In the battle of best merchant payment services for SaaS platforms, who comes out on top?
Today there are over 1,440 Independent Software Vendors (ISVs) across the U.S., according to a recent analysis by Statista. As the number of platform providers continue to expand, Vendors are in constant search of new ways to build more powerful, valuable platforms for their customers, while also accelerating the amount of time it takes for them to go to market. The ultimate goal of their platforms is to help satisfy the existing needs of their customers, which now includes the major need for integrated payments across all industries.
Unlike basic, one-to-one payment functions used by general consumers, larger software platforms need a wider variety of payment options and functionalities. That means the more customized the system, the harder it is to find the right merchant payment services to integrate into the platform. The reality is that there’s a lot of hidden work and complexity involved when it comes to adding the ability for users to accept and manage payments.
As a result, vendors continually look for better ways to manage one-to-many and many-to-many payments flows and for increased flexibility in how payments are being routed through their platforms. This is where merchant payment services companies like Stripe and Fattmerchant come into play, with plug-and-play solutions that can quickly provide ISVs the payment functions they need without the extra work.
What Does Stripe Connect Have to Offer?
Recently we announced the launch of Omni Connect, our latest, all-in-one integrated payment solution, but how does it actually compare to the pre-existing and commonly used Stripe Connect?
Launched in 2012, Stripe Connect enables virtually any type of business model, including on-demand businesses, e-commerce, crowdfunding, and travel and events to accept credit card payments. At current, they offer 3 types of Stripe Connect accounts, each with a unique combination of offerings and limitations:
- No platform fees in addition to Stripe’s existing pay-as-you-go model
- Best for SaaS platforms where buyers transact directly with sellers
- The payment user experience and user communication is offloaded to Stripe
- A white label solution for ISVs that desire complete control over the user experience instead of having users contact Stripe directly
- Additional fees apply
- Express accounts are quick to implement, hybrid options that allow platform owners to customize some aspects while Stripe takes care of onboarding, verification and account management
- Similar to Custom Accounts, additional fees apply
Pros of Stripe Connect
- Good for users already using Stripe
- Easy to implement with many well-built SDKs available
- Great documentation
Cons of Stripe Connect
- No User access to Stripe’s Dashboard for Custom accounts
- No User support provided by Stripe for Custom accounts, meaning you are responsible for building and managing the communication and support channels
- Responsibility for fraud prevention and monitoring rests on the shoulders of the platform owner
- Custom or Express accounts can give you a desirable UX, but will increase your development resources as you would be responsible for building the infrastructure, to include: onboarding flow, user dashboard, and/or reporting functionality
- Express or Custom accounts can make you, the platform owner, liable for chargebacks and fraud
- Have to pay a fee per account that you create
- Expensive – pay the standard 2.9% + $0.30 per transaction in credit card processing fees, as well as: $2 per active account per month + 0.25% of payout volume. In addition to that, ISV customers will be charged $0.25 per ACH payout and 1% fee on Instant Payouts
- Stripe keeps all funds with no revenue sharing as platform owners can’t keep potential revenue or adjust customer pricing
What Does Omni Connect Have to Offer?
Similar to Stripe Connect, Omni Connect enables a wide variety of payment formats across all business types. By contrast, with Omni Connect you fully own the customer experience from beginning to end. Similar to Stripe Connect, our payment solution empowers every business with the ability to accept payments. There are no tiered offerings as we allow you to integrate a merchant payment services solution complete with proprietary software customizations right from the very start.
Omni Connect allows you to have access to a full payments experience, including the latest in data optimizations, analytics and reporting, and modern day payments technology. All without the need to spend millions of dollars in time and money. We take care of all of the heavy lifting so that you can focus on what matters most – your customers and your platform.
- Access to Omni’s Dashboard
- Award-winning 24/7 customer support
- No need for custom engineering resource requirements
- Save costs on implementation, with no additional fees
- Easy enrollment allowing you to onboard customers in 20 minutes
- Access to the lowest credit card processing fees, in addition to the ability to adjust customer pricing
- Revenue Sharing
With Omni Connect, you can leverage your newest integrated payments solution as an additional revenue generation engine. We allow platform owners to monetize their payment processing through a custom revenue share.
Where Can I find More About the Benefits of Omni Connect?
With Omni Connect, you can experience the benefits of an entire integrated payments ecosystem that works seamlessly with your platform. There are no tiers, no up-charges, and you have full access to custom pricing that best fits your business model.
Learn more about Omni Connect and find out more information on how you can quickly get started on monetizing payments today. We will be happy to answer any questions you have and help you leverage the best all-in-one software payment processing solution for your needs.