Payments companies win referrals from banks and software platforms in three ways. They pay a recurring revenue share that grows with the partner's transaction volume. They take onboarding, compliance and support off the partner's desk. They build payments into the software or client workflow the partner already runs, so a referral costs the partner almost no work.
What revenue model convinces a software platform to refer or embed payments?
Revenue share is the central incentive. A July 2025 PSE Consulting white paper sets out three models: a simple referral with a one-off fee, embedded payments with a revenue share, and a buy-rate structure in which the software company sets the price and keeps every fee above the processor's buy rate. The same paper reports that up to 85% of SaaS providers' new customers now take payments.
Razorpay's partner page (checked October 2026) offers revenue share on all processing volume with no revenue caps, so partner earnings grow as their clients grow. Rapyd's expanded programme, announced in September 2024, aimed at referral partners, ISOs and PayFacs.
The choice between referral and embedded depends on the platform's capacity. In a referral model the platform sends leads, the payments company handles onboarding, and the platform collects a share. Embedded payments give the platform control of the checkout, but the payments company must supply APIs, compliance support and often white-label screens.
How do payments companies get banks to refer?
Banks refer when the payments company plugs into software the bank's clients already use, and the bank keeps the client relationship. JPMorgan's payments partner network, set up in 2023, had more than 100 partners by October 2026, including SAP and Oracle. The bank said the aim was access to the platforms its customers already use, with an integration that adds value for those customers.
For a payments company, the lesson is to arrive with the integration work done. A bank partnerships team can approve a provider that already connects to the ERP, accounting or vertical software its commercial clients run. It will hesitate over a provider that asks the bank to build the connection or to take on underwriting risk.
What does a payments company need to build to support partner volume?
The payments company must provide APIs that sit inside the partner's interface, white-label or co-branded screens, compliance cover, and a margin structure that leaves room for the partner's share. Razorpay's programme offers both simple client referrals and embedded checkout, and lets embedded partners build their own margin into the rates their sub-merchants pay.
Build these six items before you pitch a partner channel:
- Revenue-share calculator that shows the partner's margin per transaction and projected annual revenue at three volume tiers.
- Self-service onboarding for the partner's customers, so your team carries the support load.
- White-label or co-branded checkout and dashboard that keeps the partner's brand in front of the end customer.
- KYC and compliance automation, so the partner does not need to hire a compliance team.
- A named partner manager who answers underwriting and technical questions within one business day.
- Reconciliation and payout reports the partner can show to its own customers.
If a partner must answer compliance questions, onboard merchants by hand or take support calls, referrals stop.
Which partners generate the most referral volume?
Start with software platforms whose customers must take payments to use the product. Our catalyst monitor logged 1,052 buying signals from 14 September to 14 October 2026; 92 scored as a strong fit, and 48 of those were go-to-market hires (our data, October 2026). Those hires clustered in vertical SaaS (12), corporate spend (11) and B2B product tools (9). The counts are signals, not unique companies. A platform that is hiring a sales or partnerships team is building a revenue plan, and payments revenue share can sit inside that plan.
Banks usually move slower. Expect a longer approval cycle and a smaller number of partners, each of which can open many commercial clients once the integration is live.
Can partnerships launch account-to-account payments as well as cards?
Yes. In December 2024 Trustly announced a partnership with Newline by Fifth Third to develop US payment capabilities. In the same review, Trustly said it was tracking towards $100 billion in total payment value for 2024 and had processed more than $17 billion in instant Pay by Bank payments on the RTP network. Bank-linked distribution can carry account-to-account payments as well as card volume.
A payments company that offers cards, ACH and real-time payments through one API gives the partner one integration for several rails. The partner avoids stitching together processors, and the payments company earns margin on more of the partner's flow.
What margin does a software platform earn on referred or embedded payments?
No public standard exists. Margin depends on volume, product, geography, who carries the risk, and the model: referral, embedded or buy-rate. Ask each partner what they would earn by building payments in-house or by switching processors, and set the share above that number.
| Model | Partner commitment | Partner revenue | Payments company handles |
|---|---|---|---|
| Referral | Low (introductions only) | One-off fee or recurring share | Onboarding, compliance, support, infrastructure |
| Embedded | Medium (API integration) | Revenue share that grows with volume | APIs, compliance, risk, white-label screens |
| Buy-rate | High (owns pricing) | All margin above the buy rate | Processing, compliance, risk; partner sets the retail price |
How do you test whether a partner channel will drive revenue?
Run a 30-day outbound test in one vertical. Build a one-page revenue-share calculator and one sample co-marketing asset. Email 50 heads of partnerships at vertical SaaS companies in a single segment, such as logistics or events. Track replies, meetings held and how many partners ask for contract terms.
If several partners ask for terms, the vertical has demand. If nobody replies, change the revenue share or the vertical, and send to the next 50.
In infrastructure markets, we took FastLane from 10% to 75% market share before Chainlink acquired the engine, and FastLane network stake weight grew from $50M to $500M. That work is on our record.
To find the verticals that will refer volume at your margin, start with The Diagnostic at $2,500.