Business owners are increasingly showing an overwhelming preference for SaaS platforms with embedded payment capabilities as part of their offerings.
Manual payment processing and disconnected software and payment solutions are dying out, and research by Sifted shows that the integrated financial services market will grow to $3.6 trillion by 2030.
Only SaaS companies that take the step to offer seamless integrated payment processing on their platforms will retain the loyalty of their customers and gain an advantage over their competitors. Not to mention the benefit of extra revenues from payment processing fees collected on each transaction.
In this article, we will help you better understand how integrated payments work by exploring six vertical SaaS examples that offer embedded payment solutions as a core part of their offerings.
TL;DR
- Vertical SaaS products are custom solutions that help business owners effectively manage challenges and regulatory requirements that are peculiar to their industry.
- Integrated payments is the combination of payment processing functionality with other business operations management features on the same platform.
- Forward-thinking companies offer embedded payment capabilities on their SaaS platforms to help meet the needs of their users.
What is Vertical SaaS?
Vertical SaaS is a software solution designed with features focused on meeting the needs of users in a specific industry niche like fitness, healthcare, real estate, restaurants, or car dealerships.
It is different from horizontal SaaS, which aims to meet the needs of a wide range of industries. Products from brands like Microsoft, Google, and Salesforce are horizontal SaaS tools created for everyone.
The rationale behind vertical SaaS products is that most industries have peculiar pain points and regulatory requirements that can only be managed using custom solutions. For example, the owner of a restaurant business will require a SaaS platform that supports online ordering, takeouts, delivery services, delivery tracking, and multi-location management—features that are unique to that industry.
What are Integrated Payments?
Integrated payments simply means the seamless combination of payment processing functionality with other business operations management features on a single platform.
For vertical SaaS companies, this means integrating a payment processor into your existing software so your users can process customer transactions on one platform without having to switch to a third-party app to get paid.
Your embedded payment processing tool must support online invoicing and all the payment types used by customers. These includes:
- Cash
- Credit and debit cards
- SMS payments
- Digital wallets
- Bank transfers
- ACH
- Cryptocurrency
- And all other forms of online payments
The role of integrated payments in vertical SaaS
Below are some of the top reasons to consider adding integrated payments to your SaaS platform.
It enhances user experience through seamless transactions
Incorporating payment processing functionality into your platform means your users no longer have to pay for third-party financial software, and that will drastically increase the value of your product to them, leading to higher customer loyalty.
It improves cash flow with faster payment processing
Instead of the traditional time-wasting process of manually reconciling receipts, your platform will automatically organize payment transaction data and even help with compliance-related tasks, all of which will shorten the period your users will receive the funds in their merchant accounts.
Key Industries Benefiting from Vertical SaaS with Integrated Payments
Healthcare
Integrating payment systems into healthcare information management platforms helps clinics and other healthcare companies offer the variety of payment methods that patients want, while complying with industry regulations such as data security requirements set by HIPAA (Health Insurance Portability and Accountability Act).
Retail
Retailers must manage sales from both brick-and-mortar outlets and online eCommerce stores. An integrated payments solution makes it easy to manage orders and process all customer transactions on a single platform.
Real estate
Integrated payments let property managers process rent and management fees for multiple properties. They can also set up recurring fees and give their tenants the flexibility to pay rent using any payment method they prefer, whether cash, electronic wallets, ACH, credit or debit card.
Legal
Adding a payment processing solution built for the legal industry to a case management software platform will make it possible for clients to pay bills from anywhere without having to physically visit the law firm. It will also facilitate compliance with ABA guidelines on the management of interests accruing on trust accounts as well as other regulations in the industry.
Examples of Vertical SaaS with Integrated Payments
Studying the SaaS companies listed below will help you identify the best way to integrate payment processing into your own vertical SaaS platform.
HindSite (field management software)
HindSite is designed for businesses in the green industry, particularly lawn care and irrigation businesses. It comes with features for scheduling service calls, tracking employees, invoicing customers, and processing payments. The software solution is also used by HVAC, plumbing, pool service, carpet cleaning, and waste service companies.
HindSite offers the FieldCentral Payments tool as its customer-facing all-in-one payment solution. It enables users to email or text payment links to customers once work is completed. They can also collect payments from customers in the field using the mobile app, which supports any payment method customers may want to use.
The secret behind HindSite’s relevant and effective payment solution is Stax Connect, an embedded payment partner that will help you create a fully white label payment processing portal on your SaaS platform. HindSite worked with Stax payment experts to integrate the Stax Connect API with their platform, and it was able to easily onboard its customers by offering them Stax’s payment enrollment options. The impact on user experience was immediate, and the company could clearly see its customers saving countless hours that would have been spent reconciling revenues when they were working with two different systems.
Shelterluv (animal welfare)
Shelterluv provides animal shelter and welfare organizations with all the tools they need to manage the animal rehoming process. It includes features for accepting donations, organizing medical records, and finding foster parents. The company states that its goal is to get animal care providers from behind the computer so they can spend more time with the animals they are truly passionate about.
Its built-in checkout tool lets users process adoptions in minutes. There are also discounts on pet supplies for adopters and conversion features that have been proven to help convert 30% of animal adopters into donors.
Interestingly, Shelterluv was using Stripe as its payment provider before switching to Stax Connect in search of better customer-centric services. Stax experts helped the company migrate its customers from Stripe using tokenization without disturbing the normal operation of the platform. Customers were easily able to make the switch by completing a 5-minute application form, and a process that they thought would take the rest of the year was already 50% completed in two weeks.
ChiroSpring (healthcare)
ChiroSpring is a cloud-based chiropractic software platform that provides chiropractic practices of all sizes with everything they need to run their office efficiently. Its features include an online scheduler for patient appointments, SOAP note templates, online intake forms, ERA auto-posting, care plans, and more.
ChiroSpring Pay is its integrated payment solution, and it lets chiropractors send email patient statements with links that customers can use to pay. It supports EMV & NFC payments, Apple Pay, Samsung Pay, Google Wallet, and many other payment options.
Like HindSite and Shelterluv, ChiroSpring’s payment solution is also based on Stax Connect. And given that this is a different industry, it comes with unique features like built-in HIPAA compliance in data security, privacy policy, and form design.
Buildium (real estate management)
Buildium is a residential property management software that helps property managers and owners manage their rental properties. It includes features for rental listings, lease application management, maintenance request management, rent collection, and income tracking.
Its integrated property management accounting platform comes with a “resident center,” which is a portal where tenants can pay rent and other fees. It also includes a bookkeeping software tool for coordinating rent schedules, tracking rent payments, managing vendor payments, and bank reconciliation.
Shopify (eCommerce platform for retail)
Shopify is an online store builder that lets retailers create and run an eCommerce business on any online outlet and from any location on the planet. Its suite of tools includes a website builder, a blogging platform, an inventory management tool, a dropping shipping tool, advanced analytics, and much more.
Shopify Payments is its built-in payment processing solution, and it’s set up automatically as soon as the store goes live. The payments platform supports multiple payment methods and includes features for managing product shipping, refunds, and chargebacks.
Clio (legal practice management)
Clio is a case management software platform designed to help law firms and judicial service providers store and manage case-related information. It also comes with features for managing day-to-day office operations, including CRM, data management, client communications, calendar, and time tracking.
Its billing and invoicing functionality lets lawyers send bills electronically to clients, which will be paid using the attached pay link or QR codes. Law firms can also set up payment plans and automatically send reminder emails to clients alerting them of outstanding bills.
Advantages of Using Vertical SaaS Solutions with Integrated Payments
- Streamlined Operations: you can use industry-specific templates to set up automated billing and invoicing and receive payments without having to switch to another offsite platform.
- Enhanced Data Security: vertical SaaS solutions with integrated payments are designed from the ground up to comply with industry-specific data security guidelines.
- Improved Customer Satisfaction: you no longer need to redirect customers to an offsite payment processor, which will significantly improve the customer experience.
Challenges and Considerations
- Integrating Existing Systems and Workflows: the payments processing solution may not be compatible with the suite of software apps you currently use to run your business.
- Costs and Benefits: you may have to invest significant financial resources into hiring developers to help integrate the payment partner’s API with your platform.
- Scalability: the SaaS platform may have difficulties scaling its offerings to meet the needs of your growing business.
Start Offering Integrated Payments as a Vertical SaaS Company
Embedded payment solutions are now a must-have for vertical SaaS companies, and once you give your customers the ability to accept payments, you will start to see real user growth and higher revenues.
Stax Connect is a fintech solution that will help you integrate a payment processor into your SaaS platform in as little as 30 days. It also comes with top-notch support staff to help figure out the payment enrollment process and guide you through any risks involved in the process of getting everything up and running.
FAQs about Vertical SaaS examples
Q: What is vertical SaaS?
Vertical SaaS refers to Software as a Service platforms that are designed to cater specifically to the needs of a particular industry or sector. This targeted approach allows for more tailored features and functionalities that directly address the pain points of businesses within those sectors, such as healthcare, real estate, retail, or legal industries.
Q: How is vertical SaaS different from horizontal SaaS?
Vertical SaaS are solutions designed with features focused on meeting the needs of users in a specific industry niche, such as healthcare, real estate, or retail, among others. On the other hand, horizontal SaaS aims to serve a wide range of industries with a more generalist approach, offering products like those from Microsoft, Google, and Salesforce.
Q: What are vertical SaaS examples?
Some specific vertical SaaS examples include ChiroSpring, which offers chiropractic software with features for patient appointments, SOAP notes, and integrated payments for healthcare services. In real estate, Buildium provides residential property management software, facilitating rent collection, lease management, and property maintenance, all with integrated payment capabilities. Meanwhile, HindSite is field management software catering to the green industry.
Q: How can a SaaS company start offering integrated payments?
SaaS companies can start offering integrated payments by partnering with fintech solutions like Stax Connect, which can help integrate a payment processor into the SaaS platform efficiently. Stax Connect also provides support staff to assist with the payment enrollment process and guide through any risks involved in the setup.
