Leveraging Payments to Fuel Growth and Transformation

In this the eighth episode of the PayFAQ: The Embedded Payments Podcast brought to you by Payrix, host Bob Butler interviews Ed Mastrangelo, VP of Business Development at Payrix, about leveraging payments to fuel your growth and transformation with a focus on payment economics.

Ed started in payments in 2003 with a focus on mobile payments product management, including working on Apple Pay and other embedded payments solutions, before joining Payrix to help SaaS companies embed payments and monetize the volume already flowing through their platform.  

Software companies have historically referred their clients to a payments company leading to a suboptimal experience with minimal upside related to revenue. Ed explains how companies relying on third-party gateways can become frustrating. This model doesn’t allow you to have oversight of seemingly hidden fees, how their merchants are being priced and if they’re getting their fare share.

By embedding payments and monetizing that volume, SaaS companies are able to take more control of their payments strategy. Ed describes Payrix’s out-of-the-box solution, where companies can do exactly that with multiple ways to go to market based on their decided approach.

Payrix offers the traditional PayFac model, with high revenue upside but isn’t something all software platforms are willing to take on from an expense and risk perspective. Payrix also offers a hybrid approach, where you get the best of both worlds using our payfac-as-a-service solution with the upside of a being a payment facilitator without the risk and compliance headaches that might be of concern.

There’s always risk associated with payment processing. Ed explains that Payrix has brought in a team of experts to do this heavy lifting for companies who don’t have the desire or expertise to manage that inherent risk because it isn’t economically sound to build a team to support payments infrastructure on their own. He believes that SaaS companies should start thinking about becoming a fully registered payment facilitator once the volume going through their platform is $750 million annually.

Lastly, Ed talks fee transparency and flexible pricing. The flexibility Payrix offers its customers allows companies complete control over merchant pricing. Payrix has over 45 different ways their software partners can charge their merchants – from the traditional flat fee to more sophisticated rules-based pricing. 

As the digital transformation continues, Ed says the future of payments includes more embedded finance options including loans and other banking products so it’s a really exciting time.