Brazilian fintech company EBANX now offers a payment solution that helps SaaS and cloud companies perform automated transactions.
The adoption of cloud and software as a service (SaaS) around the world has seen tremendous growth in recent years. Gartner’s Latest Cloud Adoption Forecast suggests that end-user spending in the cloud is expected to reach $600 billion by 2023. However, despite this level of growth, companies in the cloud and IT services market still face many challenges.
For companies looking to sell cloud, enterprise resource planning (ERP), IT services or SaaS subscriptions, processing high-value business to business (B2B) transactions that offer flexible payment options has been challenging. There are also challenges with how businesses in these service lines can quickly and affordably execute large transactions through an automated checkout process.
In its quest to address these challenges, EBANX, a Brazilian payments fintech company specializing in B2B software and cloud payment services for emerging markets, launched a new high-performance automated ticket payment solution. This announcement was made at EBANX’s recently concluded annual Latin America summit in Mexico. The company announced that the automated checkout process is targeting more businesses looking to sell cloud, ERP and SaaS subscriptions in Latin America and other parts of the world.
The announcement from EBANX’s CEO and co-founder, João Del Valle, reveals that this new solution is expected to automate checkout purchases from $10,000 and process large volumes of tickets in one go. In addition, the solution also aims to provide the fast-growing SaaS market in South America with a payment processing solution that will streamline payments between SaaS companies in Latin America and other locations around the world.
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Factors that may have fueled the launch
Summarizing the rationale for the rollout of this product, Del Valle stated that “Latin America has a fast-growing SaaS market, at a rate of 27% per year through 2026, … . Meanwhile, at least half of the cloud is becoming B2B purchases in LatAm paid manually via bank transfers… The most common option is to use a SWIFT bank transfer, which can take up to five business days with expensive transfer fees. We accelerate and automate the transfers and ensure full reconciliation.”
With this launch, EBANX High Tickets hopes to help cloud and SaaS providers in South America and Africa.
Why the expansion of Latin America into Africa?
It may seem odd that EBANX focused on Africa for this launch rather than turning to Europe and North America. There are two possible reasons for this step.
First, the European cloud and SaaS market is full of B2B payment solution providers and EBANX could potentially provide stiff competition if it decides to drive the European and North American markets.
In recent years, for example, other companies such as Stripe and Chargify have launched similar products to help B2B SaaS businesses with payment solutions and automated checkout of heavy payments and ticketing.
Another possible reason could be that Africa is showing great signs of rapid digital transformation.
“Africa is now bursting with growth potential,” explains Del Valle. “The digital adoption and consumption of online goods and services has accelerated rapidly in its countries, and investment capital is pouring into the region.
“Africa’s fast-growing digital economy is still in its infancy and is expected to grow to the right in the coming decades. Together with local players, EBANX will be a catalyst to realize the many benefits of a digital economy even faster.”
EBANX further reveals that cloud adoption is rapidly permeating developing countries, even faster than initially thought.
Where is the SaaS and cloud market?
Currently, the SaaS and cloud market shows no signs of decline around the world. Data from Synergy Research Group reports that software vendors in the SaaS and cloud market generated more than $23 billion in the first quarter of 2019.
This growth is further confirmed by: IDC’s 2022 Report in the public cloud, SaaS and platform-as-a-service (PaaS) market, which forecasts that the public cloud market will reach $400 billion by 2025 at a CAGR of 28.8 percent. These statistics predict that more vendors are expected to emerge in the SaaS ecosystem, not only in the US, Europe and South America, but also in Africa and Asia.