Payment Facilitator Companies

A Payment Facilitator takes on the role of the  Master Merchant. The primary benefit to becoming a Payment Facilitator is that you can quickly and easily enroll your app users and enable processing of  credit, debit card and in some case ACH transactions .

As an example: A SaaS offers an invoicing solution eg QBooks. Businesses that want to leverage their invoicing solution complete a simple application and 15 minutes or so later they are approved and set up to accept customer payment. For our example let’s say the business name is “Best Landscapers”.  They applied and are now approved and ready to bill/invoice there customers using the QBooks platform.

Payment Facilitator versus Payment Processor : What’s the Difference

Payment Facilitator Programs

Payment Facilitators [Payfacs] are  Master Merchants that process credit and debit card transactions for their sub-merchants within their payment application.

Payment Facilitator Tools

A Payment Facilitator takes on the role of Master Merchant. This allows them to set up their application users to accept payments. The major benefit to becoming a Payment Facilitator is to quickly and easily onboard sub clients or SaaS platform users to facilitate credit, debit card  and in some case ACH transactions .

An example: A SaaS offers an business management solution for Yoga Studios. The software is call Yoga101.  Yoga 101 uses Payment Facilitator Tools to allow quick sign up and provide payout and compliance functionality.

Text payment solutions offer businesses a fantastic tool for automating payment and especially late payment collection.

Payment Facilitation allows a SaaS application the ability to accept payments on behalf of its end users. The platform users complete a simple application and in minutes can begin accepting credit cards and in some cases ACH Payments.

This ability to onboard clients without having the user apply for a traditional merchant account [that can take days and require supporting documentation like bank statements and tax returns] offers a friction-free onboarding experience.

Payment Facilitation at its core offers instant onboarding of platform users. If that is not an absolute necessity there are alternative that will better meet needs. See Payment Processing Partnerships.

A Payment Facilitator can be thought of as a Master Merchant that facilitates and processes credit and debit card transactions for their platform users.

Managed Payment Facilitation : What is it and is it right for your SaaS

For a business owner, selecting the best and most cost-effective method of accepting customer payments can be confusing and overwhelming, particularly as the range of payment options continues to grow.

A payment aggregation solution offers a platform the ability to act as a master merchant and instantly onboard application sub-users. These users can complete a simple form and in minutes begin accepting payments.

The 2019 payments landscape has inherent risks for any SaaS applications.

For example, imagine you are a business owner with 500 customers that you bill $100 per month on a recurring basis. Your business runs and plans based on $50,000 per month coming in the door on a regular basis. It took a long time and a lot of work to get to the point where your business generates that amount of reliable predictable income. You pay salaries, rent, handle plan development, and manage marketing campaigns ALL around that recurring revenue.

SMS Payment Provider | Pay by Text Provider 2019

Looking to leverage or provide MarketPlace Payments? What you must know

MarketPlace Payment Solutions

The role of the Payment Gateway for MarketPlace Payments

When evaluating technical payment solutions that address the primary needs of a MarketPlace Payment solution the integration to the Payment Gateway plays a vital role in the MarketPlace success. For platforms considering launching or monetizing their MarketPlace payments play a vital role in both the success [or failure] of the platform as well as a primary revenue driver6.

The decision to become a Payment Aggregator or Payment Facilitator (Payfac) has massive implications for a SaaS application provider.

Payment facilitation is the process by which one entity, a master merchant, processes or facilitates payments on behalf of a base of sub merchants.

For the SaaS provider, the potential advantages of becoming a Payment Aggregator can be compelling. The Payment Aggregator model can seem very attractive, both for ease of onboarding and potential revenue generation.

Becoming a Payment Facilitator, Payment Service Provider [PSP] or Payment Aggregator. Being a Payment Facilitator can be thought of as being a Master Merchant, facilitating credit and debit card transactions for sub-merchants within your payment ecosystem. Becoming a PSP (also known as PayFac) lends itself well to some businesses that fall into the software provider classification. However, with the many advantages come some unique challenges. We’ll discuss both in this article.

Payment aggregation or payment facilitation allows one entity, or master merchant, to process or facilitate payments on behalf of sub merchants.

For the SaaS provider, potential advantages in becoming a Payment Facilitator (aka Payment Aggregation) are compelling: payment facilitation drives ease of client onboarding and unlocks a new stream of revenue generation.

Payment facilitation, or operating as a “PayFac” allows a SaaS company to act as a master merchant for its client base. The SaaS provider onboards clients via a non-intrusive application process -- making it simple for the user base to quickly begin accepting customer payments by credit card or ACH Payments [some providers offer].

An interview with MyEvent.com. Early adopters of the PayFac business model MyEvent.com has successfully implemented payment facilitation and used it to grow their business and acquire new clients.