White Label Payment Facilitator Model

on Oct28
white label payment facilitator
Written by
James Davis
Written by James Davis
Senior Technical Writer at United Thinkers

Author of the Paylosophy blog, a veteran writer, and a stock analyst with extensive knowledge and experience in the financial services industry that allows me to cover the latest payment industry news, developments, and insights. Read more

white label payment facilitator
Reviewed by
Kathrine Pensatori
Product Specialist at United Thinkers

Product specialist with more than 10 years of experience in the Payment Processing Industry. I help payment facilitators and PSPs solve their various payment processing issues. Read more


In this article we are going to explain:

  • why businesses want to become payment facilitators,
  • why it is difficult for many of them to adopt payment facilitator model, and
  • why white label payment facilitator model is a convenient solution.

In essence, white label PayFac model allows prospective payment facilitators to get what they want without imposing the requirements that are difficult to meet.

One of the key reasons why a company might want to adopt a payment facilitator model is its desire to thoroughly integrate all merchant lifecycle-related processes within one system. These processes include onboarding, payment processing, chargeback handling, and funding, as well as branded reporting (issuing of merchant statements).

The key challenges faced by a prospective PayFac are finding an acquiring bank that is willing to underwrite the company as a payment facilitator and going through integration with the processor’s payment platform (that can be a legacy one, or simply not intended for supporting payment facilitation services). On subsequent stages of the process the main problems include implementation of initial merchant verification (KYC) and ongoing merchant monitoring mechanisms. No need to say that implementation of these integrations and functions is very costly and labor-intensive.

The Key Benefits of White Label Payment Facilitator Model

White label payment facilitator model allows a company to perform automated merchant onboarding and other listed functions, as well as control all the settings of the payment system. Although under white label PayFac scenario, all these functions are performed “under the umbrella” of another payment facilitator or payment service provider, all customer-facing platform interface components, including documents, portals etc, are branded by the company. In other words, most of the functions are performed either through an API or through a brandable resource.

Thus, in the eyes of the end user, the service is provided by the company’s payment platform. However, from technical viewpoint, the services are provided by another, larger, PayFac or PSP.

For some businesses white label payment facilitation model might be a long-term solution, while for others, it may be the first step towards becoming a full-fledged PayFac. As we already wrote, white label solutions come in different flavors, and if you feel confident enough, you can always license a payment solution, or take a hosted solution in-house and customize it as you find appropriate.


If you want to become a payment facilitator, but are unable to meet all the requirements and assume all the responsibilities imposed by PayFac status, you can resort to white label payment facilitator model.

White label payment facilitator program is offered by several modern payment management platforms, including UniPay Gateway. Feel free to consult our specialists at unipaygateway.com for details.

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