To PayFac® or not to PayFac
When I joined JobNimbus, that was about 18 months ago, we were really in just a referral partnership and my job was to come in and put strategy, focus, and execution around payments and other ancillary revenue streams for the company. When I went to do that in a referral state, I’m someone that when you tell me to go put my foot on the gas, I’m gonna go do that, and it was blatantly clear that when we went to go do that, it just was not possible to achieve the growth metrics that we were expecting in that current position. So, we took and step back and knew we needed faster, more rapid onboarding, we need a deeper integration embedded within our product, and a whole bunch of other things. And now, flash forward to today, we’re already seeing that. We can put our foot on the gas confidently and scale more rapidly. So for me, it’s not necessarily should you do it, it’s that you should set your targets and understand what those milestones should be to evolve into a PayFac. It has been very successful for us.
First off, understanding that this is a financial product, if you do this wrong, bad things can happen, right? And so giving it that respect that it deserves, and if you’re not ready to take those functions on, that’s ok. We want to keep the ecosystem as healthy as possible, right?! When we let bad actors in, that’s not good for any of us. Even though I don’t think everyone should or will become a PayFac, it is incredibly important that everyone has a payments strategy. And so, whether that be through an ISV or PayFac lite retail, or full PayFac, understand what your strategy is for the phase that you’re at and then, like Nate said, what are those phases, accomplishments and goals that you want to hit that says, OK, now we’re ready to do more. So having a clear understanding, payments strategy, what’s your why of doing this, is very important to executing.