Payment Processing News Blog

• SaaS Billing Market Continues Growth

  According to research firm Gartner, revenues from Saas billing will be $7.5 billion worldwide for 2009, a 17.7% increase from 2008 revenues of $6.4 billion. While this is moderately impressive, keep in mind that we are at the very beginning of the growth in the software as a service market. Recurring payments with SasS billing will reach tidal wave proportions in the coming years. By 2013, a scant 3 years from today, the SaaS billing marketer will be over $14 billion. The content, communications and collaboration and customer relationship management segments are the largest SaaS billers. For example, the customer relationship management applications account for about 24% of the market. But, other software application markets will experience rapid growth in the coming years and SaaS billing becomes the de facto recurring payment option for software. Software vendors are pushing the SaaS billing model heavily which will increase demand as software partners resellers, and affiliates begin to embrace the recurring payments model. The development of platforms as a service model is another extension to SaaS billing which will expand the market even further. - 3 days ago

• Mobile Billing for Digital Goods

  Jupiter Research released a new study on mobile payments which includes the following forecast for the future of mobile billing: • More than 2 billion mobile phone users will have purchased virtual goods by phone by 2013. Virtual goods include music, tickets, TV, information, entertainment and games.• Digital content and virtual goods will continue to be particularly important in the under 35 age group.• Mobile buyers will make at least 2 payment transactions per month by 2013. • Nearly half of all mobile phone users will have bought digital goods at least once with their phones by 2013. • Western Europe, and the Far East and China will account for over 50% of the total digital goods gross transaction market. • Transaction sizes will remain low, with average tickets in the $3-$5 range.• Gross transaction value will grow nearly seven fold by 2013. - 2 weeks ago

• Fear Leads to Shopping Cart Abandonment

  According to Marketing Sherpa, 58% of consumers abandon their online shopping carts before completing the purchase. In other words, the shopper has taken the time and effort necessary to search through the retailer’s site to find products, places the products in the cart, proceeds to the checkout page, and then decides not to buy. A merchant will never totally eliminate shopping cart abandonment. There are lots of shoppers that are simply shoppers and not really buyers. Still, businesses must do whatever possible to understand the reasons for shopping cart abandonment and do whatever possible to encourage the purchase of items in the cart. Marketing Sherpa reports that 49% of consumers abandon shopping carts out of fear of identity theft, while 53% do so out of fear of sharing personal information online. Yankee Group says that 44% of consumers are less likely to trust an internet merchant with their personal information than they were a year ago. And according to the Ponemon Institute 36% of consumers will not use their credit or debit card to make a purchase with a web merchant they don’t know. Trust creates sales. Fear drives away customers. Clearly, reassuring shoppers that privacy is protected and the merchant is trustworthy is vital to increasing sales. Reassure customers continually through the buying process that information is safe and protected. Clearly post privacy policies. Put up seals from trusted authorities. Provide testimonials from satisfied customers. Display shipping and returns polices. Get creative and give your customers reasons to trust you. Increased sales will surely follow. - 3 weeks ago