How to Monetize Payment Facilitation

How to Monetize Payment Facilitation

Did you know that you can increase revenue for your SaaS business through payment facilitation?

Payment facilitation is a process that enables merchants to accept payments from customers. It can be done through online methods or through physical point-of-sale systems.

Payment facilitators (PayFacs) help facilitate the transactions between merchants and customers in order to make payment processing smoother and more efficient.


There are many ways to monetize payment facilitation. Here are a few methods:

Shared revenue

For us, this is one of the best, if not the best, methods of monetizing payment facilitation. Hassle-free and straightforward. You simply hire or partner with a PayFac and then share the revenue generated from their services. With this approach, you are a managed PayFac.

The good thing about taking this approach is that it’s easier to set up and there’s no need for upfront costs. The only thing to consider is that, depending on the agreement between you and the PayFac, you might have to share a considerable chunk of your revenue in order to get their services.

But with the right partner choices, you can minimize this cost. Some PayFac companies, like Tilled, offer revenue share at competitive rates. That way, you’ll keep more of your revenue while still enjoying the benefits of payment facilitation services.

Cost plus revenue plan

This is a great alternative to the shared revenue plan. Here, your SaaS platform makes money based on the true cost of facilitation. For this model to work, you will have to sell at a custom rate above the total cost of facilitation.

The total cost of facilitation will be a summation of the true cost and revenue. If, for example, the true cost is 2.00% and the revenue is 30%, then the total cost becomes 2.30%. Now, if you can finally sell at say 3.0%, your margin will be 0.7%.

Thus, this model works best for platforms whose pricing goes above traditional pricing.

Be an Independent Sales Organization

Becoming an ISO can also allow you to monetize payment facilitation. For this option, you will need to work with a merchant acquirer. The main reason for doing so is to offload the processing responsibility to the partner. The partner will then give a share of the profits generated by your platform.

This model’s strong point is that you will have more control over the customer experience. And that’s a good thing for your business since good customer experiences can indirectly result in increased revenue.

Just keep in mind that unlike working with a pre-existing PayFac, this model doesn’t facilitate fast onboarding. But if you’re keen on being in full control of the customer experience, then just go for it.

Become a PayFac

You can also monetize payment facilitation by becoming a PayFac yourself. This one is, however, easier said than done. To become a PayFac, you must meet a couple of requirements, not to mention the initial investment cost in addition to ongoing costs.

If you ask us, this option does not work well for everyone. In truth, this should be your last resort. It can be expensive and time-consuming to set up and maintain your PayFac, especially for small SaaS businesses.

There you go,

Now you know of several viable ways to monetize Payment facilitation for your SaaS business. All it takes is a bit of research and strategic planning to choose the best approach for your unique business model.

At Tilled, we strive to offer the best that you can get from a pre-existing PayFac. With competitive revenue share rates and an easy setup, you don’t have to go through much hassle.

So get in touch with us today and start monetizing payment facilitation.


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