Why Should You Use Split Payments?

In the fast-paced world of B2B software, prompt and efficient payment processing is on every vendor’s wish list. Getting paid in a timely fashion is essential for maintaining financial stability, optimizing cash flow, and sustaining growth. To address these challenges head-on, SaaS businesses and B2B software companies need to prioritize an integrated payment solution that offers split payments, like Tilled PayFac-as-a-Service. Let’s look at what split payments are, and how they enable software companies to gain greater financial control and accelerate their revenue.

What are Split Payments?

First things first, in the payment processing landscape, you might find there are a few different ways to define “Split Payments.” For this article, we’re using the definition that applies to the functionality in Tilled PayFac-as-a-Service. Tilled makes it easy for B2B software companies to not only integrate payments but pocket some of the processing revenue made off transactions through a healthy revenue share.

Now here’s where split payments come in. With Tilled’s flexible pricing structure, B2B software vendors can choose to apply a small platform fee to every merchant transaction.

Upon processing a transaction, the platform fee and the charge amount will be “split” up, as they will be paid to different bank accounts. At this point, a few things happen:

1. The merchant's account is credited with the charge amount.
2. Revenue from the processing fee is deposited into the partner's revenue account with Tilled. Because of the nature of this fee, 100% of the fee revenue goes back into the ISV’s pocket -- nothing in ours. 
3. Tilled pays all ISV partner commissions in full at the end of each month. 

Enhancing Financial Control and Accelerating Revenue with Split Payments

Split payments with Tilled PayFac-as-a-Service presents a unique advantage for B2B software platforms to gain greater control of their margins and maximize profitability. By tailoring Tilled’s platform fee to suit your specific requirements, you can amp up the total revenue you generate from payments, giving you the financial ability to make better business decisions, like adjusting your pricing strategies or expanding operations.

Plus, Tilled's split payment model allows you to get your money quickly, with commissions paid to you monthly. As a B2B software business that likely prioritizes cash flow, we assume an accelerated revenue stream doesn’t sound too shabby. By accessing funds sooner, you can reinvest in your business, strategically allocate resources, and fuel rapid growth. From expanding product offerings to ramping up marketing efforts and investing in cutting-edge technology, Tilled's split payments give you the edge to seize new opportunities and outpace the competition.

The Combined Power of Tilled and Basis Theory 

In the SaaS industry, cash flow and financial stability are essential for success. The good news? You don’t have to navigate this challenging terrain alone. The combined power of Tilled PayFac-as-a-Service and Basis Theory can benefit your B2B software business in several ways beyond just financial optimization.

Tilled PayFac-as-a-Service makes it incredibly simple to integrate payments, onboard merchants, and rake in revenue from those transactions. Meanwhile, Basis Theory delivers cutting-edge security and compliance solutions, ensuring that your merchants’ sensitive data is safe and sound and that you stay in line with all those pesky regulatory standards.

By combining these two platforms, you can enjoy a secure payment process that accelerates revenue cycles. With customized platform fees, fast commission payouts, and top-notch security measures keeping your payment process running at peak performance, your SaaS business can focus on what it does best – delivering exceptional software solutions to your customers. 

Next steps:

• Learn more about Basis Theory here
• Learn more about Tilled PayFac-as-a-Service here