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Education

Why small merchants should

invest in seamless payments

from the platform itself. Poorly integrated payments can
mean forcing users to create an account, displaying an
unclear UX interface, or offering payments on one chan-
nel but not another. Thus, for example, a customer may
browse a local boutique's cumbersome website for a birth-
day gift but grow frustrated and opt to shop on Amazon
instead.

Regardless of how simple payment processing may appear
to end users, it's much easier to create a poorly integrated
payment offering than a seamless one—especially for
small merchants who have scant experience in the space.
Merchants are experts on their own products and indus-
try, but integrating payments requires a different level of
expertise. This is where ISVs become essential.

Peter Galvin Advice for evaluating ISVs
NMI ISVs develop software stacks for specific industry verti-
cals. Partnering with ISVs enables small merchants to
eamless payment experiences have become an implement new payment technologies quickly and cost-
indispensable offering for major digital plat- effectively. However, ISVs vary in expertise, cost and ser-
forms. Most customers don't think twice when vices; some options may be a better fit for a particular or-
S they make a purchase through the Uber app or ganization than others.
on Amazon Prime video, but the quality of these payment
experiences is a major reason for these apps' success. Here are three factors for merchants to consider when
choosing an ISV partner:
Social media giants like Instagram and Twitter have also
entered the payments space. Instagram's social commerce 1. Prioritize diversity of channels and payment
offering's popularity has grown since its launch in 2021, methods: To create a frictionless user experience, an
and X (formerly Twitter) CEO Elon Musk outlined plans to ISV should know how to integrate payments across
integrate services like peer-to-peer transactions and debit a variety of channels. For example, can customers
card payments into the app. make transactions through an organization's Insta-
gram account, mobile app and website with the same
Clearly, these major corporations have the resources to roll ease? The more payment channels a merchant offers,
out effective payment offerings. But what about smaller the more difficult it is to ensure smooth integration
merchants, many of whom lack the finances, staff or ex- between them, which makes a knowledgeable ISV es-
pertise to enable payments in their platform? By enlisting sential.
the help of independent software vendors (ISVs), they, too,
can roll out omnichannel payment offerings that support Within these platforms, an ISV should also offer dif-
a smooth user experience for customers. ferent payment methods, including credit cards, Ap-

Integrated payments lead to ple Pay or buy now, pay later. A wealth of payment
better customer experiences options across multiple channels enables a merchant
to pick and choose platforms to prioritize, knowing
The benefits of embedded payments are clear. Previously, an ISV partner can integrate them with all pre-exist-
if someone saw a pair of shoes they wanted on Instagram, ing channels.
they'd have to leave the app to complete the purchase.
Now, through Instagram Shopping, users can complete 2. Check for industry experience and overall costs:
their purchase on the app and continue scrolling without A prospective ISV must have experience in a mer-
disruptions. chant's business sector. For example, ISVs can focus
on an array of verticals, including retail, fitness,
However, bulky, poorly integrated payments will likely beauty and restaurants. An enterprise shouldn't part-
turn customers away—not only from the transaction, but ner with a provider that doesn't understand the intri-

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