This announcement appears in RealWire and profiles a new service from Paddle, a 2012 fintech out of London that specializes in what they describe as a ‘revenue delivery platform’, most directly for B2B SaaS companies. In effect it is a subscription management solution.
The new service is being called Paddle Pilot and seems to be adding (or perhaps expanding) the cross-border capabilities for these payments and reducing payment failures. We have not received a briefing so don’t know details, but worth a read if there is interest in the space. The piece spouts some data about SaaS revenues during the pandemic and the cost of payment failures, etc, taken from 3rd party sites/estimates. Indeed if anywhere near accurate it would seem a compelling thing to try and improve.
‘The SaaS industry has continued to thrive throughout the Covid-19 pandemic, generating over $105 billion in revenue in 2020. Yet, for many fast-scaling SaaS businesses, poor payment acceptance is hampering revenue growth — often unknowingly. When a payment is made, through a checkout or recurring subscription payment, that payment passes between issuing and acquiring banks around the world, changing currencies, and passing through fraud and authentication checks. These checks are essential security measures, but they can also lead to false positives, leaving genuine customers unable to complete a payment. These failed payments are a major cause of lower checkout conversions, increased subscriber churn and stunted revenue growth. In 2021, losses incurred from false payment declines are expected to reach $443 billion, which is nearly 70x more than losses from fraud, itself. These losses are set to grow, with 62% of online merchants reporting that their false decline rates are increasing.’
The piece goes on to explain some of the updates or new features in the Paddle Pilot. It also describes a new Sandbox as well as improvements to its Branded Inline Checkout. Browse through and see if applicable.
‘Paddle also announced its new Sandbox at Paddle Forward, a testing environment that lets software companies experiment with their Paddle setup to see the impact that proposed changes will have on customer experience. With a free Sandbox account, Paddle sellers can test new billing models, upgrade paths or adjust checkout design in a virtual set-up before they make changes to their site. Paddle Sandbox makes it easy for sellers to optimise their revenue delivery setup over time, without risking disruption to a live implementation or customer experience….Paddle’s Sandbox also allows sellers to simulate an unlimited number of successful or failed payments through the use of ‘fake cards’. This means sellers can test the end-to-end customer experience with no negative impact on revenue reporting, performance metrics, or real payment methods.’
Overview by Steve Murphy, Director, Commercial and Enterprise Payments Advisory Service at Mercator Advisory Group