The MedSpa industry is experiencing significant growth as more consumers seek non-invasive aesthetic and wellness treatments. From laser hair removal and skin rejuvenation to body contouring and injectables, MedSpas have evolved into a booming sector within the broader healthcare and beauty industries. As demand increases, MedSpas are turning to specialized software solutions to manage everything from appointment scheduling and client records to marketing and financial transactions. 

However, one critical challenge remains: payment processing. Many MedSpa businesses struggle with outdated, fragmented payment systems that create inefficiencies, slow transactions, and disrupt the customer experience. Clients expect seamless, secure, and flexible payment options, whether they’re purchasing treatments, subscribing to memberships, or buying post-care products. 

This is where Payment Facilitation as a Service (PayFac as a Service) becomes a game-changer for specialized MedSpa software solutions. By embedding payment processing directly into MedSpa management software, software providers can offer their customers a frictionless way to sign up and handle payments while unlocking new revenue opportunities. Rather than relying on third-party payment processors with cumbersome onboarding and complex compliance requirements, MedSpa software providers can leverage PayFac as a Service to streamline transactions, improve user experiences, and generate additional income—all without the operational burden of becoming a registered payment facilitator. 

In this blog, we’ll explore how PayFac as a Service benefits MedSpa software providers, enabling them to offer fully integrated, compliant, and revenue-generating payment solutions that enhance both their software platform and their clients’ businesses. 

Understanding PayFac as a Service in MedSpa Software 

PayFac as a Service is a modern payment processing model that enables software providers—such as those serving the MedSpa 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 MedSpa software providers to offer embedded payment processing under a master merchant account managed by a third-party provider. This approach enables MedSpas to accept payments directly within their software platform, providing a frictionless payment experience for both businesses and their clients. 

6 Benefits of Adopting PayFac as a Service for MedSpa Software Providers 

Adopting PayFac as a Service provides MedSpa 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 MedSpas 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 (PayFac) requires a significant financial investment, with upfront costs exceeding $500,000 and recurring expenses in the hundreds of thousands. For most MedSpa software providers, this isn’t always a viable option, nor is it necessary. 

PayFac as a Service eliminates the need for MedSpa software companies to navigate the intricacies of payment processing regulations, compliance, and risk management. Instead, a third-party provider handles these complexities, allowing software providers to focus on their core platform while still offering a fully integrated payment solution to MedSpa businesses. 

2. Faster Market Entry & Seamless Merchant Onboarding 

MedSpa businesses want to accept payments instantly without dealing with long approval processes from traditional payment processors. PayFac as a Service enables instant merchant onboarding, meaning MedSpas can start processing payments within minutes, not weeks. 

For MedSpa software providers, this rapid setup offers a competitive advantage—they can quickly deploy payment capabilities without waiting for lengthy compliance approvals or complex integrations. This speed is critical for software companies looking to capture more market share and deliver a complete business solution for MedSpas. 

In addition to onboarding MedSpas faster, Clearent’s Automated Onboarding solution includes terminal ordering and deployment. This means that a MedSpa can complete their signup process and simultaneously order any necessary terminals and card readers to accept payments in person. This faster time to market leads to faster time to revenue for the software provider and improve overall user experience and product adoption. 

3. Scalability & Flexibility to Meet MedSpa Needs 

MedSpas have unique payment processing requirements, including: 

  • One-time service payments (e.g., facials, injectables, laser treatments) 
  • Membership & subscription billing for ongoing treatments 
  • Installment plans & Buy Now, Pay Later (BNPL) options 
  • Retail product sales & post-treatment care purchases 

A PayFac as a Service model ensures MedSpa software platforms can support these various payment structures without costly infrastructure upgrades. As the MedSpa industry continues to grow, software providers need a flexible and scalable payment solution that can adapt to evolving business models and customer preferences. 

4. Put Your Brand Front and Center with White-Labeling 

A white-labeled PayFac-as-a-Service solution allows MedSpa software providers to brand payment processing as their own, delivering a consistent and professional experience across their platform. Rather than redirecting MedSpa businesses to a third-party payment processor, white-labeling ensures: 

  • A seamless, branded experience that keeps MedSpas engaged within your platform. 
  • Full ownership of the customer relationship, strengthening loyalty and trust. 
  • Enhanced brand authority, positioning your platform as an all-in-one business solution. 

5. More Time to Focus on Core Business & Product Innovation 

Managing payment facilitation in-house requires significant time, resources, and expertise in regulatory compliance, security, and fraud prevention. Instead of diverting valuable resources to these complex tasks, PayFac as a Service allows MedSpa software providers to focus on what they do best: 

  • Enhancing software features such as appointment scheduling, client management, and marketing automation 
  • Improving user experience for MedSpa owners and staff 
  • Expanding into new markets and attracting more MedSpa businesses 

By outsourcing payment processing to a trusted PayFac as a Service provider, software companies can stay ahead of competitors and deliver more value to their customers. 

6. New Revenue Opportunities from Payment Processing 

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

  • Earn a share of payment processing fees every time a transaction is made 
  • Create pricing models that bundle payments with software features 
  • Offer value-added payment services, such as financing options or fraud protection 

For MedSpa software providers, PayFac as a Service offers a cost-effective, scalable, and revenue-generating solution for integrating seamless payments. It eliminates 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 MedSpa industry. 

Decision Factors for Businesses Considering PayFac as a Service 

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

  • Resource Availability: Assess if the business has the necessary resources and expertise to manage a traditional PayFac 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 the 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 the business is 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 the business needs 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 MedSpa software platforms, it’s essential to choose a partner that offers: 

  • Industry Experience – Look for a provider that understands MedSpa operations, including appointment-based transactions, membership billing, and the regulatory requirements surrounding healthcare-related payments. 
  • Seamless API Integration – The provider should offer developer-friendly APIs that easily integrate with your existing MedSpa software, ensuring a smooth and intuitive user experience. 
  • Low-Code Solutions – A provider that offers low-code or no-code integration options can help MedSpa 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 – MedSpas require flexible payment options, including one-time payments, recurring memberships, installment plans, and digital wallets. A PayFac as a Service provider should offer customizable solutions to support these diverse payment needs. 
  • Fast Merchant Onboarding – MedSpa owners 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 MedSpa 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. 

Wrap Up. 

The MedSpa industry is evolving rapidly, and software providers must offer more than just scheduling and client 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 MedSpas 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, MedSpa 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?  

Learn about our PayFac as a Service approach and connect with a payments consultant here. 

PayFac as a Service for Software Providers
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by Clearent by Xplor

  • First published: January 31 2025

    Written by: Clearent by Xplor