Many companies are learning that the payment space is booming, with lots of opportunities, and many are looking to become payment facilitators, also known as PayFacs. This article will highlight the 3 struggles everyone has before becoming a payment facilitator and how to overcome them.
- Finding a Sponsoring Bank
One of the most important relationships a payment facilitator must form is with the sponsoring bank. A sponsoring bank enables the prospective payment facilitator to get registered as a payment facilitator, begin onboarding new customers and allow those customers to begin accepting payments. Prospective payment facilitators should be evaluating their sponsoring bank on the criteria that is most relevant to their business and has the most potential for future growth.
- Building The Technology
As companies evaluate whether to build their own solution or partner with an established payments company, it’s important to consider what makes the most sense for your platform and your business objectives. Building a new solution can take years to complete and costs thousands of dollars. There are several payment platform partners, such as Amaryllis, who can provide an all-in-one payment facilitation platform that can be customized to meet your business needs. A payment facilitation partner will do the heavy lifting on everything payments-related, while you can focus on your business.
- Cost
To become a payment facilitator, you must be the right candidate. The businesses that are best suited tend to be SaaS companies or ISVs that sell to small businesses, are focused on a particular vertical, and have payments integrated into the software. Becoming a payfac also requires a large upfront investment that can reach up to six figures and continued maintenance by an employee. Although this is a major investment, it has even greater return for the right business. There are over 2,000 payment facilitators registered with Visa and MasterCard and more than 4,200 expected by 2025. Payment facilitation is booming and not going anywhere anytime soon.
Ready to become a Payment Facilitator?
Start facilitating payments by partnering with a payment facilitation provider that is flexible, customizable, and designed to meet your specific business needs. Transform your payment system with Amaryllis Payment Facilitation Platform. We can help you quickly underwrite merchants, generate new revenue streams, and increase your business valuation with little or no in-house IT resources needed.