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.


Pioneering a New Industry

How was payment facilitation born? We have an illustrated history.


More on that in our blog post, here: How was payment facilitation born?



Credit cards arrive and revolutionize the way merchants interact with their customers.


The internet is becoming more mainstream, and online businesses start to form. They create risky, bulky ways to receive payments online. Their methods are dangerous solutions because of their exposure to capital risk and the confusing experience it creates for their customers.


PayPal, the first major payment facilitator, enters the marketplace. It is an incredible resource for online businesses because it allowed them to accept credit card payments much faster and easier than being approved directly from the card companies.

Early-mid 2000’s

The stars of the Fintech 513 operation, Sean and Angie, are working with Vantiv, one of the nation’s largest payments companies. They were helping companies assemble programs that allowed them to accept payments online through referral and ISO programs.


They noticed the large amount of risk and complexity that existed within this process and began to create a more seamless solution for organizations to be able to accept payments online.


Address Onboarding Issues: They simplified the long, bulky process of getting merchants ready to accept payments online.


Address Settlement Issues: They consolidated what was once multiple transactions from different entities into a single transaction, improving the card holder experience.


Address Reporting Issues: They consolidated what was once multiple, disconnected business reports into a single report connecting all business activities to revenues.


Sean and Angie notice an opportunity to work with MasterCard and Visa to created an approved, standardized approach for organizations becoming payment facilitators.


Sean and Angie were influential in developing the payment facilitation program with Mastercard implemented it in the marketplace in October of 2010. They also helped onboard Visa to the program the following Spring.

2011 – 2015

Over the course of the next few years they onboarded more than 300 payment facilitators, perfecting their process and identifying all the necessary details required for a smooth transition and healthy operation under this new business model.


Fintech 513 launches with a complete process to help organizations simplify the next evolution of their business, through payments.

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?

Click the button below to share a little information with us so that we can find out.

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