5 Payment Processing Tools To Implement On Your Saas Platform

As a SaaS company or ISV looking to offer payment processing through your software, you are likely to have some very unique needs. Unlike a regular eCommerce merchant, you would typically need functionality that supports recurring billing or subscription management. 

While it may be simple to integrate a standard credit card processing solution with your website, it is likely to lack some critical SaaS payment processing features.

There is absolutely no dearth of secure payment solutions out there. However, to make sure that the solution can meet your demands effectively while optimizing payments and billing for your users, you must choose wisely.

In this article, we’ll take you through some of the best payment processing tools that might suit your requirements perfectly.


  • Payment processing software simply provides business owners a means of accepting payments from customers electronically by integrating with their online stores. It typically consists of three components: payment processor, payment gateway, and merchant account.
  • The features that SaaS companies or ISVs should evaluate in a payment solution are its integrations, payment methods supported, pricing model, reporting capabilities, ease of use, security, and customer support.
  • The top payment processing solutions in the market today, suitable for integration with SaaS platforms, are Stax Connect, Stripe Connect, Adyen for Platforms, OpenEdge, and NMI.

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What Is Payment Processing Software?

Let’s try to understand what payment processing tools really are and what they do. You may think of payment processing software as a program or service that facilitates the processing of customer payments by businesses—made via methods other than checks or cash. Customers can pay with credit cards, debit cards, digital wallets (e.g. Venmo, PayPal, Apple Pay), ACH, or wire transfers.

There are typically three components to any payment software:

  1. Payment processor – An entity that acts as a mediator between the merchant’s bank and the customer’s card-issuing bank by communicating with the customer’s card network (such as Visa, Mastercard, Discover, American Express, etc.) to route and manage transactions appropriately.
  2. Payment gateway – An entity that establishes a secure connection between the merchant’s website and the payment processor so that a customer’s card data can be transmitted safely.
  3. Merchant account – A business bank account or a holding account for the merchant where customer funds are received.

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As you can see, payment processing software should not be confused with a payment gateway. The latter is simply a component of the former. Sometimes, payment gateways could be integrated with virtual terminals, card readers, or point of sale (or POS systems).

Typically, all three components discussed above are included in a software package. But there are many different types of payment processing tools that support in-person payments as well as online payment processing. Some of these may even function solely as a gateway or a processor.

Since most payment processors charge processing fees on every transaction, small businesses are sometimes wary of adopting payment software. However, there’s no denying that robust SaaS payment processing software can streamline the checkout process, reducing shopping cart abandonment and failed payments, while elevating the customer experience greatly.

What Features Should SaaS Companies Look for?

There are quite a few features that ISVs and SaaS companies should look for when searching for the right payment processing tools for their platform. Here are some of the most critical ones:

  1. Integration capabilities. Your payment platform should be able to connect seamlessly with your users’ business applications. Look for a solution that provides several different application program interfaces (or APIs) so you may customize your platform any way you want. This way, users can enjoy a host of useful features that enhances their payment experiences. For example, a QuickBooks integration can eliminate tedious tasks like the manual reconciliation of invoices. This can save plenty of time, so users can focus on other critical areas of their business.
  2. Multiple payment methods. The greater flexibility your users can offer to their customers in making payments, the better. To that end, see to it that your payment software supports several different payment options including contactless payments, mobile payments, digital invoicing via email and text, recurring billing, ACH processing, split payments, etc. Also, check if the payment processing tool can handle multiple currencies. This can elevate the checkout experience and boost your revenues in the long run. 
  3. Pricing transparency. Different payment processing solutions have different pricing models. Make sure to conduct in-depth research to avoid overpaying. Most importantly, look for a partner that has a transparent pricing structure with no hidden fees or surprises. 
  4. Reporting and analytics. See to it that you are able to gain insights into user activity and manage payment data across multiple channels and locations from a single unified dashboard that you can access from anywhere and at any time. This is critical as it can help you monitor and track onboarding status as well as the health of your enrollment pipeline. 
  5. Ease of use. Check if the solution is simple, intuitive, and easy to use. This is a must as you do not want to spend extra on development or training your staff to just operate the platform. A complex solution also leads to confusion and time wastage on insignificant tasks.
  6. Security. Robust security features are vital, as they can save you from serious threats like hacking and payment fraud. Make sure the solution you choose offers PCI DSS compliance. This ensures the processing of payments through secure channels that keep cardholder data safe. Also, see to it that the payment software offers other security features like tokenization and encryption so that sensitive transaction data can’t be misused even if it falls into the wrong hands somehow.  
  7. Customer service. Finally, check out the company’s reviews and ratings on popular forums to see what their customers are saying about their services. You want to make sure that your payment partner provides round-the-clock support so that you and your users may get the help you need at any time. 

5 Best Payment Processing Tools for SaaS and ISVs

Now that we’ve covered what payment processing tools can do for you and what you should look for in a solution, let’s take a look at some of the best payment processing solutions for your needs.

1. Stax Connect

Stax Connect is a product offering from Stax for ISV/SaaS companies looking to integrate a complete payments ecosystem within their platforms (i.e. allowing them to facilitate payments for their users themselves instead of having them go through a different company).

  • Its customizable and all-in-one API allows you to tailor the payments experience any way you want while enhancing your existing software infrastructure.
  • Stax Connect’s user-friendly dashboard can be accessed from anywhere so you can get real-time insights into payment data and user activity.
  • Its pre-built enrollment platform ensures that users don’t need to wait days for underwriting approval. Instead, they can start taking credit card payments within just 20 minutes of getting started.
  • The solution is PCI compliant and supports a variety of payment methods including invoicing, recurring billing, payment links, ACH, credit and debit cards, mobile wallets, and so on.
  • One of the biggest benefits that Stax Connect offers ISVs and SaaS companies is sales and marketing enablement support. Partners get access to customized sales and marketing programs to help them maximize the value of their platform for end-users.
  • Its “custom revenue-share opportunity” allows each partner to monetize their payment volume instantly, growing enterprise value. Partners can set their own pricing structure and model based on the payment features they want to offer to their users. What’s more, they are able to access the direct interchange rates, so they can create even more value—for their business and their users. 

2. Stripe Connect

Stripe Connect is a product from Stripe that can help ISVs and SaaS companies integrate payments into their platforms. 

  • It enables sub-merchants to receive both in-person and online payments using credit and debit cards, digital wallets, international payments, and buy now, pay later options. 
  • It also facilitates billing, invoicing, and subscription management and has capabilities for fraud protection, revenue optimization, and tax automation.  
  • Stripe offers several APIs that you can use to customize the product as per your needs. However, its APIs and tools are slightly complex and may require expertise in software development. 
  • Stripe Connect is PCI Level 1 compliant and it encrypts all credit card information as a safety measure.

3. Adyen for Platforms

As the name suggests, Adyen for Platforms is Adyen’s product offering that allows SaaS companies to embed payments into their platforms. 

  • It delivers a smooth payment experience online, on mobile devices, and in-store. 
  • Adyen offers a developer-friendly API that you can use to enhance your software offering as you see fit. 
  • The solution also has built-in verification, onboarding, and compliance for various countries and markets.
  • The pricing of this solution isn’t listed on the website and you will need to contact their team for more information. However, their processing fees vary by payment method and country/region.

4. OpenEdge

Global Payments Integrated (formerly OpenEdge Payments, LLC) provides financial technology services to a wide variety of businesses. It also offers a cloud-based solution that ISVs and SaaS companies can use to add payment capabilities to their software. 

  • It offers a fast and easy API that developers can use to customize their platforms. 
  • The solution supports multiple payment methods as well as security features like encryption and tokenization to keep cardholder data safe. 
  • With its Decline Minimizer feature, this payment processing tool updates expired card information on file automatically. This greatly reduces the number of declined payments for card-on-file transactions. 
  • Pricing information isn’t available on their website.

5. NMI

NMI doesn’t provide merchant services. Instead, it caters to ISOs, ISVs, and fintech companies that might be looking to facilitate payments for their customers.

  • It supports all major payment types and multiple currencies and provides several APIs and SDKs to help you enhance your platform’s capabilities.
  • It also ensures the safety of cardholders through the tokenization of transactions.
  • The solution also gives users access to detailed dashboards that provide useful insights into their transaction data, trends, and customer behavior.
  • The NMI solution is both OS- and device-agnostic so ISVs and SaaS companies aren’t restricted by their choice of devices, methods, or vendors.

Final Words

All of the above payment processing tools offer extremely attractive features for SaaS companies and ISVs that want to facilitate payments for their users. But when it comes to the biggest concerns of SaaS companies and ISVs—data security, price transparency, ease of use, and customer support—Stax Connect emerges as the favorite.

By allowing SaaS companies to set their own pricing structures and giving them access to direct interchange rates, Stax Connect helps their partners maximize the revenue opportunity that comes with owning their own payments experience. Our team is dedicated to their success and cares deeply about driving growth and helping our partners build a better, more value-driven product for their customers and software users.

Contact us today to learn how you can easily craft payment offerings on your platform that maximize value for your business and your users.

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