With an increase in online transactions, the border between local businesses is becoming blurry. Now, every organization can sell its services and products internationally.
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For example, a SaaS business can benefit from global expansion. You’ll achieve increased revenue, new customer experiences, etc.
As a result, revenue from the global business market is expected to reach over five billion USD by 2029. This was only two billion USD in 2022, showcasing the industry’s 9.42% CAGR.
Even then, payment processing has remained complex and highly regulated. That’s why various software companies selling SaaS collaborate with Merchant of Record (MoR) service providers.
In this blog post, we’ll discuss how SaaS companies can find a reliable MoR to partner with.
Why Does Your SaaS Need MoR Tools?
According to PayPro Global, MoR is a legal platform that can handle online transactions and processes between a SaaS company and an end customer. This third-party tool can handle refunds and declined transactions.
MoRs can also safeguard your SaaS business in the international market during fraud attempts. By collaborating with such financial service providers, you can cover:
- Billing and invoicing
- Global tax handling
- Payment processing
- PCI data compliance
- Payment-related support to customers
Therefore, you can transfer your SaaS business’s operational burden during international growth to MoR software.
3 SaaS Payment Strategies You Should Remember
The SaaS market will reach USD two hundred and forty-seven billion by the end of 2024. America alone has 17,000 SaaS companies, making it hard for yours to stand out.
That’s why you must follow these strategies:
- Provide multilingual support and end-user assistance during payments
- Offer an international shopping experience that’s also localized
- Ensure to manage the complex tax and compliance regulations
Did you know MoR tools can offer all these on a single platform? From international transactions to tax compliance and robust support—MoR has it all.
What Features Should You Consider When Looking for MoR Software?
Did you know that the SaaS market has a 90% failure rate? Forbes reports this is probably because of cash flow issues arising from pricing and transactional challenges.
To solve this, you want your SaaS brand to leverage MoR tools. For that, you’ll need to find a reliable provider. Look for the following system features to get a solution for your payment processing needs:
- Regulatory compliance: The MoR should comply with local business entities and the country’s regulatory requirements.
- Fraud detection and prevention: It should ensure secure payment processes through fraud detection and prevention strategies.
- International reach: This tool should offer numerous local payment methods and currencies to reach a diverse customer base.
- Flexible system: Choose MoR tools that offer robust customization options, like flexible pricing and multiple payment flows, that align with your business needs.
- Easy integration process: It should offer a streamlined onboarding process and exceptional support to reduce technical hurdles.
Other than these, you should collaborate with service providers that offer prompt vendor and customer support. With precise assistance, your SaaS company can easily deal with complex payment infrastructure and technical issues. The shoppers will also have dedicated support to address payment-related queries.
6 Ways to Compare Different MoR Solutions
Let’s say you’ve researched and found a few Merchant of Record systems. How will you compare them and choose one that fits your SaaS business?
All you have to do is follow these tips:
- Analyze your business needs and understand your expectations from the MoR.
- Along with the current business needs, consider the future and choose a scalable platform.
- Find a tool with features that’ll be ideal for your SaaS organization.
- Partner with MoR software providers that’ll give you the time and expertise you require.
- Compare the pricing structures based on setup fees, ongoing expenses, and transactional costs.
- Evaluate the fees and ensure they meet your company’s revenue forecast.
The MoR partnership should be strategically valuable. That’ll only be possible if the tool aligns with your SaaS business’s growth, future projections, transaction requirements, etc.
For a successful partnership, remember to integrate and customize the tool. Once done, you must ensure clear communication with the MoR providers for seamless operations.
The Bottom Line
McKinsey reports that the cross-border payments market can expect a revenue of USD three trillion by the end of 2026. Due to this growth, the industry developed a unique way to help SaaS companies sell in the international market.
That’s where an MoR comes in. As mentioned in this blog post, MoRs can take full responsibility (both legal and transactional) for getting those global payments.
Choose this tool to simplify global tax and eliminate fraud. However, before partnering with one, remember to look for the right features and compare different MoR software.
