SaaS Companies: Four Signs You've outgrown Stripe

If you're using a DIY payment platform such as Stripe making it function for you and your company is the responsibility of the developers. While developing plugins, or creating different methods to pay, keeping Stripe is a time-consuming procedure.

Instead of designing your payment platform in order for it to work, the team could concentrate on the service that you provide?

This is among the primary reasons growth expert Fred Linfjard suggests SaaS enterprises to look into using a retailer of record rather than DIY methods.

Fred was once a customer of Stripe and now serves as an advisor. I had a live chat with him on LinkedIn about four signs of how SaaS companies have grown beyond Stripe. These are the most important aspects of our conversation.

1. You're Running into Issues Localizing Payments

"If your plan for expansion involves marketing your service in more than two or three currencies or payment options which are locally-based to you and you're looking to expand and expandyour business, then using the Stripe method could prove inefficient." Fred said.

A further indication that you've grown beyond Stripe may be the increasing demands for your product in areas which Stripe can't support.

If you're spending a significant portion of your time locating transactions, then you're likely to be considering an automated system that handles the bulk of the work automatically.

2. Service interruptions that are recurring are Affecting Sales

It is possible that you are encountering issues when your credit card is declined or disruptions of services due to integrations, or any other technological issues.

One of the first things to be thinking about is whether you're getting the assistance you require from Stripe in order to resolve problems swiftly. If you're not receiving the assistance you require, and the issues continue to develop, it may be the right time to make a change.

The main difference between a DIY system such as Stripe and MoR MoR solutions is that it provides support regarding the risk of and compliance. When using the DIY solution, the obligation to stay in PCI and in compliance (and similar regulations) lies with the vendor. If you can transfer these obligations to an outside third party, you'll be able to to focus on the main elements of your product. It brings us to our final issue.

3. The Product Development Team of your company is busy enough to not concentrate on the product you are developing.

If you're in the position where you're using a large quantity of internal development resources used for managing and developing the backend settings for monetization using Stripe it's a problem. That means you're removing your focus of a crucial task to improve product functionality and customer service that delight your clients.

It's commonplace when the setup includes complex integrations which are hard to maintain.

Therefore, if you're constantly spending working on difficult issues, such as bugs, bugs, or any other problems that need to be addressed Stripe and your backend's monetization settings, now is the perfect moment to think about an alternative method of solving the problem.

4. Controlling VAT, Sales and GST Taxes can be a huge internal burden

"Along in development resources, one of the most important aspects in establishing and managing a payment system is managing and ensuring tax compliance," Fred said.

There's much to be done to ensure you're paying the correct sales tax or VAT is taken out of every purchase and also that you're legally recognized for each country, state or nation you do business in.

In addition, each nation has their own regulations about how taxes are used for digital goods that are constantly changing the time. If you're struggling to keep current with the most recent updates, or you require large amounts of bandwidth or time and bandwidth, MoR is the best option. MoR model might be suitable for your needs.

Other situations include the high cost of transactions, issues designing a custom checkout or inability to remain in line with industry standards. These can prompt you to consider the payment options.

That's why Fred advises merchants to join the record system (and the specifics of what it's about).

What is the precise definition of what is a Merchant of Record and Why Do you think this the MoR Model ideal to Software Companies?

"Operationally this is a resell partnership" Fred explained. "So there's an MoR vendor who acts as a middleman, selling products to the vendor of record, and the MoR vendor then sells the item to the final client."

Most of this process is not visible. People still go to your website to discover more about your services and purchase them. The MoR will be displayed on your invoice.

Fred was working for a photo SaaS company as an e-commerce manager , when he came across .

"I pretty much stumbled across moR model model precisely the right moment. I saw an opportunity to outsourcing and free up resources and not worry about tax or other things to allow us to concentrate on our principal business and product offerings." Fred said.

Each aspect of selling a item, including tax collection as well as payment to customers who need assistance with the purchase are handled by the MoR.

The record-keeping merchant is in the responsibility for:

• Maintaining a best-in-class branded and locally-based checkout systems.
• Global Compliance and Fraud and Control of risk.
• Control your VAT tax worldwide and GST along with sales tax.
• Assistance with queries regarding billing and fulfillment, billing and much more.

According to Fred the following quote is the truth: "It's the sort of business that accepts the burden of being PCI conformant and also ensures you are paying your taxes promptly. Once you have transferred the entire responsibility of PCI compliance to an outside company, you're free to focus on your primary product so that you can become more efficient and productive."

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Information on Frederic (Fred) Linfjard

Fred serves as Director of Growth Marketing at Planday and the former director of Commercial Innovation at Capture One, where he 4x'd the company's revenue and led to its acquisition. More than 10 years experience, Fred is an advisor on growth and development for several of SaaS as well as software companies, with a special expertise in automation of marketing and testing to assist them in scaling.

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