Maximizing Revenue with PayFac as a Service: Automated Onboarding and Merchant Hardware  

In the traditional landscape of merchant services, onboarding new merchants and procuring necessary payment terminal hardware have often been cumbersome and fragmented processes. Merchants typically faced a series of manual steps, including extensive paperwork and prolonged verification procedures, leading to significant delays before they could begin accepting payments. This disjointed approach not only hindered merchants’ operational efficiency but also postponed revenue generation for both the merchants and their associated software providers. 

However, Payment Facilitator (PayFac) as a Service has introduced a transformative shift in this paradigm. By leveraging automated onboarding processes with hardware ordering and deployment built into the sign-up flow, PayFac as a Service enables a cohesive and expedited setup for software providers and their merchants. This innovation enables merchants to complete formalities and obtain payment terminals in one step, speeding up operational readiness. 

In this blog, we will explore how automated onboarding and integrated hardware ordering within the PayFac as a Service model are revolutionizing the merchant onboarding experience and driving faster revenue realization for software providers. 

The Evolution of Merchant Onboarding 

The Traditional Process 

Merchant onboarding was historically a fragmented and time-consuming process. Signing up for software and payment processing services required separate steps, often involving manual forms and lengthy verification procedures. This disjointed approach led to common pain points such as delays in activation, manual errors, and a poor user experience for merchants. 

Emerging Trends in Payment Facilitation Solutions 

In response to these challenges, the industry has seen a shift toward integrated onboarding solutions. PayFac as a Service streamlines the process by aligning software signups with payment service activation, creating a unified experience. These advancements not only reduce delays and errors but also enhance efficiency, allowing merchants to start processing payments faster while improving satisfaction for both merchants and software providers. 

How Automated Onboarding Works 

Automated onboarding within a PayFac as a Service model simplifies the traditionally complex process of setting up payment services for merchants. Instead of relying on manual steps and disjointed systems, automated onboarding integrates all necessary tasks into a single, streamlined process. This includes identity verification, compliance checks, and account setup, all completed seamlessly during the merchant’s signup for software. 

Key features of automated onboarding include: 

Advantages for Software Providers and Merchants 

Automated onboarding delivers significant benefits to both parties: 

The Role of Payment Terminal Hardware in Merchant Success 

Importance of Payment Terminals for In-Person Payments 

Despite the rise of digital transactions, in-person payments remain a cornerstone for many merchants, particularly in retail, hospitality, and service industries. Payment terminal hardware plays a critical role in enabling these transactions, ensuring merchants can accept payments securely and efficiently at the point of sale. 

With all that said, if your merchants are in an industry that might traditionally not use payment terminals, you may want to re-evaluate your payment solutions. We helped our patient engagement software partner, Dental Intelligence, implement a terminal acceptance solution for their practices. This strategy increased average volume per location from $18,000 to $398,148. 

Read the full success story here. 

Challenges in Traditional Hardware Ordering 

The traditional process of ordering payment terminals has often been fraught with inefficiencies. Merchants typically faced: 

By addressing these challenges, embedded solutions that combine onboarding with hardware ordering can significantly enhance merchant success and satisfaction. 

Integration of Hardware Ordering with Automated Onboarding 

How It Works in Clearent’s PayFac as a Service Solution 

Clearent’s PayFac as a Service solution revolutionizes the onboarding process by integrating real-time hardware ordering directly into the merchant signup journey. Instead of treating hardware procurement as a separate step, merchants can select and order payment terminals at the same time they complete their sign-up process. This seamless process eliminates delays, allowing merchants to quickly receive and set up their terminals to start accepting payments. 

The process works as follows: 

Benefits of Automated Onboarding with Terminal Ordering 

This integration delivers substantial advantages for both merchants and software providers: 

By integrating hardware ordering into the onboarding process, Clearent’s solution provides a clear competitive advantage, improving efficiency and satisfaction for all stakeholders. 

Wrap Up 

Automated onboarding and integrated hardware ordering represent a significant leap forward for both software providers and merchants. For merchants, these innovations eliminate the traditional pain points of lengthy onboarding and fragmented hardware procurement, allowing them to quickly set up and start accepting in-person payments. This streamlined process not only saves time but also enhances the overall onboarding experience, ensuring merchants can focus on growing their business. 

For software providers, the benefits are equally impactful. By enabling merchants to become operational faster, software partners can accelerate revenue generation while strengthening their value proposition. A seamless onboarding and hardware ordering experience fosters higher merchant satisfaction and retention, helping software providers stand out in a competitive market. 

By adopting integrated solutions like these, software providers and merchants alike can thrive in today’s fast-paced payments ecosystem. If you’re interested in exploring how these innovations could benefit your business, check out our educational resources or reach out for more insights into transforming the onboarding process. Together, we can build a more efficient and profitable future for the payments industry.