What is a payment facilitator?

A payment facilitator is a type of aggregator that is authorized to onboard merchants to a platform and receive settlement funds for them on behalf of an acquirer or processor. 

Payment facilitators can perform the of the following actions:

• Onboard merchants on behalf of an acquirer
  • Merchants onboarded by a payment facilitator are called sub-merchants or in some cases sponsored merchants 
• Process transactions for sub-merchants with the card schemes
• Receive settlement funds from the acquirer and pay out sub-merchants