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The potential for revenue and being able to onboard clients is very attractive but there are many questions that must be addressed in order to embark on the path to becoming a Payment Facilitator.
The vast majority of platforms that aspire to become a true payment facilitator | PayFac or aggregator aren’t good fits for MANY reasons. You will need: --Money. You can easily spend $50k+ -easy to spend over 100k --Payments understanding and especially risk mitigation --Resources to devote to ongoing compliance and risk-both staff and $ --User base that has the potential to generate enough transactional revenue to offset costs.
Without this forget everything else. So how do you become a Payment Facilitator? Register w/Sponsor Bank Approval by Sponsor Bank Connect with Technology platform. Integrate via API Sponsor bank issues PayFac / aggregation credentials Go to market | Refine This process can take 6+ months or more. Hybrid Payment Aggregation or even a Payment Partnership may be better fits especially if your app does not have the “gravity” needed for true aggregation.
Again MOST platforms aren’t ready for true payment facilitation BUT you can get most of the benefits without the cumbersome drawbacks if you find the right partner. Good luck.
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