How Do SaaS Companies Actually Make Money from Payments?

Picture this: You’re building an awesome SaaS tool—maybe for managing booster clubs (like BoosterHub) or for streamlining medical offices (like PracticeSuite). You’ve nailed scheduling, workflows, and analytics. But then you think, “Why not also offer payments to our users?” For example, PracticeSuite doesn’t just help medical offices automate appointments—it also gives them a built-in way to collect payments from patients directly through the PracticeSuite platform. It’s a powerful value-add that makes your software more useful and opens up a new stream of revenue. Let’s explore how SaaS companies are monetizing embedded payments, how big this opportunity really is, and what providers make it easy (and profitable).

The Hidden Revenue Machine: Payment Residuals

Most SaaS platforms that offer payments earn what’s known as payment residuals, also referred to as revenue share.

According to an advisory from Maxwell Locke & Ritter, SaaS companies can earn anywhere from 20 to 60 basis points (0.2%–0.6%) per transaction processed through their platform. That might sound small, but let’s do the math:

If your users process $100 million annually through your platform, a 0.4% revenue share earns you $400,000—on top of your subscription revenue.

That’s the beauty of embedded payments: your customers gain convenience and control, while you gain a passive, scalable revenue stream.

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SaaS Platforms Already Cashing In

This isn’t theory—some of the biggest names in SaaS are already making the majority of their revenue from payments.

According to Goldman Sachs and Fast Company, platforms like Bill.com and AvidXchange generate over 60% of their total revenue from payments, not software fees. And Shopify, which started as a simple ecommerce SaaS, now earns more from payments (via Shopify Payments) than it does from monthly subscriptions.

The trend is clear: embedding payments is a smart monetization strategy that’s become table stakes for platforms that want to grow fast.

Why Embedded Payments Work So Well

Let’s break down why this works:

Usage-based growth: Unlike flat subscription fees, payment revenue grows alongside user adoption and transaction volume.
Built-in monetization: You don’t have to raise prices to increase your revenue. Payments create a parallel revenue stream without causing sticker shock.
Greater platform stickiness: When your users can handle scheduling, invoicing, and payments all in one place, they’re far less likely to churn.

In a recent academic paper published by Springer, researchers noted that:

“Usage-based pricing models align a provider’s growth with customer success, increasing both revenue potential and long-term retention.”
— SpringerLink, Software Product Management and Pricing Models

In other words: more usage = more transactions = more revenue.

The SaaS Market Is Booming—And So Are Payments

The global SaaS market is on a rocket ride. Valued at $261.1 billion in 2022, it’s expected to reach $819.2 billion by 2030, according to Fortune Business Insights.

Combine that growth with the rise of embedded finance, and you’ve got a recipe for explosive monetization.

A few more stats worth noting:

Public SaaS companies average 36,000+ customers
Retention rates for private SaaS companies range from 100% to 104%
Shopify Payments processed $135 billion in 2023 alone, earning Shopify billions in transaction fees

If you’re not tapping into payment revenue yet, you’re leaving serious money on the table.

Revenue Models: How It All Works

There are several ways SaaS platforms can earn from payments:

Flat Revenue Share

The payment provider gives you a fixed cut (e.g., 0.4%) of every transaction processed through your platform.

Markup Model

You set a higher transaction fee for your users than the base fee charged by your provider, and keep the difference.

Tiered Share

You earn a higher revenue share as your users process more payments—great for growth-stage platforms.

This revenue is typically categorized as usage-based income rather than recurring MRR, but can still be forecasted with confidence as transaction volume becomes more predictable.

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Compliance, Trust & Platform Value

If you’re in a regulated industry—like healthcare or finance—offering a compliant payment experience inside your platform is a huge value-add.

For example, PracticeSuite doesn’t just offer appointment automation; it enables medical offices to collect patient payments in a HIPAA- and PCI-compliant environment, directly within the platform. That’s more than convenience—it’s peace of mind.

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The Best Payment Provider for Revenue Sharing

So who are the top players helping SaaS platforms earn from payments?

Usio

Excellent for platforms in healthcare, government, and non-profits
Offers embedded payments, ACH, disbursements, print-and-mail, and prepaid card issuing
Usio partners often earn $60k to $850k annually in payment revenue share
Fully PCI Level 1, HIPAA, and Nacha compliant

What to Do Next

Ready to get started? Here’s a quick roadmap:

Identify your payment flows: Where in your platform do transactions naturally happen?
Choose a payment partner like Usio: Evaluate options based on your industry, compliance needs, and desired revenue share.
Build with monetization in mind: Make payments a core part of your UX and value proposition—not just a utility.

Final Thoughts

Adding embedded payments to your SaaS platform isn’t just about convenience—it’s about creating a new business model. You’re transforming from a software vendor into a payments-enabled ecosystem.

If Shopify, Bill.com, and PracticeSuite have taught us anything, it’s that the most successful platforms think beyond software—they think about transactions, user experience, and long-term value.

So don’t just build tools. Build revenue streams. Offer payments inside your platform. Help your users get paid—and get paid for helping.