BusinessOctober 6, 2021

B2B Technology is Booming SaaS Models

B2B technology is booming SaaS models, ever since the term “SaaS” was first coined in on back in 2005 the software-as-a-service industry has been one of the fastest-moving and creative in the world.

The SaaS business model powering all the activities is unique, young and inextricably tied to the power of cloud computing. SaaS is considered the business model of today. More than 50% of enterprises run their operations with it, while 38% work exclusively on SaaS platforms. Companies offering SaaS business model services are also going into a period of development.

What is Software-as-a-Service?
SaaS or Software-as-a-Service is a delivery model in which a centrally hosted software is licensed to customers via a subscription plan. Any company that leases its software through a central, cloud-based system can be said to be a SaaS company. A SaaS company maintains responsibility for the servers, database, and other software that allow their product to be accessed and used.

What is the SaaS Business Model?
The SaaS business model means selling cloud-based software (typically accessed via the web app, but also sometimes via a desktop app) at a monthly or annual subscription fee. SaaS is now used by nearly every business and most consumers. On the other hand, SaaS businesses that solve problems in B2B markets can grow to massive valuations much more quickly and predictably.

Some of SaaS business models advantages are:

  • Recurring revenue
  • Highly scalable
  • Low barrier to entry- Anyone who sees a need can hire an expert dev team to build a tool.
  • Tons of untapped opportunities in established markets, emerging markets and niche markets.
  • Allows for lots of different low-cost marketing strategies, including side project marketing and affiliate marketing.
  • Can create stickiness and loyalty, keeping the same customers for years.

The Role of SaaS business models in B2B payments
The expectation for customers in SaaS services has drastically increased in the past few years. In many areas of B2B products and solutions, corporate purchasers now expect a consumer-like experience when buying for their organization. This has had a prominent impact on B2B SaaS firms’ customer acquisition strategies. There is almost a virality to products within medium or large organizations.

The companies don’t buy products like Slack by making an internal corporate decision that they need a communications tool. They decide because certain teams and individuals use it internally and then it grows virally within an organization.

Now, the rise in demand for a consumer-like buying experience and purchasers of enterprise SaaS are seeking a more seamless payments experience. This means the act of payment method itself is now a competitive differentiator for SaaS providers. This is especially challenging for software companies operating across borders as the number of payment methods grows.

There are commercial cards, wires and a variety of domestic bank transfer networks, as well as slew digital wallets and payment gateways. SaaS firms must be able to support them all in order to acquire the customers interested in their products.

With PaidYET’s API, software owners and users have the ability to provide seamless checkout and payment experiences to ensure the security of sensitive data and transactions.

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