Are you looking for additional ways to increase revenue from payments as a software platform? Do you own a franchise and want to profit from payment services? Do you need payment capabilities for your already established private equity or venture capital firm? Or are you just someone or wholesale ISO that wants to become more involved with the merchant lifecycle and offer more worthwhile services?
Even if you do not fall into one of these categories, if you want to improve the payment experience for your established customers, you can still take advantage of our payment facilitator program.
Recently the payment facilitator model has become more widespread. And this is definitely not without reason: this model enables companies and software platforms to take advantage of revenue from merchant services.
Presently, PayFac model have diversified into several different shapes and forms, including full-blown payment facilitation, white-label payment facilitator, hybrid PayFac, and PayFac-in-a-Box. With these many options, you are more accessible to find the model perfect for your business. There is no need to worry about undertaking the liabilities and requirements immediately. With companies like United Thinkers, becoming a payment facilitator has become even easier than before.
Part of UniPay Gateway, omni-channel payment technology from United Thinkers, is a solid payment facilitator program. This could also be called PayFac-as-a-Service. What essentially is being offered here is the full automatic management of the merchant lifecycle, including underwriting, onboarding, risk management, and funding.
Our model allows you to decide which PayFac responsibilities you want to leave for our team to handle. We are capable of the following:
- provide a prepared white-label platform.
- assist with merchant underwriting, the KYC process, background checks, and risk assessments.
- provide an API ready for instant merchant onboarding. This API includes a premade form that allows merchants subscribed to payment facilitation services to start processing as soon as they complete the form instantly.
- generate merchant statements with your company’s logo.
- provide an automatic collection of merchant service fees.
- support different configurations.
- share revenue with complete honesty and transparency. We are more than delighted to work with your business and share the payment processing income. Your business will now be able to profit off of payment processing and facilitation services.
Who Can Benefit
The businesses that are best suited for the PayFac model are those with multiple clients, who, in turn, offer their own products. Under the PayFac model, these merchants can be converted to sub-merchants. Some examples of suitable companies include software platforms, SaaS companies, franchisors, online marketplaces, ISOs, private equity firms, and venture capital firms.
PayFac Model Advantages
- The large variety of functions. PayFacs are more involved than ISOs. While ISOs resell merchant accounts, PayFacs can also get involved in the merchant lifecycle.
- Unified operations and consolidated volume. ISOs generally want to have the capability to forward merchants in various industries to acquirers supporting the corresponding MCC code. This leads to ISOs partnering with several acquirers and processors. In contrast, PayFacs usually partner with at most two acquirers, lending themselves to being more unified internally and having consolidated transaction processing volume.
- Higher profit and more favorable processing terms. PayFacs strive to offer its services as a single package for a single acquirer or processor. (Diazepam) Due to the previous two listed advantages, PayFacs can contract more lucrative processing terms for their sub-merchants, resulting in increased revenue.
- High accessibility. There are many types of PayFac models for various companies, including ISVs, SaaS platform providers, franchisors, and ISOs. All that’s required to earn more is an established number of clients to become a PayFac.
- Increased company value. Many software and SaaS platforms attract investors based on their increase in value. Usually, the evaluation process is based on the annual revenue of the platform. For these companies, the PayFace model creates an additional income stream, increasing the overall annual revenue. This, in turn, makes the company appear more appealing to potential investors.
- Outside platforms and acquirers offer PayFac programs. More processing platforms and acquirers have started to take into account PayFacs due to their growth and advantages. Businesses willing to adopt the PayFac model are increasingly being offered PayFac programs.
You can contact our specialist with questions about the PayFac model or other inquiries.