SaaS Companies: Four Signs You've Outgrown Stripe

If you're using an DIY payment system like Stripe making it function for you and your company is the duty of the creators. In the process of testing plugins, or implementing new ways to pay, keeping Stripe could be a lengthy process.

Instead of spending all day creating your payment platform to make it work, the team could be focused on the product you offer?

This is one of the most crucial factors growth consultant Fred Linfjard advises SaaS businesses to think about the use of a merchant of record instead of DIY methods.

Fred is a prior customer of Stripe and is now an advisor. I spoke with him live on LinkedIn regarding four indicators that SaaS companies have grown beyond Stripe. Here are the top points of our discussion.

1. You're Running into Issues Localizing Payments

"If your plan for expansion is to market your product to greater than two to three currencies or payment options that are local to you and you're looking to expand and expand, then the Stripe method could prove inefficient." Fred explained.

Another sign that you've grown out of Stripe could be experiencing the growth in demand for your product in areas that Stripe cannot support.

If you're spending much of your time localizing payments and you're looking at an automated system which handles a lot of the work automatically.

2. The recurring interruptions to service are Affecting Sales

You may be finding yourself having issues with cards being declined or disruptions of services related to integrations or other technical problems.

The first thing to think about in this instance is whether you're receiving the support you need from Stripe in order to fix the issues quickly. If you're not getting the assistance you require, and these issues are continuing to happen, it could be the right time to make a change.

A major distinction in an DIY solution such as Stripe as well as MoR MoR solution is support around risk and compliance. When using the DIY system, all the responsibility to remain in PCI in compliance (and similar rules) lies with the vendor. If you transfer all these obligations to an outside party, it is possible to be able to focus on the main aspects of your product. That brings to the final point.

3. Your Product Development Team is Too Busy to be focusing on your product

If you're in a position where you're using a large amount of internal development resources for the development and management of the backend monetization settings with Stripe, this is an problem. This means you're shifting your focus away from a an important job, which is improving product performance and customer experiences that please your customers.

It's commonplace when the setup you have has complex integrations which are hard to maintain.

So if you're spending so time tackling difficult problems such as bugs and bugs or other issues which have to be dealt with Stripe and your backend's monetization configuration, then this is definitely the time to consider thinking about the possibility of a different solution.

4. Controlling VAT, Sales and GST Taxes can be a huge internal burden

"Along in development resources, a major aspect of constructing and maintaining a payment system is tax compliance and management," Fred said.

There's a lot to be done to ensure the right sales tax or VAT is deducted from every purchase and also that you're legally recognized in each state or country you do business in.

Additionally, each country has its own laws regarding the way taxation is used for digital goods, which are changing all the time. If you're struggling to keep up with the latest changes, or require a substantial quantity of bandwidth or time and bandwidth, then the MoR model may be beneficial for your needs.

There are other situations including high costs for transactions, issues creating a custom checkout or an inability to stay compliant to industry standards -and are prompting you to review the options for payment.

This is the reason Fred recommends the merchant in the records system (and what exactly it is).

What exactly is the definition of a Merchant of Record and Why Do you think this the MoR Model ideal to Software Companies?

"Operationally this is a resell partnership" Fred explained. "So there's an MoR vendor who acts as a middleman who sells the product to the vendor of record, and the MoR vendor then sells the product to the final client."

Most of this process is not visible. Customers still come to your website to find out more and buy your products. The MoR will be displayed on the invoice.

Fred worked for a photography SaaS firm as their ecommerce manager when he stumbled upon .

"I pretty much stumbled across moR model MoR model in just at the right time. I saw an opportunity to outsource and free up resources, without worrying about taxes or other things to allow us to focus on the main products and business activities." Fred explained.

Each aspect of selling a productsuch as tax collection and payment to customers who need assistance with the purchase are handled by the MoR.

The merchant of record is in the responsibility for:

• Maintaining a best-in-class branded and localized checkout system.
• Global Compliance, Fraud and Management of the risk.
• Manage your worldwide VAT tax and GST along with sales taxes.
• Assistance with queries regarding billing, fulfillment, billing, and many more.

According to Fred the following statement is true: "It's the sort of business that accepts the burden of becoming PCI compliant and makes sure you are paying your taxes in a timely manner. Once you have transferred the entire responsibility of PCI conformity to an outside party, you are able to concentrate on your primary product in order to be better efficient and efficient."

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Information on Frederic (Fred) Linfjard

Fred serves as the Director of Growth Marketing at Planday and the previous head of Commercial Innovation at Capture One, where he 4x'd the company's revenue and led to the acquisition. With more than 10 years of experience Fred is an advisor to growth for a variety of SaaS as well as software firms, having a special expertise in automation of marketing and testing to assist them in scaling.

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