7 Facts About How Payment Facilitation As As Service Can Power Revenue Growth For SaaS Platforms
For SaaS applications with core Payment Aggregation needs eg a rental platform or restaurant POS platform, Payment Facilitation as a Service allows the platforms acts as a master merchant account. This allows platform users to be set up as sub-accounts instantly.
The primary advantage is instant onboarding but revenue generation can just as important.
Payment Facilitation as a Service offers the ability to generate per transaction revenue. As an example let’s say the restaurant POS system charges 2.9% and 30 cents per transaction to their platform users.
The actual costs to process these payments might be 2.1% and 5 cents (this is an example).
That leaves margin or potential profit. The platform would be offered a share of this revenue by the Master Payment Facilitation partner. That share is negotiated and a function of many variables.
The master Payment Facilitation partner provides both the technology that enables Payment Facilitation and the the compliance/legal umbrella to operate under.
Payment Facilitation as a Service is a fairly recent addition to the payments landscape. Typically to act as a Payment Facilitator a platform would need to register with card associations, spend $200k in integration and compliance fees and devote staff and resources to Payment Facilitation.
Payment Facilitation As A Service helps platforms quickly get to market and leverage the payment solution to both acquire customers and generate revenue.We are also read for Tips To Avoid The Most Common Mistakes When Buying Jewellery Online