Payfactory
Payfactory is a Payfac-as-a-Service platform that lets ISVs and SaaS companies embed PCI-compliant payment acceptance into their software via gateway-agnostic RESTful APIs. It serves software platforms primarily and verticals including healthcare, higher education, government, and retail via transaction-based pricing and partner revenue share.
- Company typePrivate
- Founded2021
- HeadquartersTulsa, United States
- Headcount1–10
- GTM typeB2B
- OfferingSoftware
What Payfactory does
Payfactory (legal entity Pay Factory, Inc.) is a Payfac-as-a-Service platform founded in 2021 in Tulsa, Oklahoma that enables independent software vendors and SaaS companies to embed payment acceptance directly into their software products. The company targets ISVs and SaaS platforms as its primary customer segments, with secondary vertical focus on healthcare, higher education, government/utility, and retail/hospitality end-markets. The core proposition is a gateway-friendly, no-to-low development integration model that compresses merchant onboarding and time-to-revenue versus building an in-house payfac from scratch, which the company cites as a 12-18 month undertaking.
The platform is built on RESTful APIs with a gateway-agnostic architecture supporting integrations to over 100 payment gateways, paired with a self-serve merchant and partner portal. Security and operational features include PCI-validated point-to-point encryption, tokenization, 3D Secure, automated sub-merchant underwriting enabling near-instantaneous account approval without hard credit pulls, next-day funding, and Split Pay for multi-vendor payouts. Payfactory operates as a registered Payment Facilitator of Fifth Third Bank, N.A. and Pathward, N.A., which serve as sponsor banks providing money-movement rails and compliance oversight. Distribution is hybrid: direct enterprise sales for large ISVs/SaaS platforms, a multi-tier partner program (strategic, referral, ISV) with acquirers, gateways, ISOs and financial institutions, and a self-serve developer portal for SMB and developer-led adoption.
The revenue model is transaction-based, with per-transaction fees typically ranging from 2-4% depending on vertical, card type, and acceptance channel, no monthly platform fees, and a revenue-share program for ISV/SaaS partners whose share rate increases as partner processing volume grows. Enterprise pricing is consultative and custom. The company has received growth capital from Bluefin (January 2022), which is also positioned as a preferred payment gateway partner, and an acceleration investment from Atento Capital (November 2023).
Payfactory firmographics
Firmographics- Name
- Payfactory
- Legal name
- Pay Factory, Inc.
- Website
- https://payfactory.io
- Company type
- Private
- Founded year
- 2021
- Operating status
- Operating
- Headcount range
- 1–10 employees
- Short description
- Payfactory is a Payfac-as-a-Service platform that lets ISVs and SaaS companies embed PCI-compliant payment acceptance into their software via gateway-agnostic RESTful APIs. It serves software platforms primarily and verticals including healthcare, higher education, government, and retail via transaction-based pricing and partner revenue share.
- Ownership category
- akta.pro rank
Payfactory industry classification
Industry- Product category
- Embedded Payment Facilitation Software
- NAICS
- Financial Transactions Processing, Reserve, and Clearinghouse Activities (52232), Financial Transactions Processing, Reserve, and Clearinghouse Activities (522320)
- SIC
- Services-Computer Programming, Data Processing, Etc. (7370), Services-Prepackaged Software (7372)
- akta.pro primary industry
- Merchant-of-Record (MoR) & Payment Facilitation (PayFac) Infrastructure (FSAGABAE)
- akta.pro secondary industries
- Marketplace / Platform Acquiring (PayFac & Sub-Merchant Management) (FSAMABAF), Payment Orchestration Platforms (FSAGABAA), Embedded Payments (Pay-ins, Pay-outs, Wallets) (FSAGALAB), Marketplace & Platform Seller Payouts (FSAMAKAE)
Keywords
Where Payfactory is headquartered
LocationHeadquarters
- HQ city
- Tulsa
- HQ country
- United States
- HQ region
- North America
Offices3 records
Markets served
Payfactory business model
Business model- GTM type
- B2B
- Offering type
- Software
- Cost components
- Personnel, Technology or R&D, Operations, Marketing or Sales, Infrastructure
Revenue model
- Transaction Fees: Revenue generated from processing payment transactions. Transaction fees typically range between 2-4% per transaction depending on vertical, card type, and transaction type.
- Revenue Sharing with Partners: ISVs and SaaS platforms generate revenue by sharing in transaction fees. Payfactory offers aggressive revenue share programs with the ability to increase share as business grows.
- Platform/Service Fees: No monthly fees with competitive rates. Partners work with Payfactory to determine pricing structures aligned with business goals.
Pricing tiers
| Model | Billing | Price |
|---|---|---|
| Transaction based/ take rate | Pay-as-you-go | Standard Merchant Processing |
| Transaction based/ take rate | Pay-as-you-go | Partner Revenue Share Program |
| Hybrid | Monthly | Enterprise/Custom Pricing |
Go-to-market motion3 records
Distribution channels5 records
Marketing channels6 records
Payfactory product offering
Product offeringCore offering
Payfactory operates a tech-enabled Payment Facilitator-as-a-Service (Payfac-as-a-Service) platform that enables ISVs and SaaS platforms to embed PCI-compliant payment acceptance directly into their software. The gateway-agnostic platform provides RESTful APIs for merchant onboarding, underwriting, payment processing, and payouts, with plug-and-play integration requiring little to no development. It supports sub-merchant account approval in minutes, next-day funding, encryption and tokenization, and revenue sharing for software partners.
Product overview
Payfactory is a Payfac-as-a-Service platform for ISVs and SaaS platforms that enables embedded payment facilitation. The core offering is the Embedded Payment Facilitation Platform, which provides APIs for merchant onboarding, payment processing, and payouts. This platform is complemented by a Self-Serve Merchant and Partner Portal for managing applications and transactions, along with specialized features like Split Pay for multi-vendor payouts and a Revenue Sharing Program. Payfactory is gateway-friendly and gateway-agnostic, supporting integration with over 100 payment gateways while maintaining security through encryption and tokenization.
Differentiator
Problem solved
Functional benefit
Products and services
- Embedded Payment Facilitation Platform Gateway-agnostic, plug-and-play platform that enables ISVs and SaaS companies to embed PCI-compliant payment acceptance directly into their software. Provides merchant onboarding, automated underwriting, payment processing, and payouts via RESTful APIs with integration to over 100 payment gateways, encryption/tokenization, and split-payout functionality.
- Self-Serve Merchant and Partner Portal
Quantifiable outcome
- ISVs can be up and running with payments in 1-2 days
- +3 more outcomes
Companies that use Payfactory
Customer profileNamed customers4 records
Segments6 records
Ideal customer profiles2 records
Payfactory technology and API
TechnologyTechnology focussed Yes
API detail
- Has API
- Yes
- API docs
- API detail
Core technology
AI maturity
App detail
Feature7 records
Payfactory partnerships and signals
Strategic signalPartnerships
Two partnerships are on record, tiered core.
- Fifth Third Bank, N.A.corePay Factory, Inc. is a registered Payment Facilitator of Fifth Third Bank, N.A., Cincinnati, OH. Fifth Third Bank serves as a sponsor bank providing money-movement and compliance oversight.
- Pathward, N.A.corePay Factory, Inc. is a registered Payment Facilitator of Pathward, N.A., Sioux Falls, SD. Pathward serves as a sponsor bank providing money-movement and compliance oversight.
Scale indicators5 records
Recent moves5 records
Expansion highlights5 records
Payfactory competitors and assessment
Company assessmentBroad incumbents
- Adyen: Adyen is a global payments platform serving enterprise merchants and platforms with unified online, in-store, and embedded payments. While broader in scope and scale, Adyen for Platforms overlaps with Payfactory's offering for large SaaS and ISV customers.
- Stripe: Stripe is the dominant internet-era payment processor with extensive APIs and Stripe Connect for embedded payments and platforms. Although much larger and broader in scope, Stripe Connect directly competes with Payfactory in enabling SaaS and platform businesses to monetize payment flows.
- JPMorgan Payments (WePay): JPMorgan acquired WePay to offer embedded payments to SaaS platforms through banking APIs. The combination of bank sponsorship and embedded payments infrastructure is a relevant comparison for Payfactory's sponsor-bank-based Payfac model.
Direct peers
- Spreedly: Spreedly is a payment orchestration platform that lets merchants connect, route, and manage transactions across multiple payment gateways. Its gateway-agnostic and orchestration focus overlaps directly with Payfactory's gateway-friendly positioning for ISVs and SaaS platforms.
- Finix: Finix is a payment infrastructure provider that enables businesses to become payment facilitators or monetize payments with embedded solutions. Finix competes head-to-head with Payfactory in the Payfac-as-a-Service and embedded payments space for SaaS and platform customers.
- Gr4vy: Gr4vy is a cloud-native payment orchestration platform built specifically for businesses to optimize and manage payment providers through a single API. Its focus on orchestrating across multiple payment services and acquirers competes with Payfactory's gateway-agnostic Payfac model.
- Stax (formerly Fattmerchant): Stax is a payment technology company offering integrated payment processing and Payfac-as-a-Service solutions for SaaS platforms and ISVs. It is one of the more direct comparables in enabling software platforms to embed payment acceptance and earn residual revenue.
- Primer: Primer is a payment orchestration and infrastructure platform that unifies payment services and processors through a single integration. Like Payfactory, Primer targets platforms and SaaS businesses seeking flexible, multi-gateway payment infrastructure.
Others
- Bluefin Payment Systems: Bluefin is both a Payfactory investor and a comparable in payment security infrastructure, specializing in PCI-validated P2PE and tokenization. The relationship and overlapping technology focus make it a relevant comparable for Payfactory's security-first positioning.
Emerging players
- Very Good Security (VGS): VGS is a payment data security and tokenization platform that helps companies secure and manage sensitive payment data. It is a relevant adjacent comparison given Payfactory's emphasis on PCI-validated P2PE and tokenization as core differentiators.
Market position
Strengths5 records
Weaknesses5 records
Competitive moat5 records
Key risks6 records
Key highlights6 records
Customer concentration
Payfactory social profiles
Digital presencePayfactory financial estimates
Financial estimateRevenue estimate
Valuation estimate
Payfactory leadership team
Management profileNumber of profiles
Profiles7 records
Payfactory funding detail
Funding detailFunding overview
Funding rounds2 records
Investors2 records
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
Payfactory M&A and investment
M&A and investmentM&A
Investments
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about Payfactory
What does Payfactory do?
Payfactory operates a tech-enabled Payment Facilitator-as-a-Service (Payfac-as-a-Service) platform that enables ISVs and SaaS platforms to embed PCI-compliant payment acceptance directly into their software. The gateway-agnostic platform provides RESTful APIs for merchant onboarding, underwriting, payment processing, and payouts, with plug-and-play integration requiring little to no development. It supports sub-merchant account approval in minutes, next-day funding, encryption and tokenization, and revenue sharing for software partners.
Is Payfactory a public or private company?
Payfactory is a private company. It is classified as venture growth investor backed and is currently operating.
When was Payfactory founded?
Payfactory was founded in 2021. It employs 1 to 10 people.
Where is Payfactory based?
Payfactory is headquartered in Tulsa, United States, in the North America region.
How does Payfactory make money?
Three revenue lines are on record. Transaction Fees are the primary driver. The others are revenue Sharing with Partners and platform/Service Fees.
Who are Payfactory's main competitors?
Broad incumbents on record are Adyen, Stripe and JPMorgan Payments (WePay). Direct peers are Spreedly, Finix, Gr4vy, Stax (formerly Fattmerchant) and Primer. Bluefin Payment Systems is listed as an others. Very Good Security (VGS) is listed as an emerging player.
Does Payfactory have an API?
Yes. Payfactory provides a suite of RESTful APIs enabling fast integration and automation of the embedded payment process, from onboarding to transacting and payouts. The APIs support merchant onboarding through webhooks, partner portal access for entering new applications, and sandbox environment for testing. The developer portal provides access to API documentation, sandbox, and webhooks. Payfactory's platform is gateway-friendly and gateway-agnostic, enabling quick integration with existing payment platforms. Developer documentation is at payfactory.readme.io/reference/approved-application-notifications.
What industry is Payfactory in?
Payfactory's product category is Embedded Payment Facilitation Software. Its primary akta.pro industry code is FSAGABAE, Merchant-of-Record (MoR) & Payment Facilitation (PayFac) Infrastructure, with a secondary code of FSAMABAF, Marketplace / Platform Acquiring (PayFac & Sub-Merchant Management). Its NAICS code is 52232 and its SIC code is 7370.