Zuora Launches Z-Payments for Subscription-based Businesses

“Zuora is entirely focused on creating products that help companies build, manage and grow subscription businesses. As it turns out, one of the major pains facing a subscription business is getting paid on time, every time,” says Tien Tzuo, founder and CEO of Zuora. “To solve this problem, we teamed up with PayPal to create our new Z-Payments product. Z-Payments is a best-of-breed payment solution from the leader in online subscriptions and the leader in online payments.”

“We are excited to have Zuora on board using PayPal,” said Garrett Price, Vice President of Business Development at PayPal. “Zuora’s expertise in the subscription market, coupled with our recurring billing functionality, makes Z-Payments a fast way for businesses to give their customers security and convenience when making payments online.”

Z-Payments helps subscription companies automate the complexities associated with recurring payments all in one complete solution. Subscription businesses now have the ability to:

• Accept payments online through popular payment gateways
• Accept traditional payments such as check or wire transfer
• Manage recurring payments unique to subscription businesses
• Automate exception handling around any payment issues
• View customer account balances and shorten collection cycles

Box.net, a provider of data and file sharing services, is a current user of Z-Payments. “With over two million people using Box.net, we could no longer depend on a manual billing and payment process that was hindering our business operations,” said Aaron Levie, Box.net's CEO. “We were literally losing money because we couldn’t track down failed monthly payments. Now, Z-Payments helps us automate all the issues and exceptions that arise with recurring payments. This allows us to focus on efficiently scaling our business.”

Teach the People, a Facebook application that allows any Facebook user to become a teacher and a student, is using Z-Payments to accelerate the launch of their service. “We’ve been searching for a simple way to monetize our Facebook application, but we didn’t want to have an ad-based business model,” said Jason Beckerman, CEO of Teach the People. “Z-Payments is saving us from having to do a lot of back end development work ourselves, which means we'll launch our application a year ahead of schedule.”

Z-Payments is the second product for Zuora, Inc. The company launched their first product, Z-Billing, in May 2008 after securing a Series A funding round of $6.5 million from Benchmark Capital and Marc Benioff. The company currently has over 40 customers, including Marketo, Cloud9, Coremetrics, and Top Right. Z-Payments starts at $500 per month and comes pre-packaged with Z-Billing.