PayFac As A Service For SaaS PlatformsPayFac As A Service For SaaS Platforms
The world of payments can be tricky to get your head around, but if you run a SaaS platform, there’s one thing you definitely need to get familiar with. PayFac as a service (or Payment Facilitation as a service) gives your platform all of the advantages of being a PayFac, and the ability to provide instant onboarding and generate cashflow, safely and easily.
How Does It Work?
SaaS platforms typically require payments to be made – a lot of them. When you have PayFac as a service, these platforms take on the role of a master merchant account. The people who use your platform then become sub-accounts (meaning they don’t have to go through a lengthy process to become a master account themselves), via an immediate onboarding process.
The Advantages Of PayFac As A Service
One of the main advantages of PayFac as a service is the sheer speed it offers. SaaS platforms frequently rely on users being able to sign up and start using their platform (and operating payments through them) instantly, and PayFac as a service allows them to do so. This keeps your business growing, and your platform users happy.
But that’s not to forget the revenue generation possibilities that come with PayFac as a service, with per-transaction revenue providing a potential brand-new income stream.
Where there’s a gap between what your platform charges its users per transaction and the real cost of processing, revenue is made, which may then be split between the platform and the Master PayFac.
What Else Do I Need To Know?
The setup for PayFac as a service generally requires platforms to follow various protocols. Typically, $200,000 will need to be paid by the platform to cover compliance and integration fees, and companies will also need to consider how they can devote resources and labor to the process. Registering with card associations will also be required.
It’s advisable that SaaS platforms interested in PayFac as a service familiarize themselves with compliance information, and talk through their options with a trusted payment solutions business.
The Bottom Line
By harnessing the power of PayFac as a service, you’ll be taking your business to new heights. Immediate onboarding for your platform users and a brand-new revenue stream make this payment solution a winner.
For more information on PayFac as a service, contact Agile Payments today. Our team of payments experts has decades of experience and can help you implement the solutions your platform needs, starting today. Get in touch now.