If you’re North American Bancard, you embrace the differences and help each succeed.
Independent software vendors (ISVs) and independent sales organizations (ISOs) both provide merchant services, and often total point of sale (POS) solutions, to merchants. Although they have that in common, they go about it in different ways. While other payment companies prefer working with an ISV vs. an ISO, North American Bancard welcomes partnerships with both and has a track record of helping each type of business achieve success.
Consider the similarities and differences between ISVs vs. ISOs and how a strong payments partnership is vital to both.
What is An ISV?
An ISV develops and provides software, such as point of sale systems, loyalty rewards program software, and data analytics, which are often delivered through the cloud. Sometimes ISVs will choose a niche, vertical, or industry as their focus and specialize in software for that market. Types of vertical-specific software include retail, restaurant, or field services management, professional services software, ecommerce platforms and online ordering, gaming, and B2B software. In any business that accepts payments, integrated payments adds value to that software.
In addition to meeting users’ demands for a total solution, integrating payments can also increase revenue for the ISV. Of course, the ISV sells its software through a licensing or subscription “Software as a Service (SaaS)” model. However, when ISVs work with the right payments partner, they can also build a payment residual income stream based on processing volume through its software.
What is An ISO?
An ISO, unlike an ISV, focuses on merchant services first. ISOs recruit merchants, handle sales, and provide ongoing support to merchants. However, many merchants prefer a single provider. Therefore, growth-focused ISOs also sell software and services that address all of a merchant’s needs, from inventory and employee management to loyalty software, gift card solutions, and other value-added services. The ISO also builds a relationship with the merchant and acts as a contact when the merchant needs help to resolve an issue or refresh technology to meet changing consumer demands.
ISOs’ income is primarily through payment residuals, and the most successful ISO agents build six-figure incomes or more from their share of payment processing. But there’s more on the table. By meeting merchants’ needs for total solutions, ISO agents can also build income from POS software licenses and recurring revenue from SaaS subscriptions.
ISV or ISO: Partner with North American Bancard
Both ISVs and ISOs need a partner that allows them to provide their clients with the payment functionality they need today and the commitment to innovation that will address their needs in the future. It’s particularly crucial for ISVs that integrate their software with a payment company’s platform and solutions.
However, a strong payment partnership is equally important for an ISO that knows payment processing in and out but isn’t an expert on software solutions for its market. ISOs will benefit from a payments partner with expertise in POS software and other solutions to help them find the best match for their clients. Additionally, a payments company that builds a network of developer partners will offer multiple options for seamlessly integrated solutions.
The industry sees the ISV vs. ISO lines blurring as many have similar goals of becoming one-stop shops for all the solutions necessary to run a business successfully. However, North American Bancard still sees how these businesses differ and recognizes their unique goals for a payments partnership.
Contact us to learn about a partnership that will help your ISO or ISV business grow.
