PayFac-as-a-Service (PFaaS)

PayFac-as-a-Service (PFaaS) is a model where a payment facilitator provides its payment facilitation capabilities as a service to other businesses. This allows these businesses to provide seamless payment acceptance to their own customers without the need to become PayFacs themselves.

The PFaaS provider handles the complex aspects of payment facilitation, including compliance, underwriting, and risk management. This model provides a cost-effective and efficient solution for businesses that want to offer electronic payments to their customers but do not have the resources or expertise to become PayFacs themselves.

The PFaaS provider takes on the responsibilities of managing sub-merchant accounts, handling transactions, and managing risks, while the business can focus on its core operations. This model provides a win-win situation for both parties as the business can offer electronic payments to its customers, while the PayFac-as-a-Service provider can expand its customer base and generate additional revenue.