PayFac Model

Key Takeaways

Are you a software platform that wants to generate a revenue stream from payments in addition to your core product? Are you a franchise owner that wants to make some money on payment services? Are you a private equity or venture capital firm that has an established customer base of startups in need of payment functionality? Are you an individual or wholesale ISO that wants to add value to its offering and participate in merchant lifecycle? Are you an online marketplace owner considering the prospect of implementing a PayFac model?

This list is not exhaustive. If you have an established customer base and decide to manage payment experience for your customers (for a reward, of course!), you can enjoy the benefits of our payment facilitator program!

Benefits of United Thinkers payment facilitator program

Payment facilitator model is becoming increasingly popular. The reason behind such popularity is simple: the model allows software platforms and other companies to partake of merchant services revenues.

Present-day PayFac companies operate in different modes. They include full-fledged payment facilitation, white label payment facilitator model, hybrid PayFac, or PayFac in a box. So, if you decide to become a payment facilitator, you can choose the model that is most suitable for your business use case. There is no need to assume the full burden of liability and try to fulfill all the requirements at once. Nowadays, thanks to companies like United Thinkers, becoming a payment facilitator might be easier than you think.

payfac model
Payment facilitator program

United Thinkers offers an elaborate payment facilitator program as part of its omni-channel payment technology UniPay Gateway.

Some might call this part of the offering PayFac as service.In essence, we are offering complete automation of the whole merchant lifecycle management. From underwriting, onboarding, and risk assessment to funding and more.

With our flexible model, you can choose the PayFac-specific responsibilities you want to delegate to our team. For instance, we:

Payment Gateway Project

Do you intend to become an international payment facilitator? Well, here is some good news for you. Our PayFac program allows you to provide merchant accounts in both the US and Canada. Additionally, if you have acquiring partners in other countries, our white label solution can be used to expand your operations.

Consult our experts and explore the benefits of our omni-channel payment facilitator platform! Learn how to make our PayFac program work for your specific company!

Who can benefit from UniPay payment facilitator program

The top candidates for PayFac model implementation are businesses with multiple clients, that provide products and services to end users. These multiple clients can easily become their sub-merchants.

Such prospective PayFac examples include:

However, like we said, the list is not exhaustive.

Evolution of payment facilitator model

Originally, prospective merchants had to get merchant accounts directly from payment service providers or PSPs. A PSP was, usually, an acquiring bank. Later on, as the number of merchants increased, acquirers delegated part of the task to independent sales organizations. However, ISOs just resold merchant accounts and did not take part in merchant lifecycle. As a result, merchant onboarding and underwriting was a long routine. It took time and involved lots of paperwork.

Eventually, acquirers realized that onboarding every single applicant separately was not worth the trouble. They delegated the task to new middlemen for a part of merchant services fees. So, a new type of entity, called a PayFac, emerged. The largest payment facilitators serve thousands of sub-merchants.

Payment Gateway Project Seems Complex?

The meaning of PayFac model is that PayFacs actively participate in merchant underwriting, background verification, monitoring, funding, reporting, chargeback management. A PayFac underwrites multiple sub-merchants under a single MID. If you are underwritten as a merchant by a PayFac, you can start processing in a matter of hours after application submission.

The arrangement is beneficial for all the interested parties: acquirers, PayFacs, and their sub-merchants.

payfac model
PayFac Model

United Thinkers provides a comprehensive payment facilitator program integrated into its omni-channel payment technology known as the UniPay Gateway.

Overall advantages of PayFac model

To learn more about UniPay Gateway technology, you are welcome to request a demo, download a free white paper on how to become a PayFac and watch a short video on the best PayFac gateway solutions.

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