SaaStr

NOVEMBER 19, 2020

But, there are still many interesting things we can learn from Shopify, especially since it sells to so many SMBs, has been late to go upmarket, and combines a payments/fintech element with pure SaaS. So are you sure your trial needs to be so short? Subscriptions can fuel payments and merchant revenue.

Payments 363

Payments Merchant Services Payment Solutions Scale 363

SaaStr

APRIL 17, 2021

Squarespace may be more design-focused, Wix the somewhat more cost-effective solution. It’s pretty incredible in fact that both these two businesses can hit $700m and $1B in ARR, both growing 30%, neither able to clip the wings of the other. Over $500,000 revenue per employee. 30% of its revenue outside the U.S.

Payment Methods 336

Payment Methods Merchant Services Payments Payment Services 336

SaaStr

JULY 26, 2022

So in theory, SMB SaaS is better than enterprise, at least 9 times out of 10: Deals close much faster. But beyond all the other Pros and Cons of SMB vs enterprise, there’s one looming issue with SMB SaaS: Churn. SMBs go out of business, and quickly. SMBs pay monthly, and often scrutinize every expense.

SMB 363

SMB Churn Payment Services SaaS 363

SaaStr

OCTOBER 11, 2023

That’s not just pretty epic growth at almost $7 Billion in revenue, it’s one heck of a comeback. Software Important. But a Smaller and Smaller Percentage of Revenue. From a business model perspective, Shopify has in essence been a fintech and merchant product first and a SaaS product second for quite some time.

Payments 289

Payments Merchant Services Revenue Payment Solutions 289

SaaStr

NOVEMBER 1, 2023

Well, fast forward to today and it’s truly an SMB powerhouse. How is SMB SaaS doing today? Transaction Fees Growing Far Faster (38%) Than Software / SaaS License (21%). Both Bill and Shopifty have morphed over the years from almost pure SaaS companies to payments platforms built on top of a SaaS core.

Payment Services 338

Payment Services Payments SaaS Payments Payment Solutions 338

SaaStr

APRIL 23, 2021

Now they’ve scaled to $200m+ ARR growing 38% selling just to 100,000+ SMBs, solving a hard problem (i.e., automating the back office and payments and billing for SMBs), and doing it with 120%+ NRR. 121% NRR from SMBs — up from 110% at IPO. Making more and more money on each payment. Pretty impressive.

Payment Solutions 346

Payment Solutions Payments SaaS Payments Payment Services 346

SaaStr

AUGUST 28, 2024

And with that, it seemed a good time to dig in with one of the great SMB leaders Bill. With a super impressive 111% NRR from SMBs. From SMBs. A reminder and a challenge to not settle for < 100% NRR from SMBs. Fast forward to today, and only 20% of its revenue is from software subscriptions.

Payments 288

Payments Payment Solutions SMB Acquisition 288

SaaStr

APRIL 29, 2021

Shopify’s first quarter revenue: Q1 2021: $989 million Q1 2020: $470 million Q1 2019: $321 million Q1 2018: $214 million Q1 2017: $127 million Q1 2016: $73 million Q1 2015: $37 million Q1 2014: $19 million Q1 2013: $9 million. When you add in payments, i.e. merchant services, NRR for 2018+ is about 110%, based on the below new chart.

Merchant Services 315

Merchant Services Payment Methods SaaS Payments Payments 315

SaaStr

SEPTEMBER 9, 2021

Bill.com has become an SMB powerhouse, with 120,000+ customers and a stunning $25B+ market cap. Bill.com had to develop a network that today has millions on vendors processing bills and payments on it. So they let folks use the platform the way they wanted, from paper checks to fax and more. #2. But it paid off.

SaaS Payments 63

SaaS Payments Payments Payment Services Scale 63

SaaStr

FEBRUARY 17, 2021

They want a slick site that does more, from eCommerce to payments to marketing and more. And SMBs are back in SaaS. That’s the power of recurring revenue. eCommerce and Business Tools Are Key Drivers to Accelerating Growth. Efficient at SMB marketing — an ~8 month CAC. But much lower in Payments.

Payment Methods 304

Payment Methods Payment Solutions Payments SMB 304

SaaStr

MARCH 28, 2025

SMB customers. Your suppliers might actually be your customers 30% of Bill.com’s core revenue comes from suppliers making payment choices, completely reframing their TAM calculations. “It’s a lot of human capital to make it work across 50 states and a trillion dollars of revenue.” From Zero to $1.4

SMB 130

SMB Payments Payment Services SaaS Payments 130

SaaStr

SEPTEMBER 7, 2024

So one of SaaStr Fund’s latest investments is Mangomint, a vertical SaaS platform for spas and salons. And yet, today Mangomint is at eight figures in ARR, growing 100%+, with 110% NRR from SMBs. You really have to do it all now to build a true platform for SMBs: software, payments, payroll, marketing, workflow and more.

SaaS Payments 309

SaaS Payments Payments Payment Methods SMB 309

SaaStr

SEPTEMBER 22, 2022

So when we first started writing about Bill.com at its IPO , it was a sleep SMB accounting product. And its payments network to roll out. But yes, it’s the most incredible SMB growth story in SaaS we’ve ever seen. Don’t let anyone tell you it can’t be done with SMBs. #2. 131% NRR.

SaaS Payments 64

SaaS Payments Payment Services Payment Solutions Payments 64

SaaStr

APRIL 19, 2023

So one large category of software spend is on Point of Sale systems. But “POS” systems and software are everywhere, and are a lot more than just Toast and Square. But “POS” systems and software are everywhere, and are a lot more than just Toast and Square. But the margins are tough.

Payment Solutions 281

Payment Solutions Point of Sale Payments SaaS Payments 281

SaaStr

AUGUST 24, 2022

Of course, their margins are lower than a pure software play (more on that below). SMB sales (most of Toast) is very tough to do without a highly efficient and effective sales force. At least 20% of your customers from referrals and second-order revenue. #4. 5 Interesting Learnings: #1. This is useful to see broken out.

SaaS Payments 323

SaaS Payments Scale SMB Payment Solutions 323

Payrix

SEPTEMBER 25, 2024

In 2023, the Embedded Finance market was valued at $73 billion and projected to grow to $523 billion by 2032, growing at a compound annual rate of 24%, according to a recent report. It’s still early days for Embedded Finance, but the preliminary statistics coming out of this space are rather significant.

Payments 130

Payments Payment Solutions Embedded Payments Trends 130

SaaStr

AUGUST 17, 2021

They are at 2,000 customers, a stunning 40% revenue and 46% billings growth, at $700m in ARR. Could you switch to another app? Coupa isn’t as much a fintech as SMB players like Bill.com, but it’s getting there with Coupa Pay. This is a bigger task than SMB, but a huge market. 5 Interesting Learnings: 1.

Payments 319

Payments SaaS Payments SMB Payment Solutions 319

Payrix

MAY 14, 2024

When it comes to software, success doesn’t hinge on innovation alone. No one knows this better (or more intimately) than a software company Chief Revenue Officer (CRO). Adam Tesan, CRO at Worldpay for Platforms, is a seasoned executive leader with decades of experience in sales, marketing, and revenue in the software space.

Payments 147

Payments Payment Services Payment Solutions SaaS Payments 147

SaaStr

AUGUST 29, 2022

SMB SaaS has a lot going for it: – Millions of them – Short sales cycles – Easier compete. But, it's often hard to get to $100m ARR selling just to SMBs. sell just to SMBs pic.twitter.com/Po1I2aMaBK. So many VCs and others have gotten more and more excited about SMB SaaS. Millions and millions more.

SaaS Payments 346

SaaS Payments Scale SMB PayPal 346

Stax

MARCH 17, 2025

Adding PayPal to your list of accepted payment methods opens up a range of benefits for you and your merchants alike. Benefits for merchants Increase conversions – The primary advantage of adding PayPal, Venmo, and Pay Later as payment options is that they enable merchants to boost conversions.

Merchant Services 88

Merchant Services Stax PayPal SaaS Payments 88

Payrix

MARCH 12, 2024

Embedded Payments have become a popular initiative among vertical specific software companies looking to deliver a more seamless customer experience, introduce new revenue into the business, and stay competitive in today’s digital world. Purchasing a solution is the easy part. But where to begin?

Payments 100

Payments Embedded Payments Merchant Services SaaS Payments 100

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. GRR of 86% and NRR of 119% are very impressive for SMBs … although they only count customers with 5+ seats.

Scale 323

Scale SaaS Payments SMB Payment Solutions 323

Payrix

JUNE 25, 2024

Embedded Finance is more than just a buzzword; it represents a fundamental shift in how financial services are delivered and consumed today. Ian Hillis, Head of Growth at Worldpay for Platforms discusses this new term and what the opportunity may await software providers on our latest episode of PayFAQ: The Embedded Payments podcast.

Payments 100

Payments Payment Solutions Finance Embedded Payments 100

SaaStock

JANUARY 25, 2019

Trailblazing through their home continent, venturing successfully onto the world stage or changing from on-premise software to SaaS, these companies could have a postal code in any SaaS hotspot in the world. ContaAzul is a business management platform for small businesses created in Brazil. We can’t wait to meet them.

SaaS Payments 257

SaaS Payments Payment Solutions Payment Methods Payments 257

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. Should you push more on GTM?

Payment Solutions 279

Payment Solutions Payments Travel Scale 279

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%. Non-Recurring Revenue Doesn’t Count, At Least Not as Much. Pass-Through Revenue Simply Doesn’t Count.

SaaS Payments 275

SaaS Payments Metrics SMB Payments 275

Stax

APRIL 11, 2024

SMB owners wear many hats, managing everything from staff to sales. Adding to the already tough job of managing a small or medium business is the complex task of understanding how payment processing works, including managing the fees, equipment, accounts payable and more. Learn More What is a Payment Management System?

Payment Services 88

Payment Services Payment Solutions Merchant Services Payment Methods 88

SaaStr

MAY 10, 2021

Fast forward to today, and we can add an important nuance to that: a second core product not only helps you grow faster at scale (a bigger TAM), but it drives up NRR and more revenue from your existing customers. Pretty good for SMB SaaS. In fact, now it’s more than 2x the size of its SaaS software alone.

Merchant Services 255

Merchant Services SaaS Payments SMB Payment Solutions 255

SaaStr

JULY 11, 2023

Here’s what to consider: Pain: The first thing every business should consider is the pain point. Does it hurt enough for buyers to switch to a new solution? Gorgias, an eCommerce customer service platform, discovered that their customers’ main pain points were a lack of centralized customer support channels and poor integrations.

Sales Hiring 199

Sales Hiring SMB Sales Recruiting Payment Methods 199

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. As soon as the economy went south, SMBs started to simply go bankrupt and/or shut down. And even before they did, panic set in in businesses with no cash reserves. functioned.

SaaS Payments 280

SaaS Payments Sales Hiring Scale SMB 280

SaaStr

JULY 20, 2022

Weave started off as a dental ERP and comms platform (including VoIP / phone), and then expanded beyond that as it scaled. While these aren’t great metrics if Weave was enterprise, they are still solid for SMBs. Many SMB SaaS companies struggle to hit 100% NRR and 80% GRR. Many SMBs just prefer it. #4.

SaaS Payments 281

SaaS Payments Scale Payment Methods SMB 281

SaaStr

JANUARY 31, 2023

The SMB segment of Zoom has stopped growing, so going from ~0% growth to 7% growth actually might end up being huge. Merchant payments have become the bulk of not only its revenue, but importantly, have been growing twice as fast as SaaS revenues). Because with those apps, we see second-order revenue spread quickly.

Pricing 271

Pricing Merchant Services Payment Solutions Payments 271

Payrix

OCTOBER 1, 2024

In the latest episode of PayFAQ: The Embedded Payments Podcast, host Ian Hillis sits down with Candice Raybourn, Head of Partner Activation at Payrix and Worldpay for Platforms, to discuss the crucial topic of PCI compliance. What is PCI DSS? Candice explains the basics of PCI DSS. The shift to PCI DSS 4.0

Payment Services 113

Payment Services Merchant Services Payments compliance 113

SaaStr

MAY 25, 2022

If Momentive / SurveyMonkey had stayed 100% self-serve and low end, it likely wouldn’t be growing much at all, with self-serve revenue now only growing 7%. Far forward to today, 1/3 of its revenue is sales-driven, but it’s the core growth driver, up 35%. #2. It’s not always best to force annual payments.

Scale 281

Scale Payments Payment Solutions Payment Services 281

Neil Patel

DECEMBER 23, 2020

Interested in customer relationship management (CRM) software that’s free forever? These zero-dollar-per-month platforms are packed with great features. I’ve picked out the top five free CRM software products on the market. The Top 5 Options For Free CRM Software. How to Choose the Best Free CRM Software for You.

Payment Solutions 139

Payment Solutions Software Review Software Payments 139

FastSpring

JANUARY 27, 2022

He then sent out a link to this page inside payment failure notification emails. Users could now forward the payment failure email to the right person, without that person having an Enchant account. How My Marketing Concepts upsells annual payments during trial. Vinay writes, “The benefit of this was huge!

Merchant Services 146

Merchant Services Payment Services SaaS Payments Payment Solutions 146

Neil Patel

DECEMBER 8, 2020

They’re not using time tracking software. Or, they’re using a solution that doesn’t fit with their business. Because no one should suffer any longer, I’m going to share the top five time tracking software options on the market today. The Top 5 Options for Time Tracking Software. There is no third reason.

Payment Solutions 140

Payment Solutions Software Payment Methods Payments 140