Every few years in payments, the industry seems to decide that the Payment Facilitator model is “over.” Headlines appear, whispers spread at conferences, and new buzzwords try to take center stage. Yet here we are in 2025 — and PayFac is not only alive, it’s evolving.

Buy Now, Pay Later (BNPL) has transformed from a niche checkout option to a mainstream payment method.  Especially among younger generations. Its appeal is obvious: no interest, quick approvals, and the ability to spread costs over time. In 2024, nearly one in four Americans had used BNPL, double the adoption rate just a few years earlier.

A recent U.S. District Court ruling in North Dakota has shaken up the debit-card world. The court struck down the Federal Reserve’s 2011 Regulation II rule on “swipe fees” (a phrase I loathe), saying the Fed went too far when it allowed certain extra costs, like fraud prevention, to be baked into the cap.

There’s a lot of buzz about generative AI, but real traction is happening in places like customer support and dispute resolution in areas that have long been time-consuming and expensive for FinTechs and acquirers.

The payments industry has never stood still.  And nowhere is that more evident than in how we underwrite merchants. For decades, underwriting relied on static snapshots: a credit report, a business profile, a few bank statements. But static risk models are no match for today’s fast-moving commerce and evolving fraud tactics.