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How to Manage Your SaaS Subscription Using Virtual Cards

In today’s world, it is hard to find a business that does not rely on at least one software service to conduct its operations. Whether you have a physical product, a digital product, or a service business, having software subscriptions are part and parcel of managing the company.

These SaaS (software as a service) subscription tools are often tough to keep track of if there are too many of them. From handling the expenses to maintaining a record of active and inactive subscriptions, organizations end up needing to implement subscription management software to manage all the other software tools.

What are SaaS subscriptions?

A SaaS subscription is essentially a business model where software-providing companies sell their software tools to other businesses on a subscription basis. Generally, SaaS companies set monthly, quarterly, or yearly subscription fees for customers to pay which are always much lower than a one-time fee for buying a software service.

This model is helpful for users as they get to try out a software tool for a small period of time without committing a huge sum of money. This also helps the SaaS provider to get constant feedback from users and a recurring stream of income rather than a single payout.

What is subscription management?

Subscription management is basically techniques, methods, and tools you use to manage all your software subscriptions. For a business that has multiple SaaS tools that they use on a daily basis, using subscription management software is a great idea. This might often come in the form of an expense management tool that lets you manage separate software expenses that also ends up keeping a track of active and recurring subscriptions.

Why should you have a subscription management system in place?

●      Stop capital leakage – While a singular SaaS fee for a tool might not seem like a lot, if active services that are not being used aren’t closed, it will lead to slow leakage of money that will compound over time. To prevent this wasteful SaaS spending, implementing SaaS subscription management software is necessary.

What is a virtual card and how does it work?

A virtual card is basically a payment card similar to a credit or debit card. The difference is that it is only usable for online payments and is not physically present anywhere. There are many banks and FinTech companies that offer their customers virtual cards for managing business expenses.

A virtual card has a string of numbers as the card number similar to a physical card, an expiry date, and a PIN that authenticates a transaction. The benefit of using such a card is that it cannot be stolen, and even if the details are somehow leaked, they can easily be frozen or blocked online. Plus, these cards are not directly linked to a bank account, so they are not traceable back to a source which fraudsters can steal money from.

Can virtual cards be used to manage SaaS subscriptions?

Virtual cards are great tools for SaaS subscription management as they not only act as controls for keeping expenses in check but also double down as subscription management software for each SaaS tool individually thanks to the capability of many providers to create unlimited virtual cards on their platforms.

H3: Benefits of virtual cards for managing SaaS subscriptions

Real-time visibility – Using a virtual card, you are constantly able to see the spending that is happening on the dashboard of the virtual card provider. This gives you real-time visibility of all the expenses that are happening and lets you make quicker decisions. Rather than having to wait for the statements you receive each month when spending through a physical card to see how much is being spent in different places, a virtual card gives you access to this information at your convenience and lets you manage subscriptions better.

The rise of digital inclusion & SaaS services will make virtual cards a necessity for businesses

With the constant rise of digital inclusion within businesses, you will see a steady increase in the use of SaaS services throughout all sectors and industries. This will make it inevitable for companies to adopt and start using virtual cards from different providers in India to manage all their online subscription expenses and make corporate spending a more efficient process overall for the business.

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