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Frameworks, core principles and top case studies for SaaS pricing, learnt and refined over 28+ years of SaaS-monetization experience.
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In the rapidly evolving financial technology landscape, neobanks have emerged as digital-first alternatives to traditional banking institutions. As these innovative companies develop SaaS solutions to serve this market, one critical decision stands out: selecting the right pricing metric. The pricing strategy a neobank SaaS provider chooses can dramatically impact customer acquisition, retention, and overall business growth. But which approach works best—per seat, per transaction, or per outcome?
The Unique Pricing Challenges for Neobank SaaS Providers
Neobank SaaS providers face distinct challenges when developing their pricing strategy. Unlike traditional enterprise software, these solutions often serve both B2B and B2C channels, requiring flexible pricing models that can scale appropriately.
According to a 2023 report by Fintech Futures, neobank technology providers that align their pricing models with their customers' business objectives experience 37% higher customer satisfaction rates and 42% lower churn than those using traditional pricing models.
Understanding the Three Core Pricing Metrics
Per-Seat Pricing: The Traditional Approach
Per-seat pricing (sometimes called user-based pricing) charges customers based on the number of individual users accessing the software.
Advantages for Neobank SaaS:
- Predictable recurring revenue
- Simple for customers to understand
- Straightforward implementation
Disadvantages:
- May discourage wide adoption within customer organizations
- Doesn't necessarily align with the value delivered
- Can feel punitive to growing organizations
Example: A neobank core banking platform might charge $100 per month per user with administrative access to the system.
Per-Transaction Pricing: The Usage-Based Model
This usage-based pricing approach ties costs directly to the volume of transactions processed through the system.
Advantages for Neobank SaaS:
- Directly correlates with customer activity levels
- Scales naturally with customer growth
- Aligns costs with periods of high/low activity
Disadvantages:
- Can create uncertainty in budgeting for customers
- May deter usage if customers feel "on the meter"
- Requires robust tracking and billing systems
Example: A payment processing solution for neobanks might charge $0.05 per transaction processed through their API, with volume discounts at higher tiers.
Per-Outcome Pricing: The Value-Based Approach
Also known as value-based pricing, this model ties costs to specific business outcomes achieved through the software.
Advantages for Neobank SaaS:
- Creates perfect alignment between vendor and customer success
- Demonstrates confidence in solution effectiveness
- Can command premium pricing when value is proven
Disadvantages:
- Complex to implement and track
- Requires clear definition of "outcomes"
- May involve more complicated contracts
Example: A neobank customer acquisition platform might charge based on successfully onboarded customers, with fees structured as a percentage of customer lifetime value.
Real-World Data: What's Working in the Market?
A 2023 OpenView Partners survey of SaaS companies serving the financial sector revealed that 64% of the fastest-growing neobank technology providers have implemented some form of usage-based pricing, while only 37% rely exclusively on seat-based models.
Furthermore, research from Gartner indicates that financial technology buyers increasingly prefer consumption-based models, with 72% citing better alignment with actual usage patterns as the primary reason.
Selecting the Right Metric for Your Neobank SaaS
The optimal pricing metric depends on several key factors specific to your solution:
1. Value Alignment
Which metric most closely tracks the actual value your solution delivers? For security solutions helping maintain PCI DSS compliance, a per-seat model might make sense. For payment processing, transaction-based pricing typically aligns better with perceived value.
2. Customer Preference
Different market segments have different preferences. Enterprise customers may prefer predictable per-seat pricing with appropriate discounting structures, while smaller neobanks might opt for usage-based models that grow with them.
3. Competitive Landscape
What pricing metrics are your competitors using? While innovation can differentiate you, dramatically different pricing approaches may confuse prospects comparing solutions.
4. Implementation Complexity
Value-based pricing might be theoretically ideal, but can you effectively track and bill based on outcomes? The operational complexity of each model varies significantly.
Hybrid Approaches: The Best of All Worlds
Many successful neobank SaaS providers are implementing hybrid pricing models that combine elements from multiple approaches:
- Base + Usage: A core subscription fee plus usage-based components
- Tiered Usage: Transaction-based pricing with volume discounts across tiers
- Seat + Outcome Sharing: Fixed per-seat pricing with outcome-based incentives or bonuses
For example, a neobank customer service platform might charge a base fee per agent seat, plus a small fee per customer interaction, with price fences that create natural upgrade paths as usage increases.
Case Study: How One Neobank SaaS Provider Transformed Their Business
Fintech solution provider BankCore (name changed) initially launched with a traditional per-seat enterprise pricing model. After noticing slow adoption and high sales friction, they shifted to a hybrid model: a minimal base fee covering essential services and compliance features, plus transaction-based pricing for core banking operations.
The results were dramatic:
- 68% increase in new customer acquisition
- 42% reduction in sales cycle length
- 37% improvement in upsell opportunities
According to BankCore's CEO: "The shift aligned our success directly with our customers' growth. When they processed more transactions, we earned more—creating a true partnership rather than a vendor relationship."
The Future of Neobank SaaS Pricing: Emerging Trends
As the neobank sector matures, several pricing trends are emerging:
- Increased Transparency: Publicly available pricing information, reducing sales friction
- Outcome Guarantees: Money-back guarantees tied to specific business outcomes
- Dynamic Pricing: Algorithmic pricing adjustments based on usage patterns
- Community Tiers: Special pricing for startups and emerging neobanks
Conclusion: Finding Your Optimal Pricing Metric
The most successful neobank SaaS providers don't simply copy competitors' pricing models—they develop strategies aligned with their specific value proposition and customer needs. While per-transaction models currently dominate the space, the right approach for your solution might be a thoughtfully designed hybrid model.
When evaluating your pricing metric options, start by asking: "How do our customers measure success, and how can our pricing reinforce that success?" The answer will guide you toward a pricing strategy that not only generates revenue but also reinforces your value proposition and strengthens customer relationships.
By aligning your pricing metric with genuine customer value, you create a sustainable advantage in the competitive neobank SaaS landscape—one that benefits both your customers and your bottom line.