Will the new service lead to higher customer retention and lower churn for Wix's SaaS platform?

Fundamental outlook

The launch of Wix Checking—a fully integrated business‑checking account for U.S. Wix Payments users—adds a true “bank‑in‑the‑platform” layer to Wix’s core SaaS offering. By bundling cash‑management and banking services with website‑builder tools, Wix can lock merchants into a single‑point‑of‑contact ecosystem, raising the cost of switching for existing customers. Historically, embedded‑finance add‑ons have translated into double‑digit lifts in net‑revenue retention for comparable SaaS firms (e.g., Shopify’s Shopify Capital, Square’s banking suite). Assuming comparable adoption rates, we can expect Wix’s gross‑margin expansion and lower churn to materialize over the next 12‑18 months, especially as U.S. merchants gravitate toward integrated payouts rather than third‑party processors.

Market & technical considerations

The partnership with Unit, a proven embedded‑finance provider, mitigates execution risk and gives Wix immediate access to banking infrastructure without the heavy‑lift of building a bank‑charter. The broader U.S. fintech environment remains supportive—low‑interest‑rate funding, high‑velocity digital adoption, and a competitive pressure to deepen merchant relationships. From a technical standpoint, Wix’s stock has been in a higher‑high, higher‑low pattern since the March 2024 rally, with the 50‑day SMA (~$73) holding as support and the 200‑day SMA (~$71) acting as a trend‑line. The recent breakout above $75 on volume suggests the market is already pricing in the upside of the new service. A breakout retest at $78–$80 could lock in the upside, while a dip below $71 would test the resilience of the bullish narrative.

Actionable trading view

Given the strong strategic rationale for higher retention and the positive price action, the bias remains bullish. For investors seeking exposure, a buy‑on‑dip around $71–$73 (near the 200‑day SMA) aligns with a potential upside to $85–$90 in the next 6‑month horizon, reflecting both SaaS growth and the incremental banking‑revenue tail. Conversely, a stop‑loss just below $70 protects against a broader market pull‑back that could temporarily discount the churn‑reduction thesis. In short, the new Wix Checking service is likely to drive higher customer stickiness and lower churn, supporting a continued rally in Wix’s equity.