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Software companies choose to become payment facilitators – rather than having third parties manage their payments – to advance a variety of goals. They might want to increase their revenue or improve the payments experience for their customers. But why is that important?
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As a software company, you’ve put a lot of work into creating a top-notch, tailored experience for your customers. Adding payments also adds another layer to their relationship with you, their trusted service provider.
Software companies are looking, feeling, and acting more like merchantservices providers. It’s everywhere. This can be sobering for financial institutions – for good reason. They risk losing a source of stable, low-cost deposits and non-interest revenue market share, but don’t be fooled. FIs still have crucial roles to play.
As software companies become a larger part of the payments world, you will have to determine how much of a role you want to play and how far up the payments revenue food chain you want to go.
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