A report states that, by the end of 2022’s fourth quarter, 48% to 50% of the companies will, on average, have SaaS contracts with one-year terms. The length and duration of sales contracts vary amongst different organizations. However, 13% of the businesses have annual or monthly contracts. Moreover, 11% have 3–5-year SaaS contracts. These numbers indicate that there are numerous recurrent billings taking place globally.
According to a forecast by investment bank UBS, the subscription market will reach roughly $1.5 trillion by 2025. The ongoing payments market is growing tremendously. It doesn’t seem to stop soon for the expansion of SaaS payment trends (considering the average corporate organization running over 400+ software applications).
It’s a dream come true to have a crystallization when forecasting the diversification of SaaS payment trends and customer behavior. All SaaS CEOs know this will change, especially in light of the pandemic’s dramatic change in consumer personalization.
Here, we have created a thorough list of online payments trends and advancements that will inevitably affect the SaaS payment trends, industry, and enterprises in 2022. So, let’s discuss the global SaaS payment trends in 2022.
1- Upward Graph of Subscription Model
According to estimates, more than 38% of businesses use SaaS platforms for practically all of their operations. By 2025, about 80% of firms expect to use every SaaS payment trend and pertinent product. It’s undeniable that subscription models are gaining popularity all over the world. Through SaaS, virtually any organization may use a paid subscription business model.
Owners of businesses rapidly discover that recurring income streams and subscription models tend to deliver predictability, while users of SaaS products are aware of their adaptability, accessibility, and simplicity. For instance, Square also provides a variety of subscription-based payment acceptance options. This enables Square to process subscription-based payments online by integrating add-ons like WP EasyPay. Moreover, you can anticipate the rise in popularity of the subscription model and the introduction of several SaaS payment trends in 2022.
2- SaaS for Work From Home
SaaS products have been crucial in creating support systems for workers who do their work at home. Thanks to cloud markets and technologies, workers may seamlessly collaborate from anywhere globally. Additionally, SaaS companies are anticipated to give continuous infrastructure support for remote workers. With the SaaS industrial development more workers will work remotely.
3- Customers Require Flexible Payment Options
Convenience is today’s only priority. It is 100% true in the payment sector too. Users will need a payment method and usually know the options that best suit their needs. American Express and MasterCard are top-tier payment options, even though these preferences have historically varied among nations and areas. For instance, AliPay is highly popular in China, whereas Giropay and PayPal are used in Germany.
Additionally, the possibilities continue to expand and now include direct debits, bitcoin, card payments, and online wallets. Digital or mobile wallets were used to pay for 49% of all eCommerce expenses in 2021, making them the most widely used form of online payment worldwide.
ACH debit payments are also expanding quickly because they are thought to be more cost effective for businesses than credit card payments and require minimal push or effort from their customers. Companies must make their payment approach adaptable to go hand in hand with the recent and updated developments and the shifting needs of customers.
4- Friction-less Payment – Every Consumer’s Demand
Customers frequently select digital goods depending on how simple it is to pay for and receive them. Reports indicate that 50% of users would switch transit service companies for a simple and seamless payment journey. Thus, companies must remove as many barriers as possible for these clients. SaaS organizations must constantly update and improve payment systems because performance and effectiveness go hand in hand.
Frictionless payments are characterized by a rapid and efficient checkout process, minimal effort and a lower cognitive level. Customers also want to experience the diversification of payments, including single-tap payments, digital wallets and automatic renewal. SaaS payment trends should eventually be supported seamlessly across the entire client journey.
Security is one of the key priorities for subscription firms, SaaS, and market regulators. SCA/3DS and PSD2 need to enhance consumer permission to lower risks. Even though these procedures are quite helpful, the SaaS creators have noted a lower conversion rate. You must, however, put up with the difficulties and follow through. Since there are no selectable tasks, SaaS-based solution providers must strike a balance between compliance and consumer vulnerability.
5- Customers Like Niche-Based USPs
With 15,000+ active users, the United States reportedly boasts the greatest number of SaaS enterprises internationally. There are participants from around the world in the competition, which is fierce. Let’s say you wish to be noticed in the fiercely competitive global markets. In that situation, you must strengthen your USP and concentrate on ensuring the success and pleasure of your clients.
Through it, the major means of enhancing client retention and sustaining revenue development. The best course of action would be to identify what makes you unique from the competition, constantly highlight your strengths through effective marketing strategies, identify the needs of your users so that you can analyze their data, and then use that data to attract your ideal customers.
As a result, the research above emphasizes how SaaS product trends will gradually become more competent and successful in 2022. These SaaS payment trends demonstrate the necessity for a full-service, reputable provider of payment solutions with advanced security metrics, secure and intelligent market-driven data analysis, automated solutions, frictionless payment options, and cutting-edge infrastructure.