How SaaS solutions are rapidly changing the Indian business digital payments ecosystem
For almost all businesses, offline payments have been the primary method of financial transaction. However, in the last few years, the world has been going digital rapidly. More businesses are shifting from offline to online. While most businesses prefer offline and manual payments, digital payments are getting increasingly popular for their ease, efficiency, and convenience. Businesses these days are using different SaaS products for their organization as cloud based solutions are simple, reliable and secure.
Virtually every sector has been active in assessing and adopting different forms of digital payments. Subscription based businesses are embedding SaaS based APIs such as EasyCollect, Smartbilling for sharing payment reminders, automated invoices, reconciling payments. Retails and online web stores are opting for InstaCollect for accepting payments online with ease. Similarly, Manufacturing Companies that are unable to pay their ORMs, suppliers, distributors on time have found solace in SaaS based payout solutions such as Teller and Wire.
It comes as no surprise that education institutes have also adopted online digital payments in their system. With online fee payment software such as FeesBuzz, parents can make payments using credit cards, debit cards, net banking, NEFT, IMPS, RTGS, etc. Universities and schools can keep a check on the fees transactions, late fees, installment fees, etc. These software reduces the risks, drives efficiency, and helps to focus on the important part- education.
As businesses across the globe undergo digital transformation, SaaS solutions play a critical role by creating an adaptable and collaborative ecosystem that benefits both the enterprise and the end customer. These solutions provide businesses with a modern and flexible payment infrastructure. Moreover, SaaS provides a competitive advantage with its multi-fold benefits like scalability, compliance, cost efficiency, and security, along with enhanced mobile functionality.
As opposed to traditional payment methods, using SaaS tools facilitates operational efficiency while providing a better user experience. It allows seamless collaboration between teams and keeps them updated with real-time information. For instance, rather than maintaining piles of hand-written financial records, businesses can facilitate easy online payments while keeping track of all the transactions, profits, and other crucial financial details through SaaS tools.
Nowadays, businesses can trace demand patterns and support volatile business cycles thanks to the highly-predictive SaaS solutions. Equipped with new-age technology, they help in analyzing data that helps businesses chart business-critical and growth-driven roadmaps. They also facilitate cloud data backup, further ensuring business continuity. SaaS provides a secure ecosystem to businesses executing thousands and millions of transactions each day.
Furthermore, API-based SaaS platforms create a cohesive ecosystem for businesses that allows various stakeholders to collaborate and improve operational processes at a lower cost. This further bolsters the digital payment mechanisms. With the growing adoption across industries, the SaaS market is projected to grow substantially in the coming years, reaching USD 716.52 billion by 2028.
The four-fold objective behind the rapid adoption of SaaS solutions
A continuous increase in digital payments has accelerated the use of fintech solutions. Herein, SaaS-based tools can further simplify financial processes while ensuring operational efficiency and profitability. Against this backdrop, let’s look at the key benefits driving the industrial shift:
One of the foremost benefits, SaaS solutions eliminate upfront purchase or installation costs. Unlike expensive hardware installations, they do not create large expenditures on internal IT infrastructure. While reducing operational costs, most SaaS providers even offer pay-as-you-go, allowing businesses to bear costs as per their usage. It is an advantage for small businesses and financial institutions, helping them improve their digital capabilities and market positioning.
Customized pricing plans
Primarily, the payment structure offered by businesses consists of subscriptions and usage-based recurring payments. However, some SaaS solutions provide a robust subscription billing service that helps businesses customize their pricing plans as per customer demand.
Generally, SaaS solutions are supported by flexible and scalable cloud technology. Instead of purchasing multiple licenses, and high-priced tools, financial institutions can avail SaaS tools to enhance server capacity. In addition to scalability, users can access the software from anywhere with internet access, thereby improving access to business-critical data.
Ability to integrate business platforms
From customer relationship management to accounting, SaaS solutions facilitate seamless integration from multiple technology partners. It gives the user a comprehensive view of all the business operations. Moreover, it helps in easy access to payment data allowing businesses to keep track of all incoming and outgoing transactions.
Most fintech businesses are in the nascent phase of offering multiple payment options. Businesses using SaaS solutions are able to provide efficient and seamless transactions. As we move ahead, financial service providers using SaaS tools for digital business payments will have a competitive advantage over others, enabling them to grow at a rapid pace.
(The author is Mr. Rohit Katyal, Group Head Business at Easebuzz and the views expressed in this article are his own)