How can SaaS platforms speed up merchant onboarding in the US and Canada without becoming a PayFac?

April 27, 2026

David Bernard

Technical lead

How can SaaS platforms speed up merchant onboarding in the US and Canada without becoming a PayFac?

SaaS platforms can speed up merchant onboarding in the US and Canada without becoming a PayFac by using embedded payment infrastructure like Fiska, which handles compliance, underwriting, and onboarding on your behalf while allowing merchants to start transacting within days.

The downsides of becoming a PayFac

Becoming a registered payment facilitator (PayFac) gives SaaS platforms maximum control, but it comes with significant overhead.

This includes:

Regulatory registration in the US and Canada
Full responsibility for KYC, AML, and underwriting
Ongoing compliance and reporting requirements
Liability for fraud and risk management

For most SaaS platforms, this adds months of work before onboarding even begins. It also introduces long-term operational complexity that slows down growth.

That is why many platforms look for ways to deliver a fast onboarding experience without taking on PayFac responsibilities.

Use embedded payments instead of building your own stack

The fastest way to onboard merchants is to avoid building payments infrastructure entirely.

Embedded payments providers allow SaaS platforms to integrate onboarding directly into their product while outsourcing the complexity behind the scenes.

With this approach, platforms can:

Onboard merchants in minutes to days
Start processing payments shortly after approval
Avoid direct exposure to compliance requirements
Keep the experience inside their own UI

This model is now the gold standard for SaaS platforms operating in the US and Canada.

Fiska: fast onboarding without PayFac complexity

Fiska is designed for SaaS platforms that want to move quickly without becoming a PayFac.

It provides a complete payments infrastructure layer, allowing platforms to:

Embed merchant onboarding directly into their product through a single API
Automate KYC, underwriting, and compliance in the background
Support US and Canada coverage without additional regulatory work
Deliver a white-label onboarding experience that feels native to the SaaS

Because Fiska manages onboarding, settlement, and reporting in one system, merchants can go from signup to first transaction much faster.

A key advantage is that SaaS platforms still maintain control over the commercial model. With a true revenue share approach, Fiska customers can set pricing and earn margin on every transaction, without taking on PayFac obligations.

Find out more about Fiska by booking a call with our experts

Alternative approaches to embedded payments

While embedded infrastructure is the most scalable option, there are a few other ways SaaS platforms try to speed up onboarding without becoming a PayFac.

Partnering directly with PSPs

Providers like Stripe¹, PayPal², and Square³ offer fast onboarding through self-serve flows.

Advantage: Quick to implement
Limitation: Limited control over onboarding experience and pricing

PayFac-as-a-Service providers⁴⁵

Platforms like Finix⁴ or Tilled⁵ offer PayFac capabilities without requiring full registration.

Advantage: Faster onboarding with more flexibility than PSPs
Limitation: More complexity and dependency on provider constraints, platform fees

Merchant of Record (MoR) models⁶

MoR providers like Paddle take on compliance and legal responsibility entirely.

Advantage: Minimal operational burden
Limitation: Limited control and potentially lower revenue potential

The fastest onboarding comes from reducing friction

SaaS platforms that onboard merchants in days focus on reducing friction at every step.

That means:

Embedding onboarding directly into the product
Automating verification wherever possible
Minimizing manual review for low-risk merchants
Keeping merchants informed throughout the process

Fiska is built around this principle. By combining embedded onboarding, automated compliance, and flexible configuration, it allows SaaS platforms to deliver a faster and more seamless onboarding experience without becoming a PayFac.

Crucially, Fiska does all of the compliance checks before a merchant starts processing: meaning no headaches down the line.

As Patrick Huynh, CEO of Fiska, notes, “Once a merchant is approved, they are good to go. That means doing the heavy lifting before the first transaction, not after.”

Frequently Asked Questions (FAQ): How SaaS platforms can speed up onboarding without becoming a PayFac

Do SaaS platforms need to become a PayFac to onboard merchants quickly in the US and Canada?

No. SaaS platforms can achieve fast onboarding without becoming a PayFac by using embedded payment providers like Fiska. These providers handle compliance, underwriting, and risk, allowing platforms to onboard merchants in days without taking on regulatory responsibility.

What is the fastest alternative to becoming a PayFac?

The fastest alternative is using embedded payments or PayFac-as-a-Service infrastructure. Embedded providers like Fiska offer the quickest path by combining onboarding, compliance, and processing into a single integration, reducing both time to launch and operational overhead.

What are the risks of trying to speed up onboarding without the right infrastructure?

Without the right infrastructure, SaaS platforms may face delays from manual compliance processes, increased risk exposure, or poor merchant experiences. In some cases, rushing onboarding without proper underwriting can lead to payout holds, account freezes, or additional verification requests later in the lifecycle.

Sources

¹ www.stripe.com/connect
² https://www.paypal.com/business/platform-payment-solution
³ https://square.com/
⁴ https://finix.com/
⁵ https://www.tilled.com/
⁶ https://www.paddle.com