Paysafe a Betterpay processing partner recently spoke to 200 independent software vendors (ISVs) based in the United States and the UK developing solutions across a range of business verticals, here are some essential takeaways from the report.
Market requirements are getting more complicated.
Software developers are urgent to differentiate themselves from the competition because the markets they are operating within are more aggressive than ever. 34% of software providers believe that they are working in an overcrowded market, and a further 54% of ISVs describe their market as very aggressive. Only 12% consider that the market they function in is underserved by suppliers.
Pressure on prices (identified by 41% of ISVs) and the influx of new competitors in the market (determined by 39%) are two of the most significant challenges ISVs expect to face in the next year.
Software developers also have essential concerns when it comes to scaling their businesses. The cost of scaling is the issue that worries the most significant percentage of ISVs (45%), followed by regional competition (40%) and a lack of expertise on their teams (40%).
Developers are turning to payments to improve their software
In the context of these broader business challenges, the ability to offer best-in-class combined payments as a feature of a software solution appears key to futureproofing and growing; 88% of businesses confirmed that improving their payment integrations was a priority.
Despite only 28% of ISVs considering it to be industry-standard to offer integrated payments in their solution, 100% said that offering integrated payments was an important aspect of their product offering. Of those, 70% said that it was very important or critical that they were able to offer integrated payments as an ingredient of their solution.
Merchants demanding more integrated payment methods
Developers are adamant that allowing more payment methods within their integrated checkout is one of the most important issues they need to overcome in the next 12 months. On average, ISVs currently offer four payment methods in their integrated checkout but have hopes to expand this to nine within a year.
And 80% stated that the range of payment options an integrated payments provider could offer was a critical consideration when selecting a partner. 35% described this as necessary, more than any other differentiating factor.
Real shortage of internal resources are keeping them back
For 71% of developers, internal issues are a significant hurdle when integrating payments; 46% say that they don’t have adequate internal resources, 35% say it takes too long to incorporate the product, and 13% say they have no access to a development center or community.
When asked about how important this factor is when selecting between payment providers, 77% of software developers said that the effort required to integrate the solution on their part would be a crucial differentiator, and 28% confirmed that this is an essential consideration. 6% identified this factor as the single most important consideration for them.
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