Integrated Payments: How To Set Up Payments For Max Efficiency (& Sales)
Buzzwords That Deliver: Integrated payments really enhance your business, making transactions smoother and faster, meeting modern expectations.
Speedy Checkout Delight: Online shoppers expect quick checkouts, ideally under 4 minutes, emphasizing the need for integrated payment solutions.
B2B Buyers Love Smooth Transactions: A whopping 81% of B2B ecommerce buyers prioritize seamless and hassle-free transactions.
Efficiency Is the Real Game: Integrated payment systems streamline workflows, providing agile and efficient infrastructures for businesses.
Set It Up and Soar: Integrated payment systems come with key setup information, improving operations and boosting business capabilities.
The word “integrated” often feels like tech jargon meant to sell software, but in the payments industry, it’s a real game-changer (yes, another buzzword, but it also fits).
Online shoppers expect the checkout process to last no more than 4 minutes, while 81% of B2B ecommerce buyers put extreme importance on frictionless transactions.
Integrated payments can help you meet these expectations, regardless of your business nature. You can do so much more with it, too.
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With an integrated payment system, you get an agile and efficient infrastructure to streamline your workflow.
We’ll talk more about how it does that below, along with key information on setting it up.
Understanding Integrated Payments
Integrated payments embed your payment processing system directly into your ecommerce platform, as well as back-end systems like ERP, CRM, inventory, and accounting software.
Once a customer completes a purchase, the smart integration takes over, synchronizing transaction data across these platforms.
For shoppers, integrated payments is a huge plus. It means they can choose between several payment options and currencies without visiting third-party sites.
Some great news for you: Research shows providing effortless, flexible payment systems can prompt nine out of 10 customers to buy more from your brand.
Old vs new = Integrated payments vs traditional payments
Integrated payments automatically update inventory counts, financial records, customer profiles, and sales data without manual input.
With it, you can create a seamless data flow, reducing manual labor and minimizing human errors.
Traditional payments, on the other hand, run on manual work. Each department operates independently and requires separate updates.
Whatever happens at the checkout stays there unless staff members take action.
Here’s a comparative summary of the two to help you understand how they impact your operations.
| Integrated payment processing | Non-integrated payment processing | |
| System communication | Fragmented systems—manual data entry is required between separate systems. | Delayed issue detection due to manual synchronization, increases the risk of errors. |
| Data handling | Real-time access to reports, analytics, and financial data, reducing errors. | Delayed reporting—data can only be analyzed after manual reconciliation. |
| Customer experience | Seamless and fast checkout, with immediate transaction confirmations and fewer abandoned carts. | Slower, clunkier process due to multiple steps—often leads to higher cart abandonment. |
| Payment gateway | Unified gateway integrates smoothly with POS and other business software. | Hosted gateways may redirect customers to third-party sites for payment processing |
| Security | Enhanced security with end-to-end encryption and compliance (e.g., PCI DSS). | Varies by payment processor—may require additional layers of protection, increasing complexity. |
| Issue Resolution | Real-time updates allow for quick detection and resolution of discrepancies. | Delayed issue detection due to manual synchronization, increasing the risk of errors. |
Integrated payment solutions offer businesses a more efficient, secure, and customer-friendly alternative than traditional payment systems.
They simplify payment processes and other business functions with the right execution.
How Do Integrated Payments Work?
To further show you how simple having an integrated payment system is, let’s go through its workflow.
First, let’s see it through the lens of shopper Sophie who appreciates Spanish-inspired furnishings.
Sophie comes across an ad by Arte Casa on Instagram, clicks it, and lands on the ecommerce site. While browsing, she immediately falls in love with an Andalusian coffee table.
Here’s how integrated payments spring into action once she hits the checkout button:
- Product checkout. Sophie checks out the Andalusian coffee table upon landing on Arte Casa’s sales page.
- Client payment. Arte Casa’s payment portal prompts her to either create an account for easier future transactions or proceed as a guest for a quick, one-time purchase. Sophie decides to register and pay the $1,800 price tag using her debit card.
- Payment processing. The payment service provider securely processes the payment, verifies card details, and checks available funds. It then transfers the funds to Arte Casa’s merchant account.
- Immediate confirmation. Arte Casa’s integrated system confirms the payment and updates the order status in real-time.
Without an integrated payment system, Sophie would have to navigate third-party payment gateways and endure longer wait times.
Now, let’s switch over to Arte Casa’s POV. Here’s what happens on their end:
- Arte Casa’s entire tech stack automatically reflects the most up-to-date transaction data.
- The inventory management system deducts one quantity from the Andalusian coffee table stock balance to reflect the sale
- The accounting software records the $1,800 payment into the general ledger and revenue account
- The CRM system creates a detailed profile for Sophie, including payment history, product preference, and contact information
- The order fulfillment system schedules delivery, updates the order status, and sends Sophie an order confirmation
Without an integrated payment system, Arte Casa would have to manage all back-end system updates and order processes manually.
9 Benefits of Integrated Payments for Ecommerce Brands
While going through the integrated payment workflow, one word comes to mind: efficiency—for both customers and businesses. It’s its number one appeal.
This efficiency translates to:
1. Faster checkout process
Your shoppers don’t have time for a clunky payment process.
Slow payment experiences frustrate 19% of customers, while long or complicated checkout processes drive 22% away. AmBari Nutrition saw a 20% increase in checkout completions upon implementing integrated payments.
A seamless checkout experience with familiar payment buttons invites trust and minimizes cart abandonment.
Integrated payments spare your customers from dealing with new, possibly-intimidating interfaces.
The consistent, intuitive functionality of a smooth, user-friendly gateway reduces the cognitive load on their shoulders.
2. Higher revenue potential
Flexible payment options drive higher spending for 21.87% of consumers, so you shouldn’t limit your brand to accepting payments via credit and debit cards.
With integrated payments, you can accept mobile payment solutions like Apple Pay and Google Pay, or Buy Now, Pay Later (BNPL) options.
These payment methods can expedite transactions and increase spending potential.
Companies like Sera, a Field Service Management (FSM) software company, adopted Stax’s integrated payments and witnessed a 52% revenue boost within six months of implementation.
We’re seeing more businesses move to integrated payments because customers demand simplicity. They don’t want friction—they want quick, easy, seamless transactions.
Ecommerce platforms typically earn revenue from integrated payments by marking up the costs and creating a new revenue stream, or by a referral commission.
3. Optimized cost efficiency
50% of companies squander time processing accounts receivable (AR), and 43% get stuck chasing down late or delinquent payments.
Your AR team is likely spending all day switching between spreadsheets and sending out endless reminder emails.
Automation can help them reclaim hours lost to these tedious, repetitive payment-related tasks—which 31% of businesses have already witnessed.
Integrated payment solutions automate various sorts of tasks, including invoicing, payment tracking, and reconciliation.
It helps businesses cut labor costs and eliminate costly discrepancies.
Accounts Receivable automation can also help the finance department to keep the focus on strategic services and processes.
This could include eliminating hours of repetitive manual tasks (and the inevitable errors); the need to email forms; days-long waits for credit decisions; and time spent on manual process like creating PDF invoices or bank reconciliations.
Plus, harnessing critical customer data gives merchants valuable intelligence on their buyers.
4. Enhanced customer satisfaction
60% of businesses introduce new payment methods to enhance customer experience.
But this often leads to a patchwork of gateways and fragmented user experiences in manual payment systems.
Jim Christy, owner and manager of collectible Midwest Cards, sought an integrated payment system because its traditional counterpart had been cumbersome and time-consuming.
He shared: “Integrated payments helped us maintain customer trust by reducing processing times and minimizing errors.”
5. Minimized error rates
Manual payment processing is a breeding ground for errors due to typographical mistakes and oversight.
Before, we had to enter payment information and keep track of outstanding bills by hand, which slowed down deliveries and led to mistakes.
With integrated payments, it’s easy to do everything from sending invoices to keeping track of purchases.
Integrated payments rely on Intelligent Document Processing (IDP) to automate data extraction and integration from invoices and avoid such inaccuracies.
IDP reduces error rates by over 52% and enhances accuracy rates by up to 99%. It can minimize discrepancies in payment entries and record-keeping.
6. Streamlined financial management
Accountants believe technology simplifies tax compliance (98%), bookkeeping and financial reporting (94%), and cost accounting and budgeting (93%).
Having an integrated payment system can also help you capture accurate transaction details from gateways directly into accounting software in real-time.
Integrated payments improved accuracy in our accounting records and enhanced customer satisfaction due to quicker transaction confirmations.
7. Advanced reporting insights
Each new invoice requires a stock update, contract change, payment adjustment, and more.
It’s a constant back-and-forth, particularly for businesses running ecommerce and brick-and-mortar.
Broken Spoke Boutique, a family-owned store with over 15,000 SKUs, suffers from inefficient manual updates and stock discrepancies pose inventory management problems.
The owners looked to Clover’s payment system, which integrates well with their tech stack. With this change, the balance is always up-to-date, reflecting every in-store or online sale.
8. Robust security measures
80% of businesses face attempted or actual payment fraud, and 30% of those never recover lost funds.
Integrated payments feature built-in encryption and tokenization technologies to prevent unauthorized parties from sneaking in and exploiting payment data.
Integrated systems are more secure because they come with features like encryption and tokenization.
These keep sensitive data like credit card info safe, so businesses don’t have to worry as much about fraud or data breaches.
Furthermore, PCI compliance mandates reinforce this security. All providers and merchants handling credit card processing must observe regular security testing and cardholder data protection.
9. Seamless cross-border support
Online cross-border payments drive growth for 75% of SMEs.
Yet its intricate regulatory requirements, multiple currencies, and financial intermediaries can cause bottlenecks in manual payment processes.
Ecommerce is global now, and customers expect to pay in their own currency—without headaches. Add to that the rise of subscription-based models, which need recurring payments to flow easily.
And, of course, customers want smooth, fast checkouts that work across platforms—integrated payments nail that.
Integrated payments eliminate all pain points in international transactions. They integrate with global payment networks—without intermediaries—to guarantee compliance.
How to Set Up Integrated Payments for Your Business
Research shows that modern businesses suffer from a “chaos of connectivity”.
You make a clever tech investment to solve an issue, but notice friction in your processes down the line.
This friction could manifest as disruptions or total service interruptions—which happened to 89% of surveyed businesses.
Most of the time, the problem is due to a lack of a clear integration plan in place.
The tips below can help you avoid the lurking web of efficiencies. To bolster each one of them, you’ll see how Arte Casa, our fictional brand from earlier, executed their implementation phase.
1. Plan how to integrate payment solutions with existing systems
Arte Casa created a team to take charge of its integration payments implementation, which consists of:
- an IT manager,
- a sales director,
- an accountant, and
- a compliance officer
Together, these key players mapped out an integration roadmap from configuration to deployment—complete with steps, responsible parties, and deadlines to help the team minimize disruptions.
The documentation also describes what to do if a compatibility issue or system downtime arises. It would serve as a reference throughout the integration.
2. Choose the right integrated payment provider
The team listed all their existing systems to identify their specific integration needs.
So far, they use Linnworks (as an inventory management and order fulfillment platform), Xero (accounting system), and Hubspot CRM.
But they also noted Brightpearl, the ERP tool they’re planning to switch to in the future.
They looked up payment platforms that allow integration with everything on their list and compared key features to narrow down their options and pick the best one from there.
Consider these top three features when selecting a provider: security (preferably PCI-compliant), API compatibility for flexible integration with any system, and scalability to accommodate future business growth.
Stripe is the option that made the most sense for them.
Besides being a payment processing software, it’s also a payment gateway—it’s a bonus because an integrated payment solution's performance and efficiency depend on how well these two work together.
Payment processors handle the technical aspects of payment transactions, whereas gateways facilitate the secure transmission of payment information.
Apart from Stripe, we also recommend the following payment processors and gateways:
Our Top 10 Payment Processors
Our Top 10 Payment Gateways
3. Test and implement the payment system
The Arte Casa team followed their system integration roadmap to a T.
But before going live, they’d run thorough tests to ensure everything functions as expected before going live.
The test transactions included:
- Successful payments to confirm payments go through properly
- Failed payments to check system responses to declined transactions, insufficient funds, and incorrect card details
- Refunds and cancellations to verify refunds and cancellations reflect the system
Arte Casa’s payment gateway, Stripe, provides a set of test credit card numbers for this very purpose, which Arte Casa then used to simulate transactions.
The team monitored error logs for any transaction failure or processing delay.
They followed the plan and adjusted API keys, permissions, or connectivity as needed before finally implementing the system.
Testing is crucial to avoid disruptions during the transition.
Potential Challenges And Solutions For Integrated Payments
Even though you’ve planned a seamless transition from day one like Arte Casa did, glitches and problems can still occur.
Here’s what to expect and how to respond when things don’t go as planned.
Compatibility issues
Conducting compatibility tests in a staging environment before implementation can save you time and resources.
It’s impossible to run a successful payment system if your APIs, data formats, or software versions are not aligned.
Your safest bet is to opt for a provider with a well-designed API equipped with built-in error handling and diagnostic features.
Setting up required careful auditing of our existing systems, particularly our CRM and ERP for compatibility.
We overcame challenges by opting for a payment provider with robust API compatibility features and top-notch customer support.
Inadequate tech support
Unresponsive support teams can cause extended downtime even with in-house experts. Your IT team doesn’t have all the knowledge to troubleshoot every issue.
Look for platforms offering reliable, timely 24/7 assistance. You should also consider hiring more people to strengthen your internal tech support.
Relying on a junior developer to design complex payment architectures can result in inefficiencies. To avoid these pitfalls, businesses should involve Senior FinTech experts early.
Initial setup costs
Integrated payment systems cost from $5,000 to over $20,000 for ecommerce and brick-and-mortar systems.
That covers service subscriptions, hardware costs (if you need physical terminals), payment processing, staff training, and optional customizations.
Choose vendors with transparent pricing.
Don’t hesitate to negotiate for better terms, especially if you’re committing to a long-term contract or multiple services.
And if you can’t do it for you, bring in the cavalry.
Hire a payment consultant. They handle the heavy lifting including due diligence and rate negotiation, and their engineers make the integration seamless.
You save time and money, without bogging down your own team.
Extended setup duration
From planning to full deployment, the implementation process can stretch over months or even years.
Hiring professionals can help speed up the process. But even then, it won’t magically happen overnight.
The ideal course of action is to maximize the wait. Review your existing payment system and find bottlenecks to optimize with the new integrated solution.
Integrated payments gave us the flexibility we needed to scale and grow, but the pivot took years. We are certainly happy with the outcome, though.
Regulatory requirements
Payment processing regulations differ by region and industry.
For instance: The EU’s General Data Protection Regulation (GDPR) enforces data privacy rules, while the U.S. follows PCI DSS for credit card security.
Different payment methods like credit cards, digital wallets, and cryptocurrencies are likewise subject to local standards.
Consult legal experts to avoid violations and penalties.
Final Thoughts
If you weren’t a fan of the word “integrated” before, I bet you are now.
Payments tend to be the center point of data flow for companies, so unifying them with your tech stack can drive up your efficiency, and, as research shows, meet customers’ preferences.
The tips above can set you up for success, so remember them once you’re ready to implement.
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Integrated Payments FAQs
Let’s answer some of the most common questions about integrated payments. Read on for quick insights and practical advice to streamline your implementation.
How do integrated payments improve security for transactions?
Integrated payments consolidate all transaction processes within a single, secure system. The system uses encryption and tokenization technologies to safeguard customer payment information. It also integrates directly with your ecommerce platform, preventing data breaches that can occur when using multiple third-party processors.
Can integrated payments handle multiple payment methods?
Yes! Integrated payment solutions can process different payment methods, including but not limited to debit and credit cards, ACH, bank transfers, mobile payments, Buy Now Pay Later (BNPL), and cryptocurrencies. The system manages these payments without demanding further actions from customers.
How do integrated payment systems work with point-of-sale systems?
Whether you have a physical or digital POS system, you can link the integrated payment platform to your sales terminals. Here’s how it works when a customer finalizes a purchase:
- The POS system captures the sale details (e.g., itemized purchases, customer information, payment details).
- The integrated payment system transmits this data to the payment processor.
- The payment processor performs credit card authorization, payment settlement, and necessary security protocols.
- Once processed, the integrated system immediately sends a confirmation back to the POS (i.e., successful or denied). Successful transactions then update inventory and financial records.
