Before listing benefits of becoming payment facilitators for special 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. Or 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 we are talking about?
Signs for Becoming Payment Facilitators
Well, the basic signs of becoming a payment facilitator for your business 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. I.e., they are not necessarily the final users of actual products.
Top companies that satisfy the PayFac criteria:
- 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.
- ISV. Are you an independent software vendor? ISVs, usually, have their established customer bases. They also often support software products they sell after the sale. So, they have good chances of becoming PayFacs for their respective customers. Especially if the software they sell is payment management software.
- 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.
- 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?
- 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?
These are, of course, just basic considerations. But all these 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 products). Other categories of companies, besides the “top five,” can become profitable PayFacs as well. So, why not give it a try?
If you think it’s difficult to implement, we have good news for you. The white-label payment facilitator model is a try-it-before-buy-it solution for prospective PayFacs. Plus, some companies (such as United Thinkers) are offering special payment facilitator programs. They allow future PayFacs to make the transition process smooth and seamless.
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. And you are welcome to consult our payment experts at unipaygateway.com. They have already helped many companies become successful payment facilitators. So they will, surely, be able to come up with the right solution or advice for your particular case.