Acquiring new customers is expensive. A recent McKinsey study found that businesses, on average, need three new customers to compensate for losing one. With the growing costs of acquiring new business, the longer you can retain a customer, the more lucrative that relationship will be. That’s especially true in software, where the widespread adoption of the subscription model has made long-term relationships vital.

Today, forward-thinking software-as-a-service (SaaS) providers are making their solutions more valuable (and their customer relationships stickier) by adding embedded payment options.

Business users are very demanding when it comes to selecting business management software; they want SaaS platforms that are both flexible and user-friendly. Integrating payments directly into the software makes life easier for merchants by handling essential payment operations within the applications they already use on a daily basis. This dramatically increases the platform’s usefulness and improves the customer experience, leading to happier and more loyal customers.

Embedded SaaS payment processing is the way forward. By offering payment tools within your software, you can create new revenue streams while giving your customers the tools they need to succeed. 

Embedded Payments Are Changing How Businesses Access Services

Embedded payments are payment services built directly into the software platforms businesses use every day to run their operations and serve their customers. For years, software providers have been adding payment features directly into their products, thanks to the wide-scale adoption of application program interfaces (APIs) and software development kits (SDKs). 

Embedded payments improve upon the integration trend by enabling software providers to offer a range of financial services in a single solution, including payment acceptance, invoicing and easy sign-up for payment services.

For example, consider a dental clinic. Traditionally they might use:

  • One main software suite for running the office, scheduling appointments and managing patient information, etc.
  • Separate systems for billing and taking payments, with a merchant account provided by a third-party

Combining merchant services with business management software simplifies the traditional customer/vendor relationship. Instead of dealing with a third-party payment provider, the dental clinic can sign up for payments directly through their software. They could then handle credit and debit card processing, online payments and any other payment-related needs all in one place.

Businesses across all industries are taking advantage of this streamlined approach to payment services. By 2030, researchers estimate that 74% of consumer payments will go through non-financial platforms. And this trend goes beyond just payments. Software providers are also embedding other financial services products, including lending, investing, insurance and more.

Embedded Payments Reduce Churn and Improve Retention

Direct revenue is the most obvious benefit of offering payment services through your software. With embedded payments, B2B SaaS providers can earn a portion of the fees generated by transactions processed through their platforms. Another benefit is the lifetime revenue growth that accompanies improved customer retention.

In the past, users would purchase a license for a software solution and use it for years. Today, the industry has moved toward subscription-based models. Instead of charging an upfront fee, SaaS providers earn revenue in smaller chunks over months and years. Although this model allows SaaS providers to generate more revenue per user than they could with one-time sales, platforms must retain customers longer for subscriptions to be worthwhile.

Improving the Customer Experience Drives Retention

Customer experience (CX) can make or break a software platform. While user experience (UX) focuses on interactions within the software, CX looks holistically at how customers perceive a company, including its brand, products and support.

Great CX is an important part of reducing customer churn and maximizing retention. Embedded SaaS payments offer a powerful way to improve CX for three main reasons:

  1. Embedded payments simplify the customer’s life: With SaaS payment processing, users have one less vendor, sales process and platform to juggle. This saves them time, simplifies training and streamlines support
  2. Embedded payments increase trust and security: Businesses don’t want to worry about security, compliance or brand safety. By getting their payment services directly through a familiar and trustworthy company, customers can rest assured their payments are in good hands
  3. Embedded payments save customers money: Small businesses often choose platforms like Square or Stripe because they seem easy to use. Unfortunately, these big-name brands are often expensive and inflexible. Embedded payments from software partners give users the simple, streamlined experience they crave at more competitive rates than big platforms can offer


Embedded payments improve the customer experience in 3 ways

Small Businesses Are Hungry for Software-Driven Payments and Finance

Today, 50% of businesses get their payment services through an independent software vendor. According to research from Finextra, 83% of small and medium-sized businesses are interested in accessing financial services through their software platforms.

Businesses are hungry for software-driven finance. Offering payment options through your SaaS platform ensures users get an experience that they will return to time and time again. It also prepares your business for a future where embedded payments are table stakes for success.

To learn how our dynamic embedded payments solutions can help you deliver a great customer experience and maximize retention, reach out to a member of our team today.

Don’t just turn on payments, transform the way you do business

  • Generate New Revenue By adding or expanding payment offerings to your solution, you can start earning higher monthly and transaction-based recurring revenue.
  • Offer the Power of Choice Allow merchants to choose from 125+ shopping cart integrations and 200+ processor options to streamline their onboarding.
  • Seamless White Labeling Make the platform an extension of your brand by adding your logo, colors and customizing your URL.

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