Payment Aggregation allows a platform to act as a master merchant that processes payments (Card and ACH) on behalf of it’suser base (sub-merchants). Typically the platform has a SaaS that makes running a business simpler. As an example we will use Tiger Software. They provide a SaaS that serves Martial Arts studios and offers scheduling, messaging etc but for are use case payments are the important part. Their user base cab be attention challenged as they are very busy IN their business. By making it super simple to sign-up for payment acceptance Tiger gets maximum payment adoption. Every payment run through a Tiger user generates revenue for Tiger. Tiger has all payment risk and compliance on behalf of its users
First and foremost is instant onboarding. There is also the benefit of owning the payments ecosystem (branding and potential acquisition)
Any platform (like Tiger) that has a user base that must have instant onboarding. Because there is significant expense and risk there should be a fairly significant # of SaaS users to create enough revenue to warrant Payment Aggregation