PayFac, or payment facilitation as a service, offers a different software platform to onboard new users and monetize payments. Additionally, the platform acts as a merchant account that sets up the sub-accounts for end users.
The platform users complete simple applications in minutes and begin accepting debit and credit cards. However, the ability to onboard customers without having a merchant account can offer friction-free onboarding.
If merchants are looking for instant onboarding solutions, then PayFac is the right solution. Moreover, becoming PayFac is an excellent benefit for SaaS platforms that offer business management apps.
Features of PayFac as a service:
PayFac offers revenue sharing that rewards your platform and helps you prepare a channel strategy for your business. With PayFac, you can be live within a week. However, if you compare it with developer-friendly APIs, it can take months to go live.
- The services are fully managed, offering a huge benefit as there are no hassles of operating as a PayFac.
- Additionally, it offers friction-free customer onboarding services.
- You can offer the users a simple signup process with the benefit of starting to accept the payments within minutes of approval.
- By utilizing the PayFac solutions, ISVs can help merchants accept payments faster.
- There is less paperwork, instant approval, and reduced fees.
Ways to Attract Merchants Using a PayFac-as-a-Service Solution
1. Reduced costs
A PayFac model reduces the capital cost for the merchant. However, this is also applicable to ISVs. The merchants are provided with all the solutions that remove the need to purchase the software through the platform.
Investing in added software may be a burden for a merchant. Moreover, even the overhead costs are reduced when the merchant’s signup with the ISVs.
- The ISVs that are well equipped to support all the backend activities offer additional benefits to the merchant.
- Some ISVs offer benefits like – inventory, billing, and purchase management. Plus, reduced costs are the best solution that attracts merchants.
2. Instant account approvals
When you operate a merchant account using software, it can cause many hurdles. For example, because of their credibility, smaller merchants just starting won’t get an instant response with software.
However, when you are on board with a PayFac provider, new merchants can skip the whole process of manual underwriting. Instead, using advanced risk assessment technology and data points, merchants are granted instant approval to start processing payments.
- Some may get approval within seconds, compared to days. Breaking down these barriers can reduce friction during the onboarding process and increase the pool of merchants who can use the software.
3. Simple fee structure
A simple end-to-end fee structure is the main benefit of PayFac, and it can attract merchants to come on board. You can differentiate rate structures according to the need.
- For instance, GETTRX PayFac solutions are a simple and seamless way for SaaS platforms and ISVs to lower different customer acquisition costs and boost lifetime values. It also creates customer engagement.
A simple fee structure is why many new merchants are ready to come on board. Besides, merchants can predict the costs and also save time. Also, as a merchant – you don’t have to waste your energy on monthly statement reconciliations.
4. Monetize payments
When you integrate the payment solution with the software, it acts as an added benefit to merchants. Additionally, with managed PayFac solutions, it is possible to monetize all the transactions that come with the radar of your platform.
Moreover, when you charge a fee, you can earn a percentage of the processing fee by creating a revenue stream. Plus, the new income stream can enhance the valuation, which may attract new merchants to the platform.
- In many cases, the merchants can generate money from the subscription fee or actual service.
5. End-to-end PCI compliance
PCI may require proper expertise for complete implementation. When you sign up under the ISVs that subscribe to PayFac, it can help to give the business an instant PCI level 1.
Besides, this reduces the burden on merchants. By removing the complexity, you can ensure a security baseline that clarifies things. In addition, it is a security seal that may attract new merchants to the platform.
6. Central merchant management
The PayFac solutions can manage merchants using a single platform. As a facilitator, you can add merchants to your system without issues. Plus, the merchant management system can help you know about relevant details of the merchant.
- You will be able to view contact information and relevant payment metrics at a single glance.
- Additionally, you can generate reports on demand.
- A centralized management system ensures the admin tasks are less, which helps you spend more time managing the new merchant’s accounts.
- It lets you spend more time on the core tasks of your business.
- Following this, it can lead to customer satisfaction.
7. Simple Onboarding
There is no added paperwork or signs to onboard a merchant, which simplifies the onboarding process. Adding a merchant is as simple as pre-filling a digital application.
Also, since merchants don’t need a merchant account through a bank, they are approved in no time. As a PayFac, you can benefit from the streamlined process, and a merchant doesn’t have to wait for approval. Additionally, it allows broad more customers in less time.
8. Personalized support
Using a PayFac solution enables you to act as a payment facilitator, and you can find onboard merchants with the power of integration. In addition, comprehensive PayFac platforms can onboard merchant accounts quickly and within a record time.
It can provide new merchants with the benefit of flat rate pricing and scalable payment solutions. Plus, you can offer complete flexibility through payment options available.
In short, the platform acts as a master merchant account that can set up new sub-accounts in no time. In addition, it provides the ability to onboard merchants without applying for a traditional merchant account. You can attract new merchants on board with all the above ways, so do use them.