Perhaps your software platform integrates with payment providers today. You can create additional value for your customers and improve their user experience by embedding white-label payment processing.
What Is White-Label Payment Processing?
White-label payment processing enables software platforms to sell branded payments capabilities that are developed by another company. Essentially, a software platform can brand and customize the entire payment experience for its clients. Neither the end user nor the platform’s clients see the facilitator or interact with it directly.
By using white-label payment processing, software platforms can own their payments without developing and taking on the risk of in-house payment processing solutions, which are time-consuming, expensive and complex. Instead, you can work with a payments partner that offers white-label embedded payment options to seamlessly integrate payment processing capabilities directly into your existing infrastructure. This can lead to an improved customer experience and several opportunities for growth.
The Benefits of White-Label Payment Processing
White-label payment processing offers several benefits for software platforms. According to our survey, The State of Embedded Payments, respondents cited a number of benefits for embedding white-label payments, including:
A Competitive Advantage
Gaining an advantage over the competition is a significant benefit for software platforms that decide to offer white-label payments. This additional functionality makes your platform more robust, and that leads to value. White-label payments are a competitive advantage that makes your platform more appealing to investors and clients.
Creating New Revenue Streams
Software platforms that sell payments to their clients get a piece of every transaction their clients run through the platform on top of the subscription and service fees for their software. Data suggests that the global white-label payment gateway market is expected to grow at a CAGR of 16.43% between 2023 and 2028, highlighting the financial potential for organizations.
Increasing Client Acquisition
Businesses are always looking for comprehensive solutions that cater to their diverse needs. Offering white-label payment processing can be a powerful differentiator, helping software platforms attract new clients that are looking to get the most value with the fewest vendors
Boosting Value Per Client
The payments revenue stream increases the revenue software platforms can make off each client. According to JP Morgan, software providers that embed white-label payments into their platforms see up to a 5-times increase in value per customer.
Extending Client Tenure
Software platforms that provide white-label payment processing tend to enjoy longer client tenures. By providing a convenient, robust solution, clients can reduce their operational costs, streamline processes, and enhance customer satisfaction, leading to higher client retention and loyalty. In fact, McKinsey found that 70% of clients are willing to pay more for solutions that simplify their operations and provide a stellar customer experience.
Improving Company Valuation
With increased revenue streams, client acquisition, value per client, and client tenure, investors and potential buyers will view your business as more valuable. Bain & Company found that software vendors have the potential to address $35 trillion in payments (that’s 15% of the worldwide total) by integrating payments into their platforms.
What to Look for in a White-Label Payment Gateway Platform
In order to reap the benefits of white-label payments, you need the right payment solution to support them. Your payments partner can have a substantial impact on the quality of service, security and overall customer experience you are able to offer.
Consider these factors when selecting a white-label payment gateway:
- Ease of integration: Choose a gateway with a straightforward and well-documented API. The easier it is for you to implement, the sooner you can offer payment processing services to clients.
- Expedited onboarding: Make sure your payments partner can help you onboard and verify your clients quickly so they can easily begin to accept payments. If you already have clients accepting payments on your platform, be sure that they can help you migrate your portfolio, so your customers’ business won’t be interrupted by a vendor change.
- Security: Ensure the payment gateway adheres to industry-standard security protocols, including PCI DSS compliance. This ensures client information is protected from cyber attacks or breaches.
- Customization: Look for a white-label payment gateway that allows for extensive customization and branding options. It should seamlessly integrate with your platform and allow you to maintain brand identity throughout the entire payment process.
- Payment methods: Ensure the gateway supports a wide range of payment methods, including credit cards, debit cards, digital wallets, and alternative payment options.
- Transaction fees and pricing: Evaluate the pricing structure, including transaction fees and any additional costs associated with using the gateway. Compare these fees with the value it brings to your business to ensure a favorable cost-benefit ratio.
- Global scalability: Even if your software platform doesn’t have a global presence, you may want to in the future. Look for a payment gateway with the ability to help you scale for your own business and your clients.
BlueSnap: Your Trusted White-Label Payment Processing Provider
White-label payment processing is a strategic option for software platforms to gain a competitive advantage, create new revenue streams and enhance their valuation. Embedding white-label payments into your platform could be the key to unlocking significant growth.
With BlueSnap Embedded Payments and Payfac-as-a-Service, you have control over your payment offering. Using our robust API, you can customize and tailor your white-label payments to your exact specifications. Learn more.