Top 5 SaaS Payment Solutions to Fuel Business Growth

Adam Cress
Adam Cress
Director of Enterprise Sales
Posted on
February 1, 2024
min read
Top 5 SaaS Payment Solutions to Fuel Business Growth

You've seen the growing significance of subscription billing in the SaaS landscape. It's revolutionary. But this revolution often comes with its challenges. Unlike collecting one-time payments, you have to manage subscription plans, recurring payments, taxation, and the list goes on.

As a SaaS business, you have unique needs that a one-size-fits-all SaaS payment processor can’t meet. To limit customer churn and fuel bottom-line growth, you're probably on the hunt for SaaS payment solutions that do more than just collect payments. You need something that automates payment collection and streamlines the financial admin load off your team.

Using a dedicated platform to manage monthly recurring subscription plans thus becomes the need of the hour. SaaS payment solutions offer a secure and user-friendly method for SaaS businesses to accept payments and automate the entire collection process. This post will explore SaaS payment processing and how it works. We will also explore the top SaaS payment solutions for 2024.

What is SaaS payment processing?

SaaS payment processing is a system for accepting, managing, and processing subscription payments. Simply put, it's how your customers pay to access and use your SaaS product.

SaaS payments mean charging your customers for using a product on a recurring basis. The payment processing workflow must account for the entire subscription lifecycle. It must allow your customers to renew, pause, upgrade, downgrade, or cancel their subscription plan at any time. 

However, manually juggling all these subscription plans, billing, and invoices is not the dream for any SaaS business. Besides, building an in-house billing system is expensive and impractical. This is where a SaaS payment processing solution comes in. 

A unified SaaS payment processor handles subscription billing for B2B SaaS, including payments. It does so accurately, making billing more straightforward and more reliable.

Let’s explore how SaaS payments work.

How do SaaS payments work?

SaaS payments operate on a recurring subscription payment model. It offers customers different subscription plans. This includes free trials, freemium accounts, and limited access to premium features. Customers can pay for the software monthly, quarterly, or annually with their preferred payment methods.

Here is a quick overview of how SaaS payment processing works.

  • The customers choose a subscription plan that fits their requirements and budget. They use a preferred payment option to complete the payments on an ongoing basis. 
  • Once that is done, the customers are redirected to the payment page. They enter their payment details and initiate payment to start the subscription plan. 
  • The payment processor then sends a payment request to the customer's bank. The bank verifies these payment details, and either approves or declines the transaction request.
  • The SaaS payment processor sends a notification to the SaaS business owner and customers upon its successful completion. The customers can now access the software and manage their subscription plan accordingly. They can pause, cancel, upgrade, downgrade, or renew their plan. 

SaaS payment processing challenges

Subscription billing for B2B SaaS businesses is akin to solving a complex puzzle with many moving pieces. It comes with challenges, ranging from security concerns and billing management to subscription churn.

Here are some of the most common challenges SaaS businesses face with payment processing.

1. Upfront payments

In SaaS, upfront payments realize benefits that compound over time rather than monthly or quarterly payments. However, the tension in the sales process created during the negotiation of payment terms withholds most customers from making upfront payments. Some businesses resort to discounting contracts to overcome this payment challenge. However, the solution also comes with a discount to ARR.

The solution 

To address this SaaS payment challenge, you can offer free trials, freemium options, Buy Now, Pay Later (BNPL), or other flexible payment alternatives to incentivize customers to pay upfront.

2. Invoicing and billing

Managing subscriptions and invoicing can be daunting, especially when there are multiple pricing tiers to consider, additional feature costs to account for, and various billing cycles to manage. It's not just about generating invoices but also sending timely notifications for upcoming renewals, delivering invoices, and processing refunds for downgraded plans.

And let's not forget about multi-currency transactions. They can make the invoicing process even more complicated.

The solution 

Amidst these challenges, using an efficient SaaS payment solution that automates invoicing and collections is essential. These SaaS payment solutions allow you to create your unique subscription plans. You can also set up recurring payment schedules for seamless invoicing and billing experiences.

3. Data safety

Making sure your customers' sensitive data is safe and secure is paramount. You handle essential customer information, including their personal details and payment information. It can be complex to manage this information securely and keep it safe from all kinds of cyber threats.

The solution 

By using advanced encryption and tokenization techniques, you can protect your customer's sensitive information from data breaches and other threats. Plus, your payment processing tool must comply with strict data protection regulations like PCI DSS to ensure your customer's data is safe and sound. 

4. Involuntary churn

The churn rate for SaaS companies is approximately 5 to 7 percent annually. Although voluntary churn is not always fixable, keeping the number as low as possible is essential. Involuntary churn due to failed payments is the last thing you want. 

Involuntary churn occurs due to an unavoidable reason like payment failure due to expired credit cards, outdated payment information, insufficient funds, and more. Similarly, hard card declines (after fraud attempts) and soft card declines (after credit limit maxes out) could also be legitimate reasons for payment failures. Involuntary churn can destroy your customer relationships. Due to the unavailability of your product because of payment failure, customers who involuntarily churn may convert into customers who actively cancel. 

The solution 

Use a SaaS payment processor that streamlines the entire payment process. It must notify the customers whenever there is an issue with the payment. This will ensure the customers pay for their subscriptions on time. Thus, reducing the likelihood of losing existing customers.

Considerations for choosing a payment solution when purchasing SaaS software

Selecting the right payment solution for your SaaS software involves carefully considering various factors. These include subscription management tools, billing, payments, invoicing, and similar services. Here are a few key features you must look for in your SaaS payment solutions.

  • Subscription management
    Your solution must offer robust subscription management capabilities. This includes flexible billing cycles and the ability to handle different subscription plans. It must also leverage automated processes for upgrades, downgrades, cancellations, and refunds.
  • Billing
    The ideal SaaS payment solution offers customizable billing options. It should accommodate diverse pricing models like usage-based, tiered plans, one-time charges, feature add-ons, and more. 
  • Payment methods
    It should support a variety of payment methods. These include major credit cards, debit cards, digital wallets, BNPL, and other payment options. Offering various payment options helps you cater to diverse customer preferences. It also enhances user accessibility.
  • Revenue management
    Accurate revenue recognition and reporting are vital for tracking your business's financial health and performance. Your payment solution must offer comprehensive visibility into revenue recognition.
  • Transaction fees
    Research and evaluate the transaction fees associated with the payment solution. Understand the fee structure - monthly fees, per-transaction charges, and more. Learn if there are any potential discounts for higher transaction volumes. Consider how these fees align with your budget and revenue projections.
  • Security
    The SaaS payment processor must prioritize security features like encryption, tokenization, and secure transmission protocols. This is to safeguard your customers' payment data. A secure payment solution is essential for building and maintaining customer trust.
  • Easy integration
    The solution should be compatible with your platform and offer seamless integration capabilities. This simplifies the implementation process and allows for a smooth user experience.
  • Scalability
    Research how the payment processing solution can scale alongside your SaaS business. The payment infrastructure should be able to handle increased transaction volumes without compromising performance.
  • Analytics
    It should offer robust insights into transaction trends, and subscription performance to help you make informed business decisions. 
  • Customer support
    The payment processor must offer proactive customer support. Responsive support is crucial for prompt issue resolution. It also ensures smooth operations and addresses any concerns raised by your customers.

The best SaaS payment solutions

Let us now explore the best SaaS payment solutions available today.

#1. Capchase Pay 

Capchase Pay is a subscription billing solution designed for B2B SaaS businesses. It lets your customers finance their software purchases upfront, reducing buying friction. Customers can repay the amount through periodic payments at a frequency agreed upon mutually. This flexible payment option encourages customers to buy annual contracts and offers them a lenient payback time. 

Key features

  • Offers excellent subscription management with Capchase Pay
  • Manage invoices and speed up invoice collection with Capchase Collect
  • Set up automated reminders for recurring invoices
  • Create customizable payment schedules to allow customers to define their payment terms.
  • Contains comprehensive analytics for seamless cash flow tracking 


  • Receive payments from customers upfront 
  • Eliminates month-on-month payment chasing
  • Offers flexible payment terms to customers, allowing them to make upfront payments with ease
  • Helps customers overcome budget blockers and shortens your sales cycle
  • Eliminates payment failures


  •  Pre-revenue startups don't tend to qualify for funding


  • Book a call with the Capchase team to learn more about the pricing

#2. Braintree

Braintree is among the top payment gateways for SaaS, allowing businesses to accept customer payments. It supports a variety of payment methods, like digital wallets, credit cards, debit cards, direct bank payments, and more. Owned by PayPal, Braintree is widely known for its fraud detection capabilities. 

Key features

  • Supports various payment methods
  • Offers specialized fraud detection tools
  • Its fraud and risk detection feature prevents fraudulent transactions.
  • Offers a simple checkout with fewer clicks to reduce buying friction
  • Allows settings customization to retry past-due or failed subscriptions automatically


  • Available in over 45 countries
  • Supports 130+ currencies


  • Does not offer a free trial 
  • The freemium version is not available
  • Does not offer outstanding tools for creating complex plans or tracking usage for metered plans
  • Involves a learning curve to get up and running


  • 2.9% + $0.30 per transaction (Standard pricing)

#3. Chargebee

Chargebee is another tool in this list of top SaaS payment solutions fully tailored to suit the SaaS business model. It offers excellent subscription management services for everyone—whether you are a new SaaS startup or an enterprise. Besides, it also provides excellent marketing features, such as upselling, cross-selling, and discounts. This helps with better subscriber retention and overall higher ARR.

Key features

  • Offers improved subscription management and billing solution
  • Contains recurring billing workflow and automation
  • Offers smart dunning for recurring payment failures
  • Provides customizable payment checkout experience


  • Offers a monthly subscription without any additional transaction fees
  • Includes a library of around 500 recurring billing solution templates
  • Offers a free plan for up to $100K in revenue per month


  • Does not have a payment gateway
  • Ideal for established SaaS businesses


  • Starts from $599 per month

#4. Chargify (now Maxio)

Maxio is another subscription management and billing platform built specifically for SaaS businesses. This tool aims to accelerate SaaS revenue generation and growth. It offers excellent personalization capabilities for designing one-to-one billing workflows and pricing structures.

Key features

  • Manage your subscriptions seamlessly to decrease churn
  • Supports event-based billing with real-time data and analytics
  • Provides offer management tool for timely delivery of appropriate offers to customers
  • Offers real-time and accurate insights about your revenue


  • Ideal for usage-based pricing models
  • Offers a drag-and-drop builder to visualize and set events and its pricing


  • Might not be suitable for tiered pricing
  • Does not detect dunning automatically. 


  • Starts from $599 per month and covers up to $250K in revenue

#5. Stripe

Stripe is one of the most well-known SaaS payment solutions offering subscription-based payment options. It provides a comprehensive suite of tools to accept payments—for example, a payment gateway, billing and invoicing system, and subscription management tool.

Key features 

  • Offers flexible billing to accommodate various types of subscriptions and billing cycles
  • Supports free trials and discounts to encourage sign-ups
  • Offers dunning tools to recover failed recurring payments
  • Advanced reporting tools to track subscriptions, payments, and revenue
  • Offers fraud detection tools


  • Fully customizable to match your company branding
  • Available in 135+ countries
  • 24*7 customer support


  • Ideal for taking card payments
  • Offers basic taxation features


  • 2.9% + $0.30 per transaction

Final thoughts

For a SaaS business, the art of managing subscription billing demands precision, strategy, and the right tech. Automation can be a reliable friend, guaranteeing accuracy and boosting efficiency and scalability.

Capchase can be your one-stop solution for all your financial problems. Not only can it help you with upfront payments and shorten your sales cycles, but it can also collect payments and manage your billing woes. Want to know how?

Schedule a call with our team today. 

Frequently Asked Questions

1. How do SaaS companies collect payments?

SaaS companies collect payments through various methods, primarily leveraging online SaaS payment solutions. The customers are billed regularly with automated renewals to ensure the uninterrupted use of the software. Standard payment methods include cards, digital wallets, BNPL solutions, and bank transfers.