Did you know that organizations in Thailand alone spent 20 percent more on software in the first half of 2022 than in the same period the previous year? This statistic highlights a growing monetization opportunity for software companies and marketplaces, particularly those that own substantial shares of the user experience.

PayFac-as-a-Service (PFaaS) emerges as a solution to process payments without the need to build infrastructures or engage in costly licensing applications and approvals. In this article, we will explore the potential in PayFac-as-a-Service (PFaaS) as a solution to embedded payments.

What is PayFac-as-a-Service (PFaaS)?

PFaaS is a payment processing solution that enables businesses to embed every payment processing capability within their platform without taking on the technical development burden or risks associated with becoming a PayFac outright. In simpler terms, it empowers businesses to operate as Master Merchants.

Brands can then process credit and debit cards, mobile wallet payments, and various other forms of payment for their merchants. PFaaS also handles a range of other payment processing requirements, including payment gateway integration, fraud detection, chargeback management, and more.

By adopting turnkey payment facilitation, businesses can focus on their core operations and leave the complexities of payment processing to companies with technical expertise and local licenses.

What is Unique About PFaaS Offering?

Through the use of APIs, PFaaS streamlines integral components of merchant services, including compliance, onboarding, and risk resolution. Effectively, this allows brands to delegate these complex processes to the specialized team of the PFaaS provider. This means brands only need to play the role of an interface, while the PFaaS provider manages all the underlying services, ensuring compliance and security with expertise.

As a result, these brands can:

• Add payments to their offering without having to develop complex infrastructures, staff up on resources, and establish direct connections with local bank partners.

• Save their customers from extra international and cross-border processing fees.

• Tailor the entire merchant user experience with full flexibility in customizing payment models such as pricing model , payment flow design, and payout frequencies.

• Onboard new merchants quickly — and compliantly — to start earning additional revenue from every transaction processed.

• Access support from a team of local experts with extensive experience in the respective markets.

Become a payment facilitator with compliance, complex processing, and operational support handled for you.

Which Companies Should Consider PFaaS?

PFaaS stands out as a good option for enterprise-sized independent software vendors and international payment providers that want licensing, technology, and operations support embedded in their platform.

Every region has its own intricacies in the world of payments, and Southeast Asia is no exception. From unique business practices and integrations to specific customer behaviors, navigating the landscape can be challenging. Partnering with a local PayFac-as-a-Service provider gives businesses like ISVs and international platforms the advantage of local expertise. This allows them to integrate seamlessly, as if they have their own established payment infrastructure in the region, and significantly reduces their time to market.

Choosing the Right PFaas Partner for Your Business

Now that we’ve explored the broader landscape of businesses and the general benefits of PayFac-as-a-Service (PFaaS), let’s take a look at key factors in selecting the right PFaaS partner for your business.

• Merchant Onboarding: Look for a provider that offers a streamlined onboarding process to get your merchants up and running quickly. This could include underwriting, digital signatures, and fast know-your-customer and know-your-business checks.

• Transaction Processing: Transaction processing is the core of any PFaaS solution. Look for a provider that offers reliable processing, with competitive transaction fees and high approval rates. It's also important to consider the types of payment methods supported, including credit cards, wallets, and bank transfers.

• Local Market Expertise: If you operate globally, choose a provider that has experience with local market licensing and compliance. This includes knowledge of local regulations, certifications, licenses, and partnerships with local banks and payment processors. Make sure your provider has the expertise you need to expand into new markets.

• Technical Support: Ask potential providers about their uptime and downtime and whether they offer 24/7 customer support with fast response times and knowledgeable support staff. It's also important to consider the level of technical integration offered, including APIs, SDKs, and developer tools.

By considering these factors when choosing a PFaaS provider, you can ensure that you're getting a solution that meets your needs and supports your business growth.

Take the Path to PFaaS

By providing a comprehensive payment processing solution, Opn enables businesses to focus on their core strengths while leaving all aspects of payment processing to us. With our technical plasticity, Opn can quickly provision for unique requirements, ensuring seamless integration and optimal performance. PFaaS is an excellent embedded finance solution for brands that want to expand into new markets and streamline their payment processing, all while continuing to ‘own’ the entire customer experience. Talk to an Opn expert about your PayFac requirements today.