How SaaS companies can thrive in an economic downturn: Payrix Australia

How SaaS companies can thrive in an economic downturn: Payrix Australia

SaaS companies can thrive in an economic downturn by taking advantage of integrated payments to drive revenue and improve customer experience. This article outlines how integrating payments into the product roadmap can increase revenue and lifetime value and potentially increase company valuation, all while providing a consistent cash flow to help the company weather any economic challenges.

Global markets have had a strong start to 2023, with major markets around the world posting gains throughout January. The ASX200, for instance, hit a nine-month high at the end of January, just 2 per cent away from all-time highs. Similarly, the Nasdaq rose 4.71 per cent in the final week of January ahead of central bank rate decisions from The Federal Reserve, Bank of England, and European Central Bank. One might expect that markets may have cooled by now, with central banks worldwide tightening monetary policy since March 2022. However, current market performance and economic indicators such as industrial production, retail sales, the ISM manufacturing index, and the unemployment rate, to name a few, indicate that interest rates likely need to continue rising to slow the economy and curb inflation.

Of course, the prospect of an economic slowdown isn’t what SaaS company executives want to hear, but it may be the reality at some point throughout this year. Bloomberg’s 2022 survey of economists found that there is a 70% chance of a recession in 2023. Similarly, Australia’s economic outlook is subdued, with business conditions falling by 8 points in December, according to NAB’s Monthly Business Survey: December 2022. It’s the third consecutive month of deteriorating economic conditions across Australia’s business community, with trading conditions, profitability and employment indexes falling.

If company boards and executives haven’t already, now is the time to strategise how to effectively get through what may be a challenging year for business. This article outlines how SaaS companies can thrive through an economic downturn by using integrated payments to build a new revenue stream and deliver wide-reaching long-term benefits across the organisation.

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Source: How SaaS Companies Can Thrive in An Economic Downturn | Payrix Australia