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The Future of ISVs, SaaS, and App Builders

Payment Facilitation is driving technological advances for ISVs, SaaS and App developers

The tech industry continues to boom as hardware has improved to the point where they can accomplish more with even less. As such, ISVs, SaaS providers, and app developers are all competing in the market space. While the outlook for all of these entities is notably positive, there are some key points that we should be keeping an eye on as merchant service providers. Here's some information to get you looking toward the future.

What is an ISV?

An ISV in the payment industry is an independent software vendor who specifically sells software to merchants. ISVs have grown in recent years, and are no longer focused solely on developing point of sale systems for merchants. Now they are working with omnichannel support in mind. They are at the helm of reimagining what the checkout counter really looks like by changing the way we interface with the technology.

What is a SaaS?

SaaS is short for software as a service. SaaS providers are different from ISVs in that they provide a subscription-based on-going service to their customers via a complete software platform. While the majority of SaaS companies do develop their own software, the focus of their business model is on licensing and distributing infrastructure and cohesive systems that bring all parts of a business under one umbrella.

Where do App Builders Come In?

App developers have largely resided in a category all their own as they have worked independently to develop bite-sized versions of software that we are already familiar with. However, more app builders are forming partnerships with software developers in the SaaS and ISV fields to offer better integration on the front end, rather than as an afterthought.

How are ISVs, SaaS Providers, and App Developers Influencing Payment Facilitators?

Now that you understand the difference between the three unique players in the software game, we can look at how each of those players are influencing the future of Payment Facilitators or Payfacs. ISV and Payfac go hand in hand because ISVs are already so prevalent in our daily transactions.

When payment facilitation starts to evolve, ISV's point of sale systems will be the first wave of change that consumers take note of. Of course, to really integrate payment facilitation into their systems successfully, these companies have already started forming partnerships with app developers and SaaS providers who are already been dabbling in payment processing mechanics.  

All of this goes to say that ISVs are already well aware of the fact that merchants want better payment processing solutions rolled into a single platform. ISVs are counting on SaaS providers and app developers to deliver the goods, while they work on the actual integration of these new systems with their customers.

By working together to solve the Payfac problem, they have eliminated the need for a third party merchant processor and found a new means of generating revenue via the software itself. Merchants are happy because their systems are simplified, and consumers are happy because the payment process is faster than ever before.

The future of all Payfac is currently hinging on ISVs and their companions in the development sector. ISV and Payfac will continue to grow together as merchants move away from third-party providers and seek more affordable and integrated options to manage all of their payments.  


Shannon LeDuff

Shannon is currently the SVP Sales and Business Development for GlobalOnePay, a division of Pivotal Payments Inc. His goal is to establish strategic partnerships with sales organizations that specialize in the eCommerce space globally. As commerce shifts online, there is exceptional growth potential that Shannon can help ISVs, SaaS, Marketplaces and platforms tap into, to drive payments into profits.