In today’s world there are a number of options available for developers for accepting payments via API. If you are developing software for clients, or your own startup, there are several factors you should consider when choosing your payment partner. This holds especially true with the B2B.
- Ease of Integration – Let’s face it, getting payments into software can be complex. When you’re looking for and API you want it to be simple and work. Make sure that your payment partner is offering their API in the latest technology. They need to have thorough documentation and SDKs available in several languages. If these things are not readily available then you may want to look for another partner.
- Flexibility on Pricing – It has become very common for companies that offer payment APIs to set their prices quite high. Visa and Mastercard charge interchange rates to any company processing payments. These companies are bundling the interchange rates up and giving you one rate. On the surface this seems great and quite simple. What if you need to lower your rates to your customers if you’re a B2B platform? No flexibility there. Your payment partner should offer you pass through of those interchange rates.
- Personal Support – Another common complaint is a lack of customer support. Many of the big payment API companies can only be reached via email. I know you are a smart developer and can figure everything out on your own but sometimes it great to talk through a problem with a person. Look for a partner that can offer personal support and email support if that’s your preferred method of communication.
- Revenue Sharing Potential – Scaling your software platform is hard to do. Often time founders will offer their platform free to entice conversions. If you’re platform focuses on B2B then you should able to get a revenue share on the transaction profits as well. If your partner does not offer this then perhaps there is a better fit out there. This could be the difference in success or failure of your startup. If you are converting and making revenue off transaction then you could also extend your runway or create a better premoney valuation if you needed to raise funds, thus protecting your hard earned equity.
- Customer Experience – Finally, your customers experience should be taken into account too. There are several payment API companies out there that can run transactions but are a nightmare to setup accounts with. You should be able to create payment accounts for your customers with ease. Like I mentioned before, scaling is hard to do, why make it harder by dealing with a legacy payment company.
If you keep these 5 items in mind when looking for a payment partner you will be ahead of the game. There are several companies out there vying for your business. Make sure that your partner has your best interest in mind and not their own. This should a win/win partnership for everyone.
Last modified on Tuesday, 01 December 2015