PYMNTS Intelligence Alternate Banner June 2024

Octane Teams With Stripe to Support ‘Consumption-Based’ Billing Platform

Billing platform Octane says it has joined the payments processor Stripe.

“We started Octane to democratize consumption-based pricing by building the billing infrastructure needed to support it,” the company said in its announcement last week. “Today, we continue to see tremendous growth of consumption-based pricing use cases.”

By joining Stripe, the announcement said, Octane is working with a company that shares its passion for supporting “a diverse range of pricing structures and allows companies to easily iterate on their pricing.”

Based in New York City, Octane offers products that include automated billing. And as PYMNTS Intelligence research has found, automating accounts payable (AP) processes can have a significant positive impact on vendor satisfaction.

According to “Accounts Payable and Receivable Trends: What’s Next in Automation,” full automation allows organizations to reduce both labor costs and the occurrence of errors, allowing mid-sized firms to enjoy greater accuracy and efficiency in process management compared to those with just some or no automation. 

“Moreover, automated systems process high volumes of transactions swiftly, leading to improved data availability and insights,” PYMNTS wrote recently. “This precision is particularly crucial in financial reporting and compliance, where inaccuracies can result in substantial issues, including regulatory penalties.”

Against this backdrop, firms endeavoring to maximize the advantages of automation need to be fully committed to the process. 

“In fact, the distinction between fully automating AP processes and partial automation is stark, with over 70% of mid-sized firms attesting to heightened satisfaction after embracing full AP automation,” the report said. “In contrast, a mere 40% of those employing partial automation report similar positive outcomes.”

Meanwhile, additional PYMNTS research examined the factors small and mid-sized businesses (SMBs) prioritize when choosing a payment processor. Chief among these considerations are ease of use, deemed critical by 72% of SMBs, followed by reliability at 60%. 

“Additionally, the cost of processing fees hold significant sway, which 52% of small businesses consider important, while 45% of small firms prioritize diversity of payment options,” PYMNTS wrote recently. “Other important factors considered include support and customer service, integration with other systems, customer preference, contract terms and security features.”

The survey also looked at the factors that drive SMBs to switch payment processors. Lower transaction fees were the primary reason, with close to 6 in 10 SMBs stating that lower fees would lead them to switch. Ease of use was also a deciding factor among 42% of SMBs.