Rainforest Targets SaaS With Stripe Alternative for Embedded Payments

Rainforest, a startup that embeds payment processing into other software platforms, has raised $20 million in Series A funding. This comes less than a year after the company secured $8.5 million in seed funding. The company's traction and focus on serving the needs of software companies attracted new investors like Matrix Partners, alongside existing backers like Accel, Infinity Ventures, and BoxGroup. Rainforest claims to have grown its payment volume by 17x in the past six months alone, signing on "dozens" of platforms across various industries.

Rainforest's Approach: A Stripe Alternative for SaaS Companies

Rainforest positions itself as a Stripe alternative that allows software providers to facilitate payments from end customers to their business clients. This helps companies integrate financial services directly into their software platforms, creating a seamless experience for users. For instance, a software platform for residential roofing contractors could use Rainforest to enable payments from homeowners to roofing contractors.

• Rainforest emphasizes its white-glove service and focus on SaaS companies, claiming to be purpose-built for their specific needs.
• Unlike Stripe, Rainforest targets mid-market software companies, providing dedicated support and a transparent pricing model.

Rainforest's Competitive Advantage: White-Glove Service and Dedicated Support

Rainforest CEO Joshua Silver differentiates his company by highlighting the drawbacks of existing embedded payments providers. He argues that many payment products lack the tailored approach and robust features required by SaaS companies. Rainforest addresses this by offering:

• A purpose-built platform designed specifically for software platforms, rather than being retrofitted for embedded payments.
• White-glove service and transparent pricing, providing dedicated support and transparency for software companies.
• Comprehensive risk management and merchant onboarding services, taking the burden off software companies.

Rainforest's Success Stories: Keap and Expanding Reach

Rainforest's success is evident in its recent customer wins, including Keap, a CRM and marketing automation platform with over 200,000 users. This strategic partnership demonstrates Rainforest's ability to cater to large, established companies and compete against major players in the payments market.

• Rainforest has expanded its reach into new verticals, such as field services and professional services, while strengthening its presence in existing industries like healthcare, retail, and nonprofits.
• The company has enhanced its product offerings with support for Apple Pay, 3DS, and Plaid, further enhancing payment adoption and fraud reduction.

The Growing Market for Embedded Finance and Rainforest's Future

The market for embedded finance is rapidly expanding, with financial services integrated into e-commerce and other software platforms driving significant transaction volume. Rainforest is well-positioned to capitalize on this growth, targeting a massive market of mid-market SaaS platforms.

• Rainforest plans to use its new capital to invest in product development and support, aiming to further enhance its capabilities and expand its customer base.
• Industry experts anticipate a shift in payment volume from traditional solutions to software platforms with embedded financial services, further bolstering Rainforest's position in the market.

Rainforest's Focus on SaaS Makes it a Stripe Competitor

Rainforest's unique focus on SaaS companies distinguishes it from Stripe. While Stripe has attempted to adapt its platform for embedded payments, it primarily caters to large enterprises and may not provide the level of dedicated support and customization required by mid-market software companies. Rainforest fills this gap by offering a specialized solution designed specifically for SaaS platforms.

Rainforest's Approach: A Shift From Traditional Merchant Processing

Rainforest is attracting software platforms that are transitioning from legacy processors like Fiserv and FIS. These platforms are seeking a modern, efficient, and purpose-built solution for embedded payments. This trend underscores the increasing demand for streamlined financial services within software platforms, driving Rainforest's growth and prominence in the embedded payments space.

Rainforest's Key Differentiators: Tailored Approach and Transparent Pricing

Rainforest's success stems from its dedication to providing a tailored approach and transparent pricing model for SaaS companies. By offering white-glove service and comprehensive risk management, Rainforest alleviates the burden of payment processing and compliance, allowing software companies to focus on their core business operations.

Rainforest's Focus on SaaS Differentiation

Rainforest aims to be a clear alternative to Stripe for SaaS companies, providing dedicated support and customization that addresses the specific needs of this growing market. This specialized approach positions Rainforest as a valuable partner for software platforms looking to seamlessly integrate financial services into their offerings.