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.
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