PayFAQ: The Embedded Payments Podcast

We’ve seen it far too often. Software companies embark on their embedded payments journey only to discover they’ve underestimated the complexity that’s involved and struggle to launch.

If you’re thinking about Embedded Payments for your platform, make time to listen to this episode of the PayFAQ Embedded Payments podcast. Our new host Ian Hillis is kicking off a multi-part series, exploring all the important details you should be thinking about before you get to far down the road.

To start the series, Ian and his guest Andy Meadows, Head of Partner Success Management for Payrix, dive into the topic of resourcing and what you need to consider when it comes to selling payments, boarding and underwriting, service and support, and development and tech.

Andy explains that selling payments are what trip software companies right out of the gate. “Any conversation with an end user, i.e., a business or a merchant, is going to involve pricing. If you’ve never had those conversations around merchant-level payment pricing, the interchange dues, and assessments, you’re to going to run into roadblocks on day one.” The solution is to hire a payments expert to train your sales team, sitting side by side over a few weeks to create a single selling motion for software and payments that your end users will have confidence in.

The next hurdle is often underwriting because of the lack of expertise with operational considerations, especially the additional documentation and information that needs to be procured from perspective merchants. According to Andy, you won’t need a full-time resource from the get-go if you’re taking a crawl, walk, run approach. He suggests creating a combination role for a payment guru who covers the operational piece along with service and support. “In the context of the first two components of the conveyor belt, that’s kind of how I think of it.”

He says most software companies struggle with the back-end service and support piece as well. They haven’t trained staff on the frequently asked questions, inquiries, and issues they’re going to encounter, which tend to be around pricing, rates, fees or reporting, reconciliation, and feature functionality specific to embedded payments. “It’s as much about serving your end user as it is making sure your team is armed with the information they need to be excited about it and to maintain that enthusiasm for the new solution moving forward.”

Ian and Andy wrap up their conversation at the beginning: Embedding payments into your software. Andy warns, “If you don’t have someone on staff from a development or product management perspective, who’s danced the dance with payments and been in the payment industry before, you’re really kind of running through a forest with a blindfold on, and you’re gonna hit a lot of trees along the way.”

Have a listen to the full conversation, and clear the way to embedded payments success!

Leah Asdell joins the podcast to answer the question, “what do merchants want from their software providers?” and discuss the Merchant Insider report.

What can software companies expect in 2024 when it comes to embedded payments? This episode of the PayFAQ Embedded Payments podcast, featuring our host Bob Butler and special guest Ian Hillis, senior vice president of growth at Worldpay for Platforms, offers some surprising insights as well as news about the future of our podcast itself!

The conversation starts with what Hillis describes as a “bit of a hot take.” As the software used by SMBs has become more and more vertical, he says what’s been most transformative in the industry of embedded payments in recent years is not the technology. “Software companies are now increasingly seeking payments partners that are more consultative in nature, ones that can really understand unique user flows and ensure the financial experiences that are being created match the desired user experience. They’re no longer satisfied with the partner that simply enables payments or financial tools.”

Like the evolving role of payments partners, Hillis give us his take on what will have a transformative effect on embedded payments going forward. Compliance and risk are two big areas, with PCI compliance 4.0 launching in February and the increasing popularity of surcharging. He predicts card networks will become more involved with surcharging and expects to see regulation on how when AI and ML can be used in risk and underwriting flows.

Hillis is also excited about the prospects of conversational commerce (formerly known as text to pay) and how it often intersects with payment functionality; omni capabilities and offerings for managing both in person and online experiences; and embedded finance products, like lending and commercial cards, where data sitting in existing payment integrations can be leveraged to make a seamless experience.

To make since of it all, Hillis’ advice is simple. “Have conversations with humans. Payments is incredibly complex. As software continues to increase in specialization and verticalization, the benefits of picking up a phone and talking to people who can empathize with the unique needs of your customers is going to be a really worthwhile opportunity.”

Be sure to listen to the end for news about Bob and this podcast series. Here’s a hint – You’ll be hearing more from Hillis on a regular basis.

Andy Meadows, the Head of Partner Success at Payrix joins host Ian Hillis to continue their conversation about building a successful Embedded Payments strategy. As the last episode of a four-part series on the topic, Andy and Ian tackle how software companies can minimize attrition and why it’s important to the payments conversation.

No software company wants to experience a security breach. But they can happen in today’s digital world. That’s why managing risk goes hand-in-hand with having Embedded Payments as part of your software platform

In this episode of PayFAQ: The Embedded Payments Podcast, Jessica Kirkpatrick, Senior Director of Risk, Fraud, and Underwriting at Payrix shares how software companies can detect security comprises early, contain breaches if they occur, and help prevent them from happening in the first place.

Jessica draws from 18 years of experience in the payments industry, including 17 years in risk operations at PayPal. She tells our host Bob Butler that many companies don’t find out about security breaches until they hear from customers when the damage is done, such as they’re no longer receiving funds or seeing unrecognized activity on their software account. The impact can be costly for the merchant and the software company.

At that point, she emphasizes how important it is for companies to contain the breach and prevent further compromise and damage. Implementing measures like changing passwords, multifactor authentication, and conducting a thorough investigation are crucial steps to take immediately.

The biggest mistake is doing nothing or believing you’ve fully mitigated the attack. According to Jessica, if a fraudster detects vulnerability, they’ll come back and try again. She explains the very first thing to do to prevent future attacks is managing access to your software. Then, focus should be on training employees and merchants, developing a robust cyber-security policy, and other measures that together help prevent future breaches.

Have a listen and stay safe!