Unlocking Growth: How Embedded Payments Empower ISVs and Drive Merchant Success

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A customer clicks “Pay Now,” and the transaction completes without ever leaving the app. That’s not just a smoother checkout—it’s a strategic shift in how businesses can deliver value, build trust and generate revenue. Embedding the payment platform right into your site or application retains and highlights your voice, your branding and, ultimately, your customer base.

For independent software vendors (ISVs), embedded payments are no longer a technical feature—they’re a business imperative. Instead of bolting on third-party processors or sending users to external portals, ISVs can now own the entire payment experience. That means faster onboarding, cleaner user flows and more control over branding, compliance and monetization.

Digital payments provide convenience and processing efficiencies, but they also introduce several risks for both payers and businesses, including cyberattacks. Cybercriminals target all types of organizations large and small, including healthcare providers, financial institutions, government agencies, retail businesses and most other types of transaction-based businesses. They’re looking for security weaknesses in outdated payment systems that make it easy to access sensitive information. Ransomware attacks, phishing schemes and data breaches jeopardize personal information—and trust.

The numbers back it up: embedded payments are expected to drive $6.5 trillion in volume by 2025, and SMBs that adopt them can see 25–50% revenue growth boosts. This means the stakes are high—and the opportunity is massive.

 

The Problem with Traditional Payment Setups

For too long, accepting digital payments has meant juggling multiple vendors, navigating complex compliance requirements and sacrificing user experience. Disconnected systems lead to:

  • Poor checkout experience that erodes customer trust: When the payment interface feels disconnected from the rest of the application—using generic third-party styling or redirecting users off-platform—it creates friction, undermines brand credibility and increases the likelihood of cart abandonment.
  • Fragmented data and dashboards: ISVs often manage merchant data across multiple disconnected systems, making it difficult to access real-time insights into merchant performance. Without a unified view, ISVs lack the visibility needed to proactively support their merchants and drive business growth.
  • Slow merchant onboarding: Completing lengthy Know Your Customer (KYC) processes, reconciling and tracking paperwork manually and juggling inconsistent integration timelines delay revenue generation and frustrate users.
  • High support burdens: ISVs often struggle to support merchants when payment issues arise, as they must coordinate across multiple providers. This leads to increased support requests and puts additional strain on ISV teams, making it challenging to deliver timely and effective assistance.
  • Data breaches: Hackers infiltrate systems and steal sensitive customer data, including payment information, to make fraudulent transactions.
  • Security and compliance risks: Without centralized oversight, ISVs face greater exposure to Payment Card Industry Data Security Standard (PCI DSS) violations, data breaches and regulatory penalties. Vulnerabilities increase when handling sensitive customer payment data across disparate systems.

These challenges don’t just impact individual merchants—they compound at the ISV level. When ISVs rely on merchant-led or third-party payment integrations, every issue their merchants face becomes magnified: fragmented data, inconsistent branding and operational inefficiencies ripple upward and outward, making it even harder for ISVs to maintain control and support their customers while also scaling their platforms. This means lost revenue opportunities and higher churn. What’s more, limited payment options and delayed onboarding contribute to lower conversion rates and higher churn.

Maintaining regulatory compliance is one of the most complex ways businesses navigate online payment risk. Regulations such as Payment Card Industry Data Security Standard (PCI DSS) for data security and strong customer authentication must be adhered to, and they change regularly. Organizations have to get it right, or risk steep fines and penalties.

 

So, What Are Embedded Payments?

Embedded payments refer to the integration of payment functionality directly into a software platform—allowing users to complete transactions without leaving the application. This creates a frictionless experience for both merchants and consumers. For ISVs, embedding payments means becoming strategic partners, offering a unified solution that powers both business operations and revenue generation.

By embedding payments directly into platforms, ISVs can overcome the limitations of traditional payment setups and deliver a more unified experience. This transformative approach offers operational, branding and revenue advantages.

Operational Efficiency

Embedded payments eliminate the need for multiple providers and fragmented systems. With a unified infrastructure, ISVs gain:

  • One source of truth for transactions
  • Simplified APIs and integrations
  • Faster merchant onboarding
  • Real-time reporting and analytics

Brand Control

A seamless UX from login to checkout strengthens brand identity and trust. ISVs can offer:

  • Branded checkout experiences
  • Custom payment flows
  • Reduced churn and higher customer satisfaction

Revenue Growth

Embedded payments unlock new revenue streams. ISVs can:

  • Monetize every transaction
  • Offer value-added services like recurring billing and digital wallets
  • Set custom pricing models

Compliance and Risk Reduction

By partnering with platforms like CSG Forte, ISVs can offload burdens related to:

  • PCI DSS and KYC compliance
  • Data privacy regulations
  • Payment fraud management

 

Embedded Payments vs. Payment Facilitation Models

Not all embedded payment strategies are created equal. CSG Forte offers three flexible models to meet different business needs:

For ISVs ready to take full ownership of the payment experience, becoming a registered payment facilitator offers the highest earning potential and customization.

Embedded payments are making waves across a multitude of industries:

  • Healthcare: HIPAA-compliant solutions streamline billing and improve collections.
  • Property management: Secure rent collection and flexible tenant payment options.
  • Government: Simplified tax, permit and utility payments with constituent-friendly UX.
  • Education: Tuition and campus payments with seamless API integration.

Take Buildium, for example—a property management platform that saw 35% YoY growth and 99.99% uptime after embedding payments with CSG Forte.

Implementation and Integration Strategy

CSG Forte makes implementation seamless with:

  • REST APIs for and onboarding, transaction processing, management and reporting
  • Dex, our payment operations platform for real-time visibility and control
  • Dedicated support teams, including Solutions Engineers and Partner Success Managers

Our tried-and-tested onboarding journey includes:

  • Discovery and solutioning
  • Integration and testing
  • Go-live and training
  • Ongoing support and optimization

Whether you choose PFaaS or full facilitation, CSG Forte tailors the experience to your business needs.

Beyond revenue, embedded payments are a powerful retention tool. One survey found that 65% of merchants are willing to switch vendors if embedded finance isn’t offered. For ISVs, this means offering embedded payments is a top predictor of vendor stickiness. Neglecting it can lead to higher churn and lost market share.

Future-Proof Your Organization by Embedding Payments

Embedded payments are more than a technical upgrade—they’re a strategic imperative. They offer ISVs:

  • Greater control over the customer experience
  • Scalable infrastructure for growth
  • New revenue streams and stronger margins
  • A competitive edge in a crowded market

Whether you’re just starting with a referral model or ready to become a registered payment facilitator, CSG Forte provides the tools, support and flexibility to help you succeed.

Ready to explore your modernized payments journey? Contact our payments experts to schedule a free demo and let’s talk about how CSG Forte can help you monetize, scale and future-proof your platform.