There is no such thing as a no-brainer business decision. Still, some concepts just make sense for your company. If you provide software as a service, one of those concepts is becoming a payment facilitator. Building payfac capabilities into your software offerings both streamline your clients' operations and generates revenue for you. Becoming a payfac takes your SaaS business to the next level.
Strengthen Your Relationships
Client relationships depend on both great products and great service. Beyond this, they require ongoing efforts to provide what the client needs—when or even before the client needs it. In the SaaS model, your clients need a way to process transactions for the software you provide. Typically, this means integrating their payment processing solution with their software operations, or else running separate workflows for the two functions.
Either of these approaches becomes cumbersome over time. The integration runs into problems that require separate intervention in both platforms as well as compatibility adjustments, just to make your clients' daily business work. Running them separately means accepting an inefficient process that does not have to be there. If you build in payfac capabilities, though, payment processing becomes just part of the software operation. It gives your client the ability to do more with less.
Integrate and Expand
Payfac capabilities give you more market options too. By taking a role in your clients' payment processing, your payfac status improves your ability to hold that business. You can now provide multiple offerings, thus multiple reasons for the client to continue to work with you.
Once you have gone through the work of both registering as a payfac and building the solution into your software, it becomes easier to expand from there. New versions of your software benefit from the payfac capabilities, and you can more easily integrate it into new software products as well. Every new product or version can provide SaaS and payment processing, allowing you to expand the reach of your services further and faster.
A New Revenue Stream
Finally, becoming a payfac helps you make money not only on the licensing fees you charge but on every transaction a client charges through the SaaS platform. Instead of that money going to a third-party payment processor, it moves automatically to your bottom line. The more clients you have using your software solutions, and the more sales those solutions help generate, the more revenue you gain.
As a SaaS provider, becoming a payfac provides important benefits and efficiencies to your clients. You went into business to earn profits by providing products and services that the market needs. Adding payfac capabilities supercharges both sides of that equation. It makes each client more profitable, and helps you connect to more clients in the process.