What Makes Payments-Led Growth Winning Strategy For Saas?

Shopify. Mindbody. Etsy. What do these companies have in common?

Aside from providing excellent SaaS solutions to their users, Shopify, Mindbody, and Etsy are just a few examples of companies that have used payment processing to fuel (at least some of) their growth. 

Consider Shopify, which has generated $1.2 billion from its merchant services in 2023. Yahoo! Finance reports: [emphasis added]: 

“In the 2023 third quarter, Shopify’s subscription solutions revenue was $486 million, or 29% of the total $1.7 billion. Monthly recurring revenue was $141 million. However, these merchant clients present a much bigger opportunity for Shopify than monthly subscriptions.

In the third quarter, Shopify took in revenue of $1.2 billion from its merchant solutions segment. These are extra services on top of a subscription plan, and many merchants opt to work with Shopify just for these services. They are mostly transaction fees for payment processing, and Shopify’s services can integrate with a company’s existing website, so they don’t have to be on a Shopify subscription plan to work together.”

This tells us that payment processing services can be a significant revenue driver for SaaS companies, and it illustrates how payment solutions can fuel substantial growth for businesses. 

In this article, we explore why payments-led growth can be a winning strategy for SaaS and what you can do to capitalize on users’ need for payment processing. 


  • Integrating payment processing into your SaaS platform adds a steady and scalable revenue stream, driving substantial financial growth. Plus, native payment features improve convenience and efficiency, offering a seamless experience that reinforces your brand identity and increases user satisfaction.
  • Embedded payments provide valuable data on transaction volume, average transaction size, and payment frequency—all of which help you understand and better serve users.
  • Choosing a robust payment partner like Stax Connect ensures comprehensive reporting, hands-on support, and the ability to make data-driven decisions confidently, enhancing overall business stability and growth.
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Payments Add Another Revenue Stream to Your Business

First things first: revenue growth. Offering payment services within your platform enables you to earn revenue from every transaction processed, which adds a steady and scalable revenue stream. 

Depending on your sub-merchants’ transaction volume, payments can account for a significant share of revenue and drive substantial financial growth. This can diversify your income sources and enhance overall business stability.

You Can Provide a Better User Experience

Having payment processing as one of your native features means users can get more value from your software. Instead of relying on a third-party payments provider or cobbling together different solutions, they can handle everything within a single platform, enhancing convenience and efficiency. And if you’re using a payments partner like Stax Connect, which lets you customize and white label your merchant services, your sub-merchants get a seamless experience that reinforces your brand identity and ultimately improves user satisfaction.

Big Time, a platform that helps professional service firms track and manage their projects, uses Stax Connect to power its billing and payment features. According to the team, this integration has significantly streamlined their payment processes and enhanced their service offerings.

“We were able to customize things to meet our clients’ needs and Stax was willing to help us get there,” says Jami Klotz, Senior Vice President of Product at Big Time.

Ultimately, having the ability to provide robust services leads to better acquisition and retention. After all, satisfied users are more likely to stay loyal to your platform and recommend it to others, driving growth and long-term success.

You Can Harness User Data

Software-embedded payment processing enables the software provider (i.e., you) to gain more data and insights about sub-merchants. You’ll have more visibility over things like transaction volume, average transaction size, and payment frequency, which then helps you better understand your users. Knowing these details can inform your product development roadmap and allow you come up with capabilities to serve people better.  

Payment-centric data can also help you make strategic decisions for growth. 

For example, if you see that a particular user segment gets the highest transaction volume (and thereby drives the most payment revenue), then you know it makes the most sense to focus on acquiring those types of customers. 

Now, the ease with which you can extract these insights will depend on your payment partner. A provider like Stax Connect makes it easy to generate payment reports so you can confidently make data-driven decisions.

Just ask Shelterluv, a company that provides software for animal shelters and rescues. In addition to shelter management capabilities, Shelterluv lets organizations collect donations efficiently. 

Sheltervluv switched to Stax Connect when its previous payments partner couldn’t meet the company’s expectations. 

According to Shelterluv, not only is Stax Connect extremely easy to work with, it also provides better reports that shed light on the data Shelterluv needs. 

“The [Stax] reporting will be simpler and more comprehensive. We also have a dedicated contact to resolve any issues that happen to arise,” the company says.

Additionally, Stax Connect can deliver more hands-on reporting and support to ensure you’re always informed. 

Big Time CFO Peter Dedes appreciates this initiative, saying it’s a key differentiating factor for Stax Connect.

“They do a quality business review every quarter and keep me up to date on a lot of the numbers and metrics that are important,” he remarks. 

This shows that having a reliable and insightful payments partner can significantly enhance your ability to harness user data, make strategic decisions, and drive business growth.

Final Words

Integrating payment processing into your SaaS platform creates a new revenue stream, provides valuable data insights, and drives overall business growth.

That being said, your merchant services are only as strong as your payments partner, so choosing the right provider is important. 

This is where Stax Connect comes in.

Teaming up with us ensures that you benefit from seamless transactions, comprehensive reporting, and strategic decision-making, ultimately setting your company up for long-term success.

Learn more about Stax Connect.

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