Thread by @Shyamal890

The new RBI policy is going to force SaaS startups focusing on India to rethink their approach and final force them away from the Indian market.

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The new RBI policy requires any recurring payment of 5000 INR+ to be manually authenticated every month by the end user.

Most B2B SaaS charge anywhere near or above this limit.

Typically such payments went through without any issues till date.

With this manual intervention we would see a lot of payment failures.

On the customer's end, payment is not handled by the person who bought the tool but the account's person.

This accounts person would pass on the confirmation to that "decision maker" every month for go ahead

This internal process may take days and get the SaaS company anxious on what is going to happen.

At any point in time a SaaS company works with 100s of B2B clients. It's going to be a herculean task to contact all these clients and followup for payments.

#ExpensivePain #Stress

With account's guy getting in touch with the "Decision Maker" every month its going to force a rethink on the investment in the Decision Maker's mind.

"Do I really need this, should we experiment? OH! The charge seems high now"

- #churn

RBI's new policy has introduced the "external force" (Rethink) talked about in the Newton's first law.

"Object in motion stays in motion untill acted upon by an external force"

This constant rethink is bound to cause more churn and interruption for businesses.

Given the "Rethink", constant payment followups and #stress on the SaaS company side its finally going to get infeasible for a lot of SaaS companies focusing on the Indian market.

They would finally be forced to move away and focus on other geographies.

I wonder who suggested such an arbitrary limit to RBI.

What do you think? Is it the end for India focus SaaS players?

The only alternative right now seems like forcing yearly payments instead of monthly ones.

That again means less conversions.