Agile Payments Blog

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Is Payment Facilitation a Good Option For SAAS or Platform

Dec 6, 2018 1:07:02 PM

Is Payment Facilitation a good option for your SAAS or Platform?


 A Payment Facilitator or PayFac acts as a Master Merchant. The Payment Facilitator’s role is to quickly and easily onboard sub merchants to facilitate credit, debit card and in some case ACH transactions for participants in their SAAS product

Payment Facilitation is an attractive option for SAAS providers for 2 primary reasons.

1-Easy onboarding for the app users. Complete a simple application and a new MID [Merchant ID that creates the merchant account] is created and that client can begin processing payments

2-Creates a new revenue stream. The SAAS platform will either have a buy rate or revenue share percentage negotiated with their Payment Facilitation platform partner. In either case every payment transaction generates revenue the platform receives. In many cases this revenue can become substantial. This creates a more profitable and valuable business.

Payment Facilitation is an especially good fit if your SAAS solution offers payment acceptance and in particular recurring payments.

There are many considerations and it makes sense to speak with someone who can listen to what your goals are, answer questions and potentially craft a solution that best serves your end customer and your platform. And we specialize in helping platforms navigate the payments landscape.

 Contact Us with questions.

 Some resources:

An overview of Payment Facilitation Solutions that outlines costs, risks and rewards

Payment Processing Partnership - Looks at options including Payment Facilitation as well as a partnership model where revenue generation is still a big part of the equation but offer options where the SAAS platform can simply focus on their SAAS offering and leverage payments as rev driver.

Wayne Akey
Written by Wayne Akey

Wayne Akey works collaboratively with SAAS providers whose clients have recurring billing needs to create innovative payment solutions and new revenue streams. He has partnered with dozens of software providers to create integrated payment solutions that solve recurring billing problems and generate significant recurring revenue. He has experience in: ACH Processing | Payment Partnerships | Payment Gateway Integration | Credit Card Decline Mitigation | Payment Aggregation. Wayne is the author of “Explode SAAS Revenue by 84%: A Guide to Geometric Growth using Integrated Payment Processing”. To learn how your software application can become a billing solution for your users as well as generate additional revenue streams, contact Wayne today at wakey@agilepayments.com. We guarantee you will learn how to improve revenue per client by at least 10% or we will donate $500 to the charity of your choice.

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