Why You Should Offer Flexible Payment Options to Your SaaS Customers in 2023

BNPL
Mar 23, 2023 · by Alisher Akbarov
Why You Should Offer Flexible Payment Options to Your SaaS Customers in 2023

Running a successful B2B SaaS (Software-as-a-Service) startup is a challenging task, especially in today’s competitive market. With so many players vying for a piece of the pie, it’s crucial to find ways to stand out and differentiate yourself from the rest. One effective strategy that can set you apart is offering payment flexibility to your customers. In this blog post, we’ll explore the benefits of offering flexible payment options to your SaaS customers and discuss practical ways to implement this strategy in your B2B SaaS business. So, buckle up and get ready to learn how to stay ahead of the game in 2023!

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Freedom of Choice: How to offer Flexible Payment Options to B2B SaaS Customers?

When buying something, we all want to have a choice. Thus, provide your customers with freedom of choice when it comes to them spending money on your product.

Pricing Models for B2B SaaS products

Flexible payment terms for your customers can start with pricing models. In SaaS, there are 4 popular pricing models.

1. Pay per use SaaS – your customers pay a small fee every time the software is being used. Money-saving for customers.

2. Single payment SaaS – pay once, use forever. Works for photo stocks.

3. Subscription-based SaaS – pay monthly or yearly for product usage. Brings you steady cash flow.

4. Per active user – charge by the number of users. Used mostly for enterprises.

Offer several pricing models for your users to choose from. For example, they can subscribe to your photo stock and pay monthly, or pay for each photo. Or your time-management software can be used on a subscription basis by a small group of people, but if it is an enterprise that wants to use it, charge them per active user.

B2B SaaS billing methods

The next level of freedom is billing methods. Try to provide as many ways to pay for your product or service as possible. Let the customer choose the most convenient one, instead of restricting them to the only one you have. For instance, you can incorporate the following billing methods:

  • Automated recurring billing. Automate your billing and get rid of hustle. Microsoft Office followed the trend. Why shouldn’t we?
  • Payment portal. Give your customer a convenient dashboard to pay from. They will be thankful.
  • Email pay. Send a direct invoice link to their mail. Save their time of logging into a payment account.   

B2B SaaS Payment Options

And finally, diversify payment options. It is always nice to have a choice here. Sometimes it’s even critical. Different people prefer different payment methods. Take B2C, for example. The most popular payment method in the Americas and India is credit and debit cards, while in Europe it’s digital wallets like PayPal. Take that into consideration, especially if you are expanding globally.

Screenshot of payment methods statictics

The same happens in B2B. Here we must consider checks (it’s still a thing, according to PYMNTS), ACH payments (preferred for B2B in North America, according to Statista), and, of course, direct debit (UK favorite, according to GoCardless).

Infographic of statistics US B2B Payment Transaction Value, by transaction method, 2018-2022. Checks and cash are preferred.

Global pandemic and other pressures in 2020 have brought new trends in payment options. Vendors and customers needed innovative payment methods and terms as the economic downturn and public safety had been considered. For instance, Buy Now Pay Later solutions (BNPL) were developed specifically for the B2B space and changed the game. It is predicted that the market for BNPL in B2B dealings in Europe and the U.S. will reach $200 billion over the next few years, in contrast to slowing growth in B2C BNPL.

Infographic of statistics Business payment changes due to COVID-19. Most of the companies changed the ways their business send and receive payments

Taking into account all of the above, here are payment options you should consider offering to your customers:

  • Check
  • ACH payments
  • Direct Debit
  • Credit Card
  • Debit Card
  • Digital Wallets
  • BNPL

Benefits of flexible payment options:

  • Give you the ability to sell to customers worldwide. Add local payment options.
  • Allow you to reach customers with “deeper” pockets. Create a payment method specifically for your whale customers.
  • Attract a much wider audience. The more payment options you have, the more people have a possibility to pay.
  • The ease of payments increases customer satisfaction. Facilitate checkout process by giving choice.
  • Increase customer loyalty and retention. Customers have a predictable monthly cash flow.
  • Increase brand awareness. Word-of-mouth marketing works ⇒ popularity growths.  
  • Give you a competitive edge. Method diversity stands you out.
  • Easier update. No expensive updates, improve by adding payment options.

At the end of the day, all this comes down to better customer acquisition, which leads to revenue growth. It is easy: the more payment options you offer your customers, the more people have a possibility to pay for your product or service, because you have the option that is convenient for them. More customers = more revenue. So, revenue growth depends on the number of payment methods, as Zuora proved.

Infographic of statistics of dependancy of number of payment methods accepted to revenue growth rate.

All in All

Providing your clients with flexible payment options can attract clients and boost your revenue. Implement new payment options to increase customer satisfaction and loyalty, and differentiate yourself from the competition.

Book a call with Amal, co-founder at Comfi, to explore how Comfi can help you boost your business.

Let’s talk your revenue together
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Amal Abdullaev

Co-founder at Comfi

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Alisher Akbarov

Alisher Akbarov

Co-founder, COO

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