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Ajay Adiseshann 1

Ajay Adiseshann is Founder at Paymate India.

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SaaS Payment Platforms – A Boost for Indian SMEs

According to a report by Gartner, $111 Billion of IT spending has shifted to the cloud from on-premises and will increase to $216 billion by 2020, with SaaS being the most popular among business organizations. The SaaS market grew to 20.3% last year from 2015, to an approximate value of $43.7 billion.

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India is expected to double the size of its economy and is set to reach $5tn by 2025. To achieve this ambitious goal, there is a tremendous focus on strengthening the SME sector which is also referred to as the backbone of the economy.

In 2016, the implementation of multiple reforms including the Public Procurement Policy, Make In India and Skill India, have sought to provide the SME/start-up space a level playing field to help them compete more effectively. The last few years have seen the launch of many SME focused B2B marketplaces, and they have opened up new avenues of business across verticals for SMEs. 

According to a recent survey conducted by Atradius, India has the highest number of late payment days in Asia-Pacific – 95 days on average, and this hurts small businesses the most. To add to this burden our SMEs are also constrained by their ability to receive payments – offline processes and manual reconciliations mean working capital is locked up while they wait for their payment, reconcile and then allocate inventory. But there is hope in the form of technology.

On-Demand Technology can be the catalyst:

For small businesses to compete more effectively they need to be digitally integrated across their supply chain, including digitisation of internal work flows for optimizing operations in order to have a positive impact on their “challenged” cash flows. Big businesses solve this by deploying customized ERP solutions. SMEs now also have a choice, and that is by leveraging SaaS (Software-as-a-Service) solutions.  

According to a report by Gartner, $111 Billion of IT spending has shifted to the cloud from on-premises and will increase to $216 billion by 2020, with SaaS being the most popular among business organizations. The SaaS market grew to 20.3% last year from 2015, to an approximate value of $43.7 billion.

Here’s how SaaS payment platforms help optimize revenue flows for SMEs:

  • Lower Costs: IT infrastructure costs & maintenance costs are usually on the higher side, which most small businesses may not be able to afford. SaaS solutions, however, can significantly lower these costs, which mean you can invest your capital in other areas while having a secure and flexible payment system. Minimal initial investment and lesser hardware cost make SaaS a popular choice among business units.

  • Remote Access: SaaS platforms eliminate the need to manually install software of hardware, enabling businesses to take off instantly, after signing up. From there onwards, the entire business process is run via the cloud. All the assigned resources can access the data and all the departments can be integrated. The access is remote and can be available instantly from anywhere, anytime and on any device.

  • Data Security: With cloud-based SaaS systems all the data is stored safely on the servers of the service provider, offering small businesses an opportunity to secure their business data from potential disaster, and enabling them to optimize their business processes.

  • Global Connect: A SaaS payment processing platform that serves regional or global markets can act as a worldwide R&D hub for payments. When new capabilities or features are added to the payment processing platform to meet local requirements in spread-out geographies, these improvements become available to any customer using the platform, anywhere in the world.

For SMEs, SaaS enabled, cloud-based payments platforms are a more efficient, agile, reliable, and scalable option as it simplifies deployment and reduces customer acquisition costs, without the need to invest in costly infrastructure or additional IT resources. These platforms can open the door for small companies to market themselves and streamline productivity the same way that larger, corporate companies do, with just a smart device & an internet connection.

Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house


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SaaS Payment Platforms Indian SMEs

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