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The Evolution of Payfacs

Early on, payment facilitators or Payfacs were largely small companies offering services to one particular business by offering everything from credit lines to merchant accounts. Since those days, payment facilitators have broken away into independent entities servicing a wide range of merchants at one time.

Payfac Trends

This trend has continued as the tech industry blew up, demanding more and faster payment processing than ever before. In addition, these payment facilitators have been effectively crossing borders and serving merchants that were previously out of reach for traditional banks and credit companies. 

Moving Forward with Payfacs

Going forward, payment facilitators are less likely to be banking experts, and more likely to be software companies. This is because payment facilitation has been rolled into end-to-end software products as an additional service, rather than a separate entity tied to the company's actual banking practices.

Payfacs - Lower Costs

By rolling payment facilitation into the backbone of the company, the cost of payment facilitators has gone down, and companies are able to achieve greater control over their payments. There is less negotiating to be done with ISOs, there is a promise of greater security and more technical knowledge in the industry, and more.

Finally, there is simply more flexibility in how companies and payment facilitators structure their payments to achieve the highest level of customer service across the board. 


Shannon LeDuff

Shannon is currently the SVP Sales and Business Development for GlobalOnePay, a division of Pivotal Payments Inc. His goal is to establish strategic partnerships with sales organizations that specialize in the eCommerce space globally. As commerce shifts online, there is exceptional growth potential that Shannon can help ISVs, SaaS, Marketplaces and platforms tap into, to drive payments into profits.