Payment Facilitator (PayFac)
A Payment Facilitator (PayFac) is a company that acts as a master merchant towards the acquirer and enables sub-Merchants to accept electronic payments — without requiring each sub-Merchant to have their own acquiring contract.
Payment Facilitator (PayFac)
A payment facilitator (PayFac) is a business model in which a company acts as a master merchant towards the acquirer and the card networks. Under its umbrella, sub-comerciantes can accept payments without having to conclude their own acquiring contracts.
The PayFac model is frequently used by platforms and marketplaces: the platform registers as a PayFac and can then independently onboard sub-comerciantes, perform KYC and set transaction fees. Well-known PayFacs are Stripe, Square and PayPal.
For SME marketplaces in Switzerland, building an own PayFac model is usually too complex — it requires registration with the card networks, extensive compliance and significant capital. The alternative: using an existing PSP with a platform API that acts as a PayFac and takes over the regulatory complexity.
Payment Facilitator Examples
Stripe is a payment facilitator: millions of sub-Comerciantes accept payments via Stripe's master Comerciante agreement with the card networks.
A Swiss marketplace uses a PSP with a platform API as a PayFac. The PSP onboards the sellers as sub-Comerciantes and handles compliance and payouts.
A SaaS platform becomes a PayFac itself and sets its own transaction fees for its sub-Comerciantes — the difference from the acquirer rate is its margin.
Payment Facilitator FAQ
What is a Payment Facilitator (PayFac)?
A PayFac is a business that, as a master-comerciante, enables sub-comerciantes to accept electronic payments — without each sub-comerciante needing their own acquiring contract.
What is the difference between PayFac and PSP?
A PSP offers payment processing as a service. A PayFac goes further: it acts as a master Comerciante itself and can independently onboard sub-Comerciantes and set fees. Many PSPs also act as a PayFac.
Can a Swiss SME become a PayFac itself?
Historically yes, but the effort is considerable: registration with card networks, FINMA compliance, capital requirements and technical infrastructure. For SMEs, using an existing PSP with a platform API is more pragmatic.
What is a Master-Comerciante?
The master Comerciante is the PayFac itself — the company that holds the acquirer contract and under whose umbrella all sub-Comerciantes accept payments. The master Comerciante bears the responsibility towards the acquirer.
