Why Installments-as-a-Service Partnerships Beat ‘Build It’ Approach for Merchants

Partnerships with experienced and innovative technology firms can help businesses effectively work with their existing technology to expand reach, improve customer experience and manage data, Versatile Credit CEO Ed O’Donnell writes in the PYMNTS eBook, “2023 Payments New Year’s Resolutions.”

As we enter 2023, we believe the payments industry should resolve to build relationships with technology partners and platforms rather than getting lost in the “build it yourself” mentality. This is particularly important given the need for businesses to make intelligent use of available capital due to uncertain economic conditions.

As seen in PYMNTS’ recent survey with small and medium-sized businesses (SMBs), “Main Street Health, Q4 2022: SMBs Brace for a Recession,” many business owners are seeking technology solutions. Still, they may not have the capital to afford them or the resources to deploy them. Our experience is that it doesn’t have to be expensive for these businesses to find solutions that help drive growth and they don’t have to shoulder the burden of identifying and implementing great solutions. Through a partnership with experienced and innovative technology partners, business leaders can efficiently and effectively work with their existing technology to expand reach, improve customer experience, increase the ability to mine and manage their data and more.

At Versatile Credit, we understand the challenges merchants and lenders face in finding the right technology solutions. For merchants, finding ways to help leverage financing for their customers at the point of sale to close sales is crucial. They want to use technology their customers and associates are familiar with without adding unnecessary complexity to the checkout or shopping experience. We have helped many merchants transition away from homegrown systems that had become sources of technical debt or were no longer effective.

On the other hand, lenders are looking to expand their customer base and reach more consumers seeking financing. They offer great products and services, but it can be difficult for merchants to integrate these payments into their existing technology stacks. This can cause lenders to make tough decisions about integrating with merchants in-store and online. We work with lenders and merchants to build customized deployments, presenting different offers and product types to shoppers based on ticket size, product, region or other business rules. We have also developed and deployed white-label solutions with partners like TD Bank, building a scalable, full-featured financing solution for independent furniture dealers, helping these merchants offer seamless, comprehensive financing options on par with some of the biggest brands in the country without worrying about costly integrations.

We are pleased to partner with companies like Bread Financial, leveraging our ecosystem of in-store application channels and integrations to increase the in-store presence of their financing products, such as their buy now, pay later product, Bread Pay. Partnerships like these help lenders more easily bring solutions to market, offer personalized financing options to a broader audience, and expand into new markets.

In 2023, the payments industry should resolve to provide the best products and services they can and find the right partners to help them succeed. Leveraging the expertise of proven technology providers through partnerships will enable the delivery of top-quality products and services to businesses that can improve sales and profitability as they navigate an uncertain economy and a rapidly changing digital landscape.