Tom Tunguz

FEBRUARY 26, 2025

Many mid-market software companies price with the goal of revenue maximization, negotiating for the highest possible price in each sale. There are exceptions: Oracle’s database, Tanium’s security product, Workday’s human capital management software. The Seven Factors to Consider When Pricing Your Product 1.

SaaS Payments 283

SaaS Payments Pricing Strategy Scale 283

USIO

JULY 1, 2024

In the competitive world of Software as a Service (SaaS), generating recurring revenue is essential for sustainable growth. Integrate Payment Solutions: Usio Integrated Payments Integrating payment solutions like Usio creates an additional revenue stream with Usio revenue share.

Payments 306

Payments SaaS Payments Payment Solutions Payment Services 306

SaaStr

AUGUST 24, 2024

Dear SaaStr: How Do Enterprise SaaS Companies Deal With Late Payments? Because Customer Success — they’re compensated on avoiding churn. provide some in-app notification of overdue accounts. image from here ) The post Dear SaaStr: How Do Enterprise SaaS Companies Deal With Late Payments? That works well. ….

SaaS Payments 290

SaaS Payments Payment Services Payment Solutions Payments 290

SaaStr

JUNE 7, 2019

By: Rob Nathan, EVP, Integrated Solutions at CardConnect. Despite the hyper competition, many SaaS providers take their organization’s payment processing experience for granted. Whether we want to admit it or not, payments can play a big and often unseen role in contributing to or reducing customer churn. A 2017 U.S.

SaaS Payments 236

SaaS Payments Payment Services Payment Methods Payment Solutions 236

SaaStr

JULY 26, 2022

But beyond all the other Pros and Cons of SMB vs enterprise, there’s one looming issue with SMB SaaS: Churn. Endemic churn. The type of churn you almost can’t do anything about. SMBs don’t really budget for much, so if the business goes down, software purchases often go down very quickly too.

SMB 363

SMB Churn Payment Services SaaS 363

SaaStr

AUGUST 9, 2021

Everyone talks about hitting 120%+ NRR these days But the truth is, single-seat users & very small businesses churn at a high rate. That sort of churn hurts. Even modestly decreasing churn in Very Small Business and single seat accounts can have a big impact. Don’t treat them all as churned. Often 3% a month.

Churn 311

Churn Payment Methods Payments Payment Solutions 311

FastSpring

SEPTEMBER 16, 2021

What makes a company choose one SaaS payment processing provider over another? In my conversations with software developers and technical founders over the years, I’ve heard how complicated these tech stack choices are to make. And one of the cornerstones of any solution’s security measures should be PCI DSS compliance.

Payment Services 147

Payment Services SaaS Payments Merchant Services Payment Solutions 147

SaaStr

APRIL 23, 2021

automating the back office and payments and billing for SMBs), and doing it with 120%+ NRR. This is pretty impressive, although on reflection, perhaps what one would expect from a mission-critical SMB app. We run a lot of SaaStr on Bill.com and have for years, and won’t churn. Making more and more money on each payment.

Payment Solutions 347

Payment Solutions Payments SaaS Payments Payment Services 347

SaaStr

AUGUST 28, 2024

Only 20% of Revenue from “SaaS”, 80% From Transactions and Float (Fintech) Bill started off 100% SaaS, and slowly and deliberately added payments. Fast forward to today, and only 20% of its revenue is from software subscriptions. But both are still at their core software platforms. But Bill hasn’t.

Payments 297

Payments Payment Solutions SMB Acquisition 297

SaaStr

APRIL 17, 2021

Squarespace may be more design-focused, Wix the somewhat more cost-effective solution. Monetizing ecommerce via subscriptions, but not payment processing. Rather, it charges for software subscriptions to take payments on its websites. But it doesn’t monetize the payments themselves directly very much.

Payment Methods 338

Payment Methods Merchant Services Payments Payment Services 338

SaaStr

OCTOBER 27, 2022

That’s why we give boards and leadership teams an elegant solution that simplifies governance. With customers in higher education, nonprofit, healthcare systems, government, and corporate enterprise business, OnBoard is the leading board management provider.

Merchant Services 244

Merchant Services Payment Solutions Onboarding Payments 244

SaaStr

FEBRUARY 17, 2021

They want a slick site that does more, from eCommerce to payments to marketing and more. While Wix’s actual churn is a bit unclear, this is a super interesting presentation of CLTV. But much lower in Payments. Remember when it seemed like websites were just a commodity? Well, it turns out, people care. Over Next 8 Years.

Payment Methods 312

Payment Methods Payment Solutions Payments SMB 312

Tom Tunguz

NOVEMBER 6, 2021

The contracts are identical twelve month contracts except for the payment terms. Contract B relaxes payment terms to monthly payment, 12 monthly installments for the next year. A multi-year prepay offers even greater benefit to a software company. Imagine an AE closes two contracts for $100k ARR.

Sales Hiring 352

Sales Hiring Scale Payments Payment Solutions 352

FastSpring

DECEMBER 12, 2022

Many companies that expand globally reach a point where they can’t properly support their international customers with their current payment platform. An international payment gateway can help with some of these issues, but it’s only one piece of the puzzle. What is an international payment gateway? Table of Contents.

Payment Services 148

Payment Services Merchant Services Payment Methods Payment Solutions 148

Subscription Flow

OCTOBER 16, 2024

In today’s fast-tracked financial landscape, billing software has become a need. Operating a business entails a number of processes like managing products and payments, invoices, customer engagement, revenue, unpaid invoices and much more. A billing software is the ultimate solution to your growing business’s complex needs.

Payment Services 59

Payment Services Payment Solutions Payment Features SaaS Payments 59

SaaStr

OCTOBER 31, 2023

With nine figures in revenue, Ariel and SaaStr founder and CEO Jason Lemkin talk about all things Navan, rebranding when you have brand equity, building B2B software for people, pricing and business models, and much more. There was a new emphasis on building software for people. It was a Frankenstein for transient travelers.

Payment Solutions 288

Payment Solutions Payments Travel Scale 288

USIO

JANUARY 15, 2024

Subscription Models: Usio will provide general insights into why subscription-based payment processing is often considered advantageous for Software as a Service (SaaS) businesses. This reduces the churn rate, ensuring a more stable customer base. Cash Flow Management: Subscription payments provide a steady cash flow.

SaaS Payments 130

SaaS Payments Payment Services Payments Payment Solutions 130

Totango

AUGUST 16, 2022

Customer Retention Software Cuts Down Client Churn. Customer retention software has become essential for effective SaaS customer success strategies. A winning SaaS business model must prioritize retaining customers, which is far more cost-efficient than acquiring new clients to offset churn.

Payment Solutions 106

Payment Solutions Payment Methods Retention Customer Success 106

SaaStr

MAY 4, 2022

As difficult as SaaS companies can be to build, that can go double for things like setting up billing systems and automating revenue. Maybe your billing system is not ready, your invoicing is a patchwork, or your reconciliation and invoicing have to be done manually. The explosion of low and no-code solutions.

Payment Features 262

Payment Features Payment Services Outsourcing Services Payment Solutions 262

FastSpring

JANUARY 10, 2023

There are tons of monthly recurring billing software solutions available, so it can seem difficult to determine which one is right for your business. Checkout (including payment processing and gathering sales tax, GST, and VAT). Handling failed payments and customer notifications. Table of Contents.

Payment Solutions 146

Payment Solutions Payment Features Payment Methods Software Review 146

SaaStr

JULY 14, 2020

It may be the most successful SMB-focused app of our current generation. Bigger customers, though, find most monthly payments a huge accounting headache. And dealing with accounting every month to get a credit card payment approved isn’t worth the trouble. You just make buying your app harder. Let’s take a look at Zoom.

Pricing 306

Pricing Scale Payment Solutions SaaS Payments 306

FastSpring

DECEMBER 9, 2022

SaaS billing software automates one or more of the various aspects of the recurring billing process — payment processing, fulfillment, dunning, and more. You’ll still need a separate solution for payment processing, taxes, chargebacks, and more. 3 Subscription Management Software. 3 Payment Processors.

Payment Services 147

Payment Services Merchant Services Payment Methods SaaS Payments 147

FastSpring

OCTOBER 13, 2023

TL;DR : Stripe markets themselves as a payment services provider (PSP), 2Checkout is a payment service provider with an upgrade option to make them your merchant of record (MoR), and FastSpring is a comprehensive merchant of record from the outset. Payment Gateways , Payment Processing , PSPs, MoRs — What’s the Difference?

Payments 160

Payments Payment Methods Payment Services Merchant Services 160

FastSpring

APRIL 23, 2024

The company handles transactions for sellers of digital products, providing the infrastructure for global online payments while taking responsibility for tax collection and remittance, fraud prevention, and other aspects of the checkout process. It’s a capable solution, but by no means is Paddle a universal, one-size-fits-all option.

Payment Methods 142

Payment Methods Payment Services Merchant Services Payment Solutions 142

Stax

APRIL 15, 2025

There are some important variations to MRR that would be good for your sales team to be aware of, including new MRR, expansion MRR, and churn MRR. It can help forecast future revenue, keep on top of performance of various customer segments, and measure customer retention and churn.

Payments 88

Payments SaaS Payments Revenue Payment Services 88

SaaStr

OCTOBER 22, 2021

It was just amazing that when iPhone launched, you could now take a picture of receipts and have them somewhat automatically “expensed” A jaw dropping, amazing use of the first generation on mobile apps. Their tiniest customers still have higher churn, as with almost every other SaaS company. Oftentimes, even.

Scale 328

Scale SaaS Payments SMB Payment Solutions 328

SaaStr

NOVEMBER 3, 2022

You get a complete overview of your global subscriber base; MRR, ARPU, ASP, churn and LTV are presented in a beautiful and easy to use dashboard. Our mission is to build powerful and secure cloud software for subscription businesses of all sizes, with a strong emphasis on good design and ease of use.

Payments 264

Payments Payment Services GCP(Google Cloud Platform) Payment Solutions 264

FastSpring

JANUARY 27, 2022

Each of the companies Jon worked with lowered churn by creating a better notification process, including a reminder about their renewal six weeks prior to the billing cycle. In this piece, we offer seven case studies from SaaS companies — small tweaks they made to reduce churn and increase customer LTV. Small things matter,” Jon added.

Merchant Services 146

Merchant Services Payment Services SaaS Payments Payment Solutions 146

SaaStr

DECEMBER 4, 2023

Churn increase due to greater scrutiny of costs Contract values declining More stakeholders involved in decision-making Capchase combined the study with their data set of thousands of SaaS companies and looked at what the best companies do to overcome these hurdles. It could be price, product composition, or payment terms.

SaaS Payments 287

SaaS Payments Payment Services Payments Payment Features 287

Intercom, Inc.

NOVEMBER 30, 2021

Juggling outdated, disjointed tools is a recipe for team burnout, customer dissatisfaction, and ultimately, churn. “The real value support software offers is in the approach it enables and how it impacts the customer and team experience” But here’s the thing: a toolset is not a strategy. Integrations and Messenger apps.

Technical Review 249

Technical Review Customer Support Payment Methods Payment Solutions 249

FastSpring

MAY 20, 2024

Moving some, all, or simply more of your software offerings from a one-time perpetual license model to a software as a service (SaaS) subscription model can be daunting, but it’s so powerful for building dependable, recurring revenue. Prepare for renewals with value adds to reduce churn.

SaaS Payments 158

SaaS Payments Payments Merchant Services Payment Solutions 158

SaaStr

APRIL 1, 2023

The SMBTech economy is very different from enterprise software, and there is massive opportunity to capture it. Throw in the rise of social media and mobile web payment systems like Stripe and Braintree, and something revolutionary was at our doorstep. There are over 400M small businesses worldwide. SMBTech is primed for growth.

Scale 245

Scale SMB Merchant Services Payment Methods 245

SaaStr

DECEMBER 3, 2023

In particular: Hybrid SaaS with payments and fintech usually has far, far lower gross margins than pure software. See, e.g. Shopify, whose blended gross margins with payments even at its scale are still less than 50%. That’s great, and it enables their software. Often in the 40%-50% range, instead of 75%-80%.

SaaS Payments 284

SaaS Payments Metrics SMB Payments 284

User Pilot

NOVEMBER 14, 2024

By increasing the value provided to existing customers through different expansion tactics, companies can reduce churn and enhance customer lifetime value. In-app behavior , like events they’ve completed, features they’ve used, or in-app flows they’ve engaged with. Company details, like size or industry.

Strategy 105

Strategy Payment Solutions Payments Customer Lifetime Value 105

SaaStr

SEPTEMBER 26, 2019

What we learned from ’08-’09 in SaaS: First, SMB churn went through the roof — as SMBs went under much more quickly and often. The first thing SMBs did was look at their credit card payments and cancel everything they could. Anyone processing a lot of SMB and credit-card deals saw churn probably double.

SaaS Payments 280

SaaS Payments Sales Hiring Scale SMB 280

Subscription Flow

MAY 10, 2024

To keep up with the modern donors’ purchasing habits, nonprofit organizations or NPOs can set-up recurring donation systems in-line with these donors’ spending preferences. According to a 2023 360MatchPro study, revenue from one-off donations decreased by 12% in 2022, while monthly charity payments rose by 11%.

Payment Solutions 105

Payment Solutions Payment Methods Payments Payment Services 105