Cardstream Unveils PayFac-as-a-Service
  • Cardstream is launching PayFac-as-a-Service, a new white label service for companies seeking to become payment facilitators.
  • PayFac-as-a-Service clients will benefit from Cardstream’s regulatory position, enabling customers without a license to operate compliantly.
  • Cardstream has built a network of 400+ acquirers, alternative payment methods, shopping cart platforms, and fraud providers.

European payment service provider Cardstream announced the launch of new white label PayFac-as-a-Service.

The cloud-based service will offer acquirers access to Cardstream’s third party payment facilitator program and provides a pathway for those looking to become a payment facilitator. PayFac-as-a-Service users will also benefit from Cardstream’s regulatory position, as customers without a license will be able to operate compliantly.

“Our complete PayFac-as-a-Service is the quickest and most versatile way for companies to enter the rapidly growing billion dollar global marketplace,” said Cardstream CEO and Chairman Adam Sharpe. “Any company keen to capitalize on the rapidly growing PayFac space should put us on its shortlist, be it an Acquirer; a company applying for its own PayFac regulatory approval; or one opting to benefit by operating under our FCA regulated OBN.”

PayFac-as-a-Service offers merchants a holistic approach to the payment facilitator market. Cardstream is including workflow onboarding, underwriting, compliance due-diligence, real-time fraud screening and monitoring, dispute and chargeback management, funds management, automated fee collection, invoicing, referral commissioning, and more.

Founded in 1999, Cardstream has built a network of 400+ acquirers, alternative payment methods, shopping cart platforms, and fraud providers. The company supports all global currencies and major card schemes in more than 120 countries. Cardstream’s client portfolio includes 100+ reseller partners and their 18,000+ merchants.

In today’s announcement, Sharpe hinted at ambitions to grow Cardstream, sharing plans to round out its platform with additional services later this year. “As we move through the rest of 2023, we expect to have a series of further announcements of many new, additional Cardstream Group services,” he added.

The payment facilitator market in Europe is heavily regulated, with the introduction of the second Payment Services Directive (PSD2) in 2018, which aims to increase security, competition, and innovation in the payments industry. The market, which is expected to reach a value of $1.72 trillion (€1.57 trillion) by 2024, includes a sizable number of players ranging from traditional financial institutions to fintech companies and digital payment providers. Among the top payment facilitators in Europe are PayPal, Adyen, Stripe, Worldpay, and Klarna.

Photo by Anna Shvets