5 Companies that Benefit from Becoming Payment Facilitators
Before considering the benefits of joining the cohort of payment facilitator companies for specific businesses, could you tell a major chord from a minor chord? If you can, then you have a good chance of becoming a musician. Are you tall and athletic? If you are, you might make a great basketball player. Are you good at maths and planning? Maybe, you might become a good software developer, an inventor of new algorithms, or an economist. Anyway, true experts in every area should achieve actual expertise first.
In the world of merchant services, we can often witness similar pre-disposition. Particularly, we can see which companies have good chances of becoming payment facilitators. Moreover, we can tell which companies can benefit the most from this transition.
So, what are the telltale signs and traits we are talking about?
Traits of Potential Payment Facilitator Companies
Well, the basic signs that make it easier for your business to become one of the payment facilitator companies are as follows:
- You have a relatively stable regular customer base.
- You possess at least some rudimentary know-your-customer logic in place.
- You’ve got a certain degree of control over your customers.
- Your customers are selling their products and services to their respective clients. That is, they are not necessarily the final users of actual products.
Top 5 prospective Payment Facilitator Companies
Franchisors
Do you resell your product or service concept to your franchisees and collect your commission? Well, congratulations! You are a prospective PayFac. And your franchisees are your potential sub-merchants. You have a unique opportunity to leverage the benefits of becoming payment facilitators. By embracing the PayFac model, you can enhance the payment process for your franchisees, generate additional revenue, and strengthen your position as a leader in the franchising industry.
ISV
Are you an independent software vendor? ISVs, usually, have established customer bases and support software products to sell after the sale. So, you have good chances of becoming PayFacs for the customers. Especially if the software they sell is payment management software. For ISV becoming a PayFac can be a strategic move to enhance your offerings, deepen customer relationships, and generate additional revenue. By integrating payment processing capabilities into your software and providing a seamless payment experience, you can solidify your position as a trusted provider in the market.
SaaS platforms
Software-as-service is a type of business with all pre-conditions of becoming a PayFac. If you are a SaaS platform provider, users of your platform can naturally become your sub-merchants. Becoming a PayFac allows you to integrate payment processing directly into your SaaS platform, enabling your users to accept payments, manage transactions, and handle customer billing within the same environment. This eliminates the need for them to rely on external payment processors or separate payment systems, providing a seamless experience for both your platform users and their customers.
Online marketplaces
Are you a provider of an online marketplace platform? Do you have several affiliates that sell products using your marketplace? Are you collecting commissions from them? So, how about making these commissions larger in exchange for payment facilitation services? If you operate an online marketplace platform with affiliates, leveraging the payment facilitation model can be a strategic move to increase your commissions and provide enhanced payment processing services. By integrating payment processing into your platform and offering a seamless experience for your affiliates, you can attract new sellers and strengthen relationships with existing ones. However, it’s essential to thoroughly evaluate the requirements and responsibilities of becoming a payment facilitator to ensure successful implementation and compliance with industry regulations.
Investment and venture capital companies
Are you investing money into promising startup businesses? Are there a lot of companies performing their operations under your umbrella? Well then, how about unifying your payment technology and becoming a PayFac for the companies you invest in? By unifying payment technology within your investment portfolio, you can offer a seamless payment experience for the companies you invest in and gain valuable insights into their financial performance. However, it’s crucial to thoroughly understand the requirements and responsibilities of becoming a payment facilitator to ensure compliance and successful implementation.
These are, of course, just basic considerations. However, all the listed companies satisfy the criteria listed above. And they have one more thing in common. They have good chances of making some extra money on payment facilitation services. (In addition to what they are already getting for their core products). Other categories of companies, besides the “top five,” can become profitable payment facilitator companies as well. So, why not give it a try?
Alternative options
If you think it’s difficult to implement, we have good news for you. The white-label payment facilitator model (PayFac in a box) is a try-it-before-buy-it solution for prospective PayFacs. Also, some companies, such as United Thinkers, are offering special payment facilitator programs. They allow future payment facilitator companies to make the transition process smooth and seamless.
To Summarize
Are you seriously considering the option of becoming a PayFac? If you are, you are welcome to read a free-to-download white paper on how to become a payment facilitator. Or you can just complete a short quiz on the subject. If you are interested in a payment gateway, specifically tailored for the needs of payment facilitator companies, you can watch our short video guide.
Lastly, you are always welcome to consult our payment experts at unipaygateway.com. They have already helped many businesses become successful payment facilitator companies. So they will, surely, be able to come up with the right solution or advice for your particular case.
