When you own a SaaS platform, think of it as real estate you are subletting to renters (customers). Being a SaaS platform provider, you have most of the PayFac-specific logic already built-in. You have the platform users that make up your existing customer base. Your SaaS platform current users will turn into your sub-merchants. Know-your-customer (KYC) features are also included in your platform for background verification from the beginning.
The task of becoming a payment facilitator involves two key aspects: business and technical. Business aspect is about finding an acquiring bank to underwrite you as a PayFac. Prior to starting any integration and development works, you need to get all necessary specifications from your acquirer. Technical aspect is about finding a technology (platform) that will allow you to smoothly fund merchants and mitigate risks (associated with chargebacks and fraud).
In order to handle the technical aspect of the task, you can choose one of the three options:
- You can pay for some third-party platform-as-service.
- You can license some ready-made technology and customize it according to your needs.
- You can extend your existing SaaS platform by adding PayFac-specific functions.
But what if you do not feel like you can fulfill all PayFac-specific requirements all at once? Well, you can start with white-label PayFac model. (PayFac in the box, virtual PayFac, managed PayFac are other names for similar try-it-before-buy-it solutions). The major benefits of white-label PayFac model are: less responsibility and significantly lower upfront costs. White-label PayFac solutions are offered by some modern platforms, such as UniPay Gateway.
Naturally, these are just the most general conceptual points, related to becoming a PayFac for SaaS platforms. If you need more specific information regarding your particular case, you are welcome to consult payment experts at UniPayGateway.com.