What Is a Payment Facilitator?

A payment facilitator (PayFac) helps software platforms embed payments and onboard users without becoming a regulated payments company themselves.

A Payment Facilitator (PayFac) is a company that enables other businesses—often software platforms or Independent Software Vendors (ISVs)—to accept and manage electronic payments under a single master merchant account. Instead of each business having to register as a standalone merchant with a payment processor or acquiring bank, the PayFac handles that infrastructure and compliance on their behalf.

In simpler terms, a PayFac allows platforms to onboard users quickly, move money in and out of accounts, and manage the flow of funds—all without having to build a payment stack from the ground up.

What Does a Payment Facilitator Do?

At its core, a PayFac provides:

• Sub-merchant onboarding (via KYC/KYB processes)
• Payment acceptance infrastructure (e.g., ACH, EFT, credit card, e-Transfer)
• Compliance & risk management (KYC/AML, PCI, fraud prevention)
• Settlement & reconciliation across thousands of accounts
• Reporting, statements & dispute management

PayFacs act as intermediaries between merchants and the acquiring bank, allowing software companies to embed payments into their platform and offer financial services under their own brand.

Build vs Buy: Should You Become a PayFac?

While it’s technically possible for a platform to become its own payment facilitator, the process is complex, capital-intensive, and compliance-heavy. Here's why most companies choose to partner instead of build:​

For most software platforms, building a PayFac program internally distracts from core product development, delays go-to-market, and introduces unnecessary risk. Partnering with a proven payment facilitator provides faster, scalable access to the same capabilities—without the overhead.

Why Partner with VoPay as Your PayFac

VoPay operates as a full-stack Payment Facilitator-as-a-Service platform, giving software companies the infrastructure they need to embed payments, onboard merchants, and manage complex financial operations, without becoming a regulated payments company.

With VoPay, platforms can:

1. Onboard users instantly with integrated KYC/KYB​​​
2. Support multiple payment methods under one API​​
3. Access real-time ledgering and reconciliation​​
4. Maintain brand control with white-labeled interfaces​​​
5. Focus on core innovation, not regulatory complexity​​​

A payment facilitator (PayFac) helps software platforms embed payments and onboard users without becoming a regulated payments company themselves. This article explains what a PayFac is, the core services it provides, and why partnering with a provider like VoPay is a faster, lower-risk alternative to building a payment solution from scratch.