Caleb Avery of Tilled on Decoding Payments in Software - Yes You Are Getting Screwed

This week I am interviewing Caleb Avery, founder of Tilled, a Payfac-as-a-Service company for vertical SaaS companies. Caleb takes me deep into payments land where we can understand the players and value chain. You can watch/listen to the podcast on YouTube, Apple, or Spotify.

How does your company facilitate online payments? As a merchant, online payment facilitation isn’t easy, especially if you’re a software company operating in the processing volume of $50M to $2B.

In this episode of The Capital Stack, we have Caleb Avery, the CEO and Founder of Tilled, a fintech and PayFac-as-a-service company helping software companies monetize their payments. He is redrawing the map for online payment facilitation—and changing the landscape of fintech in the process.

Listen in to learn how Tilled makes payment facilitation easier for software companies and approaches them in an educational and consultative way. You will also learn the importance of getting customer feedback to understand what’s working and not working with your payment model.  

What You Will Discover:

·       [00:00] Intro

·       [02:50] Caleb on his background and where he saw the opportunity to help software companies monetize payments.

·       [04:30] He explains the layers of how payments move from the consumer to the merchant.

·       [07:17] How risk differs with different payment models, plus the advantages of the PayFac process in risk absorption.

·       [10:02] The processing volume that would make sense for a PayFac investment.

·       [12:18] How Tilled makes the PayFac payment model easier, plus where it makes sense to move from ISO to PayFac.

·       [15:37] The impact of creating a payment monetization strategy that companies are starting to understand.

·       [17:23] Why Tilled approaches software companies in an educational and consultative way. 

·       [20:17] How effective payment monetization has allowed software companies to compress the margin for their SaaS products.

·       [21:43] The importance of getting customer feedback to understand what’s and what’s not working.

·       [24:33] He describes Tilled future plans in scaling and focusing on customer relations.

·       [26:33] Random questions with Caleb!

Memorable Quote:

·       “Part of the reason why you’re seeing more of that margin compression on the SaaS products is because some of the bigger competitors have figured out how to effectively monetize the payments.”- Caleb [20:53]

Connect with Caleb:

·       LinkedIn: https://www.linkedin.com/in/caleb-avery/