Pivoting a SaaS Startup to a Card Payment Model
Pivoting a SaaS Startup Case Study
The Challenge
Pivoting a SaaS Startup
A UK and Ireland-based SaaS startup had built its business around a feature-rich, no-contract point-of-sale (POS) solution, generating revenue solely through monthly and annual subscriptions. The fantastic and realiable POS system integrated with payment providers like SumUp, Worldpay, and PayPal, but the startup had no direct control over payment processing.
During acquisition discussions with major fintech firms, including Revolut, the startup realised the scale of card transactions flowing through its system. Around the same time, Stripe introduced its Stripe Terminal solution and approached the startup to integrate – presenting a major opportunity to pivot the business model and one the founder was looking for!
The challenge was twofold:
During acquisition discussions with major fintech firms, including Revolut, the startup realised the scale of card transactions flowing through its system. Around the same time, Stripe introduced its Stripe Terminal solution and approached the startup to integrate – presenting a major opportunity to pivot the business model and one the founder was looking for!
The challenge was twofold:
Migration
Transitioning existing subscribers to a new zero-subscription, card payment-only model, where the startup would earn a fee per transaction instead of fixed monthly payments. An obvious sticking point was mentality. Although customers trusted the startup for their reliable and feature rich point of sale solution, handing over control of their payment solution – the lifeline of their business – was a cautious step for them.
Growth
Scaling this new model with zero marketing budget, optimising sales automation, and streamlining the commercial process to increase conversion rates.
The Solution
Partnerships. Pivots. Growth
The startup immediately began integrating Stripe Terminal, moving away from its subscription-based revenue model to a zero-subscription, transaction-based approach. Instead of charging merchants a fixed monthly fee, the startup would now take a small percentage of each card transaction processed through its system.
Our role in the transformation involved:
Our role in the transformation involved:
Cutting Unnecessary Costs
Sales and Market Expansion
Sales Process and Automation
Contract Negotiation & Competitive Positioning
The Results
Success. Growth. Revenue Expansion
The shift in business model, combined with optimised sales and automation strategies, delivered transformational results:
Deal Win Rate
Increased deal win rate from 17% to 89%, streamlining lead qualification and improving close rates.
Card Payment Revenue
£9M in card payment revenue, replacing the subscription-based revenue stream.
ARPU Growth
298% ARPU growth, significantly increasing revenue per user under the new model.
CLTV
Zero reliance on contracts, maintaining strong customer lifetime value (CLTV) without subscription lock-ins.
Sales Automation
Automated sales pipeline, increasing sales activity and reducing operational inefficiencies.
The Key Takeaways
Pivoting a SaaS Startup
Market Insights Drive Business Model Innovation
Identifying the volume of card transactions helped the startup recognise its untapped revenue potential. It also helped the startup leapfrog competitors who did not have a point of sale built into their solution and competitors who did not have their own card payment solution.
Process Automation Maximises Sales Efficiency
Automating CRM workflows and creating structured qualification processes significantly improved deal conversion rates. We did not need to change the CRM system, Pipedrive, as it was the perfect system for them.
Strategic Contract Negotiation Creates Competitive Advantage
Securing lower transaction fees enabled the startup to compete with larger players while increasing profitability.
Zero-Marketing Growth is Possible with the Right Strategy
Even with limited marketing budgets, targeted sales execution and refined commercial structures drove adoption and revenue growth.
This strategic pivot allowed the startup to scale revenue exponentially while offering a frictionless payment model, positioning them as a series challenger in the space.
This strategic pivot allowed the startup to scale revenue exponentially while offering a frictionless payment model, positioning them as a series challenger in the space.
This case study showcases how strategic execution, automation, and market positioning can drive massive growth – even with a lean budget. By transforming the revenue model, streamlining sales, and negotiating smarter contracts, we helped the startup scale while competing against industry giants.
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We’ll map the growth path – you decide how far to go.
We’ll map the growth path – you decide how far to go.
