Forward-thinking vertical SaaS companies recognize why adding payment processing capabilities is so beneficial. When implemented well, payment programs can open up added revenue streams and provide more value to your customers.
While payment initiatives may vary from one SaaS platform to the next, their journeys often share common milestones. At Stax, we describe that journey in three key phases: build, launch, and grow.
You first need to set up the proper infrastructure to enable embedded payments; from there, you’ll want to launch smoothly. Then, as you scale your payments program, you also need to think about growth.
This recent Stax Connect webinar brings together payment leaders and experts to discuss how vertical SaaS companies can successfully build, launch, and grow their payment initiatives.
TL;DR
- Learn how to build a strong foundation. Start by selecting the right payments partner, aligning your team, and implementing infrastructures to support embedded payments.
- Know the steps for a successful launch. The webinar sheds light on how to market payments with a clear value proposition and leverage your partner’s resources for support.
- Focus on growth. Continuously monitor margins, adapt to industry changes, and revisit your payment offerings to stay competitive and maximize value.
Watch it on demand or jump to the recap below.
How to Build a Solid Foundation for Payments
Let’s start at the building phase—i.e., laying the groundwork for payment initiatives. This stage involves setting up the right infrastructure, finding the best payments partner, and getting your internal teams on board.
Obtain buy-in at all levels
A key step in ensuring successful payment initiatives is to get buy-in from people at all levels of your organization.
As Ricky Dunbar, Stax’s VP of Professional Services, puts it, “Everyone who’s part of your organization or ISV needs to be bought in. Make sure they know that payments will be a strategy that is part of that company’s growth.”
He stresses the importance of getting alignment across teams. In particular, you need executive leadership driving the initiative, product teams integrating payments seamlessly, and sales and marketing teams ready to communicate the value to customers.
Have one person look after your payments program
Appointing a dedicated payments leader ensures accountability and focus.
“I operate very much from the mentality that single-threaded accountability yields the best results,” explains Ricky, “So if you have an individual responsible for the program’s success overall, you’re going to see a better outcome in most cases.”
Of course, just because you have one person leading payments doesn’t mean they’ll have to do it alone. You must also ensure they have the support and teams to execute and optimize the program. Start small if you’re at the early stages of the program, then scale up as needed.
Monitor performance
Pay close attention to customer feedback and pain points related to payments. Common issues include failed transactions, limited payment options, or complex billing procedures, all of which can drive customers to competitors.
Brandon Ewell, Partner Growth Manager at Stax, emphasizes this:
“One of the things that we see a lot is when there is an increase in customer churn. So payment-related friction like failed transactions, limited payment methods, or complex billing procedures can drive your customers to competitors offering new innovative, streamlined processes.”
Another thing to keep an out for is your support ticket volume.
Brandon says, “If your support tickets are rising… that can indicate that your go-to-market strategy might not be ideal.”
In such instances, you may need to revisit your payments program and evaluate its foundation—ensuring your systems, processes, and partners align with customer needs.
When selecting a payments partner, go beyond the documentation
Your payments partner can make or break your initiatives, especially during the building phase. As such, finding the right vendor for your business is critical.
One important tip here is to go beyond documentation. Karina Mills, Stax’s Director of Solutions Engineering, says that while API and technical docs are a must, the people representing your payment provider are just as important.
“What you want from a payment provider is somebody who can walk you through the most important things, not just for now but for the future. They should help you unpack your strategy and guide your developers.”
She continues, “I’ve worked with many development teams that are new to payments, and maybe their developers don’t have experience with payments. So looking at documentation is one thing. Understanding the ‘why’ between implementing one way and the other will be critical.”
“And that’s what our teams are like here at Stax. We’ll guide you so you don’t feel alone in that process or feel like you’re looking for documentation that’s a needle in the haystack.”
How to Launch a Vertical SaaS Payments Program Successfully
Already have a payments partner in place? The next step is to implement your payment initiatives. Consider these best practices.
Have a plan
According to Karina, successful implementation hinges on a well-structured project plan.
“What I’ve seen makes an implementation really successful is an excellent project plan for that initial integration,” she explains. “It’s about having steps that need to be accomplished, understanding what happens when you don’t meet deadlines, and knowing the downside if you can’t go live by a specific date. Those are things to consider when talking with your payment provider because they can help you figure out how to make it work for you.”
Have the right people to support the implementation
Pick a solid team who’ll bring your payment initiatives to life. Ideally, you already have a dedicated person looking after your SaaS payments program and leading the team.
“Find someone open to learning and wants to get in the weeds about payments because there’s a lot of complex, nuanced things to know,” advises Karina.
Fareeha Kabani, Director of Partner Solutions at Stax, echoes this and says your team’s mindset is critical.
“Building a team that can keep up with the constantly changing nature of the payments industry requires a special blend of talent and mindset. It doesn’t necessarily mean that those people need to be industry veterans.”
She adds, “From what I’ve seen, being able to build that team is about having at least one key person focused on the payments product. It’s great if that person is willing to learn, be adaptable, and is excited about the innovation in the industry.”
Tap into your payment partner’s implementation resources
The best SaaS payment processing providers will have teams and tools to help implement your initiatives.
Karina mentions that Stax assists clients at every stage of the implementation phase.
“You’ll have an implementation team you can go to with all your questions, and we’ll get you covered on the business side as well. There’s an implementation manager who walks you through a checklist of all the items you need to care about based on how you’re going to market.”
“For technical integration, many of our partners are looking for something integrated within their own software via an API. So you’ll have somebody alongside your implementation manager and the rest of the team who can help answer all your questions as they arise.”
Sell it as an all-in-one solution
Launching your payment initiatives isn’t just about implementing the technology; it’s also about launching it to the market and getting people to adopt it.
One of the best ways to do that is to sell payments as part of a fully embedded solution.
According to Ricky, this approach shifts the perception of payments from an optional add-on to a core feature of the platform.
“It’s more effective for ISVs to sell it as a truly integrated solution,” he explains. “The approach I take with them is, ‘Why would you buy this software if you didn’t also want to get paid?’
“If my software sends an invoice or allows someone to pay, why wouldn’t I make it easy for them to do so? In that way, you’re selling it as an integrated solution, and payments aren’t just an add-on.”
Ricky also recommends embedding payments into compensation plans or sales targets. That way, your sales team’s goals are aligned with the success of your payments program.
Have a strong value proposition
Still on the topic of selling and marketing your program—see to it that you have a strong value proposition that truly sets you apart.
Aliza Sharma, Stax’s Senior Manager of Partner Marketing, emphasizes the importance of tailoring your payment program to your customers’ needs and communicating its unique value.
“The first thing is to think about differentiation. Know your customer base and what they care about, then build according to that. Instead of just putting payments out there, have a strong value proposition,” she explains.
“Why are we building it? You need to have a very tailored response to that because if you don’t know what your customers care about, you’re going to build, but they’re not going to convert.”
Choose a payments partner who can help you market and sell
Need more help selling the program? See if your payments provider can step in. Stax, for example, offers resources, tools, and personalized support for selling payments.
“We’ve got an array of resources, including a portal. We support our partners in many different ways, not only to get them through the implementation phase but also to help them communicate the value of payments to their audience,” explains Karina.
Aliza echoes this and shares an example:
“We had a partner whose SaaS sellers were struggling to attach payments. They consulted with our team, and we created a tailored solution for them. This included developing a custom boot camp and training certification program to help their SaaS sellers learn how to market and sell payments effectively. We also paired this with an incentive program. These solutions are only possible through close collaboration, and our team excels at delivering them for our partners.”
In addition, Stax can also take on sales and marketing for companies that need it. Ray Lau, VP of Marketing for Stax Connect, brings up Stax Connect Plus, which accelerates payments revenue and aligns with your company’s unique sales approach.
“Stax Connect Plus is a program that will help you get your payments revenue faster. So we have dedicated sales and support teams who can adapt to your company’s vision and how they sell their product, says Ray.
Aliza describes it in more detail:
“With Stax Connect Plus, we handle support, sales, and marketing for our partners. We offer a range of services, including back book list support, where our partners provide a list of their current customers, and our sales team works on the backend to close those leads,” she explains.
How to Grow and Scale a SaaS Payments Program
Already have your payments program up and running? The next phase is growth and ensuring it keeps delivering value.
Monitor your margins
Our first tip? Pay attention to profitability.
Brandon emphasizes the importance of regularly revisiting your pricing strategy to ensure healthy margins.
“If you’re seeing a reduction in margins, it’s because card brands are constantly changing the pricing for cards. And if you set a go-to-market price but don’t revisit it for two or three years, your margins month over month are continuously getting squeezed.”
“Always revisit your margins and make sure that you’re adjusting pricing when necessary to stay in tune with the market.”
Remember that payment processing isn’t a set-it-and-forget-it capability
Recognize that the payments industry is constantly evolving. As Brandon points out, your payments program isn’t a one-and-done thing.
“Payments are complex. It’s not a set-it-and-forget-it solution. You want to constantly revisit what you’ve brought to market to ensure you still have that competitive advantage.”
Karina agrees and adds that staying competitive in payments requires adapting to industry changes and new regulations.
“What you implement today will not be what you’ll be implementing 10 years from now. New software is introduced all the time. There are new compliance regulations. So, keep all that in mind when thinking about your team and choosing a payments partner.”
Bringing it all together
Building, launching, and growing a successful payments program requires the right team and partner. Hopefully, this webinar shows you what it takes to run a successful payments program.
Whether you’re starting or scaling, remember that your payment initiatives aren’t a “set it and forget it” solution. The good news? When you have Stax as your partner, you’ll have the support and tools needed to thrive at every stage. Contact us to learn more.
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