ISOs and ISVs Partner for Growth

The future of the payments industry is not about Independent Sales Organizations (ISOs) competing against Independent Software Vendors (ISVs), but rather about them working together. According to Josh Bennett, Vice President of Partner Business Development at U.S. Bank | Elavon, this collaboration is driven by innovations such as agentic commerce, instant payments, and embedded financial services.

The payments industry continues to evolve at a rapid pace. Yet for ISOs, the most significant shift may be how merchants purchase payment solutions. Today, more than 90% of U.S. small businesses rely on ISV solutions to run their operations, making software a primary driver of payments adoption.

ISOs and ISVs: A Compelling Combination

ISVs provide the software merchants depend on every day, while ISOs bring payments expertise, distribution networks, and customer support. Together, they deliver an integrated experience that helps merchants operate, grow, and accept payments within a single experience.

Their respective strengths make a compelling combination. Many ISVs develop highly verticalized platforms and applications but often lack the sales coverage needed to accelerate adoption. Conversely, ISOs maintain extensive merchant distribution networks but may have limited access to differentiated technology offerings.

By partnering, ISVs contribute vertical expertise and product innovation, while ISOs provide market reach and payments expertise, creating a more compelling offering for merchants. For ISOs, these partnerships can unlock new avenues for growth, differentiation, and long-term profitability.

Driving Business Success

There are several ways these partnerships can help drive business success. Firstly, they can help diversify revenue streams by offering ISV-developed software solutions, such as back-office tools, accounting platforms, and vertical-specific applications, creating new recurring revenue opportunities.

Secondly, they can help deliver greater value to merchants by expanding beyond payments to offer integrated solutions that support the entire customer journey – from flexible point-of-sale lending solutions to money movement capabilities.

Thirdly, they can help reduce merchant churn by creating deeper operational integration, increasing merchant reliance on the solution and strengthening long-term retention.

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Lastly, they can help capitalize on growing market adoption as demand for industry-specific software continues to rise as businesses invest in cloud-based solutions, AI, and digital transformation initiatives, creating significant opportunities for collaborative growth.

Choosing the Right Payments Partner

As ISOs look to capitalize on these opportunities, choosing the right payments partner becomes increasingly important. Success depends on more than technology alone. It requires a partner with the expertise, support, and flexible partner programs to build a long-term payments strategy.

Elavon by U.S. Bank delivers the expertise, technology, and support to help ISOs and ISVs grow. They empower their partners to accelerate speed to market, expand revenue opportunities, and scale their business with confidence.

With decades of partner experience, Elavon has built a proven implementation and enablement approach designed to support businesses. It’s why more than 1,000 integrated partners, 350 ISOs/MSPs, and 1,700 financial institutions choose Elavon to grow their business.

According to a report by McKinsey & Company, the demand for industry-specific software is on the rise, creating significant opportunities for collaborative growth. As the payments industry continues to evolve, it’s clear that ISOs and ISVs must work together to drive scalable growth and deliver greater value to merchants.

Elavon by U.S. Bank is a leading provider of payment solutions. They have a long history of partnering with ISOs and ISVs to provide innovative payment solutions to merchants.

The company’s expertise and support enable ISOs and ISVs to grow their business. They provide a range of services, including implementation and enablement, to help their partners succeed.