“Can a lean, API-first payfac infrastructure layer make it fast and cheap enough for any ISV or SaaS platform to become its own payment facilitator?”
Founded in 2020 in Tulsa, OK, Payfactory was built from the outset as an embedded payment facilitation infrastructure provider targeting ISVs and SaaS platforms. The company operates as a payment facilitator (payfac) that sits between Fiserv/First Data (processor) and Pathward, N.A. (sponsor bank), enabling ISVs to offer white-labeled payment acceptance to their sub-merchants. Fifth Third Bank's embedded banking directory also lists Payfactory as a customer, suggesting additional banking infrastructure relationships. The platform differentiates on no/low-code onboarding, vertical-specific underwriting, and a revenue-sharing model that makes embedded payments economically compelling for software partners.
Payfactory discloses Pathward, N.A. as its sponsor bank, according to the Embedded Finance Index 2026.
Payfactory does not disclose a bank charter of its own; its banking services are provided through Pathward, N.A..
Payfactory processes payments through First Data Merchant Services LLC (Fiserv).
The Embedded Finance Index 2026 maps 2 layers in Payfactory's stack: Payments / PSP (First Data Merchant Services LLC (Fiserv)); Sponsor bank (Pathward, N.A.).
Payfactory is founded in 2020 and headquartered in Tulsa, OK, USA.
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