Deep Dive: Embedded Payments Pricing Guide for Vertical SaaS Companies

In this edition of Fintech Wrap Up, we unpack the complexities of pricing embedded payments for Vertical SaaS companies, offering insights for navigating this critical aspect of monetization

TL;DR:

In this Deep Dive edition of Fintech Wrap Up, we unpack the complexities of pricing embedded payments for Vertical SaaS companies, offering actionable insights for navigating this critical aspect of monetization. The guide emphasizes that successful pricing is more than just setting a mark-up—it’s about understanding the interplay between top-down pricing (competitive benchmarking and customer value) and bottom-up pricing (cost-based minimums). Together, these approaches help define a strategic pricing range that balances profitability with market competitiveness.

A standout insight is the growing adoption of bundled pricing, where SaaS fees and payment processing charges are integrated into a single, simplified structure. This approach not only enhances merchant experience but also supports higher margins by embedding payments seamlessly into the platform’s value proposition. The guide further highlights that pricing simplicity, transparency, and added value—such as in-context reporting and easy reconciliation—can outweigh cost concerns for merchants, ultimately driving higher adoption and loyalty.

These insights are crucial for SaaS platforms aiming to transition from commoditized offerings to differentiated, high-value solutions that command premium prices.

Credit to Rainforest for creating this detailed and insightful guide

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Pricing essentials

Two approaches to payments pricing

One of the most common questions we hear about pricing is “How much should SaaS platforms mark up embedded payments?”

That question will be answered (we promise!) but the mark-up is only half of the pricing equation. In order to understand the range of prices you could charge, we recommend looking at pricing from both the topdown and bottom-up perspectives.

The top-down price is going to be the advertised price. This means examining your competitors, the overall price-sensitivity of your customers, and the value of your product.

When we build the bottom-up price, we’ll look at your costs and desired margin to determine the minimum price you can charge and earn your desired margin. This is an important data point for your business, but it probably won’t be the price you advertise or the highest price you can ask!

How do we balance competitive pricing with maintaining healthy margins?

Complete both the top-down and bottom-up estimates outlined in this guide! The bottom-up estimate is the lowest price you can charge and earn your desired margin. The top-down estimate is the highest price your customers will be willing to pay. The result will be a range, where you can advertise a price at the top of the range but offer prices lower in the range to key customers.

Key terms and concepts

In card processing, you’ll see a lot of price tags that include both a percentage and a fixed dollars-and-cents amount. The percentage is a “volume fee”, and the fixed amount is a “per-item” fee.