For companies operating in the field of financial technologies, a payment facilitator license offers a competitive advantage and sits at the core of digital payment solutions. As digitalization accelerates, the demand for flexible, fast, and cost-effective payment solutions—especially among SMEs and startups—continues to grow.
Payment infrastructure providers have stepped in to meet this demand, adding a new dimension to business processes with the payment facilitator model.
What Is a Payment Facilitator?
A payment facilitator (PayFac) is a model that allows small and medium-sized businesses to access payment infrastructure quickly. In traditional systems, each business must apply for its own virtual POS terminal. With the payment facilitator model, this entire process is centralized.
In this model, the payment infrastructure provider acts as the master account holder and offers payment solutions to sub-merchants. Businesses can therefore accept digital payments without having to establish separate agreements with banks.
Why Should You Obtain a Payment Facilitator License?
This license allows a fintech company to independently offer virtual POS infrastructure and process transactions. A company acting as a payment facilitator can manage customer onboarding, distribute virtual POS terminals, and control payment routing internally. This enhances operational control and enables a more sustainable customer experience.
Being licensed also enables better control over payment flows, faster transaction processing, and more flexible management of user interfaces.
What Is the Licensing Process?
To obtain a payment facilitator license, a fintech company must meet specific technical, legal, and operational requirements. The process consists of several key stages:
- Preliminary Preparation and Compliance Analysis
The first step involves analyzing the company’s current structure and financial processes. At this stage, compliance with standards such as PCI DSS, GDPR, and local data protection laws is assessed. In addition, the company’s technical infrastructure, payment gateway systems, and reporting mechanisms must be audit-ready.
- Regulatory Applications
To obtain the license, the company must apply to the relevant regulatory body in the country. In Turkey, this typically involves the Central Bank of the Republic of Turkey (CBRT) or other authorized institutions. The application must include detailed documentation of financial strength, ownership structure, technical infrastructure, security protocols, and customer management procedures.
- Technical and Operational Evaluation
During the licensing process, regulators assess whether the company’s payment infrastructure is technically sufficient. Documentation of security systems, transaction tracking, data encryption, error handling, and transaction logging is required.
- Test Environment and Pilot Applications
Once the application is accepted, the company is required to carry out pilot operations in a test environment. At this stage, the integration of the payment gateway, user experience, security systems, and reporting tools is thoroughly tested.
- License Approval and Operational Launch
Upon successful completion of all stages, the payment facilitator license is granted, and the company may begin operations. From this point forward, the company can offer virtual POS infrastructure to sub-merchants, manage payment processes, and develop its own payment solutions internally.
Advantages of Holding a Payment Facilitator License
Having a payment facilitator license offers both operational and strategic benefits. The primary reasons fintech platforms like Firisbe adopt this model include:
- Faster Customer Acquisition
Since the onboarding process for sub-merchants is directly managed by the license holder, approvals are much faster. This is a major advantage for fintech companies looking to stay ahead of the competition.
- Greater Control and Flexibility
Managing payment processes in-house provides companies with enhanced flexibility. They gain more control over commission rates, settlement times, and integration models.
- Lower Costs
Licensed companies can benefit from bulk agreements with banks, resulting in lower transaction costs. They can also offer customized pricing to sub-merchants, increasing profit margins.
- Enhanced Brand Value
A company that offers its own payment infrastructure creates a stronger brand image in the market. This leads to greater customer acquisition and increased loyalty.
- API-Based Development Capabilities
With a PayFac license, fintech companies gain the authority to develop their own API solutions. This enables them to offer tailored payment solutions based on customer demands—a significant competitive advantage.
Security and Compliance Requirements
A payment facilitator license is not granted based solely on technical competency—it also requires meeting the highest security standards. As in the solutions offered by Firisbe, license holders must comply with PCI DSS requirements.
In addition, effective solutions must be in place for data privacy, transaction monitoring, and fraud prevention. These systems must operate in full compliance with regulations and be subject to regular audits. No data may be shared without customer consent, and all transaction histories must be transparently traceable.
Building a Sustainable Business Model
Licensed payment facilitator companies can build sustainable business models. With greater authority over infrastructure, revenue control, and customer management, they move beyond being mere intermediaries and establish themselves as service providers.
This model is also attractive to investors. Licensed companies are viewed as having higher growth potential and are seen as innovative players in the financial technology space.
Frequently Asked Questions (FAQs)
- What is a payment facilitator license, and why is it important?
A payment facilitator license enables a fintech company to directly provide virtual POS services to sub-merchants. With this license, companies can manage payment transactions internally and gain greater operational control. - What technical requirements must be met to obtain a PayFac license?
The company must comply with PCI DSS, have a robust data security infrastructure, implement transaction tracking, identity verification processes, and offer API integration capabilities. The customer onboarding process and reporting systems must also meet industry standards. - How long does the licensing process take?
Depending on the country and the regulatory authority, the licensing process can take several months. During this time, technical testing, compliance audits, and operational readiness must be completed. - What is the difference between the payment facilitator model and traditional payment infrastructure?
In the traditional model, each business must apply for its own virtual POS. In the payment facilitator model, one licensed provider delivers payment infrastructure to multiple sub-merchants. This saves time and reduces overall costs. - How does a PayFac license benefit SMEs?
With this license, SMEs can quickly access digital payment systems without separate agreements with banks. They can start accepting payments faster, improving the customer experience and accelerating business growth.
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