, but they still fit.

Historically, payment processors have tried to add software on top of their core services, often resulting in clunky experiences. In contrast, the current model flips that script: software leads, and payment expertise follows, creating a smoother, more merchant‑centric flow.

Companies that ignore this shift risk losing relevance as merchants continue to prioritize integrated solutions over stand‑alone processing.