When you’re running a business, the last thing you need is a mess of disconnected tools slowing you down. Independent software vendors (ISVs) solve this problem by delivering industry-specific software that unifies invoicing, payments, and other core financial functions into a single system. 

Whether you’re launching a vertical SaaS product or scaling an enterprise platform, understanding what an independent software vendor is — and how ISV partnerships function in the payments space — is key to unlocking new revenue streams and elevating the customer experience. 

In this guide, we’ll break down how ISVs enable seamless digital transactions, integrate into the payments ecosystem, and partner with providers to support long-term growth.

Key takeaways

• ISVs build industry-specific platforms that integrate payments and operations into one seamless system.
• Payment providers require ISVs to meet technical certification standards to become certified partners, ensuring businesses benefit from robust support and secure, efficient payment processing.
• ISV partnership models vary from low-lift referral programs to fully embedded integrations, each with different levels of control, revenue potential, and integration depth.
• The right ISV solution should meet your business’s current operational needs while supporting long-term growth and product strategy.

What is an ISV?

An ISV is a company that designs and sells software built to align with the unique workflows of a specific industry. Unlike general-purpose software, ISVs embed tools for invoicing, inventory management, and payments directly into a single, integrated solution. The result is purpose-built functionality that meets the needs of specialized merchants.

For example, a spa management platform built by an ISV might let clients book treatments online, receive automated appointment reminders, and pay using a saved card — all within the same app. On the backend, staff can track appointments in real time, manage payroll, and reconcile payments automatically. This end-to-end integration reduces errors, saving administrative time and helping the business operate more efficiently.

How do ISVs work in the payments industry?

In the payments space, ISVs embed merchant services directly into their platforms, enabling businesses to manage operations and accept payments in one place. This eliminates third-party tools or manual workarounds, simplifying both the customer experience and back-office tasks.

With ISV integrated payments, payment functionality becomes a native part of the software — branded and seamlessly built into the platform’s existing workflows. Developers use third-party APIs to customize every aspect of the payments experience, from checkout design to how transaction data is displayed. This allows platforms to align payments with their UX and give users real-time visibility into performance, cash flow, and customer behavior. 

Behind the scenes, payments providers handle critical risk-management functions like PCI compliance, fraud prevention, and merchant underwriting. That allows ISVs to stay focused on building software for their vertical, while their payments partner ensures money moves securely and on time.

What it takes to become a certified ISV partner with a payments provider

To become a certified ISV partner, software companies must meet a provider’s technical, security, and operational standards. The process ensures a secure, scalable integration and builds the trust needed to go to market together. Certification typically involves:

• ​​API integration testing: Payment requests must be properly formatted, and key functions such as tokenization and refunds must perform reliably. Early validation helps prevent bugs and reduces the risk of failed transactions.
• PCI compliance validation: ISVs are required to meet PCI security standards, especially for apps that handle card-present and card-not-present payments. Compliance reduces the risk of data breaches by ensuring sensitive cardholder data is stored, processed, and transmitted securely.
• Know Your Customer (KYC) and underwriting workflows: KYC checks verify the identity of a business before it can process payments, while underwriting evaluates its risk profile. These steps help ISVs prevent fraud and maintain compliance on their platform.
• Brand and legal agreements: In co-marketing or white-label models, ISVs must define how branding, liability, and revenue will be shared. This phase also establishes ownership of the customer relationship and clarifies roles around support and dispute resolution.

What is an ISV partner?

While all ISVs build software, ISV partners establish formal relationships with technology providers, including payments platforms. These partnerships involve technical certification and shared oversight of both integration quality and the merchant experience.

For businesses, working with a certified ISV partner offers meaningful advantages over standard integrations. Certified ISVs have typically gone through rigorous testing, operate in close coordination with the payments provider, and receive preferential access to support and product updates. This higher level of alignment results in a more stable and secure payments experience.

By working together, both companies turn payments into a product advantage that increases customer lifetime value and unlocks mutual growth.

Types of ISV partnerships

There are several types of ISV partnerships. In the payments industry, different models impact how payments are integrated, branded, supported, and monetized. Understanding the key differences will help make sure the ISV you partner with is the best fit for your business’s needs.

1. Technology partnerships

Technology partnerships focus on deep product integration, with the ISV and payments provider working closely to develop APIs and enhance the user experience. Payments are embedded as a native feature, often supported by shared roadmaps and ongoing developer collaboration. This model is ideal for merchants who want payments embedded seamlessly into their platform experience, rather than treated as a bolt-on solution.

2. Reseller/white-label partnerships

In reseller or white-label partnerships, the ISV delivers a fully branded payments experience while the provider powers the backend infrastructure. By owning key touchpoints like pricing and support, the ISV delivers a unified experience to its users. For businesses, white-label solutions eliminate the need to coordinate with multiple vendors and ensure that software and payments work together without gaps or delays. 

3. Referral partnerships

A referral partnership allows the ISV to direct merchants to a payments provider in exchange for a commission or incentive. This partnership involves minimal technical lift and no ongoing responsibility for onboarding, support, or compliance. It’s a practical option for businesses that want trusted payment options built into their software experience, without relying on the ISV for continued payments support. 

4. Embedded payments partnerships

In an embedded payments model, transactions are handled entirely within the software, eliminating the need for redirects or external gateways. Built on API-first infrastructure, these partnerships give developers the flexibility to design custom checkout experiences that align with the platform’s user experience. This model allows the payment process to feel like a natural part of the platform, leading to a faster, more cohesive checkout that reduces drop-off.

5. Strategic partnerships

Strategic partnerships involve deep, long-term collaboration between the ISV and payments provider across product development, market strategy, and revenue goals. These relationships are typically suited for ISVs with a sizable user base or strong influence in a vertical, and are designed to align both teams on growth, integration, and sustained value creation. Merchants benefit from a payment experience that feels ahead of the curve — not tacked on after the fact.

6. Platform partnerships

Platform partnerships embed the ISV into a broader ecosystem, such as an app marketplace or integration hub, where their solution is offered as an approved add-on. For businesses, this makes it easier to discover and adopt new tools that are already vetted and compatible with the software they rely on.

How ISVs benefit businesses

ISV platforms streamline operations and improve business performance by embedding payments into tools that teams use every day. The right system can reduce manual work for your team, speed up transactions, and improve the customer experience.

1. Embedded, seamless experiences

With payments built directly into business software, your team can manage services and accept transactions through a single system. Customers are able to check out faster, and staff are able to complete tasks with fewer steps and less switching between tools.

2. Faster onboarding and activation

ISVs simplify the onboarding process by automating KYC and underwriting processes. This enables you to verify details, get approved, and start accepting payments within minutes — all without leaving the platform or waiting for manual review. 

3. Access to industry-specific solutions

Payment features on ISVs are tailored to real-world business needs, like tipping for salons, installment billing for legal services, or mobile payments for contractors. These purpose-built capabilities match how your business actually operates and eliminate workarounds.

4. Consolidated tools and lower vendor sprawl

By combining operations and payments in one platform, ISVs remove the need for disconnected tools. You’re able to spend less time switching between systems, re-entering data, or resolving integration issues.

5. Scalable growth and future-proof infrastructure

A well-built ISV program grows with the business, supporting new locations, higher transaction volumes, and evolving workflows as needs change. Thanks to extensible APIs and scalable infrastructure, your business can expand without overhauling its core systems.

How to choose an ISV solution for your business

Choosing the right ISV solution isn’t just about its features list — it’s about finding a partner with the right depth, reliability, and industry fit. Here’s how to evaluate whether a provider can support your current goals and scale with your business over time.

1. Define your business needs

Start by identifying the specific problem you’re solving. Are you replacing a manual process, launching a new revenue stream, or streamlining operations across systems? Prioritize capabilities that address these needs now, but also support your product roadmap down the line.

2. Evaluate ISV capabilities

Once you know what you need, assess how well the ISV delivers. Don’t just look at what the platform offers — pay attention to API maturity, developer experience, security protocols, and support infrastructure. These factors will shape how quickly you can integrate and how reliably the system performs.

3. Due diligence

Before committing to a partnership, research the ISV’s track record. Evaluate factors such as PCI compliance, industry experience, and real-world proof points like customer references or integration examples. A strong partner shows consistency not just in tech, but in support and follow-through.

Connect with Priority’s certified ISV partners

ISVs are transforming the way businesses operate by providing all-in-one software hubs for appointment tracking, payments, inventory management, and more. These industry-specific tools replace disjointed systems with a more streamlined, connected approach to everyday tasks. 

But not every software solution is equipped to support the full payments experience. Partnering with a certified ISV gives you access to infrastructure that is not only tailored to your industry, but also delivers faster checkouts, cleaner transaction data, and simpler back-office operations.Ready to discover how a true ISV partnership turns payments into a competitive advantage? Contact Priority’s ISV Partner Team to find the right fit for your business.