[eMarketer] Payfac model reshaping payments ecosystem

Payments facilitator, payfac, model that  that allows merchant-facing companies to embed card payments into their software—which in turn enables their customers to process payments is taking shape and redefining the payments ecosystem. Companies that implement this payment model are called payfacs.

First popularized by firms like PayPal and Square, the framework was created to help SMBs accept online payments more easily, specifically by providing those merchants with a simpler payment onboarding process than what has traditionally been available from ISOs and merchant service providers (MSPs).

According to eMarketer, since Mastercard launched the first payfac program in 2010, the card network has registered more than 1,000 payfacs as of last September, while Visa has registered 600.

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