Introduction

With the growing popularity of eCommerce, the last few years have seen a dramatic increase in digital payments. This presents independent software vendors (ISVs) and SaaS companies with a unique opportunity to grow their customer base by offering integrated payments as part of their solutions.

However, this is easier said than done; most ISVs do not have the necessary expertise or resources to become merchant services providers. This is where white-label payment processing comes in. 

In this article, we’ll discuss what this means, what to look for in a white-label payment processor, and help you decide if it might be the right choice for your business. Let’s find out!

What Is a White-Label Payment Processor?

White-label payment processing refers to the practice of using a third-party payment gateway and/or other payment technology—fully branded as your own—to process payments. In this case, the organization that provides the payment technology for ISVs, SaaS companies, or other organizations to use as their own, is known as a white-label payment processor.

The white-label payment processor develops and maintains the entire payments infrastructure while providing ISVs the ability to customize the checkout, payment pages, and dashboards with their brand names, colors, logos, and copy.

As far as end customers are concerned, they will perceive the payment service as being offered by the ISV that rebranded it. There won’t be anything to suggest that a third party is involved in the payment process. 

Traditionally, merchant acquirers would enter into agreements with payment service providers to resell or market their payment gateways and/or other merchant services. With white-labeling, ISOs, ISVs, and acquirers get to brand and sell these services as their own.

Not only does this allow them to expand their offerings, but also have greater control over the payment process. Plus, they get to create an additional revenue stream while leaving the heavy lifting (development and maintenance) to the white-label payment processor. 

Why do you need white label payment gateways? 

White-label payment processing offers multiple benefits for ISVs or SaaS companies looking to offer payments as part of their integrated solutions. Let’s take a look at some of them.

1. Saves time and cost

Building and maintaining a payments infrastructure is extremely resource-intensive. Besides developing the technology, ISVs would also need to build relationships with sponsor banks in order to facilitate payments. This can cost millions of dollars in time and money—something that small businesses can’t afford.

Partnering with a white-label payment processor is a way more viable option, as the processor offers the necessary APIs, apps, or plugins for integration—quickly and seamlessly—with their software to provide the payment processing features they want. 

2. Security and compliance fulfilment 

Security is a major concern in the payments industry. Payment solution providers need to ensure regulatory and PCI compliance besides implementing various fraud prevention and protection measures. With white labeling, an ISV can rest easy knowing that these aspects are already taken care of by their payment partner.

3. Additional revenue

One of the biggest benefits of partnering with a white-label payment processor is that it gives ISVs the opportunity to create an additional revenue stream by expanding their offerings.

By integrating payments, they can offer a more holistic solution to address the business needs of their customers. Plus, they have greater control over the payments experience which not only strengthens their customer relationships but also helps them grow their brand and reputation.

4. Focus on core competency

By taking the white-labeling route, ISVs can save themselves the hassle and risk of exploring uncharted territories. Instead, they can focus on what they do best while offering a diverse range of solutions to meet the changing needs of their customers.

How to select the right white label payment processing service?

There are a few essential things you’d want to consider before choosing a payment partner that offers white-label payment processing. This will help you make sure that you are fully equipped to meet the needs of your customers. Here’s what you should look into.

1. Availability of customization options

One of the most important things to consider before you choose a white-label payment partner is the level of customization it offers. This is crucial because you’ll need to have full control over the branding. So check what customizations are available with respect to using your brand logo, color scheme, font, etc.

For example, within Transfi, partners who want to white label can create/use their own brand colors and images instead of platform’s. Plus, they can customize navigation bars, depending on what features they want to offer to their sub-merchants (invoices, payment links, etc.). They can also choose to hide reports that they don’t want their sub-merchants to view. 

2. Diversity of businesses to work with

A white-label payment gateway solution gives you more control over the payment process, but providers sometimes impose limitations on who you can work with. Some partners may not allow you to work with high-risk businesses, such as casinos or online gambling or give a flexibility of dealing with currencies or cryptos. So, when choosing a white-label service provider, make sure it caters to the businesses you work with (or are planning to work with in the future). 

3. Banks or acquirers they work with

To ensure a smooth payments experience for your customers, look for a payment platform that has a strong and long-term relationship with sponsors or acquiring banks. This will ensure that payments are swift and go through successfully, more often than not.

4. Security and compliance features

White-label payment service providers (PSPs) generally go to great lengths to ensure security and compliance. But regulations surrounding payments are often complicated and can vary across industries and locations. See to it that your partner is compliant with PCI DSS as well as other applicable regulations within the industries and countries you want to work with. 

Also, check if they support tokenization—a safety measure that ensures you never have to handle sensitive payment data of your customers directly. Transfi leverages the blockchain technology supporting tokenization and hence providing transparency and security.

5. Payment options support

Make sure your white-label processing partner supports a range of payment methods and currencies for the end-user. Besides all major credit cards and debit cards (Mastercard, Visa, Discover, Amex), check if they support online payments, digital wallets (Google Pay, Apple Pay, PayPal, etc.), invoicing, recurring billing, payment links, and QR code payments. These can greatly improve customer satisfaction and help you serve a larger customer base. 

6. Customer support 

When someone else is responsible for your entire payments infrastructure, you need them to be available whenever you or your customers run into an issue. To that end, make sure your white-label payment processing partner offers excellent customer support round the clock, including the ability to speak with a live person who can provide assistance in real time. 

7. Other considerations

You’ll also want to make sure the solution is cost-effective and offers modern APIs and SDKs that ensures a quick and seamless integration. Can you take advantage of any third-party integrations that your partner offers, Can merchant onboarding be done in-app through customizable enrollment flows, Does the platform offer robust reporting features to check user activity, residuals, and volumes? Answering all these questions before locking on an option would really help in taking an informed decision. 

Transfi payment gateways provide the end to end white label payment processing services at great cost, transparent pricing and immense flexibility, find out more about our services here.

What’s next with white label payment processing

When it comes to choosing a white-label payment processing partner that fulfills all your requirements, look no further than Transfi. We have the expertise and capability to provide the best-in-class payment infrastructure that supports a wide range of payment methods and streamlines risk management.

Leverage our long-standing relationship with the world’s leading sponsor bank and create an entire payments ecosystem from scratch in a few quick steps. To learn how you can fully own and monetize the payment experience while enhancing the capabilities of your platform, contact us today.

Conclusion

To grow, businesses need white label payment processing solutions. A first-rate white label payment processing solution does a lot of behind-the-scenes work to ensure that your customers’ payments go through without a hitch at every point in the billing process. Your customers likely have diverse preferences, so you should look for a billing solution that can handle every imaginable scenario.

If you need a complete payment management platform, check out Transfi’s subscription and billing solutions to understand what capabilities to look for, what questions to ask your internal stakeholders and vendors, and what terms you need to know.

Transfi allows you to set up various payments, regardless of business size. Our robust platform accepts major payment methods and currencies and is designed for enterprises to maximize profits through simplified payments. 

Transfi can be integrated into your company’s payments ecosystem, combining subscription management, advanced features, and billing elements in a solution that supercharges revenue growth. 

Frequently asked questions (FAQs)

1. What does white label payment processing mean?

White-label payment processing refers to the practice of using a third-party payment gateway and/or other payment technology—fully branded as your own—to process payments. In this case, the organization that provides the payment technology for ISVs, SaaS companies, or other organizations to use as their own, is known as a white-label payment processor.

2. Why should a business consider implementing white label payment processing?

• Security and compliance fulfilment 
• Saves time and cost
• Additional revenue
• Focus on core competency

3. What factors should a business consider while implementing white label payment processing?

• Availability of customization options
• Diversity of businesses to work with
• Banks or acquirers they work with
• Security and compliance features
• Payment options support
• Customer support

4. How does a white-label payment processor ensure security and compliance?

Security is a major concern in the payments industry. White label payment solution providers ensure regulatory and PCI compliance besides implementing various fraud prevention and protection measures. With white labeling, an ISV can rest easy knowing that these aspects are already taken care of by their payment partner.

5. How does a white-label payment processor contribute to improving customer satisfaction?

White label payment processing improves customer satisfaction as it comes with a package of providing subscription models, payment methods and ensures security and transparency, hence increasing the level of satisfaction customers have.