How To SuperCharge SaaS Platform Revenue Using ACH Payment Processing

Platforms that offer integrated payment processing are in high demand by Venture Capital firms.

Payment processing generates recurring income and a captive audience that essentially must use a payment solution to leverage platform automation is highly desirable.

Let’s look at one way to SuperCharge recurring revenue streams.

We will use the example of a SaaS that offers a solution to Marinas for managing their business. Part of that solution is an automated monthly payment collection for dock rentals.

The average Marina has 300 slips they rent out at $400/m. The SaaS platform has 100 Marinas using the platform.

They offer integrated payment solutions for using a Credit Card and ACH API.

On the credit card side pricing is 2.75% and 30 cents per transaction. For ACH payments pricing is a flat 30 cents per transaction. The mix of payments is 50/50 ACH versus card.

Revenue to the platform is about .3% on credit cards and 12 cents per ACH.

So we have 300 slips*.3%*$400*100 Marinas = $36000 per month, over $430k per year from credit cards.

On the ACH side: 12 cents*300 slips * 100 Marinas = $3600 per month, about 43k per year.

So the ACH payment processing is 1/10 as profitable.

Most ACH processing solutions don’t involve charging a % but that doesn’t mean it can’t be done.

Stripe charges businesses .8% for ACH. The vast majority of that .8% becomes profit for Stripe

Let’s look at what happens if we were to charge .5% on each ACH transaction. The platform receives a 75% rev share on that .5% or .375%.

We now have 300 slips * $400 * 100 Marinas* .375% = $45000/month or $540000 per year.

The ACH option at .5% still saves the Marina 2.25% per transaction, a compelling savings.

So if your platform offers integrated payment processing and you either have an ACH option or could implement one, you too can SuperCharge your recurring revenue by charging a small percentage on ACH transactions.

For more information visit AgilePayments.com