Why ERP-embedded payments are redefining ISO growth

Growth in payments is increasingly shaped by where financial decisions originate, not by how aggressively those decisions are priced. For Independent Sales Organizations, that distinction matters more today than it did even a few years ago.

Across the mid-market, payments are being pulled upstream into ERP initiatives, where finance leaders are rethinking how money moves through the business, how it is reported, and how scalable their operations really are. When payments become part of that conversation, they stop behaving like a replaceable service and start functioning as infrastructure.

That change is quietly redefining what sustainable ISO growth looks like.

ERP is no longer a back-office system

Modern ERP platforms sit at the center of financial operations. Order-to-cash, procure-to-pay, revenue recognition, reconciliation, and reporting increasingly live inside one system, governed by a single data model and a single source of financial truth.

This shift is visible in the adoption curve of Microsoft Dynamics 365 Business Central, which now serves more than 50,000 active customers worldwide. That growth is not driven by basic accounting needs, it reflects mid-market organizations consolidating finance operations, reducing system sprawl, and preparing for scale.

As ERP usage deepens, expectations follow. Finance teams expect payments to post automatically to accounts receivable and the general ledger, to reconcile cleanly without spreadsheets, and to support reporting that aligns with how the business is actually managed. Payments that sit outside the ERP struggle to meet those expectations, no matter how competitive the rate structure may be.

Payments are becoming part of the ERP buying decision

One of the most important changes for ISOs is the change in when payment solutions are evaluated. According to Gartner, CFOs increasingly assess payment workflows and financial integrations during ERP selection, as these capabilities directly affect close cycles, automation, and reporting accuracy.

That shift alters the buying dynamic. ERP-led decisions involve longer planning horizons and more stakeholders, particularly CFOs and controllers who care about operational efficiency, auditability, and future readiness. In that context, payments are judged on how well they support end-to-end finance workflows, not on how easily they can be swapped later.

Once payments are embedded in ERP processes such as invoicing, cash application, and reconciliation, they become harder to separate from daily operations. That is not lock-in by contract; it is alignment by design.

What ERP-embedded payments unlock for ISOs

For ISOs, ERP-embedded payments provide access to an untapped market. These deals tend to carry higher transaction volumes and longer lifecycles, partly because they are anchored to finance transformations rather than point solutions. They also move ISOs into more strategic conversations, where success is measured by how well payments support the business as it grows, not just by near-term savings.

ERP-led opportunities also tend to be less vulnerable to commoditization. When payments are tied to order-to-cash workflows, reconciliation rules, and reporting structures, price alone is rarely enough to displace an incumbent. Value is demonstrated through reliability, consistency, and operational fit.

This shift supports a more durable growth model for ISOs willing to engage at the ERP layer.

The mid-market is accelerating this change

While large enterprises have long embedded payments within ERP environments, the mid-market is where momentum is building fastest. These organizations are often growing transaction volumes without growing finance teams, which puts pressure on automation and system consolidation.

As they adopt ERP platforms, they look for ways to eliminate manual effort and reduce risk. Payments that operate outside the ERP undermine those goals by introducing reconciliation gaps and reporting delays while payments embedded directly in ERP workflows reinforce them.

For ISOs, this creates access to merchants who are not simply choosing a payment provider, but designing the financial foundation of their business. Being present in that moment changes the nature of the relationship from vendor to long-term partner.

Retention follows operations, not incentives

ERP-embedded payments also reshape retention dynamics. When payments are woven into daily finance processes, switching providers becomes an operational decision with real consequences, not a quick rebid exercise.

Merchants stay because the system works, because finance teams trust it, and because changing it introduces friction they would rather avoid. That form of retention is resilient. It survives leadership changes, pricing reviews, and competitive outreach.

For ISOs, this leads to higher merchant lifetime value and more organic expansion as customers add entities, regions, or new payment methods within the same operational framework.

Why this moment matters

Several forces are converging. ERP adoption in the mid-market continues to accelerate; Finance teams are expected to close faster, report more accurately, and manage increasing complexity without additional headcount; and payment requirements, particularly around data quality and compliance, are becoming more demanding.

Together, these trends make ERP-embedded payments an expected capability rather than an emerging one. ISOs that align with this shift position themselves to grow alongside their merchants. Those that do not risk being confined to increasingly transactional segments of the market.

Up next

Embedding payments in ERP systems raises new strategic questions for ISOs, particularly around flexibility. Supporting merchants with different processor preferences, regional requirements, or future growth plans requires an approach that avoids unnecessary dependency.

The risk of processor lock-in becomes more visible as payments move deeper into core systems. Addressing that risk without sacrificing the benefits of ERP-embedded payments is the next challenge ISOs must solve.

In the next article in this series, we will explore how processor-agnostic payment models help ISOs capture ERP-led growth while maintaining the flexibility that has always defined their value