The Software Provider Guide to Embedded Finance

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Let's dive into the benefits of white label payment processing for software platforms.

The global payment processing solutions market is expected to reach more than 192 billion dollars by 2030.

Software platforms are increasingly looking at how they can capitalize on payments.

If your software platform integrates with payment providers today, you can create additional value for your customers and improve their user experience by embedding white label payment processing.

White label payment processing enables software platforms to sell branded payments capabilities developed by another company.

Essentially, a software platform can brand and customize the entire payment experience for its clients.

Neither the end user nor the platform’s clients see or interact with the facilitator directly.

By using white label payment processing, software platforms can own their payments without developing and taking on the risk of in-house payment processing solutions, which are time-consuming, expensive, and complex.

Instead, you can work with a payments partner that offers white label embedded payment options to seamlessly integrate payment processing capabilities directly into your existing infrastructure.

This can lead to an improved customer experience and several opportunities for growth.

White label payment processing offers several benefits for software platforms.

According to our survey, "The State of Embedded Payments," respondents cited a number of benefits for embedding white label payments.

Gaining an advantage over the competition is a significant benefit for software platforms that decide to offer white label payments.

This additional functionality makes your platform more robust, leading to increased value.

White label payments are a competitive advantage that makes your platform more appealing to investors and clients.

Software platforms that sell payments to their clients get a piece of every transaction their clients run through the platform, on top of the subscription and service fees for their software.

Data suggests that the global white label payment gateway market is expected to grow at a compound annual growth rate of 16.

43 percent between 2023 and 2028, highlighting the financial potential for organizations.

Businesses are always looking for comprehensive solutions that cater to their diverse needs.

Offering white label payment processing can be a powerful differentiator, helping software platforms attract new clients looking to get the most value with the fewest vendors.

The payments revenue stream increases the revenue software platforms can make off each client.

According to JP Morgan, software providers that embed white label payments into their platforms see up to a five times increase in value per customer.

Software platforms that provide white label payment processing tend to enjoy longer client tenures.

By providing a convenient, robust solution, clients can reduce their operational costs, streamline processes, and enhance customer satisfaction, leading to higher client retention and loyalty.

In fact, McKinsey found that 70 percent of clients are willing to pay more for solutions that simplify their operations and provide a stellar customer experience.

With increased revenue streams, client acquisition, value per client, and client tenure, investors and potential buyers will view your business as more valuable.

Bain and Company found that software vendors have the potential to address 35 trillion dollars in payments by integrating payments into their platforms.

To reap the benefits of white label payments, you need the right payment solution to support them.

Your payments partner can have a substantial impact on the quality of service, security, and overall customer experience you are able to offer.

Consider these factors when selecting a white label payment gateway: Choose a gateway with a straightforward and well-documented API.

The easier it is for you to implement, the sooner you can offer payment processing services to clients.

Make sure your payments partner can help you onboard and verify your clients quickly so they can easily begin to accept payments.

If you already have clients accepting payments on your platform, ensure they can help you migrate your portfolio so your customers’ business won’t be interrupted by a vendor change.

Ensure the payment gateway adheres to industry-standard security protocols, including PCI DSS compliance.

This ensures client information is protected from cyber attacks or breaches.

Look for a white label payment gateway that allows for extensive customization and branding options.

It should seamlessly integrate with your platform and allow you to maintain brand identity throughout the entire payment process.

Ensure the gateway supports a wide range of payment methods, including credit cards, debit cards, digital wallets, and alternative payment options.

Evaluate the pricing structure, including transaction fees and any additional costs associated with using the gateway.

Compare these fees with the value it brings to your business to ensure a favorable cost-benefit ratio.

Even if your software platform doesn’t have a global presence, you may want to in the future.

Look for a payment gateway with the ability to help you scale for your own business and your clients.

White label payment processing is a strategic option for software platforms to gain a competitive advantage, create new revenue streams, and enhance their valuation.

Embedding white label payments into your platform could be the key to unlocking significant growth.

With BlueSnap Embedded Payments and Payfac as a Service, you have control over your payment offering.