Global Remittances — Connecting Payment Systems Across Borders
Improving the user experience also means finding ways to better meet customer payment requirements and preferences. Make it easier for yourself by directly asking your customers which payment methods they prefer.
For example, a study shows that the inhabitants of European countries prefer payments by direct debit and by bank card. Among these populations are the French, the Spaniards, the Germans and the Swedes. Improving the customer experience is closely tied to key SaaS metrics such as conversion, churn, and customer lifespan (CLTV). Emphasizing an easy-to-use, customer-centric checkout process is definitely a step in the right direction.
The collection of electronic cross-border payment solution
SaaS companies often struggle to find an electronic payment system versatile enough to accept payments across The U.S, Europe and the UK. Payment habits, rules and preferences are quite different in different countries.
If you want to reach new markets, you need a payment solution that supports all of these rules and preferences so that no customers are left out. Your business could also see its conversion rate weaken if the user does not want to pay using the options offered.
Many American businesses don't realize that large customer groups in Europe prefer direct debit.
For example, direct debit is very common in Germany, unlike payment by credit card. This is why offering direct debit as a means of payment offers even more sales opportunities to companies in SaaS mode targeting Germany.
According to the ECB, 51% of German non-monetary transactions are carried out by direct debit. In addition, direct debit transactions amount to 5.4 billion per year in Germany, while payments by bank cards represent only 700 million.
The addition of an electronic payment method to use direct debit for European customers opens the door to new business opportunities, while ensuring that the public's preferences are kept at the forefront.
Encryption and secure payments
As your business begins to grow, you attract more and more customers and therefore need to securely process an increasing number of payments. This creates a continuing need for compliance with the various laws and regulations associated with processing customer payments, and this need becomes more complex as customer volume increases.
For effective business development, it is important to find a payment processing solution that has RSA encryption, a high level of customer information security, and approved by local regulatory bodies. The best payment solutions simplify the payments headache, removing some complex details associated with handling sensitive customer information.
Managing failed transactions
The payment failures are very important because they are related to a loss of income for companies in SaaS mode. Without a reliable system in place to manage and raise these transactions, they can easily fall through the cracks.
Over 70% of transactions will be successful on the second attempt, so companies in SaaS mode have a lot to gain by using an automated dunning method.
In addition, customers no longer unsubscribe naturally, which is a significant advantage for companies in SaaS mode. The best solutions offer email notifications and CRM integration for defaults, as shown in the screenshot of the GoCardless table below.
With digital money transfer software, you spend less time restarting and monitoring failed transactions and can spend more time growing your business.
On average, around 50% of customers naturally unsubscribe every five years, although this can differ by industry and customer type. Moz, for example, suffers from a churn of around 51% resulting from expiring bank cards.
Add to that the unanticipated churn of unhappy customers and your churn will be even higher. For SaaS-based businesses that handle payment processing themselves, the churn should be as low as possible.
Direct debit is a great way to reduce churn. Indeed, the latter, caused by the expiration of bank cards, is no longer a problem when payments are directly collected by direct debit.
According to Tom Zsomborg, Chief Financial Officer of Kinstan, “To keep user churn low, you need to manage default transactions efficiently and take good care of paying customers to maintain your MRR (Monthly Recurring Revenue) and improve performance. lifespan of these clients. You have to be really careful about this because refunds are expensive and damage the reputation of the brand. "
Direct debit payment collection is a great way for SaaS businesses to reduce customer churn.
A study reveals that integrations are responsible for the majority of challenges faced by companies, especially in the area of SaaS.
Indeed, the top three challenges all involved SaaS applications accessing other applications as well as their data, while 38% of respondents cited “complex integration efforts” as the biggest problem for their business. business in SaaS mode.
Payments are no exception
“When you have a payment system with out-of-the-box integrations, that's great. However, if you don't, you will spend several weeks coding your integration which costs you precious time, ”said Robert Senoff, Commercial Director of Ventures.
Flexibility is very important when selecting a payment processing tool. You will often need a solution with an open API so that you can develop the necessary integrations for your SaaS business as it grows.
In addition, the possibilities of integration mean more automation and simpler and more efficient procedures in all areas, which also allows an even more complete understanding of the customer.
In short, it is advisable to use a payment processing tool that can evolve with your organization.
How to overcome SaaS payment hurdles? By finding the right tools!
The SaaS industry faces many obstacles when it comes to payment processing, but you can easily overcome them with smart and flexible tools.
Businesses in SaaS mode, look for solutions that offer you reliable support, allow you to achieve your goals and provide a better customer experience and that can grow with your business.