How to monetize payments for SaaS platforms: The complete guide
Patrick Huynh
CEO
Monetizing payments can be one of the biggest untapped growth levers for SaaS platforms.
But if you’re trying to build a meaningful revenue stream from payments, it probably hasn’t been straightforward. You might be experiencing the following:
- You process hundreds of payments through your platform and are frustrated that only your third-party processor earns any profit from them.
- While you want to earn more revenue, your processing fees are already high, and you risk becoming uncompetitive if you increase them further.
- Your core focus is software, and you don’t have the resources to hire a payments expert just to make payments profitable.
- Without strategic guidance, you’re struggling to design a payment pricing structure that feels fair to your customers while driving growth.
There’s no single formula for monetizing payments, and with so many options available, it can feel overwhelming. To help you refine your strategy, this article will cover:
- Five ways to monetize payments as a SaaS
- What SaaS leaders get wrong about monetizing payments
- How Fiska helps SaaS companies monetize payments
Fiska was purpose-built to help SaaS companies embed and monetize payments. Book a call with our SaaS experts to see how we can help
Five ways to monetize payments as a SaaS
Here are five of the most effective payment monetization strategies for software companies: .
1. Mark up fees on your existing pricing
One of the simplest ways for SaaS platforms to monetize payments is by adding a small margin to each transaction processed through your platform.
For example, let’s say you use Stripe, which charges 2.9% + $0.30 per transaction. Here’s how a markup might work in practice:
- You add a 0.3% margin to each transaction.
- Your merchants now pay 3.2% + $0.30 per transaction.
- Stripe still charges you 2.9% + $0.30 to process it.
- The 0.3% difference becomes your revenue.
This model scales quickly: the more transactions your merchants process, the more you earn. That’s why it’s a common starting point for many SMB SaaS platforms.
But it also has its limits. Without a payments partner that offers revenue sharing, your margins will stay small, and increasing markups can make you uncompetitive to your customers.
Another option is to let merchants offset their processing costs through credit card surcharging, although this needs to be handled carefully to protect conversion rates and the customer experience.
Keep reading to learn how working with the right payments partner can unlock a far more profitable model.
2. Bundle payments into your pricing plans
Bundled pricing means including payment processing within a broader subscription plan, alongside other premium features, instead of charging for it separately. This model works especially well for vertical SaaS businesses because it simplifies billing and encourages merchants to use your built-in payments.
A good example of this approach is Mindbody, a business management platform for wellness companies. Mindbody includes integrated payments as part of its Starter plan. Users pay a single subscription fee, and Mindbody earns a margin on the payments processed within that bundled rate.
Bundling increases the perceived value of your payments, making customers see them as a premium feature rather than a utility. It also creates a strong incentive to upgrade plans while keeping pricing simple and predictable.
To make this model work, you’ll need a payments partner that can handle both the processing and the commercial setup behind the scenes, so you can focus on product and growth rather than payments complexity.
3. Charge extra for premium payment features
Another option is to charge an additional fee for advanced payment features such as instant payouts, detailed transaction reporting, or chargeback protection. Instead of relying solely on transaction volume, this model creates recurring revenue by packaging premium tools that users are willing to pay for.
For instance, you could offer automated recurring billing or integrations with branded mobile apps as paid add-ons to your core payments offering.
This approach lets customers build a plan that fits their needs while giving them room to scale into more advanced functionality as they grow. It’s a great way to increase revenue without raising transaction fees, though it’s best to keep your pricing options simple to avoid overwhelming users.
4. Embed payments into your platform
When you embed payments directly into your platform, you gain control over your pricing and can design incentives that drive user adoption.
One common approach is to charge an additional fee when customers choose an external payment provider instead of your embedded option. This not only encourages users to stick with your in-platform payments but also generates revenue from those who don’t.
For example, Shopify charges up to 2% in additional fees (depending on the plan) when merchants process payments through a third-party provider rather than Shopify Payments.
This model works best for small to mid-sized SaaS companies looking to grow payments revenue quickly while maintaining flexibility over pricing.
Read more: Embedded payment solutions for SaaS/ISVs: How to choose one
5. Share processing revenue with your payments provider
A revenue share model is one of the most effective ways to monetize payments without building the infrastructure yourself. In this setup, your embedded payments provider shares a percentage of their processing revenue with your SaaS.
Let’s say you serve the fitness industry:
- Imagine the cost of payment processing is 3%, and a gym makes a $100 sale through your platform,
- $2 of that sale is surrendered to the card network and you’re left with $1 in processing revenue,
- With a revenue share agreement of 50/50, your SaaS would receive $0.50 from your processor.
The more your merchants use your embedded solution, the more you earn, which creates a scalable, recurring revenue stream in addition to your SaaS subscription revenue. Even if you price at standard market rates like Stripe’s 2.9% + $0.30, you can still earn more revenue because your costs are more transparent.
Embedded payments enables you to generate meaningful payments revenue without becoming a PayFac or hiring a payments team. Your provider handles everything behind the scenes, allowing you to improve your software without worrying about payments.
What SaaS leaders get wrong about monetizing payments
We often see well-intentioned teams make decisions that seem right in the moment but end up hurting their brand and profitability in the long run.
Here are some of the most common monetization mistakes we see (and how to avoid them):
Thinking you need to become a PayFac
You’ve likely heard that becoming a PayFac is the “next step” if you want to monetize payments, but from what we’ve seen, it’s just not worth it for most SaaS platforms. The costs, risks, and overhead outweigh the benefits, especially early on.
Becoming a PayFac requires significant upfront investment just to get started (we estimate this to be around $150,000, plus the cost of at least one additional full-time hire). You’re also looking at regulatory approvals, dedicated compliance and risk teams, and ongoing operational management. For most SaaS companies, these resources are better spent on developing their core product.
What to do instead
Instead of becoming a PayFac, you can choose to embed payments into your platform, which gives you PayFac-level control without all the regulatory burdens. With embedded payments, you can still:
- Earn meaningful revenue from payments,
- Combine multiple monetization methods,
- Customize your merchant onboarding,
- Set your own pricing and markups,
- Show different prices to different merchants,
- Manage payout timing,
- Have full white-label control over your checkout experience,
To find out more, read: Why most SaaS platforms shouldn’t become a PayFac
Making your marketing all about your pricing
The less you talk about pricing, the better. When you talk too much about payments pricing (especially as a newer SaaS), it draws attention to cost instead of your product value.
Merchants want to hear how your SaaS helps them get paid faster, serve customers across channels, and save time, since that’s what they’re buying the software for. When you overemphasize pricing, you invite cost comparisons and neglect communicating with users about the most important part of your platform: your software.
What to do instead
Instead of advertising your pricing, highlight the outcomes of using your software. Better workflows, higher conversion rates, and better merchant ROI: that’s the real value that your merchants care about.
You could consider packaging payments into your SaaS fee or product experience, since this will help blend your payment and product offerings into one. It makes payments feel like a built-in feature, which drives higher adoption, reduces price sensitivity, and makes your platform stickier in the long run.
Read more: What you need to know about pricing models in payments
Assuming lower pricing is more attractive to merchants
It might sound counterintuitive, but “cheaper” doesn’t necessarily mean “better” in the eyes of your merchants. In fact, offering a marginally lower rate rarely moves the needle.
For example, a merchant processing $300K a year would only save around $200 if their payment processing rate dropped from 2.9% to 2.7%. Those 20 basis points aren’t enough to justify the hassle of switching platforms.
What to do instead
Don’t compete on price: compete on value. Merchants care far more about reliability, clear communication, and great support than saving a fraction of a percent.
Instead of trying to undercut competitors, focus on what actually improves their experience:
- Reliability: consistent uptime and fast settlement times.
- Transparency: straightforward pricing that helps merchants forecast costs.
- Support: real people who can resolve issues quickly.
- User experience: an intuitive, automated payment flow that saves time.
You can also build trust by being upfront about your pricing model. For example, consider using interchange-plus pricing or publicly listing your fees alongside Visa and Mastercard’s interchange rates. When merchants understand what they’re paying for, they’re far more likely to view your platform as a dependable long-term partner: not just another provider.
If your provider isn’t available to give strategic support, you might want to consider switching. Read our guide to picking the right payment provider as a SaaS for more information.
How Fiska helps SaaS companies monetize payments
We set up Fiska to help software platforms embed and monetize payments through our revenue share business model.
Our team has a collective 50+ years of experience working in payments, and we’ve helped countless SaaS companies earn meaningful revenue from their payments offering while staying competitive. We share our expertise with you so that you don’t have to become a payments expert, and we’ll help you set pricing that aligns with your customer expectations.
Here’s what you get when you partner with Fiska:
A sustainable way to monetize payments with revenue share
At Fiska, we operate on a true revenue share business model, which means we only make money when you do. We’ll share a portion of our processing revenue with your SaaS, giving you a guaranteed monthly revenue stream from payments.
Our cost basis is based on true interchange, and we utilize the transparent, publicly available rates set by Visa and Mastercard to ensure you generate a profit on every transaction. We do this in the spirit of partnership, and it incentivizes us to help you earn as much payments revenue as possible.
We don’t dictate how you set your pricing, although we offer our strategic advice. Choose from fixed rate, interchange-plus, or blended models, and add any combination of monetization techniques to your pricing. Add your own markups, charge for premium payment features, and set higher prices for specific merchants.
Additionally, we don’t charge platform fees. All pricing and fees are clearly defined in your partner agreement, and there are no hidden costs or unexpected changes. You’ll never be charged a fee you haven’t approved.
To learn more about how our revenue share can benefit your SaaS, check out why Fiska doesn’t charge fees (and how our partnership model works)
A partner that supports you with your payment strategy and acts as a fractional Head of Payments
There’s a lot of advice out there on monetizing payments, and sifting through it all can get very confusing very quickly. Do you need to become a PayFac? Should you settle for a fixed payments markup and ignore interchange fluctuations? Where can you speak to a payments expert?
When you work with Fiska, we’ll give you strategic advice that’s tailored to your SaaS.
Think of us as your fractional Head of Payments. We’ll take the time to show you how payments work, put together a payments strategy, and share recommendations on what pricing model might work best for you. We’ll reach out if anything looks wrong, and will schedule regular check-ins to ensure we stay up-to-date and have opportunities to share our expertise. You can call or Slack us with questions anytime, and we’ll always respond within 24 hours or faster.
The ability to monetize payments within weeks with our easy-to-integrate API
Embedded payments can be complex. You often have to manage multiple integrations, navigate compliance and certifications, and make sure all these moving parts are well-maintained. It’s a time-consuming process, especially if you’re using more than one method of monetization.
With Fiska, you only need to integrate and maintain a single omnichannel payments API. That means you can implement your monetization model once and have it apply automatically across every payment channel (both card-present and card-not-present). Adding a new channel at a later date is easy since you don’t need to implement any more major integrations. This lets you scale revenue as your payment volume grows by adjusting margins and monetization methods in real time. It also simplifies maintenance and keeps every payment channel profitable.
Fiska handles the certifications, licenses, and payment network partnerships for you. Our platform is pre-integrated with major terminals and pre-certified across all networks, so you can start accepting and monetizing payments with a single integration. It’s easy and fast to set up since we provide a dedicated developer to assist you. You won’t have to hire an entire payments team or struggle through self-help documentation.
Ready to work with Fiska? Get in touch with our payments experts today.
Monetize your payments with Fiska’s revenue share and benefit from a true long-term partnership
Fiska makes it easy to earn from payments with our guaranteed revenue share, which in our experience is the most effective, transparent, and scalable way to monetize payments without the complexity of becoming a PayFac.
When you partner with Fiska, you don’t have to become payment experts (or make any expensive hires) since our team provides hands-on guidance and strategic support. We handle compliance, settlements, and risk management, so you can stay focused on building your SaaS.
Ready to get started with Fiska? The first step is to book a call with our CEO so we can figure out the best way to help you earn meaningful revenue from payments.
FAQs: Monetizing payments as a SaaS
1 | What’s the best way to monetize payments as a SaaS?
For SaaS platforms just starting out, marking up existing processing rates is the simplest way to generate revenue from payments. However, the most effective approach combines multiple revenue models — for example, adding a small markup to transactions while also earning through a revenue share. Learn more about alternative revenue models for SaaS platforms.
With Fiska, you can do both. This creates two streams of income from every transaction, increasing your recurring revenue while making your software platform more valuable and harder for customers to replace within their ecosystem.
2 | How can Fiska help me earn more revenue from payments?
Fiska lets you share in the revenue generated from every transaction processed through your platform. Because Fiska uses interchange as the base cost for transactions, you can match Stripe’s processing rate of 2.9% + $0.30 and still earn more.
Beyond the infrastructure, Fiska provides strategic guidance to help you optimize your payment monetization strategy. This includes identifying opportunities to streamline pricing, adjust markups, or qualify merchants for lower interchange categories. The result is a scalable payment experience that drives long-term revenue growth.
3 | If I monetize payments, will I risk my merchant churn rate increasing?
Not if it’s done strategically. Merchants are already familiar with benchmark rates like Stripe’s 2.9% + $0.30, so adding a small markup may seem risky. But with Fiska’s model, you can remain competitive and still earn additional revenue.
By basing rates on interchange and automating much of the payment process, Fiska helps you offer transparent pricing and a smoother user experience. This improves customer retention and loyalty, creating a stickier product and reducing churn over time.
4 | Is it worth it for my SaaS to become a PayFac?
Becoming a payment facilitator (PayFac) is rarely worth it unless you’re an enterprise-level wSaaS. It’s expensive, complex, and requires you to handle compliance, underwriting, and fraud prevention in-house.
For most SaaS businesses, partnering with a provider like Fiska offers the same revenue potential without the operational burden. Fiska manages compliance, risk, and settlements behind the scenes, giving you PayFac-level control and automation without the overhead — so you can focus on growing your core software platform.
5 | How do I know if my SaaS is ready to monetize payments?
There’s no fixed threshold for when to start monetizing payments. You can begin as soon as you start processing transactions through your platform. If you’re scaling and want to unlock new revenue streams, now is the time to start.
Fiska helps SaaS platforms of all sizes embed and monetize payments sustainably. You’ll receive expert guidance to build a payments strategy that grows alongside your business, enhances your payment experience, and increases customer retention over time.
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