We spend around $20,000/mo in dozens of SaaS platforms that are key to the functionality of our products. On Fridays. we share and discuss one of our favorite ones, followed by a brief discussion on how your company can leverage it a well.
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This week we talked about Stripe, our billing processor. Stripe along with Square are the two main billing processors for startups. While Square focuses on point of sale devices, Stripe is mostly used for digital purchases.
A few notes:
Stripe is one of the two main reasons while a foreign startup should consider incorporating in the US, there’s simply no better and more secure payments processor. I mean that (the second reason being raising money from US investors).
They charge a $0.30 + 2.9% fee for each transaction, which is as low as it gets for credit card charges.
They are perfect for SaaS companies, because they’ve built the subscription system. You can create plans and Stripe bills them monthly, automatically. They also have recovery emails for failed payments.
They recently launched a feature called Radar, that protects you from people using stolen cards. Believe it or not, it happens with come frequency.
Finally, they also integrate with shops like Squarespace and Shopify, so if you are building an online store, you also get to use their low fees.
If you're looking to support customer who want to use PayPal too, I hear there's no direct integration with Stripe. You'd have to use Zapier or automate.io?
No, Paypal is a separate thing in this case, consider it a Stripe competitor, actually.
In certain geos and especially for ‘unknown’ brands, customers do request PayPal. We got that on the early stages of Slidebean, mainly with customers outside the US, but we don’t get any requests anymore,
To do PayPal you need to integrate it as well, as a separate platform.
This is a functional model you can use to create your own formulas and project your potential business growth. Instructions on how to use it are on the front page.