Nationwide Payment Systems 

How Software Companies Can Monetize Payments With White Label Solutions

Learn how software companies and SaaS platforms can monetize payments with white-label payment solutions, PayFac models, revenue share, embedded payments, and branded onboarding. 

Presented by Allen Kopelman, CEO — Nationwide Payment Systems-Host of B2B Vault: The Biz2Biz Podcast 

AI OVERVIEW

How Software Companies Can Monetize Payments With White Label Solutions 

Software companies are sitting on one of the biggest revenue opportunities in fintech: payments. 

If your platform helps businesses send invoices, book appointments, manage customers, sell products, run memberships, schedule services, manage subscriptions, collect deposits, or process orders, then payments are already part of your customer’s workflow. 

The question is simple: 

Are you monetizing those payments, or are you handing that revenue to someone else? 

For many software companies, the customer journey looks like this: 

A business signs up for the software. 
They use the platform every day. 
They trust the brand. 
Then, when it is time to accept payments, they are sent to a third-party processor. 

That means the software company controls the workflow, but another company controls the payments. 

That is a missed opportunity. 

With a white-label payment solution, software companies can embed payment acceptance directly into their platform, keep the experience under their own brand, and create a new recurring revenue stream. 

This is why more ISVs, SaaS platforms, vertical software companies, and business management platforms are exploring white-label payments, embedded payments, and PayFac-style models. 

Payments are no longer just a feature. 

Payments can become a profit center. 

What Is a White Label Payment Solution? 

A white-label payment solution allows a software company to offer payment processing under its own brand without building the entire payments infrastructure from scratch. 

Instead of telling customers to go set up a separate account with a third-party processor, the software company can offer payment acceptance as part of its platform. 

That may include: 

Credit card payments 
ACH payments 
Recurring billing 
Payment links 
Invoice payments 
Hosted checkout pages 
Card-on-file payments 
Customer portals 
Reporting 
Merchant onboarding 
Risk review 
Gateway access 
Settlement and funding support 
Payment-related customer service. 

The key benefit is that the software company keeps the customer experience inside its own ecosystem. 

The customer sees the software platform as the payment provider, while the backend processing, underwriting, compliance, gateway, and support are handled through the white-label payments partner. 

For software companies, this creates a major advantage. 

You can add payments without becoming a payments company from scratch. 

Why Payments Are a Natural Revenue Stream for Software Companies 

Most software companies spend years trying to increase monthly recurring revenue. 

They test new plans, add premium features, increase seat counts, and look for upsells. 

Payments create a different type of revenue stream. 

Instead of only charging for access to the software, the company can also earn revenue when customers use the platform to get paid. 

That means revenue can grow as customer payment volume grows. 

For example, a software company serving contractors, medical offices, law firms, field service businesses, restaurants, retailers, nonprofits, or B2B companies may already have customers collecting payments every day. 

Those payments may include: 

Invoices 
Deposits 
Recurring memberships 
Subscription payments 
Service fees 
Event registrations 
Product orders 
Donations 
ACH payments 
Large-ticket transactions 
Card-on-file payments 
Online checkout payments. 

If those payments are flowing through another provider, the software company is giving away revenue and losing control of a key part of the customer experience. 

A white-label payment solution helps bring that revenue and experience back into the platform. 

The Big Shift: From Software Subscription to Embedded Financial Platform 

The old SaaS model was simple: 

Build software. 
Charge a monthly fee. 
Add more users. 
Increase retention. 

That model still works, but the most valuable platforms are becoming more than software tools. 

They are becoming operating systems for specific industries. 

A vertical software platform for home services does not just help a contractor manage jobs. It can help that contractor send invoices, collect deposits, set up recurring billing, offer financing, and get paid faster. 

A platform for nonprofits does not just manage donors. It can collect donations, run recurring giving, accept ACH, and create branded donation pages. 

A platform for B2B companies does not just manage orders or customers. It can collect invoice payments, support ACH, handle large-ticket transactions, and reduce accounts receivable friction. 

This is where embedded payments become powerful. 

Payments are not separate from the software. 

Payments become part of the workflow. 

And when payments become part of the workflow, the software company has a new opportunity to monetize. 

5 Ways Software Companies Can Monetize Payments With White Label Solutions 

There is not only one way to make money from embedded payments. The right structure depends on the software company, customer base, industry, risk profile, transaction volume, and support model. 

Here are five common ways software companies can monetize payments. 

1. Payment Revenue Share

Revenue share is one of the most common models. 

In a revenue share arrangement, the software company earns a portion of the payment processing revenue generated by customers using the platform. 

The more customers process, the more potential revenue the software company can earn. 

This can be especially attractive for SaaS companies with customers who process meaningful monthly volume. 

For example, if a software platform serves businesses that each process $25,000, $50,000, $100,000, or more per month, the embedded payment opportunity can become significant. 

Revenue share can help software companies build a recurring income stream that grows with customer usage. 

Unlike a flat software subscription, payment revenue is tied to transaction activity. 

That means successful customers can become more valuable over time. 

2. Markup on Payment Processing

Some white-label payment programs allow software companies to participate in pricing by adding a markup to the payment processing cost. 

This may be structured as a percentage, transaction fee, monthly fee, or combination of pricing elements. 

For example, a software company may offer payment acceptance as part of the platform and earn a portion of the processing margin. 

The key is to keep pricing transparent, competitive, and appropriate for the customer base. 

This model can work well when the software company wants more control over the customer-facing payment offer. 

However, pricing needs to be handled carefully. 

Payment processing is regulated by card brand rules, underwriting standards, processor guidelines, and customer expectations. The software company should work with a payments partner that understands compliant pricing models and can help structure the program properly. 

3. Premium Payment Features

Software companies can also monetize payments by bundling advanced payment features into premium software plans. 

Instead of only earning from processing margin, the company can charge for features such as: 

Automated recurring billing 
Advanced invoicing 
Payment links 
ACH acceptance 
Customer payment portals 
Text-to-pay 
Saved payment methods 
Deposits and partial payments 
Branded checkout pages 
Multi-location payment reporting 
QuickBooks or accounting integrations 
Custom payment workflows 
API access 
Webhook functionality 
Level 2 and Level 3 data support. 

This model works especially well when payment features save customers time, improve cash flow, or reduce manual work. 

For example, a B2B platform can charge more for advanced invoicing and ACH tools. 

A membership platform can charge more for recurring billing and card-on-file features. 

A field service platform can charge more for deposits, text-to-pay, and customer payment links. 

In this model, payments help improve both revenue and product stickiness. 

4. Merchant Account Referral or Partner Revenue

Not every software company wants to become deeply involved in payment operations. 

Some companies prefer a lighter model where they refer customers to a payments partner and earn ongoing partner revenue. 

This can be a good fit for software companies that want to monetize payments but do not want to manage underwriting, support, pricing, risk, or onboarding complexity. 

The software company can still benefit financially while allowing the payments partner to handle the operational side. 

This model can be useful for: 

Early-stage SaaS companies 
Niche software companies 
Platforms with lower payment volume 
Companies that want to test payment monetization 
ISVs that want support without building a payment department 
Software companies serving higher-risk or specialized industries. 

The benefit is simplicity. 

The software company can create a payments revenue stream without taking on the full burden of being a payment facilitator. 

5. White-Label PayFac Model

The white-label PayFac model is one of the most powerful options for software companies that want a branded payment experience without building a full PayFac operation from scratch. 

A payment facilitator, or PayFac, allows a platform to onboard merchants and facilitate payment acceptance within its ecosystem. 

The traditional PayFac model can be expensive and complex because it may require significant investment in compliance, underwriting, risk monitoring, fraud tools, payment infrastructure, operations, and sponsor bank relationships. 

A white-label PayFac model gives software companies a more practical path. 

The software company can offer a branded payment experience while the payments partner provides the backend infrastructure, support, risk management, and operational foundation. 

This is where a partner like Nationwide Payment Systems can help. 

NPS offers a white-label PayFac model for ISVs and SaaS companies that want to monetize payments without building the entire infrastructure themselves. 

That means software companies can focus on their product, customer experience, and growth while NPS supports the payment side. 

What Is the PayFac Model? 

The PayFac model allows a software platform or payment facilitator to help onboard businesses for payment acceptance and manage payment activity under a broader payments structure. 

In simple terms, the PayFac model is designed to make merchant onboarding faster and more integrated. 

Instead of each customer going through a completely separate traditional merchant account setup, the software platform can create a smoother embedded payment experience. 

This can be valuable for software companies because customers want payments to feel like part of the platform, not a separate project. 

However, becoming a full PayFac can be complicated. 

A true PayFac program may involve: 

Underwriting requirements 
Risk monitoring 
Fraud controls 
Know Your Customer procedures 
Merchant due diligence 
Transaction monitoring 
Chargeback handling 
Compliance rules 
Card brand requirements 
Sponsor bank oversight 
Technical integrations 
Settlement and funding processes 
Ongoing support. 

For many software companies, building this from scratch is not realistic. 

That is why white-label PayFac solutions are attractive. 

They provide a path to payment monetization without requiring the software company to become a payments infrastructure company. 

White Label PayFac vs Traditional Merchant Referral 

A traditional merchant referral model is usually simpler. 

The software company refers the customer to a payment processor, and the processor handles the account, onboarding, support, and processing relationship. 

This can work, but the customer experience may feel disconnected. 

The customer may ask: 

Why am I leaving the software platform to set up payments? 
Who do I contact for support? 
Why does the payment experience not match the software brand? 
Why is onboarding separate from the platform? 

A white-label PayFac model creates a more integrated experience. 

The software company can keep the payment offer under its own brand, improve customer adoption, and participate more directly in payment monetization. 

The customer gets smoother experience. 

The software company gets a stronger product offering. 

The payment partner handles the infrastructure and operational complexity. 

Why Software Companies Should Not Treat Payments as an Afterthought 

Payments are often one of the most important parts of the customer workflow. 

If your software helps customers run their business, then getting paid is probably part of the value you provide. 

When payments are treated as an afterthought, several problems can happen: 

Customers leave the platform to collect payments elsewhere. 
The software company loses payment revenue. 
The customer experience becomes fragmented. 
Support becomes harder. 
Reporting is disconnected. 
Payment data does not flow cleanly into the platform. 
Customers may choose a competitor with built-in payments. 

Embedded payments can solve these problems. 

They make the platform more valuable. 

They make the customer more likely to stay. 

They give the software company more revenue opportunities. 

They also help turn the software platform into a more complete business solution. 

Key Benefits of White Label Payments for Software Companies 

A white-label payment solution can help software companies in several ways. 

1. New Recurring Revenue

Payment monetization can create a recurring revenue stream tied to customer transaction volume. 

As customers grow, payment revenue can grow with them. 

2. Stronger Customer Retention

When payments are embedded into the platform, customers become more dependent on the software. 

That can improve retention and reduce churn. 

3. Better Customer Experience

Customers do not want to manage disconnected tools. 

A branded payment solution keeps the payment process inside the platform. 

4. More Control Over the Workflow

Embedded payments allow the software company to control more of the customer journey, from invoice to payment to reporting. 

5. Competitive Advantage

Software companies with integrated payments can stand out against competitors that require customers to find their own processor. 

6. Faster Product Expansion

White-label payments allow the software company to add payment capabilities without building infrastructure from scratch. 

7. Better Data and Reporting

When payments flow through the platform, the software company can provide better reporting, reconciliation, and workflow automation. 

Onboarding Considerations for Software Companies 

Adding payments is not just a technical decision. 

It is also an operational, compliance, risk, and customer experience decision. 

Before launching a white-label payment program, software companies should think through several key areas. 

1. Who Are Your Customers?

The first question is customer profile. 

Are your customers low-risk, medium-risk, or higher-risk? 

Do they sell products online? 

Do they accept large-ticket payments? 

Do they have subscriptions or recurring billing? 

Do they operate in regulated industries? 

Do they process card-present, card-not-present, ACH, or all of the above? 

Do they need fast approvals? 

Do they need detailed underwriting? 

Your customer base determines the right payment structure. 

A platform serving yoga studios is different from a platform serving contractors. 

A platform serving B2B wholesalers is different from a platform serving CBD businesses. 

A platform serving nonprofits is different from a platform serving online subscription companies. 

The payment program must match the customer base. 

2. What Payment Methods Do Customers Need?

Software companies should identify which payment methods are most important. 

That may include: 

Credit cards 
Debit cards 
ACH payments 
Apple Pay 
Google Pay 
Recurring payments 
Payment links 
Invoice payments 
Card-on-file 
Text-to-pay 
Hosted checkout 
Virtual terminal 
E-commerce payments 
In-person terminal payments. 

The more closely the payment solution matches the customer workflow, the more valuable it becomes. 

3. What Does the Customer Onboarding Experience Look Like?

Onboarding is critical. 

If payment activation is too complicated, customers may not complete it. 

A good white-label payment program should make onboarding clear and efficient while still collecting the information needed for underwriting and compliance. 

Software companies should consider: 

Where does the customer apply? 
Is the experience branded? 
What information is required? 
How long does approval take? 
Who reviews the application? 
What happens if the customer is higher risk? 
Who communicates with the customer? 
How are documents collected? 
How are customers trained after approval? 

The best payment programs balance speed with risk control. 

Fast onboarding is important. 

Correct onboarding is even more important. 

4. Who Handles Risk, Compliance, and Support?

This is one of the biggest questions. 

Payments involve risk. 

There can be chargebacks, fraud, unauthorized transactions, account reviews, funding delays, reserves, and compliance issues. 

Software companies need to know who is responsible for what. 

Important questions include: 

Who handles underwriting? 
Who monitors risky activity? 
Who reviews chargebacks? 
Who answers merchant support questions? 
Who explains funding issues? 
Who manages compliance concerns? 
Who helps with card brand rules? 
Who supports higher-risk accounts? 
Who communicates with the merchant if there is a problem? 

This is where the right white-label payments partner matters. 

A software company should not launch payments without a clear support and risk structure. 

5. How Will Revenue Share Be Structured?

Payment monetization needs a clear revenue model. 

Software companies should understand how they will get paid and what affects their revenue. 

Questions to ask include: 

Is revenue share based on processing volume? 
Is it based on margin? 
Is there a transaction fee? 
Are there monthly account fees? 
Are premium payment features billed separately? 
Are ACH payments monetized? 
Are there minimum volume requirements? 
How often is revenue paid? 
Is reporting available? 
Can revenue grow as customers grow? 

A good payment partner should be able to explain the revenue share structure clearly. 

If the model is confusing, the software company may struggle to forecast payment revenue. 

6. What Technology Integration Is Required?

White-label payments should make the technical side easier, but integration still matters. 

Software companies should review: 

API access 
Hosted checkout options 
Payment links 
Gateway capabilities 
Webhook support 
Recurring billing tools 
ACH support 
Tokenization 
Reporting 
User roles and permissions 
Sandbox access 
Developer documentation 
Support for testing 
Accounting or ERP integrations. 

Some software companies need a deep API integration. 

Others may start with hosted payment pages, payment links, or invoicing tools. 

The right path depends on the product roadmap and development resources. 

7. How Will the Payment Experience Be Branded?

Branding matters. 

If the software company wants a true white-label experience, the customer-facing payment journey should feel connected to the platform. 

That may include: 

Branded payment pages 
Branded onboarding 
Branded emails 
Branded reporting 
Branded support workflows 
Custom URLs 
Platform-specific naming 
Embedded checkout 
Consistent design language. 

A strong branded payment experience builds trust. 

It also keeps the customer connected to the software company instead of pushing them toward another payment brand. 

Why White Label Payments Are Especially Valuable for Vertical SaaS 

Vertical SaaS companies are often the best fit for white-label payment monetization because they serve a specific industry. 

That gives them an advantage. 

They understand the customer’s workflow. 

They understand the industry language. 

They understand the pain points. 

They understand what the customer needs to get paid. 

Examples include software platforms for: 

Home services 
Contractors 
Medical offices 
Optometrists 
Legal services 
Accounting firms 
B2B services 
Wholesale and distribution 
Nonprofits 
Associations 
Membership organizations 
Events 
Retail stores 
Specialty retail 
Automotive services 
Property management 
Professional services 
Field services 
Logistics 
Education and training 
Coaching programs 

For these platforms, payments can become more than a feature. 

Payments can become part of the core value proposition. 

How White Label Payments Help SaaS Companies Increase Valuation 

Software companies are often valued based on recurring revenue, retention, growth, and customer lifetime value. 

Embedded payments can potentially improve all of those areas. 

Payments can increase revenue per customer. 

Payments can make the platform harder to replace. 

Payments can create usage-based revenue. 

Payments can improve retention. 

Payments can make the platform more valuable to customers. 

Payments can give the software company a deeper role in the customer’s business operations. 

For SaaS companies looking to grow, raise capital, improve margins, or increase enterprise value, payment monetization can become a strategic advantage. 

Common Mistakes Software Companies Make With Payments 

Software companies often make the same mistakes when they first explore payments. 

Mistake 1: Waiting Too Long 

Many software companies wait until competitors offer embedded payments before acting. 

By then, customers may already expect payments to be built in. 

Mistake 2: Sending Customers Away From the Platform 

If customers must leave the software to set up payments, the experience feels disconnected. 

That can reduce adoption and create support confusion. 

Mistake 3: Choosing a Processor Without Support 

The wrong payments partner can create problems with onboarding, support, risk, and communication. 

Software companies need more than an API. 

They need operational support. 

Mistake 4: Ignoring Risk 

Payments involve underwriting, chargebacks, fraud, compliance, and funding issues. 

Ignoring risk can create serious problems later. 

Mistake 5: Not Understanding the Revenue Model 

Some payment monetization programs sound good but are hard to understand. 

Software companies should know exactly how revenue share works. 

Mistake 6: Treating All Customers the Same 

A low-risk professional services company and a higher-risk e-commerce merchant may need different onboarding and underwriting paths. 

A strong payment program should account for customer differences. 

Why Nationwide Payment Systems Is a Strong Partner for White Label PayFac Solutions 

Nationwide Payment Systems helps ISVs, SaaS platforms, and software companies monetize payments through white-label payment solutions and a white-label PayFac model. 

The goal is simple: 

Help software companies add payments under their own brand without building the entire infrastructure from scratch. 

NPS can support software companies with: 

White-label PayFac solutions 
Embedded payment strategy 
Payment revenue share opportunities 
Merchant onboarding support 
ACH and credit card processing 
Gateway solutions 
Smart invoicing 
Payment links 
Recurring billing 
Hosted checkout 
API and integration support 
High-risk and specialized merchant guidance 
Chargeback support 
Dedicated relationship-based service. 

This matters because software companies need more than a payment connection. 

They need a payments partner that understands technology, underwriting, risk, support, and monetization. 

With the right white-label model, ISVs can focus on building great software while NPS helps power the payment side. 

Is White Label Payment Solution Right for Your Software Company? 

A white-label payment model may be a good fit if your software company: 

Serves businesses that accept payments 
Wants to create a new revenue stream 
Wants to keep customers inside its platform 
Wants to offer branded payment acceptance 
Wants to improve retention 
Wants to add ACH, cards, recurring billing, or invoicing 
Wants payment revenue without building infrastructure from scratch 
Wants a payment partner that can help with onboarding and support 
Serves a vertical market with specific payment needs 
Wants to compete with platforms that already offer embedded payments 

If your customers are already making payments, there is a good chance payment monetization should be part of your growth strategy. 

The Bottom Line 

Software companies do not need to become banks or build full payment infrastructure to monetize payments. 

They need the right white-label payment partner. 

A white-label payment solution allows software companies to embed payments, improve customer experience, strengthen retention, and create a new recurring revenue stream. 

The PayFac model can be powerful, but building it from scratch can be expensive, complex, and risky. 

That is why white-label PayFac solutions are becoming more attractive for ISVs and SaaS companies. 

With a partner like Nationwide Payment Systems, software companies can offer branded payment solutions, participate in payment revenue, and give customers a better way to get paid without building everything themselves. 

Payments are not just a feature anymore. 

For software companies, payments can become one of the most valuable parts of the business. 

Call to Action 

Are you an ISV, SaaS company, or software platform looking to monetize payments? 

Nationwide Payment Systems can help you explore a white-label PayFac model designed to let you offer payment solutions under your own brand without building the infrastructure from scratch. 

Schedule a consultation with NPS to learn how your software company can create a payment revenue stream, improve customer retention, and deliver better payment experience inside your platform.