Digital wallets are becoming more common for processing transactions in the software publishing industry. Seventy-one percent of payment facilitators (PayFacs) have used this technology and are driving innovation to enhance their capabilities.
Marketplaces and ISVs in the software industry are deficient in digital wallet innovation.
While many PayFacs have included digital wallets, just 26% of ISVs and 25% of marketplaces have followed suit. PayFacs’ investment in digital wallets has provided them a significant competitive edge, since 38% of all payment transactions in this field are processed via them. However, ISVs and markets may catch up by innovating in this embedded financial function.
ISVs in the area confront challenges with system integration and data availability.
Concerns about system integration are a significant barrier to innovation for 26% of ISVs in the software industry. This rate is more than double the industry average for ISVs. Furthermore, the same percentage sees a lack of data availability as an innovation impediment, compounding the issue. In contrast, just 15% of marketplaces and 8% of PayFacs identify system integration as their key issue.
