Today, becoming a Payment Facilitator (PayFac) has become increasingly popular for many businesses. For ISVs looking to pivot into the payments arena, it’s important to understand the reason why becoming a PayFac is the best path forward.
Three key reasons why ISVs are becoming Payment Facilitators:
Instant Merchant Onboarding: Traditionally, ISVs formed referral relationships with ISOs and vice versa. The ISO would ensure the ISVs software customer (the Merchant) got approved and enabled to accept card payments, and subsequently share part of the processing proceeds with the ISV. However, the traditional merchant account process was not a good approach for emerging commerce platforms. Therefore, operating as a PayFac enables firms to expedite the merchant onboarding process.
Own the Payments Experience: Integrating and embedding payments into software has become the “new normal” which helped fuel the ISVs shift into payments, either as an ISO or a Payment Facilitator. The shift to embedding payments is to vastly improve the user experience on many levels.
Generate New Revenue Streams The holistic view is that ISVs now can capture a significantly larger portion of the second recurring payments revenue stream, thereby, increasing annual revenues and profitability, creating a stronger brand, expand their asset valuation and significantly increase overall equity.
But what else? Over the next few weeks, Amaryllis will provide key insights from this growing trend. Amaryllis has been providing the requisite technology stack and platform for years to ISVs, Marketplaces, ISOs via its Enterprise SaaS Infrastructure platform. To learn more, visit https://www.amaryllispay.com/platform/.