PayLoop started because a specific problem kept appearing in vertical SaaS: a medical billing platform, a legal practice management tool, a freight TMS — each wanted to embed payments so their merchants could collect inside the product. Every one of them faced the same three options: refer merchants to Stripe and give away 30–50bps, spend 18 months on Stripe Connect plus a custom KYC build, or stand up a full PayFac program with $5M in compliance spend. We built the fourth path.
When a vertical SaaS platform wants its merchants to accept card and ACH payments inside the product UI, it runs into a regulatory wall. Accepting funds on behalf of third-party merchants — and settling those funds to them — is a money-movement activity. Without the right structure, the platform either breaks card network rules or exposes itself to state Money Transmitter licensing requirements in 48+ jurisdictions.
The standard answer is to become a Payment Facilitator (PayFac): get sponsored by a bank, stand up a compliance program covering BSA/AML and Reg E, build a KYC/KYB onboarding flow, handle dispute evidence collection, and issue 1099-Ks. That's a $5M+ program and a dedicated compliance team — a complete distraction for a SaaS company whose core product is medical practice management or legal billing software.
PayLoop's model: we are the registered PayFac, sponsored by Synovus and Cross River. You call our API. Your sub-merchants onboard through our hosted KYC form in under 10 minutes. We run the BSA/AML program, handle dispute evidence, and file 1099-Ks. You keep 50–90bps platform fee on every dollar your merchants process.
If you're a CTO or Head of Product evaluating how to add embedded payments to your platform without standing up your own compliance program, talk to our team. We'll walk you through the API and the compliance structure in one conversation.
Talk to a Payments Engineer