What are integrated payments? 4 benefits for businesses

Key takeaways:

• Integrated payments connect your existing system to a payment processor, streamlining the entire transaction process and creating a seamless checkout experience. This enables a quick process at checkout, reducing customer drop-off.

• Benefits include improved operational efficiency, enhanced security, and stronger financial oversight.

• Integrated payments speed up transactions and improve the checkout experience, leading to higher customer satisfaction.

Digital payment adoption is accelerating, with digital wallets accounting for 50% of global eCommerce transaction value in 2023 – a number expected to rise to 61% by 2027.¹ As your business grows or enters new markets, relying solely on a basic payment processor may not be enough.

Integrated payments embed directly into your existing software, allowing you to accept a wide range of payment methods – including cards, bank transfers, and digital wallets – without redirecting users to third-party platforms. This improves conversion rates and delivers a more secure payment experience.

These systems often include a centralized dashboard to manage payment activities, track transactions, resolve disputes, and generate reports. Many also support automated reconciliation, reducing manual bookkeeping and errors.

Learn more about the key features, benefits, and how to choose the right solution for your business.

What are integrated payments?

Integrated payments refers to an integrated payment processing system that connects your point-of-sale (POS) system to a processor. This works with your website checkout, mobile shopping app, and brick-and-mortar POS, and accepts digital payments including cards, mobile wallets, and more. For example, customers pay using options like Apple Pay and Google Pay, enabling faster, secure, and seamless transactions for a better checkout experience.

For eCommerce businesses, this may mean that the eCommerce payment processing seamlessly integrates with your eCommerce platform, allowing customers to complete transactions without leaving the website. This ensures a smooth user experience for the customer and you. This also lets you enjoy features like automated reconciliation and centralized management, which are key benefits of integrated payment solutions.

How do integrated payments work?

Integrated payments work by connecting multiple payment and financial services so they can share information with each other. For example, if an online shopper decides to buy a new sweater, an integrated payment system works together to handle the transaction with minimal disruptions:

• The customer adds the item to their cart and inputs payment details via an integrated checkout that keeps them on your site.

• The checkout shares payment information with a payment gateway, which sends it through the payment processing system for verification and authorization. Integrated payment systems streamline processing payments and can automatically post transactions to accounting systems, reducing delays and improving financial efficiency.

• The gateway receives payment approval (or rejection) from the customer’s bank and passes this back to the checkout.

• The checkout confirms the transaction and completes the order.

If this was a non-integrated payment, the customer would be bounced from your site to a third-party checkout to share their payment details. Then, the customer returns to your checkout screen to confirm the order. These extra steps add friction to the process that can turn customers away and increase the chance for payment failure and other bugs to pop up. Non-integrated systems often require manual processes, such as having to manually input payment information, which increases the risk of errors and slows down the payments process.

Do you need an integrated payment system?

Any business that accepts digital payments can benefit from the efficiencies of an integrated payment system. But here are five signs it may be time to make the switch:

• Cart abandonment due to clunky checkout: Your customers often abandon their carts because of a complicated or off-site payment process. An integrated payment system keeps customers on-site and streamlines checkout, which can help improve conversion rates.

• Manual reconciliation is taking up too much time: If you’re spending excessive time manually reconciling transactions, integrated payments can help. Many solutions automate reconciliation and accounts receivable workflows, saving time and reducing errors.

• You're expanding internationally: If your business is growing globally, you’ll need an integrated payment system that supports multiple currencies, local payment methods, and can handle higher transaction volumes – all while ensuring compliance.

• Your payment volume is growing fast: A basic payment processor may struggle with scaling. Integrated payment systems are designed to handle increasing transaction volumes efficiently and reliably.

• You want stronger security and compliance: Integrated payment systems often offer advanced security features, like tokenization and encryption, and help ensure compliance with industry standards such as PCI DSS.

After identifying these signs, the integration process becomes a crucial step. This typically involves configuring APIs, connecting your payment system with your POS or ERP, and enabling seamless data sharing across platforms to optimize your payment operations.

From customer experience to business security, all-in-one integrated payments can streamline operations, automate routine tasks, reduce manual work, and boost overall efficiency.

4 ways integrated payments benefit your business

Non-integrated payment systems leave more of the work to you, creating additional business challenges. Manual processes increase the risk of human error, especially as your business scales. Relying on separate platforms for payment processing, reconciliation, and reporting can lead to inefficiencies and inconsistent data.

Additionally, if you’re not an expert in user experience (UX) or checkout security, building a smooth and secure payment flow can be difficult and time-consuming.

Here’s how integrated payments account can benefit you: by consolidating payment and transaction processes into one system, you can improve efficiency and simplify management.

1. Improve your user experience at checkout

One of the key benefits for customers is an improved user experience throughout the checkout process. With integrated payments, you can reduce the steps required to make a purchase, and in many cases, customers can complete the transaction without leaving your site. This makes checkout faster and more intuitive, reducing the likelihood of cart abandonment. In-store, when properly integrated, the payment terminal connects directly with your POS system, enabling smoother transactions.

Integrated payment systems also allow you to customize the payment interface to match your brand’s look and feel, creating a professional and cohesive user experience. Many systems support localized checkouts, showing customers their local currency and preferred payment methods automatically. This reduces friction, enhances trust, and minimizes abandoned carts. Additionally, integrated payments can provide customers with detailed receipts, improving transparency and simplifying order tracking, refunds, and expense management.

2. Streamline your payment process

An integrated payments solution can automate payment processing, invoicing, and reconciliation, reducing manual effort and improving accuracy. This helps lower operational costs and supports more efficient business operations. By accommodating various payment types and providing centralized access to payment data, businesses gain more flexibility and control.

Integrated payments are especially valuable for SaaS businesses that manage recurring payments across different plans and schedules. Solutions like Airwallex integrate with accounting software to sync real-time payment data, helping businesses stay on top of financial reporting and compliance.

While integrated payments don’t track inventory directly, they can connect with platforms that monitor inventory and cash flow. This shared data helps businesses manage stock, streamline fulfillment, and make more informed decisions based on real-time insights.

3. Increase your revenue

Integrated payments have several advantages to boost your bottom line. The efficiencies that reduce manual labor and improve the checkout experience also decrease abandoned carts to increase conversion rates, driving revenue growth.

Beyond that, integrated systems support global payments that can help your business expand internationally. You can accept multiple currencies from more local payment methods, plus offer localized checkouts that dynamically update pricing based on location. This helps you reach new audiences and provides a sense of trust and security to support sales.

4. Secure sensitive customer and business data

Advanced security is a benefit of integrated payment systems that play a significant role in protecting you and your customers. This typically includes data encryption, tokenization, and compliance with international standards such as Payment Card Industry Data Security Standards (PCI-DSS). This framework provides basic requirements to protect payment data, businesses, and consumers.

Many integrated payment solutions invest in fraud detection. These advanced security features can protect your brand's reputation from a wide range of security threats. This ensures the integrity of your transactions and builds trust and confidence.

Integrated payments and your business operations

Integrated payment systems can transform how your business manages transactions by streamlining essential payment processing tasks and improving operational efficiency. By adopting an integrated payment solution, you can reduce manual effort, gain real-time insights into payment data, and simplify financial reporting. This not only saves time but also enhances cash flow management, enables faster decision-making, and supports business growth across multiple sales channels. With the right integrated payment system in place, your business can scale quickly, meet changing customer demands, and deliver a better experience for both your team and customers.

Accounting and bookkeeping made easy

An integrated payment system can help simplify accounting and bookkeeping by automating the recording of every transaction. This eliminates the need for manual data entry, significantly reducing the risk of processing errors and freeing up valuable time for your team. Integrated payment solutions can also provide access to detailed sales data, allowing you to generate reports that offer valuable insights into customer behavior and business operations. With accurate, real-time information at your fingertips, you can make smarter decisions, track performance, and ensure your financial records are always up to date.

Enhancing cash flow management

Integrated payment processing gives you real-time visibility into your payment data, making it easier to monitor and manage your cash flow. With instant updates on incoming and outgoing payments, you can quickly identify trends, spot potential issues, and make informed decisions to optimize your business finances. Offering a variety of payment options – including online payments, in-store transactions, and mobile payments – ensures you can accept payments through multiple channels, helping you reach more customers and reduce delays or errors caused by manual payment processing. This flexibility not only improves your cash flow but also supports business growth by making it easier for customers to pay you, wherever they are.

Expanding across sales channels

An integrated payment system empowers your business to grow across multiple sales channels, from eCommerce and in-store to mobile payments. By delivering a seamless user experience across all platforms, you can enhance customer satisfaction and encourage repeat business. Integrated payment solutions support a wide range of payment methods, including credit and debit cards, digital wallets, and contactless payments, giving your customers the freedom to choose their preferred payment method. This flexibility helps you capture more revenue, build customer loyalty, and position your business for long-term success in an increasingly competitive marketplace.

Integrated payment alternatives

Integrated payment solutions are popular for their efficiency and can help your business scale, but they aren't the only solution available. Businesses might need alternatives due to cost constraints or high-level customization needs that off-the-shelf integrated systems don't provide.

Here are some alternatives:

• Manual payment processing, where you collect the payment and handle reconciliation yourself. This is suitable for businesses with low transaction volumes but can be time-consuming and prone to errors.

• Third-party payment processors offer hosted gateways that take your customer off-site to checkout and initiate a payment gateway. They're easy to set up and use, but this isn't as seamless as integrated payments.

• Custom solutions are highly tailored payment systems built specifically for a business's unique needs. These offer highly customizable features but could require significant time and effort.

Each of these systems can process a digital payment, but the benefits must be weighed against cost, UX, and efficiency‌. Integrated payments are much better suited for businesses at scale, especially if you want to expand globally.

How to get started with integrated payments

You need to find the right payment service provider to get started with integrated payments. End-to-end providers like Airwallex are ideal. We provide a Business Account, payment gateway, and processor, and customizable payment solutions from low-code checkouts to powerful APIs that help you scale.

Once you find a PSP like Airwallex that you like, setting up integrated payments is easy.

• Create an account with the chosen provider. This usually involves providing basic business information and completing a verification process. Configure your business profile, including payment methods, currencies, and other settings.

• Integrate the payment provider with your systems. Decide whether to use pre-built integrations (if available) or to develop a custom integration using the API. Work with your development team to integrate the payment provider into your existing systems. Use the provider’s sandbox environment to test the integration thoroughly.

• Set up payment methods and rules. Configure the payment methods you want to offer, such as credit cards, bank transfers, and digital wallets. Enable payment acceptance via mobile device for contactless and tap-to-pay transactions. Set up rules for transaction routing to optimize for cost, speed, and success rates.

• Test your new payment integrations on your website and other platforms to identify and address any issues before a full-scale rollout. Make sure your integration supports multiple sales channels, such as online, in-store, and mobile, to maximize reach and efficiency. Monitor transaction performance, success rates, and any potential issues and adjust your payment setup to improve performance and customer experience.

Ongoing support and maintenance for integrated payment systems

To keep your integrated payment system running smoothly, ongoing support and maintenance are essential. Regular software updates, proactive security monitoring, and access to technical support help protect your business from data breaches and ensure compliance with industry regulations. By partnering with a trusted payment service provider, you gain access to value-added services such as payment gateway support, hosted payment gateways, and seamless integration with accounting and CRM systems. These services not only streamline operations and reduce manual effort but also allow you to focus on growing your business and delivering exceptional value to your customers.

Streamlined payments with integrated solutions

Integrated payments are ideal for streamlining financial operations, enhancing security, and delivering a better customer experience. Integrated solutions also improve payment acceptance across channels by connecting your payment infrastructure with core financial software, making payment processes more efficient and less manual.

With Airwallex Payments, businesses can improve customer experience, scale revenue, and streamline operations while benefiting from advanced security features. As your business grows, Airwallex supports higher transaction volumes and provides flexible payment methods and multi-currency capabilities to help you enter new markets with ease.

In addition to payment processing, Airwallex offers comprehensive financial solutions, including multi-currency accounts, foreign exchange, and global transfers, helping businesses consolidate financial operations and operate more efficiently.

FAQs on integrated payments

What is an example of an integrated payment?

Any payment made via an integrated payment system is an integrated payment. Think shopping on Amazon or another major retailer’s site.

These businesses are so large that they offer multiple payment methods to serve their wide range of customers, including cards, ACH payments, digital checks, and BNPL services. As a global service, marketplaces like Amazon also have to consider localization, like preferred payment methods, currencies, and localized prices and language.

Integrated payment systems allow on-site checkouts, initiate transactions, and identify the best processing route for cost and efficiency.

What is an integrated payment method?

An integrated payment method is also just an integrated payment. Integrated payment solutions can accept several payment methods, including credit cards, mobile wallets, and more, depending on the merchant’s setup.

What is the difference between integrated and non-integrated payments?

Integrated payments are processed with an integrated payment system designed to streamline processing and merchant management. Integrated systems connect point-of-sale systems, payment gateways, processors, and other payment services to unify the system for maximum efficiency.

A non-integrated payment doesn’t process through an integrated system, which can negatively impact user experience by bouncing customers to a third-party site. The largest differences impact merchants, as non-integrated payments lack key features like automated reconciliation, routing optimization, and transaction data recording.

Sources:

1. https://www.statista.com/statistics/1111233/payment-method-usage-transaction-volume-share-worldwide