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The embedded finance market—including Payfac-as-a-Service—is projected to exceed $7 trillion in global transaction volume by 2030. The compliance. What Is Payfac-as-a-Service? But your provider (like Usio) handles the compliance, risk, and infrastructure behind the scenes. With Payfac, you own the UX. It’s a lot.
Should you become a full Payment Facilitator (PayFac)? Or should you partner with a PayFac-as-a-Service provider? First, What Is a Payment Facilitator (PayFac)? PayFac-as-a-Service gives you all the benefits of embedded payments —but without the regulatory weight and operational lift. This isn’t marketing fluff.
What once required months of development, multiple vendors, endless compliance headaches, and the patience of a saint… can now be handled with a few lines of code and a supportive partner who gets it. It’s built to scale, built to last, and built with your team in mind. SOC 2 – to give your compliance and audit teams peace of mind.
A payment facilitator (or PayFac) is a software platforms all-in-one payment processing solution. Instead of your customers needing to create their own merchant account to process payments, you as the PayFac developer handle all the payments setup and complexity for them. Handle sub-merchant compliance with card network rules.
Two prominent solutions that have emerged in recent years are integrated payments and Payfac-as-a-Service. Payfac-as-a-Service: Payfac-as-a-Service, short for Payment Facilitator as a Service, is a model where a third-party service provider facilitates payment processing on behalf of multiple sub-merchants.
This is ideal for software companies looking to scale. Security, risk, and compliance: Security is crucial dont leave it to chance 7. Within the Embedded Payments structure, integrated payments are also known as referral partnerships. This means software companies have an opportunity to deliver on those needs.
Built for Compliance : PCI Level 1, SOC II, Nacha certified — backed by in-house regulatory teams. Their strength is scale — but that also means smaller partners may feel left behind. Support : Available but built for large-scale, enterprise users. Best-in-Class Support : Dedicated onboarding specialists, U.S.-based
If you already have payments volume on your platform, you may be finding that these sales just arent generating the kind of revenue you need to scale. By leveraging Payrix Pro , our PayFac-as-a-Service solution, this software platform was able to achieve their vision quickly all while delivering a superior product and customer experience.
Behind the scenes: key components of integrated payments In order for integrated payments to work, youll typically integrate with a payment gateway or payment facilitator (PayFac). It can also make it easier to manage compliance, automate reporting, and scale operations. Are there white-label or PayFac-as-a-Service options?
To simplify the intricacies of payment processing, two well-known solutions have surfaced: Payment Facilitators (PayFacs) and Merchants of Record (MoRs). Understanding Payfac vs Merchant of Record Payment Facilitators (Payfacs) and Merchants of Record (MoRs) are two different ways to process payments.
This is ideal for software companies looking to scale. Security, risk, and compliance: Security is crucial dont leave it to chance 7. Listen now Podcast What is PCI attestation of compliance (AoC)? Within the Embedded Payments structure, integrated payments are also known as referral partnerships.
TL;DR Payment gateways and PayFacs are both players in the digital payment process with similar goals in mind: secure and low-risk payments while providing seamless, fast, and positive customer experiences. A PayFac, by contrast, handles the bank’s interaction with a number of merchants. What is a Payment Facilitator (or PayFac)?
With a large scale company needing checks to be processed and done, the expense of materials is very high. Receiving the highest level of security and compliance with Nacha standards. A strategically designed way can help relieve this load and cost on the company and utilize its working hours for other productive works.
Its payfac-as-a-service solution — Payrix Pro — enabled Nick to control the onboarding and customer service, while Payrix managed the processing, compliance, and most of the risk and liability. Using Payrix is a profitable operation for us that fits nicely into a scaled financial model.”
The number of Payment Facilitators (PayFacs) has grown 13.8% PayFac as a Service lets companies add payment processing to their platforms. Key Takeaways PayFac as a Service reduces PayFac setup time from years to days, slashing costs by millions. PayFacs, on the other hand, let businesses use a master account.
Launching PayFac and ISV solutions In 2019 and 2020, Stax became more than just a payment processor for merchants. We wanted to provide value to other players in the payments ecosystem, so we launched PayFac solutions in 2019. This was around the time that Fattmerchant decided we were going to be a Payfac.”
Thats where Payfac-as-a-Service comes in. What Is Payfac-as-a-Service? A traditional payment facilitator (Payfac) takes on the full burden of underwriting, onboarding, compliance, and payment processing. Payfac-as-a-Service flips the script. Why Business Owners Are Choosing Payfac-as-a-Service 1.
The Two Paths to Embedded Payments If youre ready to dive into the world of embedded payment processes, youve got two choices: Become a Full Payfac: This is like deciding to open your own restaurant instead of just enjoying a great meal. Usio Payfac-as-a-Service model gives you all the perks of embedded payments without the hassle.
Meanwhile, the Usio platform silently handles merchant provisioning, PCI compliance, and fund settlement. The Usio Embedded Payments Platform: A Game-Changer The Usio solution provided everything: merchant onboarding, compliance, PCI, and underwritingall through a white-labeled platform. Figure: An example of payment page (mobile).
Unlock Hidden Revenue, Scale Smarter, and Choose the Right Partner Introduction: Payments Are No Longer Just Transactions If you’re building a SaaS or platform business, embedding payments isnt just a featureits a business model. That means sales enablement, compliance guidance, onboarding help, and actual humans you can talk to.
As software companies look to integrate payments, understanding tokenization is essential for security, compliance, and long-term strategy. Initially, one-time tokens were introduced to meet compliance requirements, providing temporary replacements for card numbers but offering little utility for long-term data storage.
As businesses increasingly rely on diverse payment processing solutions, you should understand the distinctions between Payment Facilitators ( PayFacs ) and Independent Sales Organizations (ISOs). Key Takeaways Understanding the roles of PayFacs and ISOs helps in effective payment processing. They offer customer service support, too.
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