The SaaS business model is taking over. The industry has experienced exponential growth in the last decade and shows no sign of slowing down.
SaaS, or software as a service, is usually a subscription-based cloud service. SaaS allows users to access data from any device with an internet connection via an app. It saves customers from painful installations or expensive engineering resources. You may have experienced SaaS in everyday life without knowing it: Netflix, Dropbox, Adobe, Canva, Salesforce, Intuit, Xero, Shoeboxed, or us – Accountdock!
To build a successful SaaS business model, you’d need a smooth and well-functioning billing system. How you bill significantly influences customer retention and satisfaction.
Read on to know more about the top 3 SaaS billing software in our market now!
What is SaaS billing?
As the name suggests, SaaS billing is an automated invoicing system for SaaS businesses. The software automatically deducts subscription-based payments from customers for the usage of a product or service. It also enables businesses to design multiple pricing plans, giving customers flexible choices and optimizing revenue.
Below are the most popular pricing models that almost every SaaS billing software can offer you today:
- Flat rate model: One plan, one price. This is the most basic model as your customers can use all available features and benefits for a standard monthly payment. This model is straightforward and crystal clear. Accountdock, for example, chooses this super simple pricing for our clients.
- Tiered model: Multiple plans, multiple prices. Your SaaS billing system offers several pricing plans with tiered pricing, each tier tailored to meet specific requirements. Your customers can switch between tiers whenever they want. You can drastically increase your potential audience by giving them more choices, generating more revenue. However, sometimes less is more. If you provide too many options, potential customers might feel overwhelmed and end up choosing … none.
- Freemium model: Free then premium. This pricing model allows you to provide certain features for free, and customers would need to pay and upgrade to experience exclusive benefits. This model works best for feature-rich SaaS businesses.
- Pay as you go model: Use more, pay more. This model is also known as the usage-based model, meaning customers only pay for what and how much they use. One downside of this SaaS pricing plan is volatile revenue, as you can’t predict or control the cash inflow.
- Pay per user model: More users, more fees. Your customers are charged for the number of users in your SaaS system. For example, your company offers a plan that costs $100 for 5 users maximum and a $250 plan for up to 20 persons.
There’s no formula for the best SaaS pricing model. You can create your own unique billing model that is the most suitable for your business.
Just bear in mind, keep your SaaS pricing plans simple, straightforward, and easy to understand for your customers.
Top 3 most recommended SaaS billing software
Now that you grasp the concept of SaaS billing, let’s explore the three best SaaS billing tools’ features and how they can support your business.
Stripe is the #1 leading online payment platform and is trusted by many giant global companies like Zoom, Slack, Asana, etc. This platform can take all of your headaches away by offering a secure and seamless all-in-one SaaS billing process: from creating invoices to building custom pricing models – Stripe solves every SaaS business’s problems!
This is a fantastic fit for most SaaS businesses, especially those just getting started or hoping to go global. Why is that? There’s no monthly subscription, it’s simple to set up, and it integrates with tons of software that you’re likely using already to run your company.
Plus, Stripe supports over 135 currencies and worldwide payment methods like Apple Pay, ACH, BACS, iDEAL, and SEPA Direct Debit, which can boost conversion by up to 50%.
Fee: Pay-as-you-go pricing at 2.9%+ $0.30 per successful transaction.
- All-in-one SaaS billing software
- Easy to set up
- Ideal prices
- Numerous integrations
- Great with international payments
Braintree is a product of PayPal, which has become a Stripe alternative for SaaS companies. So just like Stripe, Braintree also offers an end-to-end billing platform, taking care of every major step for your payment process.
As Braintree is a PayPal’s subsidiary, you will get the extra benefit of offering the PayPal method for payments. Braintree also works well for international payments, but it’ll charge a bit more on transaction fees.
Overall, if you want another option for Stripe or focus on Paypal payments, Braintree should be the best!
Fee: Similar to Stripe, Braintree charges a fee of 2.9% + $0.30 per transaction.
- End-to-end SaaS billing solution
- Good with global businesses
- Best for PayPal payments
- 2Checkout (2Subscribe)
2Checkout (Verifone) is also one of the most popular online payment providers. They offer a specialized product line for SaaS businesses called 2Subscribe. The software offers a complete SaaS billing: your payment gateway, merchant account, and subscription management.
However, the setup process may be a little complicated, and 2Subscribe doesn’t offer a free version or trial.
With 2Subscribe, you’re ready to scale your subscription business and sell abroad with 9 payment methods, recurring billing capability, and multi-language checkout in 29 languages.
Fee: 2Subscribe charges 4.5% + $0.4 per successful sale
- Holistic SaaS billing
- International payment support
AccountDock for your SaaS billing
AccountDock provides a comprehensive billing history for your Stripe account. With AccountDock, your customers can view their history of payments right on the website, with detailed information about both successful and failed transactions. By doing so, you create a transparent and honest business environment for your customers – the best way to gain their loyalty.
Try AccountDock now for 14 days FREE!