The Long ViewPayments That Perform: The Key Ingredients for Successfully Scaling Payments in Vertical SaaS
Ronnie Gurion, COO at Clio, a leading provider of cloud-based legal technology, shares the three essential components for how vertical SaaS companies can scale payments from a feature into a powerful revenue stream.
Integrating payments into your Vertical SaaS platform isn’t exactly a novel idea. The strategy is often likened to a simple recipe: with the right mix of control point software, you just add water (payments), and voila, a profitable cake appears. After all, companies like Toast have done it to the tune of $3.2 billion in gross payments revenue in 2023.
In fact, the reality is far more complex.
If done right, payments can generate a strong stream of revenue, make it easier to layer in other fintech products, and improve core retention. However, relatively few companies have been successful in actually selling payments. Many incumbents, even after years of work, are only hitting 30% penetration.
At Tidemark, we try to open-source our thinking as much as possible to help founders win; however, as investors, we can’t give everything away in public. If you’re an operator or founder, you can request access to the rest of this piece below.
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