Last week, we publicly announced an exciting addition to our Monetization Cloud platform – the Dynamic Consumption Wallet. This first-of-its-kind B2B wallet offers service providers interested in making the shift to a hybrid or usage-based billing model, a new way to engage their customers and drive revenue for their business - through a system of prepaid credits for drawdowns and replenishments.
While the concept of a wallet isn't new in B2C, it’s only just beginning to find its way into B2B. This is largely due to the fact that the most common B2B pricing methods, including popular subscription plans, are based on a set-price that rarely fluctuates. But the rise in popularity of usage-based pricing and billing strategies is changing all of that and in turn, driving the need for digital wallets. Why? Because digital wallets make it easier to transition to more complex pricing strategies, including usage-based models.
There are several other factors driving B2B interest in digital wallets, factors that specifically address some of the perceived challenges posed by more modern or agile pricing and billing models, including usage-based:
CFO organizations are increasingly focused on cost optimization and utilizing tools to analyze cloud/SaaS spend, such as differentiating between contracted and active users.
Businesses need the flexibility to quickly add or reduce the number of subscribed users, which traditionally requires a complex change order process. Wallet capabilities provide the necessary flexibility to scale up or down based on user and usage requirements.
The need to reduce the complexity of product catalogs and multi-currency price lists. Centralized wallet access across products and services enhances flexibility for service providers and customers, allowing for more efficient utilization of credits. This ease of signing up and managing products and services contributes to the overall competitiveness of your business.
With wallets, companies can allow customers to use any or all the services in their portfolio – they're not limited to contracted services alone. This helps drive product/service and usage adoption and topline growth.
Dynamic Consumption Wallet – revenue without the wait
Historically the biggest challenge with a usage-based model has been that you typically have to wait for usage to occur before that revenue can flow into the business. Dynamic Consumption Wallet addresses this challenge by allowing you to collect money upfront for services yet to be provided. This reduces the operational risk of moving to a usage-based model and offers greater financial stability.
Additionally, Dynamic Consumption Wallet eliminates the need for a massive SKU catalog and manual coding on contractual entitlements. This streamlines the go-to-market process, making usage billing accessible for service providers and their customers who prefer it. At the same time, digital wallet capabilities simplify the billing process and reduce administrative burden.
The Monetization Cloud – supercharged by the Dynamic Consumption Wallet
The introduction of the Dynamic Consumption Wallet reflects our dedication to continuously delivering innovative solutions that meet the evolving needs of B2B businesses in a rapidly changing market landscape.
Because our no-code Monetization Cloud platform seamlessly enables usage-based pricing, drawdown, rules balance tracking, threshold management, virtual tokens, usage level taxation, and transaction level revenue share every company considering modern billing options stands to benefit in a material way from these new capabilities.