We also offer a full payment facilitation, or payfac model where the partners have access to our leading payments technologies, although much of the operating complexity, including compliance and. Each client has a sub-merchant account under the umbrella of the payment facilitator’s master account. Payfac-as-a-Service is a model in which a company can leverage the infrastructure of a Payment Facilitator without having to deal with the complexities of becoming one. The first is simplifying the actual software used. the Payfac model to enter the payment acceptance space Customer Centricity: Key advantages for Payfacs center on a fast and highly automated merchant onboarding process combined with risk-based/tiered underwriting to deliver a best-in-class user experience for merchants that also manages costs and enablesPayFac Services (Payment Facilitator) Understanding the PayFac Model. Despite being around for over a decade, the industry still needs clarity on the payment facilitation model. ” These PayFac-in-a-box models are also intelligently priced. Establish connectivity to the acquirer’s systems. Significantly, Cardknox Go accounts can be onboarded in a. With the payment facilitator or PayFac model, every user gets a sub-merchant ID. It involves a structured subscription payment that is considerably lower than the initial development cost. In this model, the white-label payfac provider takes care of the underlying technology, payment processing infrastructure, compliance, and risk management. It partners with an acquiring bank and receives a unique merchant identification number (MID). A white-label payfac, also known as payfac-as-a-service, is a business model in which a company uses a third-party payfac platform to offer payment processing services under its own brand name. PayFac as a Service: PayFac as a Service is a model that allows SaaS companies to take advantage of all the benefits of being a PayFac without the upfront investment and ongoing overhead. This model offers software companies the chance to integrate smooth, streamlined embedded payments into their systems without hefty investments or. ISOs offer greater control and potential cost savings for larger businesses with high transaction volumes, while payfacs provide a simpler, all-in-one solution for smaller. The first type is a traditional payfac solution that involves partnering with an acquiring bank (or an acquirer and payfac vendor) and building out systems for processing, onboarding, risk, and more. Stripe, a tech-enabled evolution on the traditional payfac model, offers a complete solution that combines the functionality of a merchant account and a gateway all in one. Recommended for companies processing less than $50M of annual payments volume (APV) 66%. In this model, the white-label payfac provider takes care of the underlying technology, payment processing infrastructure, compliance, and risk management. Revenue cycle 101: PayFacs – A complete guide to payment facilitators vs. Our suite of tools and services offers a choice of funding options, settlement, revenue generation, and risk management capabilities for payment facilitators. The PayFac model was defined by the idea that one company could register as a “Master Merchant,” with an unlimited number of sub merchants underwritten beneath them. The PayFac model offers traditional acquirers more options, expanded control, and higher rewards. There is a substantial cost and compliance requirements. Wide range of functions. Carrying their own merchant ID (MID), reduces the risk level for the payment partner. The advent of PSD2 has forced many of these companies to factor in regulatory overhead to continue operating. The PayFac model came about so that companies specializing in payments could have the ability to lessen the complexity of the process of getting started when it came to online payments. PayFacs are essentially mini-payment processors. But the model bears some drawbacks for the diverse swath of companies. Particular add-ons, which a VAR can offer, usually, concern troubleshooting, consulting services, and, occasionally, hardware. A white-label payfac, also known as payfac-as-a-service, is a business model in which a company uses a third-party payfac platform to offer payment processing services under its own brand name. Myth 1: The PayFac model is the best way for ISVs to enable payments processing while multiplying revenue. There are multiple acquirers that now offer the PayFac model. In contrast, a payfac-alternative model with limited responsibilities can cost as little as $200,000 to $800,000 up front and $0. We’ll help you bring your payfac experience to market fast, with operational readiness and tools for your payments strategy. Companies that implement this payment model are called payfacs. From independent sales organizations (ISOs) to payment facilitators (PayFacs), it’s crucial to understand the goals and. PayFacs perform a wider range of tasks than ISOs. A white-label payfac, also known as payfac-as-a-service, is a business model in which a company uses a third-party payfac platform to offer payment processing services under its own brand name. Both Finix and Discover work closely with Passport Parking, a notable use case for payment facilitation. As such, read on to discover how the PayFac model works, how to get the best out of it, and how your company can become a payment facilitator. The growth in the number of payfacs, and in the payment volume passing through them, is reshaping key relationships within the payments ecosystem. A white-label payfac, also known as payfac-as-a-service, is a business model in which a company uses a third-party payfac platform to offer payment processing services under its own brand name. Below is an overview of each embedded payment business model. In this model, the white-label payfac provider takes care of the underlying technology, payment processing infrastructure, compliance, and risk management. PayFac® solutions, at your service Worldpay from FIS is your advocate for payment facilitator solutions. The payment facilitator model was created as a way of streamlining business’ processes in a way that would allow them to accept electronic payments. “The profac gets the benefit of the payfac model but none of the [administrative] pain that comes along with the model. Article September, 2023. Strategic investment combines Payfac with industry-leading payment security . The tool approves or declines the application is real-time. The PayFac model allows that company to keep the customer within its own realm when facilitating a transaction. Transaction Monitoring. Payments Facilitators (PayFacs) are one of the hottest things in payments. Unlike the PayFac model where SaaS’s customers are boarded as sub-merchants, white label payments customers go through the application and approval process. For example, some acquirers – often those with well-developed payment facilitator programs and deeper experience with the Payfac model – may be more comfortable leaving many decisions and day-to-day operations to the Payfac as long as they adhere to the requirements. Around 2011 card networks defined the PayFac model and set the rules of the game for PayFacs. Recommended for companies processing less than $50M of annual payments volume (APV) 66%. However, the traditional model. You may contract a payment facilitation agreement with any of Hips partner acquirers, or you can use Hips as. By 2012 when Toast launched, the payment facilitator (Payfac) model was flourishing and this allowed Toast to redefine the POS business model and literally alter the competitive playing field. So, MOR model may be either a long-term solution, or a. The PF may choose to perform funding from a bank account that it owns and / or controls. Just as a SaaS provider ‘leases’ its platform – enabling its clients to leverage and benefit from years of investment and expertise in a specialised area – PayFacs enable. Implement a classical payment facilitator model or become a white-label PayFac (as explained in our topical white paper). The differences are small, but they add up over time,. When it comes to connecting with card schemes, two major options are available – either apply for affiliated membership status to the scheme itself or join forces with an acquirer and operate as a Payfac, in accordance with scheme rules. In contrast, the PayFac-as-a-Service model involves a third-party provider managing payment processing systems on a business’s behalf. The benefits of becoming a PayFac for these businesses are listed below. In a payfac model, the business owns the payment processing systems and has direct control, while in a payfac-as-a-service model, the third-party provider owns and manages the payment processing systems on behalf of the business. Payment facilitation or PayFac-as-a-Service is your best bet if your business operates in a high-risk industry. A white-label payfac, also known as payfac-as-a-service, is a business model in which a company uses a third-party payfac platform to offer payment processing services under its own brand name. Understanding the Payment Facilitator model. The first option is to open a merchant account with a bank, while the second option is to use the payment facilitator model (PayFac). A white-label payfac, also known as payfac-as-a-service, is a business model in which a company uses a third-party payfac platform to offer payment processing services under its own brand name. One of the key reasons why a company might want to adopt a payment facilitator model is its desire to thoroughly integrate all merchant lifecycle-related processes within one system. The PayFac model offers traditional acquirers more options, expanded control, and higher rewards. In a new series, Rich Aberman, co-founder of WePay, and Karen Webster set the record straight on what a PayFac is and isn’t, how a company can become one (and what it costs), the value equation. Traditional payfac solutions are limited to online card payments only. Payment Solutions. eBay sold PayPal. The difference between payment facilitators (payfacs) and independent sales organisations (ISOs) is about which payment services they offer. 60 Crores. Obtain Payments Institution (PI) or Electronic Money Institution (EMI) license if needed (Europe-specific) Build your platform. A Simplified Path to Integrated Payments. Hybrid PayFac or Hybrid Payment Facilitation. When you start accepting payments online, you need a merchant account from a payment facilitator with sufficient infrastructure and proper compliance to process payments . Traditional payfac solutions are limited to online card payments only. From there a PayFac would need to either build or buy the underwriting and reporting tools, which run around $100,000 annually in a subscription model. Here’s how a payfac-as-a-service solution will boost your revenues: You pay the payment facilitator – 2. Traditional payfac solutions are limited to online card payments only. 07% + $0. Others may take a more hands-on approach. Start earning payments revenue in less than a week. The payfac model is a framework that allows merchant-facing companies to embed card payments into their software—which in turn enables their customers to process payments. But the model bears some drawbacks for the diverse swath of companies adopting it, as well as for the merchants that work with them. Standard. It may find a payfac’s flat-rate pricing model more appealing. Deliver better user experiences and start earning more. Start earning payments revenue in less than a week. The latter offers less control, but is far cheaper – something smaller and medium sized businesses need. This model simplifies the onboarding process, reduces time-to-market, and offers a more user-friendly experience for both merchants and customers. September 28, 2023 - October 6, 2023. There are a lot of benefits to adding payments and financial services to a platform or marketplace. So, nowadays, a somewhat more popular option is implementation of embedded payments. ISOs offer greater control and potential cost savings for larger businesses with high transaction volumes, while payfacs provide a simpler, all-in-one solution for smaller. We champion transparent pricing, and our clear fee structure lets you know precisely what you’re paying for. PayFac model is, in essence, one of the ways of monetizing payments. They create a platform for you to leverage these tools and act as a sub PayFac. It’s a tool for processing payments for the company’s own merchant customers. Nowadays, many top SaaS payment companies are considering this option. Get in Touch. 2M) = $960,000 annually. A white-label payfac, also known as payfac-as-a-service, is a business model in which a company uses a third-party payfac platform to offer payment processing services under its own brand name. You’re miles ahead of the competition when you start with the UniPay gateway. As he noted, the banks’ PayFac clients are demanding the changes, in an industry where Square and Stripe are boosting payments acceptance across any number of verticals. Full definition What is the payment facilitator model? Full definition Merchant account 27 February, 2020 Business Development Specialist Yuliia Mamonova Fintech. In essence you need to become a payments company. The PayFac model offers several benefits to end customers: (1) faster onboarding of merchants, (2) increased control of payments experience, and (3) greater revenue share for the ISV. The hybrid model is somewhere in between, offering a balance of complexity and liability protection. 1. The settlement of funds is also typically handled with stringent oversight in the payfac model. The payer initiates the payment process for goods and services at your shop site. Operational Model of PayFacs in the UK. The meaning of PayFac model is that PayFacs actively participate in merchant underwriting, background verification, monitoring, funding, reporting, chargeback management. In the PayFac model, banks that monitor PayFacs are called Acquiring Banks. Platforms and acquirers offer PayFac programs. Partnering with an ISO means the SaaS business. PayFacs are based on the merchant aggregator model created by Visa and MasterCard to provide support for payment card acceptance in marketplaces. The Payfac must also protect the payments system against data breaches by maintaining a secure environment and ensuring that its submerchants are meeting their security responsibilities. If you’re in healthcare rev cycle management, acronyms are nothing new. The integration of embedded payments within software platforms has simplified transactions, enhanced user experiences, and unlocked new revenue streams. Payout speed Depending on the provider, payfacs can offer faster payouts because they manage the entire transaction process. 2 million annually. The. As a result, the PayFac must handle underwriting and approvals, the merchant onboarding process, receives funds on behalf of its clients, and create a schedule to transfer those funds into merchant accounts. e. A white-label payfac, also known as payfac-as-a-service, is a business model in which a company uses a third-party payfac platform to offer payment processing services under its own brand name. These marketplace environments connect businesses directly to customers, like PayPal, eBay, and Amazon. There are a lot of benefits to adding payments and financial services to a platform or marketplace. ISVs solve business problems for the merchants they serve by developing software for streamlining processes and extending customer capabilities. Stripe, a tech-enabled evolution on the traditional payfac model, offers a complete solution that combines the functionality of a merchant account and a gateway all in one. Proven application conversion improvement. Embedding financial services can grow revenue per customer 2–5x higher than the traditional model. The ISO, on the other hand, is not allowed to touch the funds. PayFac vs ISO: 5 significant reasons why PayFac model prevails. A Payment Facilitator (PayFac) streamlines payment acceptance for multiple merchants or sub-merchants by aggregating them under one merchant account. A white-label payfac, also known as payfac-as-a-service, is a business model in which a company uses a third-party payfac platform to offer payment processing services under its own brand name. An effective PayFac. FISTherefore, a PayFac model is becoming a must-have for ISVs and platforms hoping to manage the complexity of payments processing. A white-label payfac, also known as payfac-as-a-service, is a business model in which a company uses a third-party payfac platform to offer payment processing services under its own brand name. You can have a Managed PayFac model for a custom payment gateway script development in the essence of a sub-PayFac. The payfac model emerged to give companies that specialized in payments the ability to reduce the complexity of getting started with online payments and offer services to a broader array of businesses, allowing them to focus on their core competencies. Our intuitive APIs and developer-friendly guides make integration a breeze, minimizing any business disruptions. processing system. The PayFac uses an underwriting tool to check the features. The payment flow for the Hosted Session model is illustrated below. Priding themselves on being the easiest payfac on the internet, famously starting. PayFac model is easier to implement if you are a SaaS platform or a. The payfac model emerged to give companies that specialized in payments the ability to reduce the complexity of getting started with online payments and offer services to a broader array of businesses, allowing them to focus on their core competencies. A white-label payfac, also known as payfac-as-a-service, is a business model in which a company uses a third-party payfac platform to offer payment processing services under its own brand name. Process all major card brands and payment methods, including ACH, contactless. ,), a PayFac must create an account with a sponsor bank. First, they make money from the sale of the software itself. This includes chargebacks, data breaches, fraud, misappropriated fund distribution, etc. Embedding financial services can grow revenue per customer 2–5x higher than the traditional model. The PayFac model emerged in the early 2000s, pioneered by payment facilitator US companies such as PayPal and Stripe, which offered a simple and streamlined payment processing experience. Embedding financial services can grow revenue per customer 2–5x higher than the traditional model. Leveraging. Navigating Regional And Global Regulations. Revenue Share*. To become a PayFac in the UK, a business must register with the Financial Conduct Authority (FCA), which regulates payment services in the country. If your business processes large volumes of transactions, the payfac model could end up being more cost effective. Most ISVs who contemplate becoming a PayFac are looking for a payments. Instant merchant underwriting and onboarding. Processor-specific Platforms for Payment Facilitators: Vantiv; On the way to Payment Facilitator Model; Virtual Payment Facilitator Model; White Label Payment Facilitator Model; Before Starting a Payment Facilitation Project; Payment Facilitator Paradigm and Beyond: VAR, ISV, Next-generation ISOFast, efficient boarding solutions that orchestrate third-party and internal systems to help you turn prospects to customers – face-to-face, on the phone, or online. A white-label payfac, also known as payfac-as-a-service, is a business model in which a company uses a third-party payfac platform to offer payment processing services under its own brand name. The PFaaS provider handles all of the risk, compliance and underwriting on behalf of the ISV. One of the main benefits to adopting the Payfac ® model is the increase in revenue you get from each transaction processed using your software. In this model, the white-label payfac provider takes care of the underlying technology, payment processing infrastructure, compliance, and risk management. These software companies take on greater risk but pocket a much larger portion of the processing revenues. In most cases, PayFac providers operate in a software-as-a-service (SaaS) model, meaning merchants will pay a. Payment Model For The Digital Age Technology is ever-expanding how business is conducted, and payment processing is one such aspect improved by the digital age. The payfac model emerged to give companies that specialized in payments the ability to reduce the complexity of getting started with online payments and offer services to a broader array of businesses, allowing them to focus on their core competencies. Traditional payfac solutions are limited to online card payments only. Wide range of functions. So, nowadays, a somewhat more popular option is implementation of embedded payments. This connection is only possible through an acquiring bank relationship. Enabling businesses to outsource their payment processing, rather than constructing and. PFaaS Benefits A major difference between PayFacs and ISOs is how funding is handled. While the payment landscape has numerous players and interrelationships that developed over time, the history of the. In this model, the white-label payfac provider takes care of the underlying technology, payment processing infrastructure, compliance and risk management. It may find a payfac’s flat-rate pricing model more appealing. Most ISVs who contemplate becoming a PayFac are looking for a payments solution that takes the. In this model, the white-label payfac provider takes care of the underlying technology, payment processing infrastructure, compliance, and risk management. In the ISO model, merchants enter into contracts directly with the payment processor. PayFac companies generate revenue in two distinct ways. The key aspects, delegated (fully or partially) to a. It offers the. Unlike the PayFac model where SaaS’s customers are boarded as sub-merchants, white label payments customers go through the application and approval process. Stripe’s payfac solution can help differentiate your platform in. Stripe’s payfac solution can help differentiate your platform in. The PayFac model is actually quite straightforward and, in practical terms, it mirrors the software as a service (SaaS) model that so many software providers operate. PayFac integration with Finix allowed. There is also another reason why companies choose to operate though MOR model. Payment facilitation helps you monetize. A white-label payfac, also known as payfac-as-a-service, is a business model in which a company uses a third-party payfac platform to offer payment processing services under its own brand name. The latter offers less control, but is far cheaper – something smaller and medium sized businesses. This blog post explains what PayFacs are and the ten most significant. PayFacs provide a similar service to standard merchant accounts, but with a few important differences. Instead of each individual business needing to set up its own merchant account, a process that can be time-consuming, the payfac effectively “rents out” merchant account functionality under its larger master merchant. especially ones based on the interchange-plus pricing model. Understanding the Payment Facilitator model. ISOs are also in charge of setting up merchant accounts for merchants through their banking relationships. The issue is priced at ₹122 per share. Put our half century of payment expertise to work for you. They create a platform for you to leverage these tools and act as a sub PayFac. PayFac Benefits. These entities included independent sales organizations (ISO), payment facilitators (PayFac), and payment service providers. For example, a dog-sitting marketplace that connects pet owners with pet sitters could become a PayFac, processing payments on behalf of its pet-sitting small. The traditional method was first established for brick-and-mortar businesses with a clearly defined relationship between merchants and the customer. We provide help for companies that want to become payment facilitators. However, for others, a managed payfac program is a better alternative, delivering the perks without the heavy lift. NMI CEO Roy Banks gives Karen Webster the inside skinny on a model that gave birth to a new way to innovate payments, at. If you’re considering adopting the PayFac model, know that the right technology partner can help you bypass many of the complexities of payment facilitation — such as having. A payment facilitator (or payfac) is the owner of a master merchant identification number who registers merchants as sub-merchants and enables their payment acceptance. Since PayFac is a MasterCard processing model, it’s called Payment Service Provider for Visa, there are plenty of acquirers around the world. This is the most popular option among businesses wanting to accept crypto payments online and at POS. Stripe’s payfac solution can help differentiate your platform in. Others may take a more hands-on approach. ” Global, which also supports financial institutions in card issuing, saw that part of its business record $505 million in adjusted net revenue for the quarter. They may have the payment processor as a party, but this is not a necessary requirement. As digital payments began to surge and businesses sought more efficient payment processing solutions, Payfacs. If a SaaS or POS platform provider wants to become a payment facilitator but is not ready for significant upfront costs and for. The PayFac business model cuts out the expensive salespeople employed by the legacy payment. ISO prospects (beside payment facilitator model) As one of our articles shows, traditional ISO model is unable to compete with PayFac model in terms of value-for-money. In the ISO model, merchants enter into contracts directly with the payment processor. There is a true PayFac that assumes all those compliance and regulatory and infrastructure costs. Supports multiple sales channels. There are a lot of benefits to adding payments and financial services to a platform or marketplace. Even if you have your own payment gateway, processing. It may find a payfac’s flat-rate pricing model more appealing. The Payfac model simplifies the merchant account enrollment process and provides increased levels of control to ISVs. How to become a. Merchant Onboarding Procedure. At this point a merchant might consider becoming its own MOR or switching to another service provider. PayFac vs ISO: 5 significant reasons why PayFac model prevails. The PayFac model also transfers the risk from individual merchants to the payment facilitator, who owns the master account. Payment volumes are projected to increase over 100% globally from 2022 to 2025 to over $4 trillion. Embedding financial services can grow revenue per customer 2–5x higher than the traditional model. Instant merchant underwriting and onboarding. Traditional payfac solutions are limited to online card payments only. A Payment Facilitator (PayFac) is a type of merchant services company that provides business owners with a way to accept electronic payments, both online and in-store. A PayFac, or payment facilitator, was originally defined by Visa® and Mastercard® to describe the entity that is officially doing business with the card brands. An open-source licensable white-label payment gateway technology, such as UniPay Gateway can provide the basis for any of these strategies. So Which Payfac Model is Right for You? For software providers with the right merchant portfolio, the tools and expertise to support clients’ needs as well as meet legal requirements, becoming a payfac may be the right next step. This article illustrates how adapting the payfac model can boost merchant services. Choose a sponsoring acquirer and register with them as a Payfac. There is typically. I/C Plus 0. In the PayFac model, banks that monitor PayFacs are called Acquiring Banks. “It’s really one of the best examples of the power of the PayFac model,” said Dagenais, whose firm provides processing infrastructure to ISVs and PayFacs. While ISOs and payfacs both facilitate electronic payments for businesses, they cater to different needs. 3. Reduced cost per application. PSP & PayFac 102. In the Managed PayFac model, you are in essence a sub Payfac. Your SaaS company enhances its image and business reputation. A prospective PayFac has to meet more rigorous requirements and incur large upfront costs. PayFac companies generate revenue in two distinct ways. Having gateway software is not enough to accept payments. A white-label payfac, also known as payfac-as-a-service, is a business model in which a company uses a third-party payfac platform to offer payment processing services under its own brand name. However, PayFac concept is more flexible. While companies like PayPal have been providing PayFac-like services since. Gas On A Roaring FireEmbedding financial services can grow revenue per customer 2–5x higher than the traditional model. Payment processors. A PayFac, or payment facilitator, is a merchant services model that streamlines the merchant account enrollment process by onboarding a merchant as a sub-account under. PayFacs perform a wider range of tasks than ISOs. In this example, the PayFac model makes payment acceptance more seamless and provides the home chefs (or sub-merchants), with the ability to get paid via the payment processor the PayFac uses. Seamless and paperless underwriting is at the heart of this model, accelerating standup times for merchants. First, they make money from the sale of the software itself. The full-fledged payment facilitation model is when PayFac takes on the full liability for the merchant. There are a lot of benefits to adding payments and financial services to a platform or marketplace. In many of our previous articles we addressed the benefits of PayFac model. Besides that, a PayFac also takes an active part in the merchant lifecycle. These companies offered services to a greater array of businesses. Stripe’s payfac solution can help differentiate your platform in. For each particular business model case the answer might be different. However, it’s worth noting that this model demands significant resources for infrastructure and compliance. Using a PayFac solution enables you to act as a payment facilitator without having to be an expert in payments. In 2018, payment revenue for North America alone totaled $187 billion, $14. It’s going to continue to grow in popularity in the market. Stripe was founded in 2010 by two Irish siblings: then 22-year-old Patrick Collison and younger brother John, 20, positioning itself as the builder of economic infrastructure for the internet — launching their payfac flagship product in 2011. The model might even make sense for larger merchants with franchisees, too. The white-label payment facilitator model is less complex and costly, but it does not provide the same level of liability protection. A white-label payfac, also known as payfac-as-a-service, is a business model in which a company uses a third-party payfac platform to offer payment processing services under its own brand name. Payfac-as-a-service is a turn-key payment facilitation model in which an external company provides businesses with the necessary tools and infrastructure to. The following is a quick overview of payment facilitators. A white-label payfac, also known as payfac-as-a-service, is a business model in which a company uses a third-party payfac platform to offer payment processing services under its own brand name. PayFac platforms typically operate on a subscription basis; this allows merchants to pay a monthly fee instead of paying transaction fees each time they process a payment. Payout speed Depending on the provider, payfacs can offer faster payouts because they manage the entire transaction process. In a payfac model, the business owns the payment-processing systems and has direct control, while in a payfac-as-a-service model, the third-party provider owns and manages the payment processing systems on behalf of the business. A Payment Facilitator, or PayFac Model, is just another name for a sub-merchant account with a merchant bank. The payfac model is not the right model for all ISVs and expanded ownership of the product does not necessitate being a payfac. A good way to make sense of the Payfac model is to look at its two main parts—boarding of merchant accounts and settlement of funds. MATTHEW (Lithic): The largest payfacs have a graduation issue. Payment Facilitators, or PayFacs, are sub-merchant accounts for merchant service providers to provide payment processing services to their own merchants. In this model, the white-label payfac provider takes care of the underlying technology, payment processing infrastructure, compliance and risk management. We can also help you build banking relationships and guide you on which processes you must put in place to function efficiently as a payment facilitator. The PayFac model is a great option for franchise businesses with multiple locations — such as fitness centers, healthcare providers, and restaurants. January 25 th, 2022 – Atlanta, GA and Tulsa, OK – Payfactory, a fintech payment facilitator for software platforms, has announced a growth investment from Bluefin, the recognized integrated payments leader in P2PE encryption and vaultless tokenization technologies. Standard. A Complete mPOS Solution to Easily Accept Payments. While ISOs and payfacs both facilitate electronic payments for businesses, they cater to different needs. The main benefit of becoming a PayFac is recurring revenue. Re-uniting merchant services under a single point of contact for the merchant. PayFacs earn a percentage of merchants’ transactions through processing fees. In essence, white label PayFac model allows prospective payment facilitators to get what they want without imposing the requirements that are difficult to meet. The PF may choose to perform funding from a bank account that it owns and / or controls. A payfac is a type of payment aggregator, but it typically provides a more comprehensive suite of services. This was still applicable when e-commerce was developed as long as that relationship was there. This will typically need to be done on a country-by-country basis and will enable. Likewise, it takes a lot of work and expenses to. While ISOs and payfacs both facilitate electronic payments for businesses, they cater to different needs. A white-label payfac, also known as payfac-as-a-service, is a business model in which a company uses a third-party payfac platform to offer payment processing services under its own brand name. The ISO may sometimes be included as a third party, but not necessarily. The model established by payment facilitators—known as PayFacs—enabled millions of businesses to accept a range of payments. PFaaS solutions help software businesses reduce costs and risks, deliver exceptional user experiences, and increase payment revenues to ultimately achieve. ETA’s PayFac Committee met this month for a panel discussion on The Scotus . Enabling businesses to outsource their payment processing, rather than constructing and maintaining their own. Once a sub-merchant has been through the onboarding process it is down to the PayFac to control payments adhering to the rules. The payment facilitator model has become especially popular with platforms, marketplaces and SaaS businesses who serve smaller businesses that need to process payments. For business customers, this yields a more embedded and seamless payments experience. This means that businesses only need Stripe to accept payments and deposit funds into their business bank account. So, they are a few steps closer to PayFac model implementation than others. A white-label payfac, also known as payfac-as-a-service, is a business model in which a company uses a third-party payfac platform to offer payment processing services under its own brand name. In this model, the white-label payfac provider takes care of the underlying technology, payment processing infrastructure, compliance and risk management. There is a true PayFac that assumes all those compliance and regulatory and infrastructure costs. PayFac® solutions, at your service Worldpay from FIS is your advocate for payment facilitator solutions. Traditional payfac solutions are limited to online card payments only. Owning the sub-merchant. Payout speed Depending on the provider, payfacs can offer faster payouts because they manage the entire transaction. A Payment Facilitator (PayFac) is a third-party service that lets merchants accept various forms of non-cash payments like credit/debit cards or digital payments. In a managed PayFac model, you can trust the knowledge and expertise of your payment integration provider. This means that businesses only need Stripe to accept payments and deposit funds into their business bank account. PAYFAC-AS-A-SERVICE (aka Payfac Lite or Managed Payfac) Learn More. The key is working with the right sponsor as you embark on the journey of becoming a successful PayFac. Payment Facilitation Model (PayFac) In the PayFac model, the payment service provider (PSP) acts as a master merchant and allows sub-merchants to process transactions through their own merchant. So, they are a few steps closer to PayFac model implementation than others. As small business grows, MOR model might become too restraining, while payment facilitators provide robust APIs, which sometimes allow merchants to customize each function. It may find a payfac’s flat-rate pricing model more appealing. Stripe’s payfac solution can help differentiate your platform in.