Payment Gateways For SaaS: A Comparative Analysis

In this year, the global software-as-a-service (SaaS) market is expected to surpass $235 billion. SaaS startups in the US are now a thriving, multi-billion dollar industry. However, to succeed and generate significant revenue, every SaaS platform needs an efficient and secure payment gateway that allows customers to easily make payments on their platform. But with so many payment gateways available on the market today, it can take time for SaaS entrepreneurs to decide which is best for them. To help you determine which payment gateway is suitable for your business needs, we’ve compiled a comprehensive guide of the most popular options available.

Braintree

Integration

Braintree offers a wide range of integration options. It supports online and offline payments, allowing you to accept credit cards, debit cards, PayPal, Apple Pay, and other payment methods. The integration process is relatively straightforward to understand.

Cost

Braintree charges a standard fee for each transaction, including a small base fee and a percentage of the total sale. Depending on the type of business you have, your rates may vary. There are also no setup or monthly fees involved with using their services.

Multiple Currency Support

Braintree supports more than 130 different currencies worldwide, allowing customers to pay in their local currency without any hassle—a great advantage if you’re looking to expand globally with your SaaS platform.

Security

Braintree is PCI-DSS Level 1 certified, which ensures that all customer information is securely stored and encrypted. They also use tokenization to protect customers’ payment details from fraud or data leakage.

Customer Support

Braintree offers 24/7 customer support with a team of experienced professionals who are always ready to help you transition into using their services. They also provide comprehensive documentation, tutorials, and other resources for developers looking to integrate their platform into existing systems.

Application Approval

Braintree makes it easy to apply for an account, allowing businesses to get up and running quickly without any delays or unnecessary paperwork. The application process is entirely online and requires minimal information.

Chargeback & Dispute Management

Braintree provides an integrated system that allows businesses to quickly and easily manage disputes or chargebacks. This feature helps minimize losses due to fraudulent activity, ensuring you’re always protected from potential financial loss.

Transaction Failure Handling

In the event of a transaction failure, Braintree provides comprehensive monitoring and alerting capabilities to help identify potential issues before they become significant problems. This ensures minimal disruption for customers and keeps your SaaS platform running smoothly.

Braintree is an excellent choice for SaaS startups looking for a secure and reliable payment gateway solution.

Also read: Which Payment Gateway Should You Choose For Your eLearning Business?

PayPal

Integration

PayPal offers a range of integration options for web, mobile, and in-person payments. It supports REST API, NVP/SOAP API, HTML buttons, IPN (Instant Payment Notification), and Braintree SDKs. Developers can use their APIs to customize the checkout experience by integrating their payment forms into the PayPal system. PayPal also has an app marketplace that allows merchants to connect with various ecommerce platforms like Shopify, Magento, and BigCommerce.

Cost

PayPal charges different fees depending on the type of transaction and the country where it is initiated from. PayPal’s fee is usually 2.9% plus $0.30 USD per transaction for domestic purchases via credit or debit card. This rate is slightly higher for international transactions and payments made via PayPal balance or bank account. Merchants can reduce fees by using a payment gateway like Braintree Direct; however, these require additional setup and integration costs.

Multiple Currency Support

PayPal supports payments in over 100 currencies. This makes it an ideal solution for merchants who sell products internationally, as customers can pay in their preferred currency without converting the funds first. The supported currencies include major ones such as US Dollars (USD), Euro (EUR), and British Pound (GBP), as well as less common currencies like Bitcoin (BTC). PayPal also allows merchants to set up multiple currency wallets within their accounts to easily manage different currencies simultaneously.

Security

PayPal is a reliable and secure payment processor that has been used by millions of individuals and businesses around the world. It uses advanced fraud protection measures to keep customer data safe, as well as encrypted transmission of payment information over SSL. PayPal offers additional security features such as Verified by Visa/Mastercard SecureCode and 3D Secure authentication for card payments. Merchants can also set up IP address restrictions to prevent unauthorized access to their accounts.

Customer support

PayPal provides 24/7 customer support via phone and email in multiple languages. They also have an extensive help center with articles on common topics such as setting up an account, managing payments, dispute resolution, etc. Additionally, PayPal offers Merchant Support Services, which provide dedicated support for specific issues, and a free Merchant Fraud Protection Program.

Application approval

PayPal’s merchant application process is straightforward and typically takes less than 24 hours to complete. Merchants must provide basic information about themselves and their businesses before they can start processing payments. PayPal may also request additional documents or require them to undergo a credit check to approve the application.

Chargeback & Dispute Management

PayPal offers an automated system for handling chargebacks and disputes, allowing merchants to respond quickly and easily. They also have chargeback monitoring tools that will enable merchants to view transactions at risk of becoming disputed charges. Additionally, PayPal provides dispute resolution services, including assisting with filing responses, gathering evidence, and tracking the status of disputes.

Overall, PayPal is a reliable payment processor that offers merchants a wealth of features and services. You can easily consider it among the best payment gateways for SaaS businesses.

Also read: Stripe vs. Braintree: Payment Gateways Comparison 2022

Stripe

Integration

Stripe offers a simple, secure way to integrate payments into any website or application. With Stripe, users can quickly add payment processing capability to their platform or product without needing additional coding or development. The Stripe integration process is fast and easy and can be completed in minutes.

Cost

Stripe offers competitive pricing for its services, with fees ranging from 0.5% to 2.9% + $0.30 per transaction, depending on which plan you choose. In addition, Stripe also provides free developer accounts so that developers can test their integration before signing up for a paid account.

Multiple Currency Support

Stripe supports payments in more than 135 currencies, making it easier for merchants to transact with customers in different regions worldwide. Stripe offers currency conversion and automatic payout into local bank accounts in many countries, allowing merchants to easily accept payments from international customers.

Security

Stripe is committed to providing secure payment processing for its users. They use advanced encryption technology to protect data and ensure that transactions are safe and secure. In addition, Stripe also provides two-factor authentication for added security.

Customer Support

Stripe offers customer support through email, phone, and online chat. Users can get help with any questions or issues regarding the integration process or usage of their services. Stripe also has an extensive knowledge base that contains answers to common questions about its services.

Application Approval

Stripe requires all merchants to submit an application before they can start processing payments with their service. This process typically takes a few days. Stripe will review the application for potential risk factors that could affect its decision to approve or decline a merchant’s account.

Chargeback & Dispute Management

Stripe provides tools to help users manage chargebacks and disputes, including fraud protection and dispute resolution services. They also offer automated notifications when a dispute is filed against a transaction so that customers can quickly respond to any issues. In addition, Stripe also supports ACH payments and credit card refunds to make it easier for merchants to resolve customer disputes.

Transaction Failure Handling

Stripe provides detailed error messaging and notifications when a transaction fails to process. This helps merchants quickly identify the cause of the problem to take appropriate action. Stripe also offers automated retry options for failed transactions, which can help ensure that customers can complete their payments successfully.

Overall, Stripe is an excellent payment processor for businesses of all sizes looking for an easy solution to integrate payments into their platform or product.

Also read: Authorize.Net vs Amazon Pay: Payment Gateway Comparison for SaaS Businesses

Due

Integration

Due is easy to integrate into your existing product or service. The platform offers a wide variety of APIs and SDKs, so you can quickly integrate it with your software. Furthermore, the integration process is highly secure and requires no technical knowledge. All you need to do is create an account and then use Due’s APIs and SDKs for quick and easy access to the services you need.

Cost

Due has competitive pricing plans designed to meet any business’s needs. No matter what size your company or budget is, there’s a plan that fits within your resources. Businesses can also benefit from discounts available on some subscription plans when they commit to using Due for more than 12 months at a time.

Multiple Currency Support

Due allows businesses to accept payments in various currencies, including the US Dollar, Euro, GBP, AUD, and CAD. This makes it easy for companies to conduct international transactions without worrying about currency conversion fees. Plus, Due is compliant with the Payment Card Industry Data Security Standards (PCI-DSS), which ensures that all credit card data is securely stored and processed according to industry standards.

Security

Due takes security very seriously by offering multiple levels of fraud protection. All customer information is encrypted and stored on secure servers so you can be sure your data is always safe and secure. Two-factor authentication (2FA) helps protect your account from unwanted access. Plus, all transaction data is encrypted with 256-bit SSL encryption to safeguard your customers’ sensitive information.

Customer Service

Due offers excellent customer service and support for businesses using its platform. They have a knowledgeable team of experts available 24/7 via email and phone who can assist with any issues or questions regarding the platform. An extensive knowledge base includes FAQs and troubleshooting articles to help users get the most out of Due.

Application Approval

Approval time for applications in Due is usually very fast, usually taking up to five business days. The application process is simple, requiring basic information such as company name, address, contact information, and bank account details. Once approved, businesses can start accepting payments right away.

Chargeback & Dispute Management

Due has a dispute management system that helps to efficiently handle chargebacks and disputes. This ensures that customers are refunded promptly and helps to reduce the chances of fraud or incorrect charges being made to customers’ accounts. Additionally, Due offers advanced reporting capabilities to easily track transactions, refunds, and other payment data over time.

Transaction Failure Handling

In the event of a transaction failure, Due will automatically retry the transaction after some time has passed. This allows businesses to minimize failed payments and keep their customers happy by ensuring all payments go through successfully. Additionally, Due also offers a convenient payment reminder feature that can be used to remind customers of pending payments. Hence, they stay aware of the situation.

Overall, Due is an excellent platform for businesses looking to accept payments online quickly and securely.

GoCardless

Integration

GoCardless offers easy integration to merchants with a set of APIs that enable them to integrate GoCardless into their own payment pages. With an auto-generated checkout page, GoCardless allows customers to securely enter their bank details and make payments directly from their accounts. Merchants can customize the look and feel of the page according to their needs.

Cost

The cost of using GoCardless is minimal compared to other payment gateways. Fees may vary depending on the country where you are located, but they start at 0.75% per transaction (capped at £2). The fees are automatically deducted from each transaction amount before it reaches your merchant account. There are no setup costs or additional monthly fees, which makes it appealing to cost-conscious businesses.

Multiple Currency Support

GoCardless supports numerous currencies, including GBP, EUR, and USD. This allows merchants to easily accept payments from customers in different countries. It also helps them reduce the manual conversion work required when dealing with international customers.

Security

GoCardless is committed to providing secure payment processing for its merchants and customers. All payments are encrypted using bank-grade security measures, and customer data is stored securely on GoCardless’ servers. Additionally, all customer information is collected according to PCI DSS standards, and two-factor authentication protects against fraudsters.

Customer Support

Customer support from GoCardless is excellent. They offer 24/7 email support, live chat, and telephone support. They also provide informative webinars and resources to help merchants get up and running quickly.

Application Approval

GoCardless is committed to maintaining high standards when approving applications. They carry out a rigorous review process to ensure that all new merchants are legitimate businesses with accurate banking details provided. This helps maintain their overall security standards while ensuring that customers have a positive experience using the service.

Chargeback & Dispute Management

GoCardless has an effective chargeback management system that allows merchants to easily manage any disputes or charges placed on them by customers. Merchants can view the full details of each chargeback and any associated fees before deciding how to proceed.

Transaction Failure Handling

GoCardless offers merchants the ability to efficiently handle failed transactions. Their comprehensive transaction log allows merchants to view any failed payments and take appropriate action. Their dispute management system will also enable merchants to resolve customer disputes quickly and efficiently. This helps ensure customers have a positive experience using GoCardless as a payment gateway.

Overall, GoCardless is an effective online payment solution for businesses of all sizes.

Conclusion

Most small businesses, startups, and entrepreneurs have to choose among the many payment processing services available in the market. This decision can be difficult as each service offers different features and benefits. Therefore, it is essential to thoroughly evaluate all the options before making your choice for the top SaaS startup payment gateways.

If you are looking for the best subscription management tool of 2023 for your SaaS startup, book a demo right now!