Payments-as-a-Service is another related model, which can be thought of as a sub-PayFac structure where ISVs operate under a traditional PayFac. For software companies that just need to take payments, this setup enables you to get started quickly, since the PayFac owns the risk, infrastructure development, and other hefty responsibilities. However, the major drawback is that, in general, costing structures are higher and revenue share is lower, so this model typically doesn’t add much to a business’s bottom line. What’s more, PayFacs typically don’t view those engaging in this Payments-as-a-Service setup from a partnership perspective, meaning there’s less attention to the unique needs of the ISV and more difficulty implementing solutions to support those needs.

One advantage you’ll likely get from partnering with a payment company that’s well-established in the industry is dedicated support for ISVs, Sales Partners, and their merchants. For example, North has separate teams in place that provide support specific to the needs of each group — plus North’s Sales Engineering team works one-on-one with ISVs to make the initial integration process as smooth as possible.

In addition to getting support from industry experts, payment companies often provide access to a wide variety of payment methodologies, including extensive hardware selections for in-person payments and cutting-edge card-not-present products. They may even have the infrastructure in place to handle L3 data, which can save your merchants money.

What’s more, some payment companies, such as North, do their own in-house processing, which allows you to partner directly with your credit card processor. With most processors, ISVs would never be in direct contact, but cutting out intermediaries gives North greater agility to develop customized solutions for ISV partners quickly. For example, ISV partners can request customizations to North’s payment API products to support a specific need, and because there are no logistical delays between North and the processor, the development work can be completed in a short timeframe.

For example, North's Merchant Boarding API passes merchant boarding data to ISVs for use within their own dashboards. For ISVs who don’t want to build out and maintain their own dashboards, North also offers full access to whitelabeled versions of a merchant-facing enrollment portal, which is an entry point for merchants to submit their own application data, as well as the Payments Hub Partner Portal, which enables Sales Partners to manage the large numbers of merchant applications and merchant accounts issued. North provides services like these to enable ISVs to take ownership of their users’ experiences without having to take on the responsibility and expense of running a payments company.