Merchant Innovation

Paddle Offers Software For SaaS Startups

Paddle is a B2B startup offering SaaS software to other SaaS startups.

Paddle, a B2B startup, wants to make its niche by selling SaaS eCommerce services to other SaaS startups to help them scale easier and place the focus on building their core products, or as Paddle itself likes to put it, its solution is a “platform for software companies to manage checkout, billing, customer relationships and run their business.”

Among the services that Paddle’s platform offers is support for a range of payment methods, fraud prevention and checkout recovery services, the handling of sales tax for software businesses that sell internationally, data crunching of sales figures and customer feedback for analytics.

TechCrunch believes that Paddle is going after SaaS startups who might be struggling to scale their international sales divisions.

“Around 80 percent of our customers are actually businesses who are scaling,” Cofounder Christian Owens told TechCrunch. “They’ve gotten to around $50K–$100K per month in revenue and realize they’re becoming a ‘real business’ but don’t want to start the process of building out internal teams, tooling and expertise to support their further growth. So, we make the process of swapping from their existing way of doing things super easy — typically, they’re using Stripe/PayPal/Braintree/FastSpring, some other services and homegrown tools.”

Although Paddle’s product offering might not appeal or even be relevant to all startups, it has just announced a $3.2 million Series A funding round led by BGF Ventures and Spring Partners.

TechCrunch said that Paddle currently has about 400 clients and has reported growth of 350–400 percent each of the last three years.

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PYMNTS STUDY: THE CROSS-BORDER MERCHANT FRICTION INDEX – JUNE 2020

The PYMNTS Cross-Border Merchant Friction Index analyzes the key friction points experienced by consumers browsing, shopping and paying for purchases on international eCommerce sites. PYMNTS examined the checkout processes of 266 B2B and B2C eCommerce sites across 12 industries and operating from locations across Europe and the United States to provide a comprehensive overview of their checkout offerings.

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