July 18, 2018 [molongui_author_box]

Software Platform Provider Model Implementation

Payment facilitator implementation

Payment facilitator model implementation is a beneficial option for many SaaS and POS platform providers. A software platform provider, that is, usually, acting as an ordinary ISO, already has a certain degree of control over its customers, but is unable to influence the crucial processes, involved in merchant lifecycle, such as merchant onboarding, funding, remittance, reconciliation, etc. By assuming responsibility for part or all of these processes, a software platform provider can allow the processor to save some resources. In exchange the processor might be willing to share some of these resources with the platform provider. If the software platform provider decides to start offering merchant services, it can either become a wholesale ISO, or a PayFac. The wholesale ISO scenario is less profitable, but easier to follow, while payment facilitator model takes more effort to implement, but it is more lucrative, and, in addition, provides the software platform with greater control over merchant lifecycle.

If you are a large software platform provider and you want to increase your revenues, you might benefit significantly from implementation of a wholesale ISO or a PayFac model. Read more about how you can do this in the respective article on Paylosophy.

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