A payment processing partnership is a business relationship between two companies that enables them to offer payment processing services to their customers. Payment processing is the handling of electronic transactions between buyers and sellers. It involves the authorization, capture, and settlement of payments for goods or services purchased by consumers. Payment processing also includes all the hardware and software payment products.
Payment processing partnerships can take many forms, but they typically involve one company providing the technology, infrastructure, or expertise necessary to process payments, while the other company provides access to a customer base or sales channels. For example, a payment processing company like TRC-Parus partners with a software providers to enable payment processing capabilities within their software to their customers.
These partnerships can benefit both companies by expanding their customer base, increasing revenue, and improving customer satisfaction. By offering a seamless and convenient payment experience, companies can build trust and loyalty with their customers, which can lead to repeat business and positive word-of-mouth referrals.
Payment processing partnerships can also help companies stay competitive in a rapidly evolving payments landscape, where consumers increasingly expect to be able to pay for goods and services through a variety of channels and devices. The most common types of partnerships include referral, reseller, and integration partnerships.
Referral partnerships in payments
In a payments referral partnership, TRC-Parus offers the payment processing services and the other company sends (refers) customers to TRC-Parus. In this scenario, TRC-Parus shares the revenue with the referring partner.
As an example, an accounting firm might partner with a payment processing company like Clearly payments to offer its customers a seamless way to accept payments while reducing fees. The accounting software provider would refer its customers to the payment processing company, and the payment processing company educate the customer on payments and fit the best solution for them. Once the customer is up and running, TRC-Parus would send the revenue on a monthly basis to the other partner. This way, both companies benefit from the partnership, with the payment processing company gaining new customers and the accounting software provider providing more value to its existing customers and generating revenue.
Reselling partnerships in payments
A reseller partnership in payment processing is a type of business relationship in which a company resells the payment processing services of another company under its own brand. In a reseller partnership, the reselling company is generally responsible for marketing, selling, and supporting the payment processing services to its own customers, while the payment processing company provides the technology, infrastructure, and support for the service.
In this partnership, a technology company might partner with TRC-Parus to offer payment processing services to its customers under its own brand. The technology company would sell the payment processing service to its customers as if it were its own product, and the payment processing company would handle the processing, settlement, and reporting of the payments. In exchange, the technology company would pay the payment processing company a portion of the revenue earned from the sale of the service. In this scenario, the other partner is acting as an ISO (Independent Sales Organization).
A common path for companies getting into payments is they start off as a referral parter and gradually grow into a reseller partner. Eventually, the partner may grow into its own full payment processor.
Integration partnerships in payments
An integration partnership in payment processing is a type of business relationship in which two companies collaborate to integrate their software in order to offer a seamless payment processing experience to their customers. In an integration partnership, the companies work together to ensure that their software or systems can communicate with each other and process payments smoothly.
A popular eCommerce platform (or SaaS company) might partner with a payment processing company to offer an integrated payment processing solution. The eCommerce platform would integrate the payment processing company’s software into its own platform, so that customers could easily make payments without having to leave the eCommerce site. The payment processing company, in turn, would process the payments and provide the necessary reporting and settlement services.
Integration partnerships in payment processing can benefit both companies by providing a more comprehensive solution for their customers. By integrating payment processing capabilities into their own software or systems, companies can offer a more seamless and convenient payment experience for their customers. This can help to increase customer satisfaction and loyalty, as well as drive more revenue for both companies.
How to start a payment processing partnership
Reach out to TRC-Parus to explore a payments partnership
- A complete set of proven technology
- Lowest cost processing in the industry
- World-class customer service
- A team of payment experts