Category: payfac europe

  • How PayFacs Simplify EU Merchant Onboarding

    How PayFacs Simplify EU Merchant Onboarding

    In Europe, traditional merchant onboarding can be slow and complex, especially for high risk sectors like gaming, forex, and crypto. That’s where Payment Facilitators (PayFacs) come in, enabling instant sub merchant onboarding and simplified compliance.

    At KunnectPayments, we offer PayFac-as-a-Service solutions that help PSPs, ISOs, and high-risk businesses onboard merchants faster while staying fully PSD2 compliant.

    1. What Is a PayFac?

    A Payment Facilitator (PayFac) is an intermediary that allows businesses to accept payments under its master MID (Merchant ID).
    Instead of applying for individual acquiring accounts, merchants become sub merchants under the PayFac umbrella.

    💡 This drastically reduces onboarding time and administrative overhead.

    2. The PayFac Advantage in Europe

    EU PayFac models are growing fast due to PSD2’s open banking environment and digital KYC regulations.
    Key benefits include:

    • Instant onboarding with automated KYB
    • Consolidated settlements and reporting
    • Fraud and compliance handled centrally
    • Lower entry barriers for small and high risk merchants

    💡 KunnectPayments helps businesses transform into compliant PayFacs or onboard through existing PayFac networks.

    3. KunnectPayments PayFac-as-a-Service

    Our platform powers PayFac operations with:

    • Sub-merchant onboarding in under 5 minutes
    • Integrated AML/KYC verification
    • Unified payout and reconciliation dashboard
    • Compliant API layer for PSD2 and AMLD6

    💡 We support both EU-licensed PayFac setups and cross border operations with EEA coverage.

    4. Why High-Risk Merchants Prefer PayFac Models

    Traditional acquirers often reject high risk verticals. PayFacs, however:

    • Offer flexible risk tolerance
    • Maintain rolling reserve control
    • Enable faster go live and real time monitoring

    Conclusion

    The PayFac model is redefining merchant onboarding in Europe. Faster, safer, and fully compliant.

    With KunnectPayments, businesses can become a PayFac or leverage existing PayFac frameworks to onboard high risk merchants efficiently and scale across Europe.

    Contact KunnectPayments to launch your EU PayFac operations today.

  • PayFac vs PSP, Which Model Fits Your EU Business?

    PayFac vs PSP, Which Model Fits Your EU Business?

    Choosing the right payment model is critical for scaling in Europe’s regulated environment. Whether you’re a high risk merchant, fintech startup, or marketplace, understanding the difference between a Payment Facilitator (PayFac) and a Payment Service Provider (PSP) can shape your success.

    At KunnectPayments, we help European merchants and platforms choose, launch, and operate the best fit model compliant with PSD2, AMLD6, and MiCA.

    PayFac (Payment Facilitator): Fast, Flexible, Scalable

    A PayFac allows businesses to onboard sub merchants under its master account. This model is ideal for platforms or aggregators that want quick merchant onboarding and unified settlement.

    Best for:

    • Marketplaces, SaaS, and gaming platforms.
    • Faster onboarding and centralized compliance.
    • Merchants wanting a single integration for multiple sellers.

    At KunnectPayments:
    We provide white label PayFac infrastructure that enables instant sub merchant onboarding, real time KYC, and rolling reserves, built for Europe’s regulatory standards.

    PSP (Payment Service Provider): Direct and Controlled

    A PSP provides merchants with direct access to acquirers and payment networks. It offers more control and transparency but typically involves a longer setup and stricter underwriting.

    Best for:

    • Larger merchants needing direct acquirer relationships.
    • Businesses handling their own compliance and chargeback management.
    • Companies seeking customized routing and lower per transaction fees.

    At KunnectPayments:
    We connect merchants directly with EU acquiring banks and offer multi-rail payment processing cards, SEPA, eWallets, and crypto with built-in fraud and compliance tools.

    Conclusion

    Both models can power your growth, the choice depends on your size, risk profile, and desired control.

    At KunnectPayments, we guide European merchants through setup, compliance, and optimization, whether as a PSP partner or a white label PayFac provider.

    Ready to launch your EU payment model?

    Contact KunnectPayments today to find the best fit payment solution for your business.