Have you ever wondered how businesses effortlessly handle their payment transactions, ensuring smooth and speedy processing? Thanks to Payment Facilitators – the trailblazers behind the scenes, revolutionizing the way we make payments. Before we dive in, let’s set the stage with some intriguing figures.
- The Payment Facilitator market is expected to grow at a CAGR of 31.8% till 2025.
- The PayFac market which generated $2 Billion of transaction revenue in 2018 is projected to reach $15 Billion by 2025.
- The number of payment facilitators globally will reach over 4,200 by 2025.
These numbers speak volumes about their significance in the evolving landscape of digital payments. Now, let’s have a look at what exactly payment facilitators are and how they bring immense value to your business.
What is a Payment Facilitator or a PayFac?
A Payment Facilitator, commonly known as a PayFac, is a service provider that enables businesses to accept electronic payments from customers. By acting as an intermediary between the businesses (referred to as sub-merchants) and payment processors, PayFac simplifies the process of accepting payments.
PayFacs streamline the onboarding process for sub-merchants, reducing the time and effort required to start accepting payments. They typically provide a consolidated platform or service that handles various aspects of payment acceptance, including transaction processing, risk management, and settlement.
One of the key advantages of using a PayFac is the ability for sub-merchants to bypass the traditional complexities and costs associated with establishing their own merchant accounts. Instead, they can leverage the infrastructure and capabilities of the PayFac, benefiting from faster onboarding, simplified underwriting, and consolidated reporting.
What is the meaning of payment facilitation?
Payment facilitation refers to the process of enabling and streamlining the acceptance of payments on behalf of sub-merchants or businesses. Acting as a middleman, a payment facilitator (PayFac) simplifies the payment journey by providing a comprehensive solution facilitating payments or transactions between customers and businesses. Here are key points to understand the meaning of payment facilitation:
- Streamlined Payments: Payment facilitation involves creating a seamless and efficient payment experience by offering a consolidated platform or service that enables businesses to accept various forms of payment.
- Sub-Merchant Onboarding: Simplifying the process of accepting payments by reducing the complexity and requirements typically associated with direct merchant accounts.
- Risk Management: Managing payment risks associated with sub-merchants by implementing underwriting and fraud prevention measures.
- Aggregated Payment Processing: Aggregation of transactions from multiple sub-merchants, simplifying settlement, and reporting processes for the businesses involved.
- Value-Added Services: PayFacs often offer value-added services such as reporting and analytics, customer support, and integration assistance, providing comprehensive solutions for businesses.
- Scalability and Flexibility: Payment facilitation enables businesses to scale and expand their operations without the need for extensive infrastructure development.
How Monay, As a PayFac, Provides Payment Facilitation?
Benefits of PayFac for the Merchants
- Faster and easier payments: Streamlined onboarding process allows merchants to start accepting payments from customers quickly and easily.
- Reduced Complexity: PayFacs handle complex tasks such as underwriting, compliance, and payment processing, saving merchants time and effort.
- Cost Savings: By leveraging the infrastructure of a PayFac, merchants can avoid the expenses associated with setting up their own merchant accounts and payment processing systems.
- Enhanced Payment Experience: PayFacs provide a seamless and user-friendly payment experience for customers, increasing satisfaction and encouraging repeat business.
- Scalability: PayFacs offer scalable solutions that can accommodate the growth of businesses, ensuring their payment processing capabilities can expand alongside their operations.
Partnering with a PayFac allows merchants to focus on their core business while leaving payment processing in capable hands.
How to choose the best PayFac (Payment Facilitator)?
The industry is full of payment facilitator companies, but you should choose the one that aligns with your business requirements, enhances payment processes, and supports your growth objectives.
Here are a few factors to consider:
- Industry Experience: Look for a payment facilitator with experience in your specific industry, as they will have a better understanding of your unique payment needs and challenges.
- Integration Options: Consider the ease of integration with your existing systems, such as e-commerce platforms or POS systems, to ensure a smooth and seamless integration process.
- Supported Payment Methods: Check if the payment facilitator supports the payment methods your customers prefer, such as credit cards, debit cards, digital wallets, or alternative payment options.
- Security Measures: Ensure the payment facilitator employs robust security measures, such as encryption, tokenization, and compliance with industry standards like PCI-DSS, to safeguard sensitive payment data.
- Pricing Structure: Understand the payment facilitator’s pricing model, including transaction fees, setup fees, and any other charges involved, to evaluate the cost-effectiveness of their services.
- Customer Support: Assess the quality and availability of customer support provided by the payment facilitator to ensure prompt assistance in case of any issues or queries.
- Scalability and Growth: Consider whether the payment facilitator can scale with your business as it grows, accommodating increased transaction volumes and expanding payment needs.
Discover Monay from Tilli Software: A Trusted and Leading Payment Facilitator
Welcome to the world of Monay, the trusted and highly regarded payment facilitator brought to you by Tilli Software. With a commitment to simplifying payment processes for businesses, Monay has emerged as a go-to solution for seamless and secure transactions. As a trusted name in the industry, Monay is developed to cater to the evolving needs of businesses, empowering them with efficient payment processing capabilities.
From streamlined onboarding and comprehensive payment options to robust security measures and scalable solutions, Monay offers a comprehensive suite of features that make it one of the best payment facilitators in the market.
If you’re seeking a Payment Facilitator that prioritizes compliance with regulations and policies, your search ends with Tilli’s Monay. Offer your users multiple payment modes along with ultimate convenience.
Let us be your trusted partner in navigating the world of payments! Reach out at Tilli Software