The 5 best usage billing software for SaaS products | 2024
Looking for usage-based billing software that fits your SaaS product’s needs? Tracking usage and billing users accordingly is no easy feat. It’s much easier if you’re using the right infrastructure
This list will give you a quick overview of the best usage billing software for SaaS companies in 2024. Read on and discover which ones are at the top and why.
Here’s a list to give you a quick overview before we get started:
- Orb — Highly versatile, best for complex B2B SaaS billing
- Recurly — Focused on customer retention and churn management
- Maxio — Tailored for B2B SaaS with intricate billing agreements
- Zuora — Enterprise-grade, ideal for large-scale SaaS companies
- Chargebee — User-friendly, good for simpler subscription models
Summary: Usage-based billing software compared by pricing models
The following chart illustrates which types of pricing models each of the solutions supports. Later on in this guide, we’ll also get into more detail about which software might best suit your needs.
Let’s begin by covering some of the key benefits of using a dedicated solution for billing:
Benefits of using a dedicated billing software solution
Opting for a dedicated usage-based billing software offers numerous advantages that can transform how your SaaS company handles billing and customer relationships. Here are some key benefits:
- It makes billing management easier: Usage-based billing isn't always a walk in the park. Think mountains of data and multiple billing scenarios. This software is built for wrangling all that complexity with ease so you can focus on building your core product.
- It makes billing more accurate: Have you ever received an invoice that raised an eyebrow? With dedicated software, billing accuracy is guaranteed. It tracks your customers' usage to the last detail, applies the right pricing, and minimizes pesky errors.
- It provides real-time billing: In the fast-paced world of SaaS, you need billing that can keep up. Dedicated software processes data in real-time, resulting in potentially instant updates and notifications for your customers with full visibility.
- It eliminates the growing pains of scaling: As your customer base grows, your usage data will, too. Dedicated usage billing software is built to scale. It handles increased demand without missing a beat and helps you avoid issues like system downtime.
- It integrates with your tech stack: Dedicated usage-based billing software integrates nicely with your tech stack. It also integrates with CRMs and ERPs to give you a complete picture of your customers and their financial interactions.
- It provides clear-as-day billing transparency: No one likes a surprise on their bill. That's why this software provides detailed usage and billing reports. Your customers know exactly what they're paying for, which builds trust and keeps them coming back.
Top usage billing software for SaaS products in 2024
Choosing the right billing software can make or break your SaaS business. It's the backbone of your revenue, so it's crucial to get it right. Before we get started with our list, let’s review the types of usage-based billing models out there:
Overview of how these usage-based billing software types compare
Usage-based billing is a flexible approach that ties billing to customer activity levels, making it particularly effective for SaaS companies.
Also known as consumption-based billing, this model allows companies to align their revenue with customer growth as charges scale with usage.
Below are the primary types of usage-based billing models, each tailored to different business needs and customer expectations:
- Pay-as-you-go (PAYG): This model is the most straightforward form of consumption-based billing. Customers are charged precisely for the resources they consume, with no upfront commitment.
It is ideal for services where usage fluctuates, such as cloud storage or API call volume. PAYG provides customers with a “pay only for what you use” experience, appealing to companies that need billing flexibility without long-term commitments.
- Tiered pricing: With tiered pricing, customers are charged based on predefined levels or “tiers” of usage. Each tier offers a specific set of features or usage limits, with prices increasing as customers move to higher tiers.
This model works well for SaaS businesses that want users to scale their usage while offering a clear path for upgrade options. For instance, a security software platform may provide different tiers based on the number of monitored devices.
- Volume-based pricing: This model rewards higher usage with a discounted per-unit rate. Customers pay less per unit as they use more. It benefits products with high-usage users and creates incentives for growth by lowering the marginal cost of extra usage.
For example, companies with data-heavy applications might offer volume-based discounts as data usage rises, helping to attract larger customers by providing cost efficiencies at scale.
- Per-unit pricing: Common in industries like telco, per-unit pricing charges customers based on individual units used, such as per API call, transaction, or gigabyte of storage. It’s simple and transparent, letting customers see how their usage affects costs.
While this model can lack flexibility, it can be combined with other models, such as volume-based or tiered pricing, to make it more adaptable. This approach is especially useful for SaaS companies with varied and complex usage scenarios.
5 Usage-billing software types
Here are five top contenders for 2024, each with unique strengths and a few quirks:
1. Orb
Orb is a done-for-you billing platform designed to handle all sorts of usage-based billing scenarios, from simple billing to extremely complex scenarios. Whether you're charging per API call, gigabytes of storage, or anything in between, Orb has your use case covered.
Who it's good for: Orb shines brightest for B2B SaaS businesses, especially those with intricate pricing structures or high-volume usage events.
If you're a growing company that needs a billing solution that can scale alongside you, Orb is the strongest contender. It's also a favorite among finance teams who crave control and detailed reporting.
Pricing: Orb's pricing varies depending on need and event volume, and there’s also a free sandbox to test-drive the platform. This transparency lets you see precisely how Orb can benefit your business before committing.
2. Recurly
Recurly is a billing platform whose primary focus is on customer retention. It offers advanced analytics and revenue insights. Recurly also has a highly effective dunning system to minimize involuntary churn.
Who it's suitable for: Recurly is a good option for SaaS companies facing churn issues and those needing revenue optimization. Its developer-friendly approach also allows for customization to fit specific business needs.
Pricing: Recurly offers a monthly starter plan for $249 (free for the first 12 months for new customers only). Higher-tier plans are available upon request.
3. Maxio
Maxio is a billing and financial operations platform tailored for B2B SaaS companies. It's designed to handle complex contract terms. It also automates revenue recognition (GAAP compliant) and provides in-depth financial reporting.
Who it's good for: Maxio is well-suited for B2B SaaS businesses. This platform is especially good for those with intricate billing agreements and teams with financial expertise. However, its complexity can be a drawback for smaller companies or those without a dedicated finance team.
Pricing: Maxio's pricing starts at $5,000 annually and varies based on your billing volume and chosen modules.
4. Zuora
Zuora is an enterprise-grade subscription and billing management platform. It’s designed for large, established businesses with complex billing needs. It offers many features and customization options but is infamous for its complexity and steep learning curve.
Who it's good for: Zuora is best suited for large enterprises with massive subscriber bases. Its extensive feature set may be overwhelming for smaller businesses or those who need more straightforward billing.
Pricing: Zuora's pricing is available upon request. It’s typically tailored to the specific needs of each enterprise customer.
5. Chargebee
Chargebee is a subscription management platform. It's best known for its user-friendly interface and quick setup process. It offers various features for managing subscriptions, payments, and customer retention. It’s listed last because its usage-based billing software functionalities aren’t its main appeal.
Who it's good for: Chargebee suits businesses of all sizes. However, it particularly appeals to those just starting or those with simpler subscription models. Its dunning management features also make it a good fit for businesses with high churn rates.
Pricing: Chargebee offers a free starter plan until your billing exceeds $250,000 annually. Paid plans are available for larger businesses, but the pricing model includes overage fees.
Next steps
We've explored the top usage-based billing software options for 2024. You might be wondering which is the perfect fit for your SaaS journey. Based on our list, Orb stands out as a compelling choice. This is because it offers the ideal solution that tackles the unique challenges of usage-billing software head-on.
Orb takes the reins of complex billing and invoicing processes. It solves billing for you, freeing up time and resources that can be better spent elsewhere.
Here's a glimpse into why Orb makes it to the top of the list:
- Flawless billing accuracy: Say goodbye to revenue leaks and billing discrepancies. Orb meticulously tracks every billable event. This helps you capture every ounce of value delivered to your customers.
- Pricing that grows with you: Easily craft and manage diverse pricing tiers as your business scales. Orb's plan versioning eliminates the headaches of data migration. It allows for seamless adjustments without disrupting your billing flow.
- Granular usage insights: Orb's robust tracking capabilities transform raw usage data into insights. Whether you're billing for API calls or data storage, Orb gives you the granular visibility you need.
- Effortless integration: Orb plays well with other tools. It integrates with your existing tech stack, including data warehouses and accounting software. This eliminates data silos and ensures a smooth, uninterrupted billing workflow.
- Your billing, your rules: With Orb's intuitive interface and powerful customization options, you have complete control over how you define and measure customer usage. Craft bespoke pricing plans that perfectly align with your unique business model.
Learn how Orb can help you set up a hassle-free usage-based billing strategy. Check out our 30-day free trial to test Orb yourself. Make sure to see our flexible pricing options and find a plan that fits your budget and needs.
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