Embedded finance is the integration of financial services into non-financial products and platforms. Embedded banking refers to the growing trend of banks partnering with technology companies to offer financial services within their products and platforms. Challenger banks are digital-only banks that offer innovative products and services, often targeting specific niches or geographies. Neobanks are challenger …
With the rise of the digital economy and the ever–increasing need for businesses to stay connected, incumbent software companies with large customer bases have had to find ways to increase their revenues. These companies have the advantage of having a large customer base and the resources to develop innovative products and services, but they often …
There are two primary ways to build a $10M Software business. In this example, we are assuming that the two models are valued equally with a 10X multiple on yearly revenue. The first is to have 833 customers paying $100 per month, or $1200 per year, for a license. The second is to have 308 …
Visa and MasterCard interchange reimbursement fees are the financial bedrock of the payments ecosystem. It typically equates to the largest expense paid by merchants when accepting credit cards. It’s revenue incentivizes the issuers to create cards and lure new cardholders to their institutions. Companies like Cabela’s and major Airlines began issuing cards to serve as loyalty programs. Cabelas …
Embedded finance is a relatively new term that is used to describe the increasing trend of financial services being integrated into other software applications, like practice management software. This trend is having a major impact on small business operations, like healthcare practices. One of the main reasons why embedded finance is having such a big …
A wise man once said, “that the best predictor of future behavior is past behavior.” Whether you agree or not, use this as a guide to the future of embedded finance. There are a lot of takeaways that can be taken from SaaS platforms implementing payment providers over the last two decades. “Embedded payments,” which …
As we welcome 2022 with open arms, I would like to make a few predictions for the landscape of payments: Embedded finance and Banking as a Service(BaaS) will grow like a weed. We will see a tectonic shift in banking and finance infrastructure. MasterCard Send and Visa Direct will see massive adoption and breakdown barriers …
The past 15-20 years have given rise to integrated payments and payment facilitation in software platforms. As software companies realized the potential, often of uncaptured payments revenue that existed in their customer base, they ran to develop payment integrations and strategy’s with a wide array of partners. With any legacy providers in any vertical, there …
With Mastercard’s North American payment facilitator registry listing close to 250 companies and companies like Finix and Infinicept touting the ease of implementing, PayFac is at a fever pitch in the software and payments world. This has only been compounded with IPOs like Toast, Lightspeed, Freshworks and Squarespace. Traditional payment processing companies account for net revenue, free of interchange and assessments, where as software companies and …
Accounting for Payment Revenue in SaaS Platforms Read More »
Vertically focused SaaS platforms understand the revenue potential that often hides within their existing customer base. Private Equity companies continue to gobble up software companies, often operating with the thesis that an effective payment monetization strategy will drastically improve the payback period and revenue potential. HONOR is focused on integrated payments and often finds ourselves …
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