Software developers today are battling an increasingly large and diverse set of competition. In this landscape, you need to find ways to build your software offering to make the most of each sale. One way to do so is to build in a payment facilitator offering. While this involves some level of additional resource commitment, it also creates revenue potential that greatly bolsters your bottom line. For anyone offering SaaS to businesses, building in PayFac capabilities is a critical step towards building a more lucrative offering.
Customer Service Benefits
One of the most important ways to stand out from the competition is to deliver more. Part of this is in the primary service you provide; you want to give the best product you can, and back it up with customer service that helps manage any of the inevitable implementation hiccups new software provides.
Adding payment facilitator capabilities gives another layer of support. Ordinarily, companies need to contract with banks and purchase payment processing hardware and software separately. This can be an onerous process, intimidating for new businesses or those with credit challenges. At best, it is a hassle that gets piled on to a multitude of requirements to get a company up and running.
Building in PayFac services helps your business customers streamline the process. It means taking on some risk and going through regulatory hoops yourself. Still, you can build out a service offering that provides convenience and ease of use to business customers who crave it.
Additional Income Streams
In 2019, software continues to move towards a greater specialization. While a few broad applications remain in the market, developers have largely worked to distinguish themselves by providing narrower options for niche businesses and industries. Unfortunately, this has the effect of limiting the income channels available.
By becoming a payment facilitator, you generate a fee for every transaction. Every time a customer or its end customer completes a payment, it sends a percentage into your own coffers. Instead of sending this fee to a payment processing provider, you generate relatively easy income.
Not only do you benefit immediately, but you get to enjoy this income for as long as the customer uses your software. Over time, and over many customers using your software solution, this can result in a windfall you would be foolish to avoid.
Becoming a payment facilitator means assuming some risk and generating enough business to cover it. Still, as the software market gets more competitive every year, this is a relatively simpler way to build revenue on top of what your software produces on its own.