Payment monetization has long been out of reach for SaaS businesses. Merchant services were not included in the operations of software-as-a-service platforms. Acquiring banks were allowed to offer these services, but in the end, they were given to independent sales firms.
SaaS firms, on the other hand, have come to recognize that they can deploy and profit from their own merchant and payment services. By adding the ability to accept payments, they could make money in addition to their main service.
Payment monetization for SaaS companies is made possible via integrated payments. Embedded payment logic in a SaaS platform allows it to diversify and expand its customer base. Having key payment functionality built into a platform makes it easier to process payments.
In this post, we’ll go over the most common ways for SaaS businesses to make money from payments.
Important Principles of Payment Monetization
SaaS platforms’ payment functions are becoming more crucial. In return for the costs associated with merchant services, a platform may provide merchant and payment processing services through embedded payment logic.
As a result, instead of going to third parties like ISOs, these costs might instead go to SaaS platforms.
The platform’s primary source of revenue is, of course, its fundamental offering. It is, however, the integration of payment capabilities that enables it to create new income streams through payments.
Customers who already use the platform and those who sign up for the first time have an incentive to do so.
The following is a list of methods a SaaS platform may use to earn money from payments.
The most frequent method is the markup system
A markup scheme is the most commonly used payment monetization strategy. Even more so, in the case of a service platform, it may provide its merchants with the option of a multi-tiered transaction pricing scheme.
Such a strategy would incentivize them to use the platform’s pricing policy to handle higher quantities. However, the platform might give discounts to businesses that reach a particular threshold in processing volume.
If this plan was put into place, platform users would be more likely to combine their payments.
Pricing Strategies for Profit
SaaS businesses charge a fee for their services. When it comes to the services it provides to its consumers, this pricing might vary. A more expensive service bundle would be more appealing to clients if they had access to payment options.
It is possible to benefit from the commercialization of software-as-a-service platforms. When they include payment services in their primary product, these companies may make money.
If you have a good payment partner like United Thinkers, you can choose to have the system adapted to meet new requirements. Your SaaS platform may add new logic and market it as a value-added feature set by utilizing the licensed open-source-code API.
UniPay, a customizable white label payment gateway, has already been adopted by a number of SaaS enterprises.
Check out our free guide on monetizing your payment methods for further details.