Software buyers increasingly expect more than features—they expect outcomes. If your platform helps a merchant run a store, a marketplace manage sellers, or an enterprise team reconcile invoices, your users don’t want to jump to a separate banking portal to get paid, issue cards, or handle currency conversion.

That expectation is exactly why embedded finance has become a growth lever for Independent Software Vendors (ISVs). Below is a practical guide to what an ISV is, how ISVs differ from other software businesses, and how embedded financial capabilities—payments, global accounts, cards, and FX—fit into real B2B product strategies.

What exactly is an ISV? An Independent Software Vendor (ISV) is a company (or individual) that builds and commercializes software for a defined market, often aligned to a specific industry workflow or platform ecosystem.

ISVs typically win by being: Specialized (deep fit for a vertical or use case) Integratable (works with other systems customers already use) Commercially repeatable (sold to many customers, not just one)

As ISVs grow, customers often ask for built-in financial actions—accepting payments, paying out partners, supporting multiple currencies, and managing cross-border settlement—without leaving the product.

ISV vs. SaaS, agencies, SIs, VARs, and OEMs (a clearer way to think about it) The labels can blur, so it helps to look at the business model and “who owns the product.”

ISV vs. SaaS company ISVs can sell software through licenses, marketplaces, or platform ecosystems, and may be built around hardware/platform compatibility (e.g., POS environments) or a niche workflow. SaaS companies usually deliver cloud-hosted software primarily via subscriptions, emphasizing access and ongoing updates.

Scenario example: A vendor shipping a retail POS add-on that runs inside a specific POS environment operates like an ISV; a browser-based scheduling tool sold purely as a subscription is more typical SaaS.

ISV vs. custom software developer ISVs create a product intended for broad distribution. Custom developers create bespoke solutions for a single client or a small set of client-specific deployments.

Scenario example: A repeatable inventory platform sold to hundreds of wholesalers is ISV-style; a one-off ERP extension built for a single manufacturer is custom development.

ISV vs. system integrator (SI) or value-added reseller (VAR) ISVs primarily build and own the software they sell. SIs/VARs primarily implement, integrate, or bundle third-party products with services and sometimes hardware.

Scenario example: A company that sells its own logistics application is an ISV; a firm that installs, configures, and resells someone else’s logistics stack (plus consulting) is an SI/VAR.

ISV vs. OEM ISVs focus on software and typically remain hardware-agnostic. OEMs manufacture hardware and may bundle software into the device ecosystem.

Scenario example: A software company building an app for multiple terminal types behaves like an ISV; the terminal manufacturer is the OEM.

What’s changing for ISVs: pressure points and growth opportunities ISVs are facing a set of familiar challenges—many of which are amplified by cross-border commerce.

Common pressure points Crowded categories: Differentiating on UI alone is harder than ever. International customer demands: Supporting local currencies, local payment methods, and faster settlement becomes table stakes. Revenue model evolution: Many vendors are shifting from one-time licensing toward recurring revenue and usage-based models. “All-in-one” expectations: Customers want to complete financial workflows inside the platform—no extra portals, no manual reconciliation.

Where the upside is Higher retention: When a platform becomes essential to cash flow, churn tends to drop. New monetization paths: Transaction fees, premium financial features, or bundled plans can add recurring revenue. Global expansion: Localized payment acceptance and multi-currency operations reduce friction in new markets. Stronger ecosystem partnerships: Financial infrastructure can unlock integrations and co-selling opportunities.

Embedded finance: what it means in an ISV product Embedded finance is the ability to offer financial services from within your software experience—for example: Accepting payments at checkout Issuing cards for business spending Opening multi-currency accounts for users Converting currencies automatically during settlement

Instead of sending users elsewhere, the ISV surfaces these capabilities directly in the workflow (with the appropriate onboarding, security, and compliance layers supported by the payments/financial infrastructure).

Where these capabilities show up in DogPay-relevant B2B scenarios The most common ISV-driven payment scenarios are practical and workflow-driven:

1) Platforms that need multi-currency collection and settlement Marketplaces, B2B SaaS tools, and international service platforms often need users to receive funds in different currencies and manage payouts.

With global account capabilities, an ISV can enable users to hold, receive, and send funds in multiple currencies—reducing cross-border friction and simplifying reconciliation.

2) Vertical software that wants to embed card issuance and acceptance Expense management tools, procurement platforms, or operational software can embed: Card issuance (virtual/physical) for controlled spending Card acquiring/payment acceptance for collecting from customers

This supports common B2B flows like supplier payments, employee spend, and subscription billing—without requiring customers to stitch together separate providers.

3) Products that need FX built into the workflow If users buy, sell, or get paid across a