Concepts like Hardware as a Service (HaaS) and Software as a Service (SaaS) are changing the payment processing landscape. As a reseller, you can bundle your services and provide an all-encompassing product for your merchants. HaaS and SaaS work similar to a rental, where merchants are charged a monthly service fee to lease the services. Market research suggests that, “The HaaS market is likely to reach a value of US$ 304.80Bn by 2026 from US$ 40.88Bn in 2017.” We discuss the benefits of HaaS and SaaS and how you the reseller can profit from them.
Sign of the Times
POS resellers who don’t head into the HaaS and SaaS market are doing themselves a disservice and losing market share. According to Cisco’s Global Cloud Index for the period 2013-2018, 59% of all cloud workflows will be delivered as SaaS by the end of this year. The younger generation of buyers is shifting toward financing their purchases and enjoy the ability to upgrade to the latest models – much like car buying and technology – without breaking the bank.
Haas/Saas payment models are becoming more and more popular not just in the U.S., but around the world as well. According to the Economist Intelligence Unit, “Eighty percent of business buyers also want flexible payment solutions that can scale to suit their changing needs.”
Increases Customer Loyalty
By keeping these merchants on a HaaS or SaaS retainer it increases “stickness,” or retention. It also offers guaranteed receivables. Revenue is coming in every month as opposed to traditional business which could be hit or miss. For example, bringing in two SaaS deals at $48 per month will result in $1,176 at the end of 12 months.
By promoting monthly payments, you appeal to merchants who want the best bang for their buck in the short term rather than a long term investment. The merchants know what they are paying, whether it’s a 36 or 48 month contract, there are no surprises. They can buy the product at the end of the cycle or you can decide to keep it. Both the traditional business model and as a service models are important revenue streams, so think of it as adding another tool to your tool belt.
Ability to Bundle Services
Resellers who bundle their services with Haas and SaaS improve their marketability with merchants and give added value to their client’s business in the process. While HaaS provides hardware such as your terminal, drawer, cash drawer and printer, SaaS can provide another piece to the puzzle. In an article on financesonline.com, “The main beneficiaries, as expected, are small and medium businesses, which also have the best growth forecasts for 2018”.
Don’t be a dinosaur in this day and age, use HaaS and SaaS, combined with payment processing, company to bundle your services and increase sales.Back To Blog