A New Approach to Maximizing Payments Revenue with PayFac as a Service 

Over the last several years, software providers have been building interest in becoming Payment Facilitators, but the question continues to remain, is it the right fit for you? With the rise of Payment Facilitation came demand from software providers for a less intensive solution. As a result, PayFac as a Service solutions were created by payment providers like Clearent by Xplor. However, not all PayFac as a Service solutions are one in the same. 

In this article, we breakdown how Clearent’s SaaS experience has led to a refined, revenue-focused approach to PayFac as a Service, offering software providers a streamlined path to embed payments, emphasizing control, revenue potential, and a competitive edge. With a focus on removing complexities, Clearent empowers companies to quickly launch and manage their own payment solutions. 

The Payments & Software Powerhouse: Clearent and Xplor Technologies 

Before we dive deeper into our PayFac as a Service approach, it’s important to understand the history of Clearent by Xplor and Xplor Technologies, as it is instrumental in our unique approach embedded payment strategies. 

Since 2005, Clearent has been a key player in the U.S. payment processing industry, initially focusing on providing small businesses with secure card acceptance. Over time, Clearent expanded its capabilities and reach through strategic acquisitions, which laid the foundation for its innovative, software-integrated approach to payments. 

In 2017, Clearent acquired the merchant division of Payment Alliance International, adding a substantial customer base, strategic sales assets, and a new operations center. This acquisition provided a rapid growth boost, enabling Clearent to scale its operations quickly. Just a year later, Clearent acquired SPOT, a leading dry-cleaning software, and FieldEdge, a field service management software. These acquisitions represented a significant step toward a unified strategy of software plus payments, expanding Clearent’s solutions to meet industry-specific needs. 

In 2021, Clearent merged with Transaction Services Group (TSG), a global software and payments provider with operations in the UK, Europe, Australia, and New Zealand. This merger marked the birth of Xplor Technologies—a combined organization that brings together robust payment and software solutions for a global market. Today, Xplor Technologies serves over 800 partners and 66,000 businesses, processing over $32 billion annually, positioning it as a global leader at the intersection of software and payments. 

How does the Clearent & Xplor relationship enhance the value proposition for our software partners? 

Unlike simply gathering customer feedback or researching potential partner needs, being the same organization that uses the technology from a payment processor provides unique insights. Clearent, through its relationship with Xplor and its software offerings, gains direct exposure to the entire value chain of payments. 

Across a diverse set of industries, including fitness, wellness, and education, Clearent encounters a variety of different payment use cases—such as card-present transactions, retail payments, and recurring billing models. This firsthand experience with Xplor customers, who utilize both our software and payment solutions, allows us to see precisely how these processes impact end-users. 

By analyzing these real-world scenarios and leveraging data from our own portfolio, we can share proven strategies with partners, illustrating how tailored approaches in different markets directly enhance customer value and elevate the software experience. 

What is PayFac as a Service? 

PayFac as a Service is a streamlined solution that enables businesses to integrate payment processing into their platforms without becoming full Payment Facilitators. Operating under a master merchant account managed by an established provider, software companies are able to offer payment acceptance more seamlessly to their users. This model simplifies compliance, risk management, and transaction handling, allowing companies to focus on enhancing customer experience and capturing new revenue streams while the provider manages backend complexities. 

It’s critical to understand that PayFac as a Service and overall software embedded payments strategy is not a one size fits all approach. While there are absolutely some standards, your software company is on a unique journey, with a unique set of challenges and goals. Your software deserves to find effective payment solutions best fit for where you are today and offers your company the ability to scale. 

Finding Your Perfect Balance Between Risk and Reward 

With Clearent, our PayFac as a Service solution helps you strike the perfect balance between risk and reward, while creating a long-term revenue strategy to inspire you to move closer to a true payment facilitation model if desired. Here are a few steps to help you find your balance between risk and reward. 

Step 1: Assess Your Risk Tolerance 

Identify how much risk your business is comfortable with in areas like compliance and fraud monitoring. This will shape your payment facilitation strategy and approach to managing risk. 

Step 2: Evaluate Current Resources and Capabilities 

Take stock of your team’s technical capacity and operational support. Understanding your resources will clarify how much support you’ll need from a payments partner like Clearent. 

Step 3: Define Your Payment Revenue Goals 

Outline clear revenue goals—whether it’s increasing transaction volume or expanding markets—to guide your PayFac approach and set achievable targets. 

Step 4: Connect with a Clearent Payment Consultant 

Engage with a Clearent Payment Specialist for a tailored plan that maximizes revenue while minimizing risk. Their expertise can streamline your PayFac integration for optimal results. 

Embedded Payments Solution Quiz 

Want to discuss these steps with one of our payments consultants to find your perfect revenue generating solution? Start by taking our 4 question quiz to get an idea of what solution might be best for you. 

Embedded Payment Solutions Quiz 

Four Ways to Increase Revenue with PayFac as a Service 

Clearent’s PayFac as a Service focuses on these key revenue drivers: 

Each pillar is designed to enhance revenue potential and customer satisfaction through comprehensive, flexible solutions. 

Our Approach and Experience Speak for Themselves 

Each of these pillars works together to provide a comprehensive strategy for maximizing revenue from embedded payments, with Clearent offering the resources, expertise, and technology to support scalable, efficient growth. 

Maximize Payment Attach Rates 

Maximizing attach rates, or payment adoption rates, is key to capturing revenue with every transaction through your embedded payments solution. High attach rates mean more users actively processing payments within your platform, ensuring your payment integration is widely adopted and consistently generating revenue. 

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2. Maximize Share of Wallet 

Increasing share of wallet means capturing a larger portion of your customers’ total payment processing needs by enabling more transactions through your platform. By tailoring payment workflows to fit both in-person and digital transactions, businesses can drive more payment volume, which boosts overall revenue. 

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3. Minimize Cost to Serve 

Keeping service costs low is essential for profitable revenue growth. By utilizing API-first technology and focusing on scalability, Clearent’s approach minimizes costs associated with integrating and maintaining embedded payment solutions as your platform grows. 

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4. Optimize Portfolio Performance 

Optimizing portfolio performance ensures that payment solutions drive continuous revenue growth and improve overall efficiency. Clearent’s robust reporting tools help SaaS platforms gain valuable insights into payment trends, allowing them to spot issues and capitalize on opportunities for improvement. 

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Wrap Up. 

PayFac as a Service provides software companies with a powerful way to integrate payments and drive revenue, but not all solutions are one and the same. Clearent’s approach focuses on four key pillars—Maximizing Attach Rates, Share of Wallet, Minimizing Cost to Serve, and Optimizing Portfolio Performance—each designed to help businesses scale effectively while enhancing customer value. 

With Clearent and Xplor’s expertise, software providers can balance risk and reward to create a profitable payments program that is set up to grow with their business. Ready to explore how embedded payments can transform your revenue? Clearent is here to guide you every step of the way. 

Learn More about Clearent’s PayFac as a Service Solution.