The Electronic Transactions Association is launching a new committee, pointing to the growing importance of PFs within today’s payments industry.
Members of ETA’s Payment Facilitator Committee will address challenges and issues having to do with compliance, business and technology in the PF space.
“ETA has long recognized the changes underway in the sales channel. As the proliferation of software developers expand their work in the payments industry, the growth of ISVs and payment facilitators is significant,” Amy Zirkle, vice president of industry affairs at ETA, told PaymentFacilitator.com.
“This constituency is important to ETA because it represents an emerging segment for the future of the payments industry – as our industry evolves, we as the trade association for the industry must evolve as well.”
A study released by Double Diamond Group in October predicted that the PF market could grow to more than $500 billion in gross processing volume over the next five years. The study based its projection on an estimate that nearly 11,000 U.S.-based B2B software businesses could operate as payment facilitators.
According to Zirkle, PFs are the fastest growing segment of the group’s membership. ETA has nearly 50 members who are PFs or have a PF component to their business.
This PF expansion is not limited to new companies entering the payments space.
“It is interesting to consider that many existing ETA member companies are evolving in response to the trends towards software based offerings (SaaS) and transitioning into ISV and payfac roles – we expect this will expand over time as a result of market trends and technology,” Zirkle said in an email.
Zirkle said the committee will serve as a place where PFs can connect with other similar companies. It will also likely produce thought leadership on the role of PFs and issues affecting them.
The committee will also serve as a resource for updating ETA’s payment facilitator guidelines. ETA first issued its guidelines, a toolkit for best practices related to fraud prevention and detection, in October.
“Our industry is constantly evolving – and the presence and expansion of payfacs is a testament to that,” Zirkle said. “ETA believes its role is to recognize these changes and embrace them and work to ensure that new entrants can work within the existing framework of the payments industry.”
“Perhaps the one constant is that our industry is dependent to some degree on the card network rules and other industry factors that serve as a foundation for how payments operate,” she continued. “ETA believes we can provide guidance to payfacs and enable discussions and collaboration to take place between established industry players in the payments industry and the payfac community.”
Mike McGirr, senior vice president of compliance and risk for Adyen, will chair the committee. It will hold its first in-person meeting at ETA’s TRANSACT conference in Las Vegas in May.
The committee is open to any payment facilitator member of ETA. ETA is the global trade association representing the payments technology world.