Payment Facilitators

How These Providers Are Eating the Payments Value Chain

About This Report
The payfac model has catapulted into the mainstream, thanks to payments disruptors like PayPal, Square, and Stripe. The growth in the number of payfacs, and in the payment volume passing through them, is reshaping key relationships within the payments ecosystem. But the model bears some drawbacks for the diverse swath of companies adopting it, as well as for the merchants that work with them.

Executive Summary

Adopted by payments disruptors such as PayPal, Square, and Stripe, the payment facilitator, or payfac, model is shifting relationships between players in the merchant acquiring space and the merchants they serve. While there are drawbacks to the model, market dynamics are in its favor, as the number of payfacs—along with the payment volume they process—continues to grow.


  1. What are payfacs, and how do they work?
  2. What are the payfac model’s benefits and drawbacks for companies that employ it, and for their merchants?
  3. How is payfacs’ growth affecting the rest of the payments ecosystem?

WHAT’S IN THIS REPORT? This report takes a deep dive into payfacs, explaining how they work, their appeal and downsides, how they are shifting the payments ecosystem, and what that means for incumbent payments players.

KEY STAT: Gross payment volume processed by payfacs will reach $4.013 trillion worldwide in 2025, per April 2020 estimates by payfac enabler Infinicept and AZ Payments Group.

Here’s what’s in the full report


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    Table of Contents

    1. Executive Summary
    2. Key Points
    3. Introduction
    4. Defining Payfacs
    1. The Appeal of Payfacs
    2. Challenges of the Payfac Model
    3. How Payfacs Are Changing the Payments Ecosystem
    4. Looking Ahead
    1. Insider Intelligence Interviews
    2. Read Next
    3. Sources
    4. Media Gallery

    Interviewed for This Report

    Todd Ablowitz
    Co-Founder and Co-CEO
    Interviewed April 22, 2021
    Bob Butler
    Chief Commercial Officer
    Interviewed April 6, 2021
    Ralph Dangelmaier
    Interviewed May 20, 2021
    Carla Erlick
    Senior Vice President, ISV Channel
    Interviewed May 26, 2021
    Daniel Kornitzer
    Chief Business Development Officer
    Interviewed May 26, 2021
    Keren Levy
    Interviewed May 27, 2021
    Manpreet Singh
    Co-Founder and President
    Interviewed May 21, 2021
    Katie Wickham
    Director, Marketing
    Interviewed April 6, 2021

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    Grace Broadbent


    David Morris
    Principal Analyst
    Julia Woolever

    "Behind the Numbers" Podcast