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Features

2016 ISV Study

First Annapolis recently surveyed nearly 400 ISVs
regarding their relationships with payment partners.

ISVs and Payments by the Numbers

51% 47%

ISVs that integrate payments into ISVs that have an
their o ering acquirer-agnostic strategy

Despite developing software for which Of the ISVs that integrate payments, nearly
payments are relevant and serving card half are explicitly not aligned with an acquirer
accepting end users (75% of respondents (78% of ISVs utilizing an independent gateway
developed solutions for retailers, restaurants, reported a strategy of acquiring agnosticism).

and services), 49% did not integrate 63%
payments into their software.

65%

ISVs that indicated low pricing to ISVs that consider transparent
merchants was a top 3 criteria for pricing a top 3 consideration in

selecting an acquirer selecting an acquirer.

ISVs focus on end user experience. ISVs No doubt drawing from transparent discount
indicated that acquirer customer service, rates in the payment facilitator model, ISVs
similarly focused on simplicity and transparency.
reliability,and ease of integration also
ranked highly. 65%

51%

ISVs that receive compensation ISVs that indicated compensation
from their acquiring partner from the acquirer was or will be a top

Only half of ISVs received compensation from 3 criteria for selecting an acquirer
acquirers. Of those receiving compensation,
The emphasis on compensation, historically and
57% do so in the form of a revenue share. prospectively, indicates economic sharing from

acquirers is of rising importance.

Sources: First Annapolis Consulting proprietary research.

For more information or to receive a summary of the research please contact: Emily Boese,Senior Manager, Emily.Boese@FirstAnnapolis.com; Chris Dickey, Consultant, Chris.

U.S. Headquarters Three Park Place, Suite 200 l Annapolis, Maryland 21401 Keizersgracht 313-I l 1016 EE Amsterdam l The Netherlands
2016 ISV Study P:+31 (0)20 530 0360

42 © 2016 First Annapolis Consulting, Inc.

Reprinted with permission