Understanding Payment Facilitation
What is a payment facilitator… really?
Simply stated, a payment facilitator is a technology company that provides a payments solution to the sub-merchants it sponsors or underwrites.
The solution, provided by the payment facilitator, simplifies the process of accepting payments for it’s sub-merchants. This payments solution:
- streamlines the underwriting process
- insulates the sub-merchant from onerous compliance responsibilities
- greatly simplifies the funds settlement process so that the effort required for reconciliation is significantly reduced
More on that in our blog post, here: What is payment facilitation?
Key Players of the Industry
The payments landscape is dense. Who knew there was this much complexity involved behind the simple act of swiping in-store or inputting a card online?
You may recognize some of the names in the visual below. This is how all the different companies within the “payments industry” interact with one another.
There are a variety of different payment strategies that companies can leverage, depending on their size and the way they serve customers. Small businesses relying on simple transactions can be conducted by partnering with a Stripe or Square.
Large organizations that are processing millions of dollars worth of transactions can consider the payment facilitation route.
Payments may not be your core business, but it may present a strategic opportunity for you to better serve your customers. Is it the right decision for you?
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We answer a few of your questions in our blog