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New Managed Payment Facilitation Offering Slashes Go To Market Time And Costs for Software Platforms and Developers
Agile Payments has launched a new service, Managed Payment Facilitation, to level the playing field for SaaS providers. Managed Payment Facilitation allows software platforms the ability leverage the benefits Payment Facilitation can offer. These benefits include instant onboarding and generating revenue from payment processing fees.
A Payment Facilitator is essentially a Master Merchant that processes credit and debit card transactions for sub-merchants within their payment application.
These clients or sub merchants don’t have to go through the traditional merchant account application process and can typically enroll and begin accepting customer payments in hours.
This instant onboarding can be a powerful customer acquisition tool and is how Square has been able to grow so significantly. The additional benefit is the creation of a recurring revenue stream. Platforms users are charged a percentage for processing credit card payments, 2.9% and .30 is typical. The platform has their cost eg 2.4% and generates revenue from the margin.
With both easy onboarding and creating a revenue stream from end customer payment processing fees it’s easy to see why Payment Facilitation has become such an attractive option.
The issue is that Payment Facilitation for SaaS providers has traditionally been a costly and time consuming undertaking reserved for well capitalized businesses. It would be common to spend upwards of $100,000 and devote 6 months to integration. In addition ongoing risk and compliance demands mean staff must be devoted to the Payment Facilitation offering
Managed Payment Facilitation differs significantly from traditional Payment Facilitation in that the platform can limit or avoid payment risk, PCI compliance demands as well as integration time and expense.
Software platforms can integrate, launch and promote their new payment offering in weeks.
To get more information visit https://www.agilepayments.com/managed-payment-facilitator/
Release ID: 515970