What is a PayFac and How is it Beneficial to a Software Provider?
For software providers, streamlining the sales process, onboarding merchants quickly, and having an all-in-one solution is top of mind to stay competitive. Keeping up with the ever-evolving payments industry, however, makes this a little difficult. Considerations like selling in regional or global markets and building a solution that’s adaptable and accepts multiple currencies is critical. All the while, software providers want to ensure that their account is protected against fraud and other threats.
Software providers have one of two options – either building the payments infrastructure themselves or enlisting the help of a PayFac. A PayFac is a payment facilitation solution for software providers and small businesses that enables them to streamline payments without investing in the infrastructure themselves. Instead, they choose a payment facilitation provider that manages everything from underwriting to gateways.
Let’s explore some of the reasons why a software provider might consider using a PayFac.
PayFac and the advantage of payment facilitation providers
As an embedded payments solution, payment facilitation providers can customize services to meet software providers’ specific needs. This approach isn’t just convenient in terms of cost and time-savings, but it allows software providers to scale as they serve more merchants or customers. At the same time, they do not have to handle the liabilities related to maintaining a payments module, such as PCI-DSS compliance, gateway reporting, or regular security tests.
Depending on the PayFac solution chosen, merchants can accept more than just credit cards. ACH payments, eChecks, and other forms of digital transfers provide a better customer experience while retaining more revenue.
Measuring the competitive edge of adopting a PayFac
It’s easy to see how PayFac offers software providers the technology to effortlessly process payments at a fraction of the cost of in-house solutions. However, it’s the tangible benefits to their merchants that ultimately adds to the bottom line.
For instance, merchants and eCommerce businesses struggle with high cart abandonment rates, thus reducing their revenue and the amount software providers would receive from payment processing. 18% of customers abandon their cart due to complex or lengthy check-out processes alone, and another 19% didn’t trust the website with their credit card information.
Fortunately, these issues, along with others, can be resolved with a streamlined, user-friendly payment facilitation system. Improving the check-out experience can boost conversion rates by 35.36% — and when the merchant earns more, so does the software provider.
A best-in-class payment solution
With Fortis’ PayFac solution, software developers and merchants can leverage award-winning APIs and leading payment technology to scale their business. Fortis manages everything for you – underwriting, fraud monitoring, funding, gateway reporting, and chargeback management. Fortis also leverages negotiations made with acquiring banks and processors, supply an in-house Level 1 PCI compliant payment gateway, and provides all necessary certifications and licenses. Even better, if you don’t want Fortis to manage it all – you have that option, too! The Fortis Platform’s sophisticated and diverse API libraries allow you to leverage and control the payment process flow and customize the merchant’s onboarding and transactional experience.
To learn more about the Fortis difference, discover how easy it is to simplify your payments with our PayFac solution.