What is white label merchant processing?
White label merchant processing enables third parties like integrated software vendors (ISVs) or independent sales organizations (ISOs) to customize and sell the payment processing technology and services of a payments provider under their own brands.
For a software company, integrating white label merchant processing can be a growth strategy that adds value to their platform and provides their subscribers with a more complete user experience that’s consistent with their brand.
3 key takeaways about white label merchant processing
- Software companies that integrate white label merchant processing can offer a seamless payment experience to their user base that’s consistent with their platform brand and quality standards.
- Integrating white label merchant processing gives software companies the ability to control as little or as much of the payments journey as they’d like, including customer service.
- When considering white label merchant processing solutions, software companies should look for a provider with a trusted reputation, technology that meets the needs of their users, and customized support.
The value of software companies integrating white label merchant processing into their platforms
The growing proliferation of entrants into the software market has platforms seeking every angle to outsprint their competition by adding more value to their offering. If the goal is to become the “everything platform” to users, the best path forward is to lean into partnerships that can fill any capability gaps. Partnering with a payments provider to integrate white label merchant processing offers software companies an opportunity to quickly and efficiently bring new revenue-generating solutions to the market — but the benefits go well beyond that.
A more comprehensive offering
Software users expect that the platforms they invest in will make their lives easier not just by addressing their current needs but also anticipating their next ones. Embedding white label merchant processing through a payments provider enables platforms to deliver a fuller offering, complete with solutions that address the payment acceptance methods of today’s modern buying experience.
Brand consistency and alignment with quality standards
One major draw for software companies to embed white label merchant processing is the ability to maintain brand consistency. Rather than sending users to an external, third-party interface to accept and manage payments, software companies can offer a more seamless experience that aligns with their standards.
Control over the user experience
White label merchant processing gives software companies the opportunity to take control of their user experience, if they want it. With payments now integrated directly within their platform, they can choose how their users will engage with and be supported by the solutions. They’re investing in the power to create a tailored experience that’s relevant to their users, and it pays off.
Increased customer retention
The benefits already mentioned all tie into the opportunity for software companies to increase the retention of their user base. The added value, the seamless experience, and the tailored solutions give users more reason to stick with the platform that makes their lives easier and potentially engage more deeply with other services offered.
Learn more about the value of Embedded Payments.
Examples of white label merchant processing
Software companies can embed white label merchant processing into their platforms by partnering with a payment processor. A provider will deliver a seamless integration of payment technology that meets the acceptance needs and aspirations of users. They’ll also provide customized support and ensure the user experience aligns with brand standards.
White label merchant processing FAQ
Why would a software company integrate white label merchant processing rather than build their own payments system?
Building the infrastructure to support a payments system is complex, time-consuming, and expensive. It requires significant investment in technology, resources, and ongoing development. Partnering with a payments provider to integrate white label merchant processing is a simpler, more cost-effective path that enables software companies to go to market more quickly with payment solutions that bring greater value to their users and drive growth through new revenue generation.
Does white label merchant processing mean that the customer support is white label, too?
It certainly can. Depending on your payment partnership, you will have as little or as much control as you'd like to customize the white label merchant processing solutions you embed into your platform — that can include branding, the user experience, and customer support.
What should software companies look for in a white label merchant processing solution?
As a software provider, if you choose to embed white label merchant processing into your platform, you essentially get to fold the capabilities, support, and expertise of a payment processor into your own brand. Because you’ll be selling the solutions as your own, it’s important that you trust the reputation of the processor, the quality of their technology and support, and the strength of their security.
Terms related to white label merchant processing
- Payment processor
- Integrated payments
- Integrated software vendor (ISV)
- Independent sales organization (ISO)
Learn more about white label merchant processing
- Glossary: 117 software-led payments to know
- Embedded Payments explained: Everything software companies need to know
- How Embedded Payments relationship models have evolved
Everything there is to know about software-led payments
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