Welcome to the new world where everything, and we mean everything, is an acronym. If your company has a pain point, there is an acronym for it.
For the purpose of this article, we are going to zero in on PaaS, aka Payments as a Service. Not to be confused, however, with Platform as a Service. That is different altogether. The first aim is to get businesses acquainted with the “as a service” world. While we may all be familiar with SaaS, what about the next big thing, PaaS? To help keep it all straight, we outline some of the significant “as a service” disruptors likely to become business must-haves in the coming years. Then we will delve into what PaaS is and finally present the business case and a strong one at that that you can even give to the board.
Payments as a Service and all the other acronyms glossary
As it stands, “as-a-Service” applies to pretty much any and every business function that can now be outsourced to a third party. In 2011, Marc Andreessen confidently stated software was eating the world. By the same token, we predict anything and everything “as a Service” or “as a Subscription” will weave its way into every aspect of the business’s day-to-day operations. If you are anything like us, it can be hard to stay on top of what is coming next, what it all means and where a business should focus. Coupled with our team’s knowledge and the help of some resources, we have compiled a list of “as a Service” game-changers to watch.
AaaS – Authentication as a Service or Analytics as a service
AIaaS – Artificial Intelligence as a service
BaaS – Banking as a service
CaaS – Creative as a subscription
DaaS – Data as a service
FaaS – Functions as a service or Fintech as a service
IoTaaS – Internet of things as a service
SaaS – Security as a service, Software as a service or Subscription as a service
StaaS – Storage as a service
PaaS – Payments as a service or Platform as a service
XaaS – Anything as a Service
What exactly is PaaS?
Payments-as-a-Service is a cloud-based platform that allows companies to offer all sorts of payment services through a single channel. By using PaaS, businesses can enhance their service to customers and keep up with modern payment options at no cost to them.
Monetize payments and deliver instant onboarding without the compliance, financial risk and time-consuming integration.
PaaS provides platforms and developers with the ability to quickly and easily offer payment solutions.
It allows enterprises to accept various payment methods such as EFT, eChecks and credit cards. Furthermore, it offers the ability for revenue generation from payment processing fees.
With a Payments-as-a-Service, executives gain access to actionable data and cash flow information in real-time.
The Payment as a Service market is expected to register a compound annual growth rate (CAGR) of 31.23% over the next five years, hitting a worth of $25.7 Billion by 2027.
Why enterprise platforms should leverage Payments as a Service
Across industries, no matter how big or small, businesses need both money and customers to survive. Fortunately, PaaS can help with both. Consumers and businesses are looking for a one-stop shop with the rise in digital payments. Be it B2C or B2B, people and businesses expect a fluid and simple experience, including payments. As a response to this growing payment need, the Payment-as-a-Service model emerged. It is a way for enterprises to meet the demands of customer choice with minimal overhead and investment.
How does PaaS work
Businesses can take advantage of a partner’s payment facilitation with a simple API integration. This enables developers to test, deploy, and go to market in a matter of weeks versus the many months it can take to build an entire infrastructure. A payment partner, such as VoPay, handles the behind-the-scenes of payment transactions, including onboarding merchants and assumes all compliance and risk factors. Effectively your platform becomes a sub-payment facilitation service for your partner. And in exchange, you receive a portion of the payments revenue.
When it comes to LMS, cloud-based PaaS deployments reduce the costs of serving customers because they don’t have to invest millions of dollars in infrastructure, underwriting, and risk management just to run payment functionalities.
The benefits of PaaS for enterprise platforms
Here are reasons why Payments as a Service is such an attractive option for Enterprise platforms:
Revenue generation – by adding payments as service companies add a new revenue stream that makes them more money and inflates the value of their business
Payment method flexibility – Offering various modern payment methods has become a necessity.
Deliver a better experience – Customers expect a seamless and frictionless payment process.
More robust data security – Mitigate potential breach threats. Forget handling sensitive payment information. Tokenization is the security solution platforms need.
Offlift the burden of compliance and KYC– PaaS offloads the load from the platform to your payments partner
Reduce processing costs – Eliminate the need to own and retain hardware and software with the DIY (do it yourself) option. Managing and maintaining payment processing is no small feat. Moreover, it is costly to do so.
Speed to Market – With PaaS’s pre-built infrastructure, businesses can quickly sign up for and integrate compliant, full-service programmes via a single integration.
Reap the benefits of new technology – Payment methods are not static. New features, new technology, and new trends are a given. It is near impossible to stay up to date and at the same time determine if they are a business fit. With PaaS in place, you stay on top of new technology trends while staying ahead of your competitors.
VoPay Payments as a Service
Pass the complexity of moving funds on to us, ensuring a seamless experience for all.
VoPay delivers data-driven and secure payment-as-a-service capabilities to Enterprises through a single API integration. Enterprise customers can take advantage of our white-label services to customize payment flows and enhance the user experience. So if adding payments quickly and easily with no risk, the ability to instantly onboard and generate new revenue streams sounds good, we are here to help. Contact us today to learn more!