As companies recognize the importance of the PF model, more legacy payments providers will likely bring products to market serving businesses that choose that route.
Recently, payments processor Elavon became the latest to offer a program geared specifically to payment facilitators.
The interest in the market isn’t surprising, given the potential.
Research by consulting firm Double Diamond Group has predicted growth to more than $500 billion in gross processing volume by 2021.
At this spring’s Payment Facilitator Day event, panelists shared what they are seeing as the model begins to lure in investors and venture capitalists who recognize its possibilities.
“The [revenue] growth goes from linear to an exponential growth curve when [software companies] start monetizing payments,” Marcus Dagenais, president of processor BluePay Canada, said at the time.
Payments providers are looking to serve the needs of this budding market with offerings that build on existing capabilities in ways that are tailored to payment facilitators.
Payments processor Vantiv, which announced its intention to accelerate its global reach through its acquisition of Worldpay earlier this year, offers dedicated PF solutions. TSYS’ ProPay also offers a PF platform.
First Data introduced new PF services this year as part of its e-commerce suite, and announced a new business unit that enables developers to integrate with First Data’s systems in January. GlobalOnePay launched an e-commerce platform geared to PFs this summer.
For its part, Elavon is looking to differentiate its offering with two tiers of service to PFs, depending on their business models. The company offers both card-present and card-not-present processing in more than 20 countries in North America and Europe.
According to Ian Drysdale, executive vice president, Global eCommerce, for Elavon, the processor has already been serving PFs and has listened to what they’re looking for to develop its new program.
“They need a range of solutions, not one size fits all,” Drysdale told PaymentFacilitator.com.
The company’s Scoop program is intended for larger firms looking for flexibility, reach and currency options, while Scoop Direct allows PFs to manage their brands and deal directly with their clients while leaving the underwriting and funding functions to Elavon. Drysdale says Elavon has seen demand from ISVs, ERPs and cloud-based B2B companies for this tier.
The company refers to its PF offering as a “co-op.”
“We believe that every payment facilitator specializes for its client set, creating value beyond payments, whether it is speed, business functionality or industry know-how. In a sense, like-minded sub-merchants leverage their payment facilitator’s buying power and expertise to create a greater solution for all,” Drysdale said.