---
title: "Fintech — SaaS + Transactions"
section: "Choosing a Business Model"
sectionId: "business-models"
date: "2026-05"
---

## What Is the Fintech Model?

The Fintech model combines two revenue streams: a **SaaS subscription fee** and a **percentage of each transaction** processed through the product. It is popular with companies like Stripe, Shopify, and Plaid.

## Why Not Just Transactions?

Having 100% of revenue tied to transaction volume is riskier than blending it with a recurring SaaS component. Transaction volume fluctuates with economic conditions and customer activity. A base SaaS fee provides a stable floor of recurring revenue that is far more predictable.

## Shopify as a Case Study

In Q2 2021, Shopify's revenue split looked like this:

| Revenue Stream | Amount | Share |
|---|---|---|
| Subscription (SaaS) | $334M | ~30% |
| Merchant solutions (transactions) | $785M | ~70% |

Shopify's standard plan costs **$79/month**. On top of that, they charge **2.9% per transaction** for merchants using Shopify Payments — so as merchants grow their sales, Shopify's transaction revenue scales with them.

## The Core Insight

By charging a relatively affordable SaaS fee and taking a small cut of each transaction, these companies align their revenue growth with their customers' success. The more transactions your customers process, the more you earn — while the SaaS fee ensures you're never starting from zero.