For those of you playing from home you will recall my previous post on the fees in B2B transactions that nobody is talking about.
Well, as it turns out…people are starting to talk about them, and as the blog suggests the whole concept of what is best practice when it comes to B2B transactions is coming under scrutiny.
So it begs the question: While the incumbent giants PayPal and Stripe seem to excel in invoicing and billing, are they the best solution to handle transactions?
We at Baremetrics are lucky enough to have a collaborative and supportive customer base, with whom we’ve been experimenting on better ways to handle transactions that result in a win-win outcome.
One process we’ve been experimenting with is through leveraging our mutual relationship with a fintech platform called Mercury to handle transactions directly, and therefore less expensively.
A better way of processing B2B transactions
Packagecloud is an enterprise-grade software package management solution that offers a unified, developer friendly interface for all of your artifacts written in any language, delivered to any infrastructure. Packagecloud has been a valued Baremetrics customer since 2015, taking full advantage of the Baremetrics toolkit including Metrics, Recover and Cancellation Insights.
Like Baremetrics,Packagecloud is a Mercury customer. This presented an opportunity to trial a new and unique way for Packagecloud to pay for their Baremetrics subscription. For those unfamiliar with Mercury, Mercury is a fintech platform geared towards supporting startups and offers an API for every account. The provision of an API essentially turns Mercury into a headless banking platform that unlocks any number of automations and customisations.
By utilizing these automations we were able to write a small snippet of code that seamlessly allows Packagecloud to set up an automated payment to Baremetrics via their respective Mercury accounts.
While at first it may just look like a standard ACH transfer, the ability to subsequently automate this transaction and offer it as a checkout payment option opens up a world of opportunity to effectively subvert unnecessary fees.
Why does this make sense?
In utilizing an automated transfer to Mercury, we can immediately reduce COGS associated with credit card transactions and pass the savings on to our customers who choose to use this payment method.
We are still ironing out kinks with how we reconcile the payment ID against an invoice, and how to detect fraud, but we are excited to continue to work towards giving our customers a more efficient way to pay for their Baremetrics subscription.
Like with everything we do, Baremetrics exists to help founders, entrepreneurs and product pioneers achieve their purpose. We can do this by helping them “make more” in every facet of their business: Make more informed marketing decisions through deep customer insights, make more prudent decisions when forecasting upcoming expenses, and overall make more revenue by utilizing rich, user-friendly dashboards that detail the very lifeblood of your business.
Book some time with our revenue experts today to find out how we can help you make more and achieve the very purpose you have set out to achieve.