Everything SaaS Businesses Need to Know About PayFac-as-a-Service
The Software-as-a-Service (SaaS) industry is no stranger to innovation. In recent years, it has witnessed a remarkable transformation in how businesses can generate revenue. One such transformation that has gained significant momentum is payment facilitation, often referred to as “PayFac.”
According to research conducted by Bain & Company, independent software vendors (ISVs) operating within the SaaS realm have the potential to tap into a staggering $35 trillion payments market, constituting 15% of the global payments volume, by seamlessly integrating payment solutions into their platforms.
Moreover, the study sheds light on the potential revenue stream that comes with embracing alternatives like PayFac-as-a-Service (PFaaS).
Payment facilitation has revolutionized the way businesses handle transactions. Modern payment facilitators, which are often large SaaS providers themselves, offer payment solutions to other online businesses.
What distinguishes them is their ability to streamline the onboarding process, allowing businesses to swiftly integrate payment capabilities directly into their online software environments.
In a payment facilitation model, the PayFac assumes the responsibility for all aspects of payment processing. This includes building a robust payments infrastructure, ensuring regulatory compliance, fortifying data security, and providing comprehensive support for their merchant clients.
In return for shouldering these costs and risks associated with payments, PayFacs stand to gain all the revenue generated from transactions processed on their software platform.
In this white paper, we will thoroughly delve into these key factors and walk you through the decision-making process. Throughout this document, you will discover:
- Growing revenue opportunities for SaaS
- What is PayFac-as-a-Service
- PayFac-as-a-Service example
- Why SaaS companies are turning to payment facilitation models
- The need for PayFac-as-a-Service
- The benefits of PayFac-as-a-Service
- Choosing the right PFaaS partner