In today’s competitive software landscape, delivering a seamless product experience isn’t enough. Customers increasingly expect that experience to include built-in, user-friendly payment tools whether they’re paying for subscriptions, receiving disbursements, or transacting with others on your platform.
But integrating payment functionality comes with serious questions: How much control do you really want? What about risk, compliance, and fraud? Should you become a registered PayFac yourself or is there a better way?
That’s where Payfac-as-a-Service (or PFaaS) comes in. This model empowers SaaS platforms to offer embedded payments and monetize transactions without taking on the complexity and liability of becoming a full payment facilitator.
What Is Payfac-as-a-Service?
Payfac-as-a-Service is a turnkey solution that enables SaaS platforms to embed and manage payment processing within their software without registering as a traditional payment facilitator or taking on the associated compliance burdens.
With Payfac-as-a-Service, you get:
- Fast onboarding of sub-merchants (your users)
- Control over branding and user experience
- Payment flows that feel native to your platform
- Revenue sharing opportunities on transactions
- Built-in risk, fraud, and compliance management
It’s the ideal middle ground for software platforms that want the benefits of payment facilitation (like monetization and control) without the risks (like underwriting, fraud liability, and compliance infrastructure).
Why This Model Works for SaaS Platforms
SaaS businesses are uniquely positioned to benefit from Payfac-as-a-Service. Whether you’re powering vertical software in healthcare, education, field service, or events adding embedded payments can:
1. Increase Revenue Through Monetization
Instead of handing off payments to a third-party processor (and giving up margin), SaaS platforms can participate in the economics of every transaction:
- Capture a portion of processing fees
- Increase platform lifetime value
- Offer additional services like instant payouts or subscription billing
2. Improve the Customer Experience
A seamless in-platform checkout builds trust and reduces churn:
- Branded payment flows keep users in your ecosystem
- No need to redirect to external portals or vendors
- Faster onboarding with fewer support tickets
3. Reduce Time to Market
Building a payments stack from scratch (and becoming a registered PayFac) can take 12+ months and millions of dollars. With Payfac-as-a-Service, SaaS platforms can:
- Launch in under 30 days
- Skip regulatory licensing and audits
- Avoid the upfront investment in PCI infrastructure
Becoming a Full PayFac? Here’s What You Need to Know
Some SaaS founders explore becoming a full-fledged payment facilitator. While it offers total control, it also comes with serious requirements:
- You must underwrite and approve sub-merchants yourself
- You take on liability for fraud, chargebacks, and KYC failures
- You’re responsible for PCI compliance, AML checks, and reporting
- You’ll need a dedicated risk/compliance team
For most platforms, the effort to become a PayFac outweighs the benefits especially early in their payments journey. That’s why many choose a Payfac-as-a-Service partner instead.
What to Look for in a Payfac-as-a-Service Partner
Not all Payfac-as-a-Service providers are built the same. To unlock the full benefits of embedded payments, look for a partner that offers:
- Fast sub-merchant onboarding
- White-label payment interfaces
- ACH, debit, credit card, and payout support
- PCI Level 1 and SOC 2 compliance
- Built-in fraud and risk monitoring tools
- Revenue sharing models tailored to SaaS
- Scalable infrastructure for growth
A Smarter Way to Facilitate Payments
For SaaS platforms ready to scale without the weight of compliance and licensing, Usio delivers a fully supported Payfac-as-a-Service solution. The infrastructure is already built so you can launch embedded payments in under 30 days, simplify sub-merchant onboarding, and start generating revenue from every transaction.
Backed by PCI Level 1 security, robust APIs, and real U.S.-based support, Usio makes it easier to embed payments into your platform while staying focused on product growth and customer experience.
Discover Usio Payment Facilitation Services and explore a better way to power payments within your SaaS platform securely, simply, and at scale.
