The payments processing space has seen a huge amount of innovation in the past decade, maybe more than any other area of fintech. This innovation has presented opportunities for non-fintech companies to earn a new revenue stream via payments processing, which in turn has created a new sub-niche for fintech companies.

My next guest on the Fintech One-on-One podcast is Caleb Avery, the CEO and Founder of Tilled. They provide PayFac-as-a-Service to software companies looking to process payments for their customers. Basically, it is a simpler and quicker way for these software companies (called ISVs) to get set up as master merchants and generate payments revenue. Unsure how this all works? We explain in great detail in this interview.

In this podcast you will learn:

• What attracted Caleb to the payments processing space very early on.
• The founding story of Tilled.
• The difference between a card-issuing bank and a merchant-acquiring bank.
• The definition of a payments processor.
• What an ISO (Independent Sales Organization) does.
• What an ISV (Independent Software Vendor) is.
• The definition of a payments facilitator (PayFac).
• Who the major PayFacs are today.
• What PayFac-as-a-Service is and why Tilled went all in on this idea.
• The scale of ISV that is the sweet spot for Tilled.
• Why ISOs work with Tilled rather than going direct to ISVs.
• The three key components of Tilled's software.
• How they are able to compete head to head with Stripe Connect.
• The different types of support they can provide for the ISVs.
• How their pricing model works.
• How the typical credit card fees are broken up between all parties.
• Caleb's views on the recent ruling between Visa and Mastercard and the Department of Justice.
• Where embedded payments is going and his vision for Tilled.

Connect with Caleb on LinkedIn
Connect with Tilled on LinkedIn

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