Develop and integrate payment processing capabilities directly into vertical SaaS platforms. This strategy captures a percentage of every transaction, transforming the market size and revenue potential of a SaaS business from subscription-only to a much larger transaction-based model.
Opportunity7.6
Why now
Vertical SaaS platforms often overlook or poorly integrate payment processing, leaving significant value on the table. Integrating payments streamlines operations for customers and unlocks substantial new revenue streams for SaaS providers, leveraging existing customer trust and workflow integration.
Market gap
The lack of deeply embedded, vertical-specific payment solutions that seamlessly integrate with core operational SaaS workflows, replacing generic and cumbersome payment methods.
Business fit
Type
Fintech, SaaS Feature
Target
Vertical SaaS companies and their customers in transactional industries (e.g., restaurants, trade schools, salons).
Revenue
Potentially massive, shifting from hundreds of millions to a percentage of a trillion-dollar industry's transaction volume.
Founder
Existing vertical SaaS founders looking to scale significantly, or fintech entrepreneurs seeking to embed finance into specific industries.
Scores
Problem
9.0
Feasibility
7.0
Why now
9.0
Go-to-market
7.0
Confidence
8.0
Proof signals
Toast, a restaurant software company, significantly scaled its market size and valuation by integrating payments and taking a percentage of transactions.
Corsky, a trade school software, integrated payments when customers were using PayPal, simplifying processes for schools.
Every 'Big Industry specific software company owns the transaction'.
Keyword demand
Keyword
Volume
Growth
vertical SaaS payments
10/mo
-33% YoY
embedded finance
3,600/mo
-16% YoY
fintech
60,500/mo
-18% YoY
transaction revenue
10/mo
-50% YoY
US English Google Ads volume from DataForSEO; growth uses returned monthly search history.
Source episode
How to build a $1M+ vertical SaaS business (step-by-step guide)46:26
Luke: The other thing I'd add to it too that's really important in vertical SAS is if you can build a wedge product — before or after the transaction you can eventually own the transaction and so let's talk about that for a second like adding payments into vert your vertical s your vertical SAS solution is the way to like build massive massive companies in in vertical software