Payments give you a clear picture of the total money processed by your billing channel on behalf of your app over a selected time period. This metric helps you understand your business’s cash flow and overall financial health.

What are Payments?

Payments represent the gross value of all money processed by your billing channel on behalf of your app. This includes all recurring and one-time charges, usage charges, and refunds. It’s important to note that payments reflect transactions, not billings. This means that while the money has been collected from the customer, it may not yet be actualized in your bank account or paid out. Here’s what is included:

  • Recurring charges: Regular payments from subscriptions or memberships.
  • One-time charges: Single payments for products or services.
  • Usage charges: Fees based on how much of a service a customer uses.
  • Refunds: Any money returned to customers.

Why are Payments important?

Payments are important because they give you a comprehensive view of your revenue flow. Here’s why this metric matters:

  • Cash flow insight: Understanding payments helps you manage your cash flow better, ensuring you have enough funds for operations and growth.
  • Financial health: Tracking payments lets you see the overall financial health of your business.
  • Performance tracking: Monitoring payments helps you gauge how well your business is performing over different periods.
  • Issue detection: Analyzing payments can help you identify issues like late payments or high refund rates.

Actions you can take with payments insights

  • Improve cash flow management: Use payment data to ensure you have enough cash on hand to cover expenses and invest in your business.
  • Enhance service offerings: Identify trends in one-time and usage charges to tailor your services to customer needs.
  • Reduce refund rates: Analyze refund data to understand why customers are requesting refunds and take steps to reduce these occurrences.
  • Track growth: Use payments data to track your revenue growth over time and set realistic business goals.

By understanding and regularly monitoring your payments, you can get a comprehensive view of your business’s financial activity. This metric helps you make informed decisions that ensure steady cash flow and financial health, driving long-term success.