How to choose an integrated payment model for your software platform
As the SaaS landscape grows more competitive, businesses are looking for alternative methods to grow revenue. The concept of expansion has introduced more revenue opportunities, as has go-to-market strategies like product-led and vertical SaaS. But what if there was another way to tap new revenue streams? Enter the integrated payments model.
Going beyond subscriptions to payment monetization using integrated payments is a popular business strategy for SaaS companies due to its transformative capability for generating revenue and enhancing user experiences. With payment monetization, SaaS businesses embed payments capability into their platform, offering their clients the ability to accept payments online. Each time a transaction is processed, a small portion of the processing fee is collected by the SaaS.
In addition to revenue, integrated payments become ingrained into the daily business processes of SaaS clients. The regular use of payments functionality fosters increased customer loyalty, cementing relationships and reducing churn.
There are several paths to payment monetization — each one with varying levels of overhead costs, development needs, and profit margins. What’s best for your company depends upon a number of factors, such as your preferred upfront costs, go-to-market time, and customer outcomes.
The world of payments is complex and can be confusing. Maybe you’ve heard of terms like ISO, payment facilitator, or PayFac, but don’t know where to start. In this whitepaper, we walk you through the four main payment models, their benefits, setup requirements, and other considerations for choosing the right model.
Read this white paper to learn:
- What is payment monetization?
- Popular integrated payment models for software businesses
- Weighing costs and benefits of ISO, referral, and PayFac models
- Assessing your requirements and choosing the right payment model for your business
Interested in some hands-on guidance to choose the best option for your business? Click here to set up a quick, no-commitment chat with a member of our team! We take pride in helping software leaders like you navigate the payments landscape. Get in touch and we can help!