Marketing and sales-automation provider Vindicia Inc. is trying to further capitalize on the growth of software-as-a-service, or SaaS, with its recent addition of enhanced usage billing to its CashBox platform.
The additional options will open new business models to existing clients or attract clients with business models that CashBox could not previously accommodate, Sanjay Sarathy, Vindicia chief marketing officer, tells PaymentsSource.
In February, Vindicia and mobile phone payments-platform company Boku Inc. announced a deal in which Vindicia would use its CashBox service to help bring online payment capabilities to more unbanked and underbanked consumers through Boku’s relationships with 250 mobile carriers in 67 counties (see story).
CashBox is a cloud-based marketing, customer relationship management and billing platform for digital businesses. As such, no software is installed into a business’s hardware but is instead accessed through a Web browser. Information technology research firm Gartner Inc. predicts that worldwide revenue from SaaS will reach $14.5 billion in 2012, up 18% from 2010.
Before the enhancements Vindicia announced April 10, CashBox supported such common business models as subscriptions, one-time transactions, microtransactions, virtual currencies and some usage-based billing, Sarathy says. The additional usage-based pricing options–one price for users one through 10, another for users 11 through 20–include license-based pricing, highest-tier usage pricing, variable usage pricing and flat-fee pricing.
Before the enhancements, CashBox’s usage-based billing was basic–tracking volume of use of a service and then calculating charges, says Sarathy.
“We made it much more sophisticated,” he says. “The idea is to provide a number of different use cases around usage-based billing because that is an increasingly important way in terms of how fast companies bill or measure. At the end of the day, we want to be business model agnostic.”
Part of Vindicia’s motivation for providing the extra pricing options stemmed from interest from businesses in having two models–a consumer subscription base being charged a fee per month and business-to-business clientele being charged by use, says Sarathy.
“Our ability to support both within a single platform is key,” he says.
The additional options will not cost Vindicia clients more, says Sarathy, and Vindicia’s revenue model stays the same: it gets a percentage of successful revenue transacted on its clients’ behalf.
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