This piece was found in Payments Source and discusses the relative benefits of merchants utilizing a payments facilitator acceptance option instead of a direct relationship with an acquiring processor. The author in this case takes aim at the field services industry.
This tends to streamline the process for merchants who then don’t have to deal with multiple parties (acquirer, processor, etc.) and may indeed gain some pricing leverage as part of a cooperative.
‘The payment transaction within the order-to-cash cycle is arguably one of the most crucial parts of field service industries. For some companies, there is not enough debate or research involved when deciding on a payments provider. However, it is becoming more critical for service providers to take control of their payments process and understand how the field service software partners they work with can significantly help them secure a competitive advantage.’
One would also expect that a payfac may also provide some consistency across the payments experience. The author goes on to point out some of the potential advantages of the payment facilitator model such as increased advocacy, lower fees, time savings and an easier customer experience.
These are detailed inside the posting. The listed benefits all seem generally logical of course but since the author is discussing field services an example would be helpful for that particular use case. Perhaps we’ll see more as this model grows.
‘As consumer demands and payment processing options continue to increase, field service companies must also increase the amount of digital payment options available to their customers. Understanding which field service softwares are viable options to help provide a great experience for customers while simultaneously growing the business is crucial. Choosing to work with the right payment provider allows for increased advocacy, reduced rates and headaches, and better overall customer satisfaction, all while making sure companies are empowered to succeed through payments.’
Overview by Steve Murphy, Director, Commercial and Enterprise Payments Advisory Service at Mercator Advisory Group
