Payments services company Worldline has introduced FlexPricing for independent software vendors (ISVs).
The new offering, which Worldline calls the first of its kind, lets ISVs implement flexible pricing strategies that include charging a percentage fee on bank transfer transactions, adding custom fees, and allowing Worldline to take on their billing duties.
“FlexPricing empowers partners to enhance their revenue models and optimize the billing experience for their merchants,” the company said in a news release Wednesday (Dec. 18).
With FlexPricing, the release added, software vendors can now charge a percentage rate on bank transfer (EFT/ACH) transactions, “capitalizing on a significant revenue opportunity.”
It also lets ISVs define multiple types of fees that suit their business model, such as annual fees or on-time integration fees.
And by allowing Worldline to handle billing responsibilities for their partners, companies can reduce operational complexities by giving clients a clear and consolidated statement for easier invoice management.
“FlexPricing is ideal for software platforms that have integrated payments within their solution. ISVs who facilitate bank transfer payments or work with membership, payroll, and subscription-based businesses are perfect candidates for this feature,” the release said, adding that partners using FlexPricing “have the potential to triple their revenue-sharing amounts.”
Research by PYMNTS Intelligence and Carat from Fiserv from earlier this year found that 65% of ISVs and marketplaces without payment capabilities plan to incorporate embedded financial products for payment acceptance this year.
This move would put them in line with roughly 75% of ISVs/marketplaces with payment capabilities and want to upgrade their integrated financial products this year, the report found.
“On average, more than 80% of ISVs expect to see a rise in revenue share from payment acceptance in the next 12 months, indicating a high degree of trust among payment providers,” PYMNTS wrote.
More recently, PYMNTS wrote about efforts by payment facilitators (PayFacs), ISVs and marketplaces from the logistics and wholesale trade industry to use embedded financing capabilities to boost customer satisfaction, revenue growth and competitiveness.
“More than half of PayFacs and marketplaces in this sector view embedded finance as highly important to their innovation plans,” that report said. “Nearly 1 in 3 plan to expand or start offering these features in the next year. ISVs in the sector, while also embracing innovation, are doing so at a more measured pace.”
Among the top priorities are embedded finance features such as loyalty and rewards; buy now, pay later (BNPL); and business credit, while integrating digital wallets for payment acceptance has also become critical for these companies’ businesses.
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The regulatory framework should not prevent banks from providing innovative and competitive products and services, Federal Reserve Gov. Michelle W. Bowman said Monday (Feb. 17).
Speaking at the American Bankers Association’s Conference for Community Bankers in Phoenix, Bowman said that while the framework must promote safety and soundness in the banking system, it should not impede banks’ operations.
“Our work to maintain an effective framework is never really complete,” Bowman said in a speech to be delivered at the event. “Just as complacency can be fatal to the business of a bank, complacency can also prevent regulators from meeting their statutory obligation to promote a safe and sound banking system that enables banks to serve their customers effectively and efficiently.”
In terms of bank supervision, Bowman said supervisory ratings have led to a de-prioritization of core financial risks. Pointing to a Fed report that said most large financial institutions met supervisory expectations with respect to capital and liquidity but only one-third had satisfactory ratings across all relevant ratings components, Bowman said this raised a question about whether non-core and non-financial risks had been over-emphasized.
When it comes to bank applications, Bowman said the process may have created impediments that have led to a current lack of new bank formation. She added that regulators could improve the process by developing specialized expertise, streamlining the application process and improving transparency.
In the case of mergers and acquisitions, Bowman said “the purgatory of a long application process” could be remedied by updating application forms to include all the information that is needed and by adhering to fixed approval timelines.
Addressing regulation, Bowman said that the body of regulations applied to banks has grown dramatically since the 2008 financial crises and that some of those regulations may be outdated, unnecessary and overly burdensome.
“The banking system can be an engine of economic growth and opportunity, particularly when it is supported by a bank regulatory framework that is rational and well-maintained,” Bowman said. “The work of rationalizing and maintaining this system is an ongoing cycle. While my remarks today have touched on a wide range of issues that require rationalization and ‘maintenance,’ this is by no means an exhaustive list.”