The payments industry has been undergoing a significant transformation with the emergence of PFaaS. This white paper explores how PFaaS is reshaping the payments landscape, offering new opportunities for acquirers, PayFacs and ISVs.

The Key findings:

• PFaaS simplifies the complex process of becoming a PayFac, allowing acquirers, PayFacs and ISVs to quickly and cost-effectively offer integrated payment solutions.
• This approach can collapse the time to market for new PayFacs from months to weeks and significantly reduce merchant onboarding time from weeks to minutes, enhancing user experience and accelerating platform time-to-revenue.
• The market for PFaaS is growing rapidly, with several key players emerging and offering increasingly sophisticated solutions.
• PFaaS platforms include capabilities to handle the regulatory compliance and risk management burden, lowering the risk for new PayFacs and their sponsor acquirers.
• The future for PFaaS looks promising, with predictions of continued growth of the Payment Facilitation model, hundreds of new PayFac formations a quarter, their expansion into new verticals, and further innovation in risk assessment and fraud prevention.