Payments are part of the product
For many software platforms, payments begin as a practical requirement: customers need a way to pay. But the payment experience influences how people use the platform, how Merchants manage their business and where they turn when they need help. It is therefore worth asking whether payments should remain a background utility or become a more considered part of the product.
A platform that takes greater ownership of its payment proposition can shape the journey around the needs of its customers and Merchants. That may mean a consistent branded checkout, clearer reporting, simpler payment operations or a closer relationship with the businesses using the platform. The right priorities depend on the platform’s market and commercial model.
What payment ownership can change
Greater ownership can create value in several connected ways. A platform can build stronger Merchant relationships by bringing payments into the service it already provides. It can develop new revenue opportunities where the commercial arrangements support them. It can also make payment services easier to understand and manage by bringing relevant information and workflows closer to the platform experience.
These outcomes are not automatic. They depend on the platform’s proposition, the services it chooses to provide and the agreements behind them. The important first step is to define what a better payment experience should achieve for customers, Merchants and the platform itself.
Building the proposition around your business
Payment ownership does not require every platform to build and operate all of the underlying infrastructure itself. A PayFac-as-a-Service model can give a Partner access to established payment capabilities while allowing it to develop a proposition under its own brand and around its own commercial model.
That can help a platform focus its investment on the parts of the experience that distinguish it: its software, Merchant relationships, service and knowledge of a particular market. The supporting arrangements still need careful design, including responsibilities, Merchant onboarding, risk processes and the flow of funds.
Start with the experience you want to own
A useful starting point is to map the current payment journey. Where do customers encounter friction? What do Merchants need to do repeatedly? Which parts of the relationship does the platform want to manage directly? What should remain with specialist payment partners?
The answers will help shape a payment proposition that fits the business. Flowes supports Acquirers, PSPs, ISVs and ISOs with embedded payments and Payment Facilitation, helping Partners develop branded payment services with less infrastructure to build and maintain.
