Software as a service (SaaS) is a significant part of the global software market, making up one-third of it, and is making an impact across various industries, including payments.
New fintech companies leverage SaaS for swift product launches without significant initial infrastructure investments or compliance-related delays. Established players are embracing SaaS to quickly launch products and services without disrupting existing operations.
But SaaS does come with a caveat. Companies are wary of sacrificing the freedom to offer unique, differentiated solutions for the sake of convenience and savings. A company’s business vision may be stifled if their SaaS vendor restricts them to standard functionality and services.
In response to these concerns, dedicated SaaS solutions, such as those offered by global payments software provider OpenWay, provide an alternative.
The Way4 digital payments platform can be run in a dedicated SaaS model with a certified operational partner. This gives payment companies more control and the creative freedom to take advantage of new payment openings in the market and realize their unique business vision.
What is dedicated SaaS?
Dedicated SaaS involves a specialised hosting infrastructure reserved for the client, distinct from shared SaaS, which offers a standardised platform shared among multiple users.
While shared SaaS limits customisation, dedicated SaaS allows for a high level of product configuration and service individualisation where functionalities and underlying technologies can be tailored to a company’s needs, increasing ROI.
Although shared SaaS is suitable for less critical service differentiation, dedicated SaaS is pivotal for businesses aiming to offer unique products or services, since customisation can align precisely with specific business requirements, also the business logic, user interface, feature modifications, and unique business workflows.
API integration with other software systems allows preferred providers to be selected for different service components. This fosters differentiation and the exploration of new partnerships, all without substantial upfront investment.
How dedicated SaaS gives the flexibility to grow quickly in new payment areas
Source: Freepik
Dedicated SaaS enables banks, processors, and ambitious fintechs to transition from capital expenditure to operational expenses. This shift allows for increased financial flexibility, predictable costs, and optimised resource allocation, catering to businesses of varying sizes.
By offloading infrastructure management, maintenance, and support to SaaS providers, companies concentrate on core competencies and align costs with actual usage, and also reduce reliance on specialised expertise. Launching projects through dedicated SaaS streamlines market entry, enabling rapid expansion into new payment offerings.
In time, companies might want to bring certain operations in-house. With flexible implementation, SaaS providers facilitate partial or complete transitions, helping develop expertise for managing on-premises operations.
OpenWay’s Bring-Your-Own-License model enables customers with pre-purchased Way4 licenses to benefit from reduced recurring fees, offering significant flexibility for future on-premise management.
Since Way4 can be run both in the cloud and on-premises, businesses can leverage a combined approach for increased speed and scalability.
Streamlined service delivery enhances speed-to-market and cost-effectiveness for launching innovative payment products such as BNPL, multi-channel acquiring, embedded finance, Card-as-a-Service, A2A, digital wallets, and instant payments, which require seamless integration with other business systems and partners.
Through comprehensive online data exchange facilitated by robust APIs and streaming technology, Way4 anticipates and supports the evolving needs of businesses.
How to select the right dedicated SaaS provider
Since dedicated SaaS market for payments is just emerging, evaluating providers can be challenging. Here are some areas:
Flexibility and platform quality. To give maximum flexibility, first, a dedicated SaaS platform must be rule-driven and highly configurable. This allows banks and processors to quickly configure unique products and services and release them to the market. The range of functionalities available must also be rich enough for maximum creativity and innovation. Logically, the vendor who fulfills these criteria must also itself have a proven track record of speedily implementing innovations.
Cost reduction. Compare the shift from CapEx to OpEx with potential on-premise costs, including hardware, data center setup, technical resources, and license fees. Inquire about volume commitments, transaction costs, additional service fees, and the potential for expanded functionality without extra development.
System administration. With Way4 Dedicated SaaS, the provider manages the environment, platform, and database, while the client handles accounting, customer service, fraud management, and support for client’s own on-premise systems.
Talent and skills. Ask how much the provider organisation can train your team, mitigating the need for additional hires for administrative and operational support.
Security. Dedicated SaaS significantly reduces data leakages and unauthorised access, ensuring data isolation for each customer. Professional management by the SaaS provider team is vital, including continuous updates, data redundancy, secure data transmission, and compliance with stringent industry standards.
Compliance. A reliable dedicated SaaS provider should ensure compliance with regulations such as GDPR, PCI DSS, PCI SSF, PCI PIN, and PCI 3DS, addressing your specific guidelines for open banking, data protection, and payment standards.
The impact of leveraging dedicated SaaS
Combining on-premise and SaaS approaches enhances speed and scalability during migration or new business model launches. Dedicated SaaS reduces maintenance, leveraging existing resources for product development.
A reliable vendor should offer flexible implementation, support, and personalisation, integrating seamlessly with legacy systems. Considering dedicated SaaS could support business growth, helping to realise ideas and expand opportunities.
Find out how OpenWay’s dedicated SaaS solutions can support your payment organisation’s strategy here.
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- Source: https://fintechnews.sg/87711/payments/what-is-dedicated-saas-and-how-is-it-reshaping-payments/
