If you own or run a business, you know the ability to accept payments is one of the most important services you’ll need. No business can run smoothly, let alone flourish, without a reliable way to do so. If you own a software company or shopping cart – you also need to easily allow your clients to accept payments from within your software. This is where the concept of becoming a Payment Facilitator comes in. Previously, businesses would need to acquire a merchant account to get their payments going. However, this process could be overly cumbersome and time-consuming.
To solve this problem, more and more companies have become dedicated to simplifying and speeding up the process by offering what is called a sub-merchant account. A Payment Facilitator, or PayFac for short, is a company that offers this service. Through us at AddPaymentsNow, we will be able to help you become a PayFac through our expert knowledge of vetted payment facilitator providers.
Why offer PayFac services?
The greatest benefit that Payment Facilitation offers is a highly efficient means of enabling third-party merchants to accept and process payments. Payments are the fuel to any and all businesses, so as a software vendor, you will be additionally equipped to grow your revenue through offering your clients a simple way for them to accept payments for their services. Since you will gain a percentage or share of each transaction, you can greatly improve your revenue while providing a highly sought after service. An additional benefit of providing this extra service to your clients is that it will further connect them with your business, thereby increasing your retention rates.
How common are PayFacs?
Over the last few years, PayFacs have taken up a greater share of payments processed online. While there’s still a large number of businesses who prefer to set up their own merchant account and payment processor, PayFacs have nonetheless been on the rise. Recent research forecasts that Software as a Service (SaaS) and Independent Software Vendors (ISV) alone will reach $513 billion in gross payments volume by 2021.
This is a great potential market to tap into, as a PayFac is the option of choice for this type of company. Furthermore, it is becoming increasingly popular to be a PayFac. Numbers from MasterCard and Visa indicate that there are more than a thousand registered payment facilitators. However, adding payment facilitation or becoming a PayFac is not without its complications. This is why we offer our expert insights. We can provide you with access to vetted and streamlined payment facilitator providers so that you can take advantage of this promising and growing development.
How do PayFacs work for your business?
PayFacs offer software creators and shopping cart services, among others, the ability to start accepting payments through their platform. What we do at AddPaymentsNow is specialize in finding the right payment facilitator provider for you, so that you have the upper hand. We do this by providing you with the tools necessary to find the right fit for you in order to help your clients get their businesses up and running.
One of the main issues for those wanting to provide payment facilitation to their many clients is that it is challenging to become a PayFac. Breaking into what some describe as “the new ISO” can be complex in terms of finding the right information, verifying it, and reaching the right payment facilitator providers. For obvious reasons, there are many aspects that play a part in payment facilitation; from due diligence and good company capitalization to being a good fit with a specific sponsor. This can be a hurdle for many, which is why our insights can be very helpful in pairing you with the right payment facilitator provider for your business.
Benefits of partnering with us
Among the benefits, you will gain from partnering with us at AddPaymentsNow is that we that we have expertise in payments and insights into a wide range of payment facilitation providers. This puts us in a great position to pair you with a payment facilitator provider that is just right for your business.
While others who wish to provide their clients with an instant setup for accepting credit card payments will need to do a lot of the heavy lifting, we can provide a fast setup with an easy integration – at no setup costs for you as the software provider. As you will also avoid having to share liability, the providers we pair you with will take on the risk while simultaneously providing you with white label options. This will remove risk on your end, while you can further embed your brand in your client’s mind as you provide them with a seamless payment acceptance service solution.
If you should have any questions about becoming a PayFac or would like to get in touch to discuss how we might help your business, feel free to use our contact form below to get started!