Power of the PayFac ModelAshley May
PayFac-as-a-Service (PFaaS) models like our Cardknox Go solution deliver tremendous value to businesses that want to integrate payments into their offerings, including instant merchant onboarding, more control over the customer experience, and increased earning potential. However, it can be challenging for clients to fully understand the ins and outs of the PayFac model. Keep reading to learn more about how PayFacs work and what their core benefits are!
What is a PayFac?
A payment facilitator is a merchant services provider that enables businesses to process credit card payments. An increasing number of ISVs and SaaS providers are becoming payment facilitators so that they can provide their clients with streamlined account onboarding and integrated payment processing features—all while growing their own revenue.
How Does it Differ from the ISO Merchant Services Model?
Merchants that work with independent sales organizations (ISOs) are required to register for a master merchant account (MID) with an acquiring bank. In contrast, with the PayFac model, the ISV or SaaS is the one that registers for the master account and the business that wants to accept payments registers as a sub-merchant of the PayFac provider.
The Growth of PayFac-as-a-Service
The traditional path to becoming a PayFac is complex, costly, and risky—requiring significant overhead costs and years dedicated to building a PayFac infrastructure from the ground up. ISVs choosing this path need to develop software, become compliant with numerous regulations, and carefully oversee risk management.
To simplify the PayFac journey for ISVs, payment solution providers like Cardknox offer the PayFac-as-a-Service (PFaaS) model. PFaaS products like Cardknox Go are out- of-box solutions that equip businesses with everything they need to become PayFacs: software, compliance, risk monitoring, and so much more.
How to Become a PayFac
Benefits of the PayFac Model
- High Earning Potential
- Rapid Onboarding
- Simple Flat-Rate-Structure
Benefits of the Cardknox Go PFaaS Solution
All the benefits of the traditional PayFac model, plus:
- Rapid Time-to-Market
(months rather than years!)
- Reduced Risk Burden
- Easy Integrations That Minimize Scope of Development
- Advanced Payment Technology for In-Store, Online, & Mobile
- Greater Control Over Sub-Merchant Boarding & Payouts
- Industry-Leading Customer Service
Expected revenue generated by PayFacs in 20251
Potential Increase in Revenue for SaaS Providers Who Become a PayFac 2
Potential Increase in Valuation for SaaS Providers Who Become a PayFac
The year the first PayFac program was launched by Mastercard 3
Interested in becoming a PayFac?
Partner with Cardknox for the most hassle-free experience and generous revenue-sharing opportunities.