Monite Case Study

Monite is a B2B Fintech Infrastructure SaaS business. They enable their customers, B2B platforms, such as banks, neobanks, payment providers, verticalized SaaS, embed financial workflows like invoicing, payables automation, expense management, and accounting for their clients. They’re on an exciting growth path having recently added $6M to their seed round as they are gearing up for US expansion. So it’s now more than ever that their payments strategy needs to be on lock.

Challenges

Operating a platform for other platforms is, as you might imagine, not necessarily straightforward. And payments lie at the centre of the complexity. Even modern Payment Service Providers (PSPs) don’t solve for Monite’s setup, so workarounds are inevitable and in-house knowledge vital if you want to run an advanced operation such as Monite’s. They certainly have the payments knowledge in house and yet, found themselves facing some difficulties.

One of the key challenges is pricing their payments right. Monite pay payment fees to their PSP and, in turn, charge their platforms for their payments, making sure to cover their costs. Monite configured their own pricing rules for specific payment scenarios. Based on these rules, they wanted to make sure to cover their costs, while leaving enough margin to share with their platform customers.

Being on IC++ allowed them to get the most transparent breakdown of all the different payment fees. In order to find out whether their calculations worked out the way they’d planned they needed to download various reports from their PSP and then tie all fees to the individual payments. This process involved the maintenance of a meticulous spreadsheet and would take them approximately 10 minutes per single payment.

Once these steps were taken days after the actual payment occurred, they found that on many occasions, they had been losing money on their transactions. Too late for a proactive payments strategy.

Solution & Results

The first conversations between Monite and Revenew revolved around the complexity of running a business model as that of aplatform’s platform, making sure the key challenges were fully understood and could be catered for.

Using Revenew Clarity+, Monite was able to get their payment-level margin calculations simply by logging into Revenew’s dashboard. What used to take them 10 minutes per payment is now a matter of clicks for all of their payments. Using this data they have been able to adjust some of their pricing profiles ensuring fair, yet profitable payments.

The collaboration with Monite has been extremely beneficial for both parties. Using our shared slack channel, the payments savvy Monite team shared some valuable feature requests that Revenew was all too excited to implement given their potential for other users. One such request was to show the % that processing fees made up of the total payment amount.

Revenew implemented this and went a step further by adding the new value as a sortable column in our payments list, as well as adding the % of the platform fees, so that they could be viewed in relation to each other.

It earned us some love in the slack channel too. This is why we do what we do (and how we do it, for that matter):

This is not where it ends, dear reader. We’re already exploring how some of the features Revenew is building right now will benefit Monite in the future, so, needless to say, we’re all looking forward to continuing this exciting partnership and see where it takes us both.