Becoming a payment facilitator (PayFac) can offer numerous benefits for a software B2B2C (Business-to-Business-to-Consumer) company. Here are several compelling reasons why a software B2B2C company should consider becoming a payment facilitator:

1. Enhanced Control and Flexibility: As a payment facilitator, the software company gains full control over the payment process. It allows them to design and customize the payment experience to align with their software platform and brand. This level of control ensures a seamless integration of payments within the software, providing a consistent and frictionless user experience.
2. Improved Customer Experience: By becoming a payment facilitator, the software company can offer a more comprehensive solution to its customers. Instead of relying on third-party payment processors or gateways, the company can provide an end-to-end payment experience directly within its software platform. This reduces the need for customers to navigate multiple systems or redirect to external websites, resulting in a more convenient and efficient user experience.
3. Revenue Generation: As a payment facilitator, the software company can generate additional revenue streams by capturing a percentage of the transaction fees. Instead of solely relying on software licensing or subscription fees, the company can monetize the payment processing aspect of its platform. This diversification of revenue can contribute to increased profitability and business sustainability.
4. Streamlined Onboarding and Customer Acquisition: By offering payment facilitation services, the software company simplifies the onboarding process for its customers. It eliminates the need for customers to independently set up their own merchant accounts or establish relationships with payment processors. This streamlined onboarding process can attract more customers and accelerate the sales cycle, making it easier for businesses to adopt the software solution.
5. Data Insights and Analytics: As a payment facilitator, the software company gains access to valuable transaction data and analytics. This data can provide insights into customer behavior, purchasing patterns, and revenue trends. By leveraging this information, the company can make data-driven decisions to optimize its software platform, enhance customer engagement, and identify potential upselling or cross-selling opportunities.
6. Competitive Advantage: Operating as a payment facilitator sets the software company apart from competitors who rely on external payment processors. It positions the company as a comprehensive solution provider, offering a one-stop-shop for software and integrated payments. This competitive advantage can differentiate the company in the market, attract new customers, and foster customer loyalty and retention.
7. Control Over Payment Security and Compliance: As a payment facilitator, the software company assumes responsibility for ensuring payment security and regulatory compliance. This allows the company to implement robust security measures, such as encryption, tokenization, and fraud detection tools, tailored specifically to its software platform. By maintaining control over these critical aspects, the company can enhance customer trust and mitigate the risk of data breaches or fraudulent activities.

It is important to note that becoming a payment facilitator comes with certain challenges and responsibilities, such as regulatory compliance, risk management, and infrastructure investment. However, for a software B2B2C company looking to enhance its payment capabilities, differentiate its offering, and generate additional revenue, becoming a payment facilitator can be a strategic move with long-term benefits.