Six "Must-Haves" in a Payments Partner

Six ‘Must-Haves’ in a Payments Partner A Guide for Independent Software Vendors (ISVs) – Special Edition

Introduction As an Independent Software Vendor (ISV), you understand how your software transforms business operations. From streamlining workflows and enhancing customer experiences to providing advanced analytics, your solution is crucial for helping businesses modernize and thrive in competitive markets.

You also recognize the essential role that payments integration plays in delivering a complete solution. To build and grow a successful business, ISVs need a true partnership with their payments provider— one that lets you concentrate on your core business while your partner expertly handles the payments aspect.

To ensure you have the right partner for your needs, we recommend considering these six key factors: . Technology to optimize operations . Ease of setup with frictionless onboarding . Merchant pricing built for your customers . A proven track record of success . Flexible partnership programs . Service and support

Without this essential alliance, you might encounter product gaps and miss out on valuable revenue opportunities.

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Technology to optimize operations Your goal is to streamline operations for the businesses you serve. Your payment partner’s goal should be to deliver the technology that makes it possible. When ISVs work with subpar payment solutions, operations can become cumbersome and inefficient for your customers.

The ideal payment provider will offer purposebuilt solutions that transform the way your clients operate, delivering exceptional experiences for their customers. Here are six essential payment technologies every ISV should consider:

ELECTRONIC CHECK ACCEPTANCE (ACH) Help businesses reduce the cost of payment acceptance while offering their customers the convenience of paying by electronic check (ACH) through the Federal Reserve Bank System’s Automated Clearing House (ACH) network.

With $40B processed annually, look to Nuvei’s deeply integrated payment solutions to drive superior commerce outcomes.

CLOUD EMV FOR SAAS PROVIDERS Offering contactless and traditional payment options that meet the demands of today’s environment is key. Devices that support EMV, contactless, swiped, and dipped transactions give practices the robust capabilities and security they need while making your solution market competitive.

30% cost reduction

Businesses using integrated payment solutions cut operational costs by up to 30%*. *PYMNTS.COM

CARD ACCOUNT UPDATER From expiration, to theft, to loss, credit cards are replaced for a variety of reasons. When you offer card account updater, software users receive automatic updates to customers’ cards through your application to keep payments uninterrupted. Deliver a seamless billing experience and set your software apart from the competition.

TOKENIZATION / TOKEN SHARING Enhance recurring revenue with tokenization as part of your software solution. Businesses can automate billing and collect payments without storing patient cardholder data locally. With token sharing, it’s easy to extend card-on-file and recurring billing across multiple offices without having to re-collect payment information.

CAPTURE EVERY PAYMENT Helping businesses remove friction from customer payments is key to maximizing profitability and building customer loyalty. Supporting popular payment types, including Apple Pay, Google Pay, traditional credit, debit, ACH payments, and industry-specific options through your software, means more revenue for both you and your clients.

HOSTED PAYMENTS Help businesses improve their revenue cycles while enhancing customer experiences by delivering secure billing and payment solutions for websites and customer portals. A hosted payments solution enables this while removing software applications from PCI scope.

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Ease of setup with frictionless onboarding Traditionally, setting up a merchant account or switching providers has been a cumbersome process for businesses.

From lengthy applications and extensive documentation to complex pricing negotiations, the process is often fraught with friction. This leads many businesses to settle for inadequate processing solutions that lack the specialized tools needed for growth and profitability.

For software providers, these delays and onboarding challenges translate into missed opportunities. Inefficient merchant account setup and poor customer adoption can prevent you from fully capitalizing on a significant revenue stream—your payments program.

MONETIZE PAYMENTS

BUILD YOUR BRAND

DRIVE EXCEPTIONAL EXPERIENCES

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THE GOOD NEWS Managed payment facilitation models have recently emerged, offering leading software providers an opportunity to transform their approach.

With managed payment facilitation, you can deliver a seamless merchant onboarding experience and a white-label payment solution without the complexities of traditional payment facilitation—no card brand registration, bank sponsorship, capital requirements, or risk and liability.

ISVs should partner with experts in managed payment facilitation. This enables your customers to start processing payments almost instantly—think minutes, not days— allowing for immediate residual income.

90% data elements

Deliver a risk-free streamlined customer onboarding experience and reduce the number of data elements required to board a merchant with managed payment facilitation.

Whether you’re shifting your merchant portfolio or integrating payments into your application for the first time, the process remains straightforward.

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Merchant pricing programs built for practice management With increased operating costs and shrinking profit margins, every penny counts.

And, because no two businesses are alike, merchant pricing should not be either.

Instead of offering one-size-fits-all pricing, the ideal payments partner should have flexible pricing structures in place.

FLAT RATE This simple, easy-to-understand rate structure is great for smaller businesses that want to know exactly how much they will pay for payment processing. Each transaction is charged the same rate regardless of the card type accepted or how the card is processed.

80% conversion rate

Find a partner that can offer these options:

TIERED A tiered pricing structure bundles interchange fees into a smaller number of tiers. Each tier is then assigned a charge. The fee assessed to the merchant for each transaction is calculated using the tiered rate instead of the actual interchange rate for the transaction type.

A leading specialty vertical ISV converted its customer portfolio in less than six months because of Nuvei’s fair and transparent merchant pricing.

INTERCHANGE US / PASS-THROUGH

To further keep rates low, find a partner that offers bundle-and-save pricing for both credit card and ACH processing.

Arguably one of the most transparent pricing methodologies, it’s also one of the most complex to understand. Wholesale interchange rates are passed through to the provider. The payment processor charges a fixed margin (discount rate) plus a transaction fee above the interchange rate.

Your partner should offer a meet-or-beat pricing promise to help drive customer adoption.

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A proven track record All payment companies have their strengths and areas of expertise. When choosing a payments partner, prioritize one with a proven track record in supporting your specific industry.

With over 25 years of industry experience and a strong focus on vertical markets, Nuvei has a deep understanding of the needs of ISVs and the businesses they serve.

Here are a few items that should be on your checklist: . A vertically tailored approach to partnership with an understanding of the challenges facing your industry. . Experience powering payments for businesses of all sizes and their software providers. . Sales and marketing programs and supporting resources to help partners convert existing customer portfolios and drive new software sales. . A proven track record of helping ISVs make payments a leading revenue stream.

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Flexible Partnership Programs If you’re like many ISVs, you may have been with your current provider for years or have opted not to offer integrated payments.

As the payments industry and your business have evolved, your partnership structure might have remained static or it’s been a while since you explored adding payments to your application.

Does your current setup still meet your needs, or could there be a better way to serve both your business and your users?

When selecting a payments partner, consider that your needs at the start, your current needs, and your needs in 24 months are all likely to be different. Choose a partner with flexible program structures designed to adapt as you grow together.

Here are the key structures your partner should offer:

ISVs rate Nuvei’s platform integration

REFERRAL PARTNERSHIPS Allows ISVs to stay focused on core business with a partner handling payments by your side.

Referrals are sent to the payments partner and residuals from merchant transaction profits create a lucrative revenue stream.

MANAGED PAYFAC Managed payment facilitation gives ISVs the perks of frictionless boarding and instant autoapprovals but leaves the risks, liabilities, and costs to the payments partner.

TRADITIONAL PAYFAC ISVs who elect to become payment facilitators receive maximum revenue-earning potential and are responsible for controlling sales and operations while also assuming all costs, risks, and responsibility for the entire payments process.

ISO PROGRAMS Independent sales organization (ISO) programs allow you to market your solution directly to your customer base under your name for a cohesive customer experience.

80% simpler

than their previous payment integrations.

After checking these boxes, dive in to understand what is required to transition between program structures.

Oftentimes, ISVs must integrate to different processing platforms—a disruptive and timeconsuming process.

Look for a partner who supports all program types through a single platform to allow for easy transitions through all stages of program maturity.

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Service and Support The third-party partners you choose for your software act as a direct extension of your business, which means customer support philosophies and service levels should align.

In addition to offering world-class merchant services, it’s also imperative that your partnership is managed by the same standard. Here’s what to look for:

A dedicated team of subject matter experts is assigned to support the partnership — Inside Sales, Marketing, Operations, Integration, and Account Management should all be included.

100% satisfied customers

In 2023, all of Nuvei customers surveyed said they would hire their customer support advisor.

Easy to implement, turnkey, and custom marketing programs are available (at no expense) — to help you capture market share and easily drive customer payments adoption.

Quarterly strategic planning sessions and business reviews are held to define goals and objectives and track against progress.

Support when it matters most. If something goes wrong on Saturday evening, do you have someone to call, who will answer the phone, take ownership, and make it right?

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Payments designed to accelerate your business NUVEI KNOWS PRACTICE MANAGEMENT For years, we have powered payment For years, we’ve powered payment acceptance for numerous businesses by forming genuine alliances with leading ISVs across various industries. Software providers choose Nuvei for our innovative payment solutions that enable our clients and partners to deliver exceptional customer experiences.

We utilize best-in-class technologies to address both current needs and future opportunities. Our programs are designed to

ABOUT NUVEI be simple, straightforward, and strategically crafted to drive strong growth and profitability. If you’re seeking a specialized partner to enhance your offerings and turn payments into a leading revenue stream, let’s connect.

Nuvei (Nasdaq: NVEI) (TSX: NVEI) is the Canadian fintech company accelerating the business of clients around the world. Nuvei’s modular, flexible and scalable technology allows leading companies to accept next-gen payments, offer all payout options and benefit from card issuing, banking, risk and fraud management services.

Discover why over 100,000 customers and 300+ ISVs trust Nuvei to power their payments.

Connecting businesses to their customers in more than 200 markets, with local acquiring in 50 markets, 150 currencies and more than 700 alternative payment methods, Nuvei provides the technology and insights for customers and partners to succeed locally and globally with one integration.

For more information, visit nuvei.com/

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