Best payment facilitator (PayFac) providers 2026

The best payment facilitator providers are Ryft, Stripe Connect, Adyen for Platforms, Mangopay. Key features to compare: sub-merchant onboarding speed, split payment support, compliance coverage, pricing model, and API quality.

What is a payment facilitator?

A payment facilitator (PayFac) is a provider that holds a master merchant account and onboards businesses as sub-merchants beneath it. The PayFac handles underwriting, KYC, and compliance on behalf of each sub-merchant, removing the need for individual merchant account applications. Businesses operating under a PayFac can begin accepting payments within hours rather than weeks.

PayFacs assume liability for the transactions processed by their sub-merchants. They manage fraud monitoring, chargeback handling, and ongoing compliance across their entire portfolio. A standard payment gateway routes transactions but does not hold merchant accounts or assume compliance responsibility. That distinction defines the PayFac model.

Read more in our What Is a Payment Facilitator (PayFac)? Complete Guide 2026.

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What is PayFac as a Service?

PayFac as a Service (PFaaS) delivers payment facilitation infrastructure to businesses without requiring them to register as a full PayFac. The provider handles regulatory registration, underwriting infrastructure, and card network relationships. The business integrates via API and launches embedded payment capability in weeks.

PayFac as a Service vs becoming a full PayFac

Full PayFac registration takes 12 to 24 months. It requires acquiring bank relationships and infrastructure investment typically exceeding £500,000. PayFac as a Service removes those barriers. The provider retains regulatory responsibility and handles risk management.

PayFac as a Service suits businesses that want to embed payments and earn transaction revenue. It removes the need to build compliance infrastructure from scratch. Full PayFac registration makes sense above approximately £50M in annual processing volume, with dedicated technical and compliance resource in place.

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How PayFac as a Service works

Sub-merchant onboarding

PayFac as a Service platforms provide automated onboarding flows that verify sub-merchant identity, run KYC and AML checks, and activate payment capability within hours. Automated onboarding reduces the drop-off that comes with manual underwriting processes, getting businesses transacting faster.

Split payments and fund distribution

PayFac infrastructure handles the distribution of funds across multiple parties. A business collects payment, deducts its commission, and routes the remainder to the sub-merchant automatically. Commission rules are configured per merchant, transaction type, or product category. Deductions and reporting happen in real time.

Compliance and risk management

The PayFac provider manages ongoing compliance on behalf of the business. This includes transaction monitoring, chargeback management, PCI DSS compliance, and regulatory reporting. In the UK and Europe, PayFac providers must hold FCA authorisation or equivalent EU licensing to process customer funds.

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Who uses PayFac providers?

SaaS platforms embed payment capability into their product to onboard clients as sub-merchants, process transactions natively, and earn revenue from payment flows. Rather than routing clients to third-party acquirers, the platform earns a share of every transaction processed through its product.

Marketplaces connecting buyers and sellers need split payment functionality, automated seller onboarding, and escrow capability. PayFac infrastructure enables all three without requiring each seller to manage their own merchant account.

B2B platforms managing payments between businesses need sub-merchant onboarding and compliance infrastructure, alongside invoice management, delayed payment capability, and automated KYC for business entities.

Retail and hospitality networks use PayFac infrastructure to centralise payment acceptance across multiple locations and franchisees, with consolidated reporting and a single compliance framework.

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Key features to compare

Sub-merchant onboarding speed and KYC

Automated KYC that activates sub-merchants within hours is the baseline requirement. Confirm whether onboarding is fully automated or includes manual review stages for certain merchant types.

Split payment support

Confirm the provider supports automated split payments with configurable commission rules. Not all PayFac providers support multi-party splits natively. For platforms and marketplaces, this is a core requirement.

API quality and developer experience

Strong documentation, sandbox environments, and SDKs reduce integration time. Confirm that webhooks and reporting APIs cover reconciliation needs. Assess whether no-code or low-code options are available for teams without large engineering resources.

Regulatory compliance

For UK and European businesses, confirm the provider holds FCA authorisation and is PSD2 compliant with Strong Customer Authentication support. PCI DSS Level 1 certification covers data security. Providers without direct FCA authorisation in the UK create regulatory risk.

Support

PayFac infrastructure becomes core to a business's product. Confirm whether the provider offers dedicated account management or ticket-based support. UK or European time zone coverage matters for operational teams.

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Best payment facilitator providers (2026)

Ryft

Ryft provides PayFac-as-a-Service for businesses across the UK and Europe. FCA Licence covers payment facilitation, sub-merchant onboarding, and fund distribution under a single regulated framework.

Platforms integrating Ryft onboard sub-merchants within 24 hours through automated KYC. Split payments with configurable commission rules are available across online, in-person, and in-app channels. Volume-based pricing reduces costs as transaction volumes grow, with businesses reporting up to 70% savings compared to flat-rate providers. Dedicated 24/7 UK-based support provides a single point of contact from integration through to scaling.

Best suited for: UK and European businesses, marketplaces, and platforms needing FCA-licensed PayFac infrastructure with split payments and dedicated support.

Stripe Connect

Stripe Connect is the most widely adopted PayFac-as-a-Service option for developer-led businesses globally. Three account types accommodate different integration models: Standard, Express, and Custom. Custom accounts provide the most control, allowing businesses to own the full payment experience.

Stripe Connect supports 135+ currencies across 46 countries. Flat-rate pricing per UK card transaction becomes expensive at volume. 

Best suited for: Developer-led businesses prioritising global currency coverage and fast integration.

Adyen for Platforms

Adyen for Platforms delivers PayFac infrastructure for enterprise businesses operating at significant scale. Sub-merchant onboarding, split payments, escrow, and multi-currency settlement are all supported through Adyen's unified commerce platform.

Interchange++ pricing provides transparent cost breakdowns at scale. Adyen's global acquiring network makes it the strongest option for enterprise businesses processing across multiple international markets.

Best suited for: Enterprise businesses processing £10M+ monthly with dedicated technical teams and multi-region requirements.

Mangopay

Mangopay provides PayFac infrastructure specifically for European marketplace and platform payments. Its e-wallet architecture creates digital accounts for each participant. This enables peer-to-peer transfers and reduces payout fees for European payment flows.

PSD2 and GDPR compliance are built in, with SEPA transfer support and European local payment method coverage. Flat-rate pricing suits businesses with predictable volumes. 

Best suited for: European businesses requiring e-wallet functionality and strong regional compliance coverage.

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How to choose a PayFac provider

The right PayFac provider depends on geographic focus, transaction volume, technical capability, and the payment flows your business needs to support.

For UK and European businesses, FCA authorisation and PSD2 compliance are baseline requirements. A provider without direct UK regulatory authorisation creates compliance risk.

Automated sub-merchant onboarding and pre-built split payment functionality reduce time to launch. Providers requiring custom API development for core features add weeks to the process.

In the £1M to £50M processing range, purpose-built providers with volume-based pricing typically deliver better commercial outcomes than flat-rate or enterprise models. Above £10M monthly, Adyen's global acquiring infrastructure delivers strong economics at scale.

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About Ryft

Founded in 2021 by the team behind Butlr, a marketplace they scaled to over one million users, Ryft was built to solve the payment challenges they couldn't find a solution for elsewhere. Ryft is an FCA-licensed payment solution built specifically for marketplaces and platforms, providing embedded payments, automated split payments, seller onboarding, and 24/7 support from humans. Speak to our team to find out how Ryft can work for your business.