Control Your Possibilities with Different PayFac Models

In this the ninth episode of PayFAQ: The Embedded Payments Podcast brought to you by Payrix, Host Bob Butler interviews Jorge Lozano, VP of Underwriting and Lloyd Fernandez, VP of Product at Payrix, about all of the decisions a software company must make when embedding or integrating payments.

Jorge started his payment journey 15 years ago working primarily in the risk and compliance space with several pioneering companies in payments. Lloyd started as an engineer in software over 20 years ago, he thoroughly enjoys building products, from the ground up or scaling an existing product platform. He has worked very closely building out platforms internationally and in the US, including companies like PayPal and Rapid. 

Jorge starts by talking about the different stages a software company might be in on their payments adoption journey and how difficult it is to understand and anticipate all the different questions, steps and levers involved with embedded payments. He explains that the acceptance of payments comes with a large array of requirements and obligations just within his discipline of risk and compliance.

Lloyd discusses many of Payrix’s differentiators including the risk and compliance area, reporting and analytics, disbursement of funds and the use of automation in the boarding process. Payrix offers clients world-class embedded payments and payment facilitation solutions that are not only low cost to administer but are revenue generators for customers. Payrix enables both card present and card-not-present payments for merchants, in addition to an API-technology stack that is a comprehensive, flexible system that enables payment experiences to be built upon. Different from competitors in the industry, Lloyd explains that Payrix offers autoboarding merchants, which allows for sleek and quick onboarding experiences, and automated risk decisioning, taking into account industry standard risks and what Payrix deems to be risky to make informed decisions and protect our customers.

Lloyd goes into details about the two platforms Payrix offers the market – Payrix Pro and Payrix Premium. Payrix Pro is the quickest and best way for clients to leverage payment facilitation features and functionality without worrying about licensing, risk, compliance and technology infrastructure. Payrix Premium on the other hand is driven towards software companies that already have a payment facilitator license or those who may decide to become a registered payfac in the future, Payrix is able to use the same infrastructure and service you own going forward. Either model solves for the different stages in a companies’ payment life cycle by providing flexibility and options that can be configured to each customer and each merchant.  

According to Jorge, choosing a model depends on where companies are in their payments journey. Some early adopters want to solely integrate payments with a simplified out of the box experience like Payrix Pro, that allows SaaS providers to continue focusing their resources and energy on improving their software offering. Other mid-growth stage software companies that have advanced their software to a desired level and want to maximize revenue are more willing to dabble into payments. Some examples might be desiring to have greater control of the funding flow, dictating the look of their onboarding, wanting greater insight and analytics into their customer processing transactions and possibly starting to play a role in risk and compliance duties, Payrix Pro also allows for this. 

Meanwhile, Payrix Premium would be a better fit for more payments-experienced software companies that have already progressed from the previous stages and are interested in playing a direct role in payments and becoming a payment facilitator. Jorge explains that Payrix takes a consultative approach to recommend offerings that mirror where prospects and customers are in their payments journey. 

Lloyd mentions that Payrix is a growing company, continuously improving our product and services. He says they’re keenly interested in feedback on how they can make offerings even better for our customers. Payrix offers signup forms, hosted payment pages and a fully white-labeled portal right out of the box for companies that want to get started right away.

Lastly, Jorge explains that regardless of where companies are in their payments journey, it is critical to find a partner aligned with where you are in that process and with your overall strategy that steers you in the right direction based on your own demands. 

Payrix is uniquely positioned through its offerings, products and features to empower customers to control as much of the payments lift as they’re comfortable with, which allows them to continue focusing on the innovative aspects that make their company best.  

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