The automotive repair industry is booming as more people seek reliable and efficient services for vehicle maintenance and repairs. To keep up with this growing demand, automotive repair providers rely on specialized software to manage appointments, customer information, and financial transactions. 

However, many auto repair businesses face challenges with outdated, fragmented payment systems that slow down transactions, disrupt customer experiences, and complicate financial management. Customers expect seamless, secure, and flexible payment options—whether paying for routine maintenance, major repairs, or diagnostic services. 

This is where Payment Facilitation as a Service (PayFac as a Service) becomes a game-changer for automotive repair software providers. By embedding payment processing directly into their platforms, software providers can offer auto repair businesses a frictionless way to handle payments, streamline operations, and unlock new revenue opportunities—all without the complexities of becoming a registered payment facilitator. 

Understanding PayFac as a Service in Automotive Repair Software 

PayFac as a Service is a modern payment processing model that enables software providers—such as those serving the automotive repair industry—to seamlessly integrate and manage payments within their platform without taking on the full operational and regulatory burdens of becoming a registered payment facilitator. 

In essence, PayFac as a Service allows automotive repair software providers to offer embedded payment processing under a master merchant account managed by a third-party provider like Clearent by Xplor. This approach enables auto repair businesses to accept payments directly within their software platform, providing a frictionless payment experience for both businesses and their customers. 

Related Blog: What is PayFac as a Service? 

6 Benefits of Adopting PayFac as a Service for Automotive Repair Software Providers 

Adopting PayFac as a Service provides automotive repair software providers with a powerful way to streamline payments, improve operational efficiency, and unlock new revenue streams. By integrating embedded payments into their platforms, software providers can offer a seamless solution to auto repair businesses while avoiding the costly and complex process of becoming a fully registered payment facilitator. 

1. Reduced Complexity and Lower Costs 

Becoming a traditional Payment Facilitator requires a significant investment, with upfront costs exceeding $500,000 and ongoing expenses in the hundreds of thousands. For most automotive repair software providers, this isn’t a viable or necessary option. 

PayFac as a Service eliminates the need for automotive repair software companies to navigate complex payment processing regulations, compliance, and risk management. A third-party provider handles these responsibilities, allowing software providers to focus on their core features while offering integrated payment solutions to auto repair businesses. 

2. Faster Market Entry & Seamless Merchant Onboarding 

Automotive repair providers want to start accepting payments immediately without enduring long approval processes from traditional payment processors. PayFac as a Service enables instant merchant onboarding, allowing businesses to process payments within minutes, not weeks. 

For automotive repair software providers, this rapid setup offers a competitive advantage. They can quickly deploy payment capabilities without waiting for compliance approvals or complex integrations. Clearent’s Automated Onboarding solution even includes hardware ordering, so auto repair providers can sign up and simultaneously order terminals and card readers for in-person payments. This faster time to market leads to quicker revenue generation for software providers and enhances user experience and product adoption. 

3. Streamlined Payment Processing for Automotive Repair Providers 

Auto repair businesses often juggle multiple payment methods—from credit cards and debit cards to contactless payments and mobile wallets. Managing these diverse options can be overwhelming and time-consuming. 

With PayFac as a Service, automotive repair software providers can offer streamlined, all-in-one payment processing solutions that simplify transactions for their clients. This unified approach reduces administrative burdens, minimizes errors, and ensures that payments are processed quickly and securely. 

Moreover, integrating low-code payment solutions—such as text-to-pay—plays a crucial role in the automotive space. Text-to-pay allows customers to complete transactions directly from their mobile devices with minimal friction, enhancing the overall customer experience. 

4. Enhanced Security and Compliance 

Payment security and regulatory compliance are critical in the automotive repair industry, where sensitive customer and payment data must be protected. Navigating complex regulations like PCI-DSS compliance can be daunting for software providers. 

PayFac as a Service providers handle these security and compliance requirements, offering built-in fraud prevention tools and secure payment processing environments. This not only protects auto repair providers from potential breaches but also instills trust and confidence in their customers. 

5. Increased Revenue Opportunities for Software Providers 

One of the biggest advantages of PayFac as a Service is the ability for automotive repair software providers to monetize payment transactions. Instead of solely offering software, providers can: 

  • Earn a share of payment processing fees from every transaction 
  • Create bundled pricing models that combine payments with software features 
  • Offer value-added payment services, like surcharging, financing options or fraud protection 

For automotive repair software providers, PayFac as a Service offers a cost-effective, scalable, and revenue-generating solution for integrating seamless payments. It removes compliance and risk burdens, enables faster onboarding, and provides new income opportunities, making it an ideal choice for software companies looking to enhance their offerings and gain a competitive edge in the automotive repair industry. 

6. Improved Customer Experience and Retention 

Auto repair providers thrive on delivering exceptional customer experiences, and seamless payment processing plays a crucial role in this. Long wait times, declined transactions, and complicated payment processes can frustrate customers and drive them away. 

By integrating PayFac as a Service, automotive repair software providers can offer their clients a smoother, faster, and more reliable payment experience. This not only improves customer satisfaction but also fosters loyalty and retention, helping auto repair businesses grow and succeed. 

Decision Factors for Software Providers Considering PayFac as a Service 


Software Providers contemplating PayFac as a Service should consider several factors to determine if it aligns with their needs: 

  • Resource Availability: Assess if you have the necessary resources and expertise to manage a traditional Payment Facilitation model (upfront and long term), or if a more streamlined approach like PayFac as a Service is preferable. 
  • Cost Considerations: Evaluate the financial implications, including the upfront investment and ongoing operational costs, of both models. 
  • Business Growth and Scalability: Consider your business’s growth trajectory and how each model can accommodate future expansion and scalability needs. 
  • Appetite for Risk Management and Compliance: Determine the level of involvement you are willing to have in managing risks and compliance related to payment processing. 
  • Customer Experience: Reflect on the impact each model will have on the customer experience, especially in terms of payment options and transaction security. 
  • Market Dynamics: Understand the market dynamics and how quickly you need to adapt to changing customer preferences and technological advancements. 

Choosing the Right Partner

 
Not all PayFac as a Service providers are created equal. To maximize the benefits for automotive repair software platforms, it’s essential to choose a partner that offers: 

  • Industry Experience: Look for a provider that understands automotive repair operations, including service appointment scheduling, parts and labor billing, and the unique payment needs associated with vehicle repairs and maintenance. 
  • Seamless API Integration: The provider should offer developer-friendly APIs that easily integrate with your existing automotive repair software, ensuring a smooth and intuitive user experience. 
  • Low-Code Solutions: A provider that offers low-code or no-code integration options can help automotive repair software platforms quickly embed payments without extensive development work. This speeds up deployment, reduces IT costs, and makes payment integration more accessible to businesses with limited engineering resources. 
  • Customizable Payment Solutions: Automotive repair businesses require flexible payment options, including one-time payments, recurring service contracts, installment plans, and digital wallets. A PayFac as a Service provider should offer customizable solutions to support these diverse payment needs. 
  • Fast Merchant Onboarding: Auto repair providers should be able to sign up and start processing payments within minutes—not days or weeks. A provider with automated underwriting and onboarding capabilities ensures a frictionless experience. 
  • Security & Compliance Management: PCI compliance, fraud detection, and chargeback management should be handled by the provider, minimizing risk for both automotive repair businesses and the software provider. 
  • Revenue-Sharing Opportunities: The best providers enable software platforms to earn revenue from payment processing, creating an additional income stream without added complexity. 

Related Blog: What ISVs Should Look for in a Payments Partner? 

Wrap Up 

The automotive repair industry is evolving rapidly, and software providers must offer more than just scheduling and customer management—they need seamless, integrated payment solutions to stay competitive. PayFac as a Service simplifies payment processing by eliminating compliance burdens, reducing costs, and enabling instant merchant onboarding. It also supports flexible payment options, such as memberships, subscriptions, and installment plans, making it easier for auto repair providers to manage transactions and enhance client experiences. 

Beyond operational benefits, PayFac as a Service unlocks new revenue opportunities by allowing software providers to earn revenue from payment processing fees. Instead of relying on third-party payment processors, automotive repair software companies can provide a fully integrated, all-in-one solution that increases customer loyalty and differentiates them in the market. 

Want to start maximizing your embedded payments revenue with PayFac as a Service? 

Connect with a payments consultant 

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by Clearent by Xplor

  • First published: February 28 2025

    Written by: Clearent by Xplor