Business

What Is the Right Payment Gateway For Your B2B SaaS Business?

Blog Summary

Find the perfect payment gateway for your B2B SaaS business! In this blog, we’ll explore payment gateways and how to choose the right payment gateway for your B2B SaaS business. Get started today and start accepting payments with ease with NTT Data Payment Services.

Exploring Payment Gateway

Regarding payment gateways, there are many ways to skin the cat. But how do you choose the right payment gateway for your B2B SaaS business?

Before diving into the river, let’s analyse its depth!

For starters, an online payment gateway is what we use every day. We go grocery shopping and swipe our cards to make payments (if you have sufficient funds in your account). In this scenario, the physical payment device (POS) reads the card information by swiping, which is the payment gateway.

That’s for a grocery store; what about a B2B SaaS business?

How Do SaaS Payments Work?

B2B SaaS businesses generally use subscription-based payment similar to Netflix subscription; payment is made monthly. This monthly payment provides them with access to the product’s functionality. Subscriptions may vary depending on the number of users, set of features, time period, etcetera.

Given the cloud functionality of SaaS businesses, it is impossible for a physical payment gateway like the one (POS terminal) we use during grocery shopping.

Some third-party payment processors collect payments from customers, eliminating the need for a SaaS B2B business to maintain a payment processing infrastructure. Speaking of the payment processing infrastructure, this includes a payment gateway, merchant account and subscription management.

Payment Gateway

A payment gateway is essential to any online transaction, allowing customers to pay for goods or services securely. It is the intermediary between the customer’s payment method and the merchant’s bank account, ensuring that transactions are processed safely and efficiently.

When shopping on an e-commerce platform such as Amazon, the payment gateway is the final step in the checkout process, where customers enter their payment details.

This landing page is designed to securely collect and process sensitive financial information, using encryption and other security measures to protect against fraud and data breaches.

It’s worth noting that payment gateways may differ depending on the type of transaction being processed. For example, while one-time payments can typically be processed through a standard payment gateway, recurring payments or subscriptions, in the case of SaaS, may require a specialised gateway explicitly designed for this purpose.

Merchant Account

This type of account allows a business to accept payments electronically. This acts like a middleman between the customers’ and businesses’ accounts. Let’s make this term simple.

It works like a courier service. You give your packed cover to the logistics company. They check for the essential details, and if everything is fine, they ship the package to the given address.

Similarly, when a customer makes a payment on your website using a credit or debit card, the payment gateway sends the transaction details to the merchant account provider, who then verifies the card information and checks for fraud.

If everything is valid, the merchant account provider authorises the transaction and returns a confirmation to the payment gateway. The payment gateway then notifies your website that the payment was successful and completes the order process.

Subscription Management

As said earlier, SaaS runs on subscription-based payment methods. Hence a subscription management tool is vital for creating plans, billing cycles, renewals, cancellations, and other aspects of subscription payments.

A quick summary: A saas payment model starts with the payment gateway, the page where customers fill in their banking details, the merchant account, the middleman between the customer’s account and the business’s account, and finally, the subscription management, which controls all the aspects of subscription payments.

Types of Payment Gateways

There are many types of payment gateways you can choose from. Here are some:

Hosted Payment Gateway

This payment gateway redirects your clients to a different website or a page hosted by your payment service provider (PSP). Once the customers enter the payment details and complete the transaction, they are redirected back to your (merchant’s) website.

Self-hosted Payment Gateway

Under this payment gateway, the customer’s payment details are directly collected from your website and then sent to the PSP for processing. This allows you to have complete control over the user experience and your website’s design and higher responsibility for security and compliance.

API-hosted Payment Gateway

This payment gateway method allows you to integrate an application programming interface from PSP into your website or application. This allows the customers to enter details on your user interface, but the PSP processes the details through the API. You can enjoy the freedom to customise your webpage and the protection by the PSP under this method.

Local Bank Integration Gateway

Under this type of payment gateway, your customers are directed to their local bank’s website or app to make the payment using their banking details. Once the transaction is complete, the bank website sends a notification to your website about the payment.

Every payment gateway comes with advantages and disadvantages, so how will you choose the right payment gateway for your B2B SaaS Business?

How to Choose the Right Payment Gateway for Your B2B SaaS Business?

The right payment gateway significantly affects customer satisfaction, revenue, security and churn. A payment gateway connects your website with the payment processor and allows you to accept online payments. There are a few factors you should consider before choosing the payment gateway.

Security

With the ease of payment online lies the risk of data breaches and fraud. No business will benefit from such accidents. You want to ensure your payment gateway complies with the Payment Card Industry Data Security Standard (PCI DSS) and uses encryption and tokenisation to protect your customers’ sensitive data. You also want to check if they offer fraud prevention tools and chargeback management services.

Price

Compare the charges of different payment gateways, such as setup fees, monthly fees, transaction fees, currency conversion fees, etc. You also want to check if they offer discounts or incentives for higher volumes or extended contracts.

Compatibility

Ensure that your payment gateway can integrate seamlessly with your website platform, subscription management tool, accounting software, CRM system, etc. You also want to check if they support multiple currencies and payment methods that suit your target market.

Features

Certain features, like multiple payment options, recurring billing, flexible pricing plans, discounts, etc., can enhance customer experience. Also, look for features that can help you optimise your revenue and growth, such as analytics and reporting tools, subscription metrics dashboards, dunning management services, etc.

Streamline Your Payments With NTT Data Payment Services

NTT Data Payment Services is a leading provider of payment solutions that offers various types of payment gateways for different business needs.

Whether you need an online payment gateway for your website or app, an IVR payment gateway for voice-based transactions, a POS machine for card or QR payments at your store or delivery location, or a payout service for sending payments to your vendors or customers, NTT Data Payment Services has you covered.

With NTT Data Payment Services, you can enjoy high success rates, instant settlements, multiple payment options and currencies, customised solutions and round-the-clock support.

We take pride in offering reliable and secure payment services to our clients, and we are committed to providing them with the best payment solutions to meet their business needs.

Final Thoughts

As a payment service provider, NTT Data Payment Services understands the importance of a payment gateway in any online transaction. It is a crucial tool enabling customers to pay securely and conveniently.

Depending on the type of transaction being processed, such as one-time payments or recurring payments/subscriptions, the payment gateway can vary. For SaaS businesses, we offer third-party payment processing services, which saves them the hassle of setting up and maintaining a payment processing infrastructure.

FAQs

1. What is a SaaS payment gateway?

A SaaS payment gateway is an online payment processing platform that enables SaaS businesses to accept payments directly from their websites.

2. What is the best payment method for SaaS?

The most efficient payment method for SaaS is considered to be a subscription-based model to receive payments automatically.

3. How do I choose a payment method for my website?

There are a few factors that you should consider when choosing the payment method, such as security, fees or charges of the service provider, payment options and ability to integrate.

4. What are the types of payment gateways?

The four common types of payment gateways are hosted, self-hosted, API-hosted payment gateway, and Local Bank Integration gateway.

5. What are the ideal B2B payment methods?

B2B payments can be made in various methods, but the most trusted methods are credit/debit cards, e-cheques, and electronic funds transfers.

Business

PepsiCo Reduces Revenue Projections As North American Snacks And Key International Markets Underperform.

(VOR News) – In the third quarter of this year, Pepsi’s net income was $2.93 billion, which is equivalent to $2.13 per share. This was attributed to the company.

This is in stark contrast to net income of $3.09 billion, which is equivalent to $2.24 per share, during the same period in the previous year. The company’s earnings per share were $2.31 when expenses were excluded.

Net sales decreased by 0.6%, totaling $23.32 billion. Organic sales increased by 1.3% during the quarter when the effects of acquisitions, divestitures, and currency changes are excluded.

Pepsi’s beverage sales fell this quarter.

The most recent report indicates that the beverage and food sectors of the organization experienced a 2% decline in volume. Consumers of all income levels are demonstrating a change in their purchasing habits, as indicated by CEOs’ statements from the previous quarter.

Pepsi’s entire volume was adversely affected by the lackluster demand they encountered in North America. An increasing number of Americans are becoming more frugal, reducing the number of snacks they ingest, and reducing the number of times they purchase at convenience stores.

Furthermore, Laguarta observed that the increase in sales was partially attributed to the election that occurred in Mexico during the month of June.

The most significant decrease in volume was experienced by Quaker Foods North America, which was 13%. In December, the company announced its initial recall in response to a potential salmonella infection.

Due to the probability of an illness, the recall was extended in January. Pepsi officially closed a plant that was implicated in the recalls in June, despite the fact that manufacturing had already been halted.

Jamie Caulfield, the Chief Financial Officer of Pepsi and Laguarta, has indicated that the recalls are beginning to have a lessening effect.

Frito-Lay experienced a 1.5% decline in volume in North America. The company has been striving to improve the value it offers to consumers and the accessibility of its snack line, which includes SunChips, Cheetos, and Stacy’s pita chips, in the retail establishments where it is sold.

Despite the fact that the category as a whole has slowed down in comparison to the results of previous years, the level of activity within the division is progressively increasing.

Pepsi executives issued a statement in which they stated that “Salty and savory snacks have underperformed year-to-date after outperforming packaged food categories in previous years.”

Pepsi will spend more on Doritos and Tostitos in the fall and winter before football season.

The company is currently promoting incentive packets for Tostitos and Ruffles, which contain twenty percent more chips than the standard package.

Pepsi is expanding its product line in order to more effectively target individuals who are health-conscious. The business announced its intention to acquire Siete Foods for a total of $1.2 billion approximately one week ago. The restaurant serves Mexican-American cuisine, which is typically modified to meet the dietary needs of a diverse clientele.

The beverage segment of Pepsi in North America experienced a three percent decrease in volume. Despite the fact that the demand for energy drinks, such as Pepsi’s Rockstar, has decreased as a result of consumers visiting convenience stores, the sales of well-known brands such as Gatorade and Pepsi have seen an increase throughout the quarter.

Laguarta expressed his opinion to the analysts during the company’s conference call, asserting, “I am of the opinion that it is a component of the economic cycle that we are currently experiencing, and that it will reverse itself in the future, once consumers feel better.”

Additionally, it has been noted that the food and beverage markets of South Asia, the Middle East, Latin America, and Africa have experienced a decline in sales volume. The company cut its forecast for organic revenue for the entire year on Tuesday due to the business’s second consecutive quarter of lower-than-anticipated sales.

The company’s performance during the quarter was adversely affected by the Quaker Foods North America recalls, the decrease in demand in the United States, and the interruptions that occurred in specific international markets, as per the statements made by Chief Executive Officer Ramon Laguarta.

Pepsi has revised its forecast for organic sales in 2024, shifting from a 4% growth rate to a low single-digit growth rate. The company reiterated its expectation that the core constant currency profitability per share will increase by a minimum of 8% in comparison to the previous year.

The company’s shares declined by less than one percent during premarket trading. The following discrepancies between the company’s report and the projections of Wall Street were identified by LSEG in a survey of analysts:

SOURCE: CNBC

Business

Old National Bank And Infosys Broaden Their Strategic Partnership.

(VOR News) – Old National Bank, a commercial bank with its headquarters in the Midwest, and Infosys, a firm that specializes in information technology, have recently entered into a strategic expansion of their link, which has been in place for the past four years.

This expansion is more likely to take place sooner rather than later, with the likelihood being higher.

For the purpose of making it possible for Old National Bank to make use of the services, solutions, and platforms that are offered by Infosys, the objective of this expansion is to make it possible for the bank to transform its operations and processes through the application of automation and GenAI, as well as to change significant business areas.

This lets the bank leverage Infosys’ services, solutions, and platforms.

Old National Bank Chairman and CEO Jim Ryan said, “At Old National, we are committed to creating exceptional experiences for both our customers and our fellow employees.”

This statement is applicable to Old National Bank. Infosys is carefully managing the business process innovations that it is putting us through, putting a strong emphasis on efficiency and value growth throughout the process to ensure that it is carried out efficiently.

This is a routine occurrence throughout the entire operation. Because of Infosys’ dedication to our development and success, we are incredibly appreciative of the assistance they have provided.

Old National has been receiving assistance from Infosys in the process of updating its digital environment since the year 2020, according to the aforementioned company.

Ever since that time, the company has been providing assistance. The provision of this assistance has been accomplished through the utilization of a model that is not only powerful but also capable of functioning on its own power.

Infosys currently ranks Old National thirty-first out of the top thirty US banks.

This ranking is based on the fact that Old National is the nation’s largest banking corporation.

It is estimated that the total value of the company’s assets is approximately fifty-three billion dollars, while the assets that are currently being managed by the organization are valued at thirty billion dollars.

Dennis Gada, the Executive Vice President and Global Head of Banking and Financial Services, stated that “Old National Bank and Infosys possess a robust cultural and strategic alignment in the development, management, and enhancement of enterprise-scale solutions to transform the bank’s operations and facilitate growth.”

This remark referenced the exceptional cultural and strategic synergy between the two organizations. Dennis Gada is the one who asserted this claim. This was articulated explicitly concerning the exceptional cultural congruence and strategy alignment of the two organizations.

We are pleased to announce that the implementation of Infosys Topaz will substantially expedite the transformation of Old National Bank’s business processes and customer service protocols. We are exceedingly enthusiastic about this matter. We are quite thrilled about this specific component of the scenario.

Medium-sized banks operating regionally will continue to benefit from our substantial expertise in the sector, technology, and operations. This specific market segment of Infosys will persist in benefiting from our extensive experience. This phenomenon will enable this market sector to sustain substantial growth and efficiency benefits.

SOURCE: THBL

Business

American Water, The Largest Water Utility In US, Is Targeted By A Cyberattack

The largest regulated water and wastewater utility company in the United States stated Monday that it had been the target of a cyberattack, forcing the company to halt invoicing to consumers.

American Water, The Largest Water Utility In US, Is Targeted By A Cyberattack

American Water, based in New Jersey and serving over 14 million people in 14 states and 18 military facilities, said it learned of the unauthorized activity on Thursday and quickly took precautions, including shutting down certain systems. The business does not believe the attack had an impact on its facilities or operations and said employees were working “around the clock” to determine the origin and scale of the attack.

water

The corporation stated that it has alerted legal enforcement and is cooperating with them. It also stated that consumers will not be charged late fees while its systems are unavailable.

According to their website, American Water operates over 500 water and wastewater systems in around 1,700 communities across California, Georgia, Hawaii, Illinois, Indiana, Iowa, Kentucky, Maryland, Missouri, New Jersey, Pennsylvania, Tennessee, Virginia, and West Virginia.

SOURCE | AP