The payfac opportunity
The payfac model enables nonpayments companies to directly participate in the payments revenue stream—a particularly hot commodity following the pandemic-driven economic downturn.
The model is also hugely influential in capturing the SMB digital payments opportunity. Compared with the traditional merchant acquiring process, which is better suited for larger merchants, payfacs simplify and shorten the merchant onboarding process and offer a straightforward, reasonable cost structure for their submerchants. By solving a multitude of SMB pain points, payfacs have been instrumental in bringing millions of smaller merchants into the digital payments ecosystem, along with the multiple billions of dollars in payment flows those merchants generate.
That opportunity is now bigger than ever: A flood of SMBs turned to payfacs as the pandemic forced retailers—especially smaller ones—to quickly ramp up ecommerce operations. The pandemic triggered a massive shift to ecommerce amid physical store closures and lingering consumer wariness about shopping indoors. Retailers had to migrate online to stay afloat: In April 2021, 43% of SMBs in the US said they consider digital payments more important to their business now than before the pandemic, according to polling by the Electronic Transactions Association and The Strawhecker Group. For SMBs digitizing their operations, payfacs became a good option due to their fast onboarding, enabling merchants to quickly begin accepting digital payments. Payfacs can also provide technology to help merchants create a frictionless ecommerce shopping experience and compete against ecommerce giants like Amazon.
The appeal of payfacs
The payfac model continues to gain momentum, thanks to the benefits it brings to key participants across the payments ecosystem. By ushering millions of new merchants into the ecosystem, the payfac model unlocks new revenue opportunities for all players in the payments chain. In this section, we cover how the payfac model benefits the payfacs themselves, and why working with a payfac appeals to submerchants and other payments players.
"payment" - Google News
July 01, 2021 at 11:27PM
https://ift.tt/3xgRdhC
Why are payments facilitators worth watching? - Insider Intelligence Trends, Forecasts & Statistics - eMarketer
"payment" - Google News
https://ift.tt/3bV4HFe
https://ift.tt/2VYfp89
Bagikan Berita Ini
0 Response to "Why are payments facilitators worth watching? - Insider Intelligence Trends, Forecasts & Statistics - eMarketer"
Post a Comment