When the topic of payments or payment processing comes up, most people think of it as just a necessary cost of doing business or a non-negotiable line item on their expense report.

And while that’s true to an extent (processing payments does indeed cost money), payments don’t have to be a pure cost center. They can actually play a much bigger role in how your business grows and operates.

When leveraged the right way, payments give you a massive advantage, both in terms of driving revenue and reducing operational costs.

Here’s how modern businesses can unlock the full value of payments.

Payments as a revenue driver

If your business offers financial services like payment processing, payments can become a meaningful, recurring source of revenue.

This is quite common in businesses that provide software as a service.

For years, SaaS companies focused on monthly subscriptions as their primary revenue stream. But as embedded finance has matured, payments have become one of the most lucrative—and scalable—revenue engines.

Smart SaaS companies recognize that embedding payments into their software enables them to monetize transactions, create stickier customer relationships, and provide more value to their users. With embedded or integrated payments, they capture a share of payment economics and deliver a more integrated merchant experience.

If you’re a software company looking to drive value from payment processing, consider the following steps:

Make payments a default, not an add-on

Want to get users to adopt your payment offerings? Make your payment solution the default. Doing so ensures maximum revenue capture while giving merchants a streamlined setup experience. Position payments as the standard choice built into the core workflow, not an optional upgrade.

Reduce friction in merchant onboarding

Accelerate approvals with automated underwriting, intuitive interfaces, and clear documentation requirements. The faster merchants go live, the faster both the SaaS platform and the merchant begin benefiting from transaction volume.

Price for simplicity and predictability

Avoid complicated fee structures. Offer transparent pricing that merchants can easily understand and forecast. Aside from streamlining workflows, a simple, predictable pricing structure can also reduce support inquiries.

Build payments into the SaaS value proposition

Integrated payments enhance the customer experience. Be sure to market and advertise the benefits of integrated or embedded payments. Moreover, opt for an embedded payments provider like Stax Connect, who offers integration support. Think: faster checkout, fewer errors, unified reporting, and stronger insights.

Make reconciliation and reporting world-class

Merchants expect clean, accurate, and real-time reporting. Give your sub-merchants a better experience by automating reconciliation and unifying payouts. Additionally, provide visibility into every payment to reduce financial admin and build trust.

Offer value-add fintech products

Services like instant payouts, capital advances, invoicing tools, or fraud management not only unlock new revenue streams but also help merchants solve real operational challenges.

Align sales and support around payments

A strong commercial support ensures adoption continues after onboarding. So, see to it that your teams are well trained around articulating payment benefits and communicating confidently with prospective and current merchants.

Monitor the right KPIs

Key metrics include: attach rate, activation rate, transaction volume per merchant, payment acceptance mix, churn correlation with payments adoption, and average margin per transaction. High-performing SaaS companies track these consistently to optimize pricing, onboarding, and product decisions.

Payments as a cost saver

On the flip side, payments can significantly reduce costs for merchants. The right payment setup doesn’t just keep transactions flowing smoothly. When you have solid payment partners and systems, you can save money through lower processing fees and streamlined operations.

Choose the right pricing model

Opt for transparent structures that help merchants avoid unpredictable markups, keep fees consistent, and protect margins, which is especially important for businesses with high transaction volume.

And if you’re a SaaS or ISV, owning the payments experience lets you standardize pricing, cut out unnecessary middlemen, and turn payment efficiency into a built-in advantage for your platform.

Automate reconciliation and financial reporting

Manual reconciliation consumes labor hours and opens up room for human error. Integrated payments automatically sync transaction data across POS, accounting, and inventory systems. All of that can reduce admin time and improve financial accuracy.

Optimize payment acceptance methods

Certain types of transactions—like keyed-in payments or corporate cards—come with higher processing fees. As such, encourage tap or chip-based payments where possible. In doing so, you can lower your effective rate per transaction without impacting customer experience.

Leverage integrated hardware and software

A unified setup reduces maintenance costs, prevents mismatched systems, and minimizes downtime. Merchants benefit from fewer service calls, simpler troubleshooting, and a checkout experience that’s more reliable and efficient.

Use real-time insights to prevent fraud and chargebacks

Strong fraud detection tools and unified transaction histories make it easier to spot anomalies before they become losses. Reducing chargebacks protects revenue and helps maintain lower processing rates over time.

Final words

When approached strategically, payments transform from a cost center into a powerful growth engine. Embedded solutions help SaaS companies unlock new revenue streams, while integrated payment systems reduce operational expenses for merchants. Integrated payments technology, like that offered through Stax Connect, drives payments-led growth and unlocks a seamless end-to-end experience. With the right pricing model, automation, and insights, businesses can strengthen margins and improve the customer experience.

The bottom line? Rethinking payments isn’t just a financial decision—it’s a competitive advantage.