ISV Payment Integration

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Stress-test the ISV payments business case

Before you scope the integration project, know the number. Model the payment revenue, margin, and merchant-level economics that decide whether embedding payments is worth doing at your volume.

1 calculator live
4 inputs · 2 outputs
Free, no signup
Updated quarterly

Size the prize

Turn volume and margin assumptions into a monthly and annual revenue estimate in seconds. The first question any exec will ask — answered before the integration meeting.

Pressure-test the model

Flex basis points, ticket size, and merchant count to see which lever actually moves the number. Most ISVs overweight margin and underweight volume mix.

Compare integration models

Run referral, PaaS, and registered-PayFac margin assumptions side-by-side against the same volume profile — the gap is what justifies (or kills) the heavier path.

Frequently asked questions

What is the ISV Payment Revenue Calculator actually modelling?

It turns four inputs — monthly processing volume, average ticket size, ISV margin in basis points, and active merchant count — into an estimated monthly and annual payment-revenue figure. The math mirrors how PayFac-as-a-Service and registered-PayFac economics actually compound: margin × volume, per merchant, repeated monthly. It's a sanity check, not a pricing quote.

What ISV margin should I use if I don't have a signed contract yet?

For referral partnerships, 5–15 basis points is realistic. PayFac-as-a-Service (Stripe Connect, Finix, Tilled, Xplor Pay) typically lands at 20–50 bps net margin after the provider's take. Fully registered PayFac can reach 60–100+ bps but only pencils above roughly $50M annual volume. Model the conservative end of the range first — most ISVs overestimate margin and underestimate compliance cost.

Does the calculator account for compliance, tooling, or ops overhead?

No — it models gross payment revenue only. Subtract the full operating cost of your integration model to get net contribution: PaaS fees, underwriting tools, risk/compliance headcount, PCI audit, sponsor-bank relationships. Those costs vary 10x between PaaS and registered PayFac, so the gross number is only useful when compared against the right cost stack.

How accurate is the output?

Directionally accurate for business-case work. It won't capture interchange nuance, tiered-pricing steps, dispute loss, or merchant-level volume concentration. For a board deck or an investor model, pair the calculator output with actual quoted rates from two or three providers — start with the Reviews hub, then request a custom analysis if the spread matters.

Are other tools coming?

Yes. Planned additions include an effective-rate estimator, a PayFac readiness scorecard, and an integration-timeline model. The Revenue Calculator ships first because it's the question every ISV product lead asks before anything else — does embedded payments move our numbers enough to be worth the project?

Need a custom model for your board deck?

We'll build a tailored payment-revenue model against your actual merchant profile, volume curve, and integration path. Turnaround 3–5 business days.

Request Custom Analysis
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