Software as a Service (SaaS) is a rapidly growing industry and is expected to generate $369.4 billion by 2024. It has also been one of the fastest-growing market segments since 2019. Technology advancements over the last few years have opened up many opportunities for SaaS companies, especially for payment processing. This article will cover the top 5 payment processing challenges every SaaS company may face and how they can be solved using a payment processing system.
- User Experience
In such a competitive industry, it’s important to have a platform that allows you to control the customer experience you desire. Many payment solutions now have the ability to white label and brand the user interface, so your customers see your logo and not the payment processing company’s. This will keep the customer on your platform and boost the visibility of your brand. User experience can also be improved through ease of navigation.
- Payment Reconciliation
With the right payment processing system, you can automate reconciliation for day-to-day payments and funds with processors and bank partners. Your system should monitor and alert you for any exceptions or mismatches. Implementing a payment processing system that automatically reconciles payments and funds can help solve this issue. Your system should monitor each transaction to reduce system errors, simplify the payment process, save you money, and analyze unauthorized transactions so no mistakes are made.
- Collection of electronic payments across borders
Most SaaS companies offer services to customers all around the world, so it’s important to have a payment processing system that accepts payments in multiple countries. It’s also important to have a payment system that accepts a wide variety of payment methods. This can help generate more revenue and increase customer retention. Being flexible can be particularly helpful in areas where your competitors have fewer options.
- Secure Payments
SaaS companies continue to face a battle to ensure their data and payments remain secure. The right payment processing system will have the necessary risk management tools and requirements in place to warrant the safety of your payments. A secure system should have configurable alerts based on multiple parameters, triggered by transactional and account activities. Your payment processing system should always be PCI Compliant. These rules and regulations are established in an effort to protect the security of credit card data and cardholder data for e-commerce transactions. Having a payment processing solution that is PCI Compliant will make you appear more trustworthy to customers and help you when negotiating with banks.
- Simple Integration
Another major challenge for SaaS companies is integrating a payment processing solution to a current platform. Integrating a payment processing solution into your system should be easy and effortless without causing any issues – without IT resources. Your system should also continuously have new system updates to stay up-to-date on the latest features and new technology.