HaaS, SaaS are Game Changing Services for Resellers

Concepts like Hardware as a Service (HaaS) and Software as a Service (SaaS) are changing the payment processing landscape. HaaS and SaaS work similarly to a rental, where you charge merchants 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.” As a reseller, you can benefit by bundling your services and providing an all-encompassing product for your merchants.

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. The younger generation of buyers is shifting toward financing their purchases and enjoying the ability to upgrade to the latest models – much like car buying and technology – without breaking the bank.

HaaS and 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 

Keeping merchants on a HaaS or SaaS program increases “stickiness” or retention. It also offers guaranteed receivables. With this method, revenue comes in every month as opposed to traditional business dealings, which can cause inconsistent income. For example, bringing in two SaaS deals at $50 each per month results in $1,200 of passive income 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 each month and how long the terms of the agreement are for, so there are no surprises. They can buy the product at the end of the cycle, or you can offer them an upgrade. Both the traditional business model and the service models are significant revenue streams, so it doesn’t hurt to try both strategies.

Ability to Bundle Services 

Resellers who bundle their services with HaaS and SaaS improve their marketability with merchants and add value to their clients. While HaaS provides hardware such as your terminal, cash drawer, and printer, SaaS certainly provides the other piece to the puzzle.

Don’t be a digital dinosaur in this day and age. Instead, try offering HaaS and SaaS programs combined with payment processing to bundle your services and increase sales.

EVO offers partners a pass-through collections program for HaaS and SaaS fees, so they can spend less time chasing down payments from merchants and more time running their businesses. Contact us to learn how.

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