OLB Group Introduces a New Payment Facilitator (PayFac) Service for Small Businesses

Rhea-AI Summary

OLB Group (NASDAQ:OLB) has launched a new Payment Facilitator (PayFac) service targeting small businesses, offering rapid onboarding and instant payment acceptance capabilities. The service features streamlined compliance processes, comprehensive payment options including major card networks, ACH, and Real Time Payment, along with integrated fraud prevention tools.

The PayFac solution provides key benefits including:

• Simplified onboarding process completed within hours
• Reduced compliance burden and paperwork
• Enhanced security features and fraud prevention
• Transparent fee structure
• Support for multiple payment methods

The service will be integrated with OLB's MOOLA Cloud brands, including Black011.com and BlackWireless, with a scheduled market launch in Q1 2025. The platform includes 3D Secure fraud preventing tools, particularly beneficial for digital downloads and eSIMs transactions.

Positive

• Launch of new revenue-generating PayFac service
• Expansion of merchant services offerings
• Integration with existing MOOLA Cloud brands
• Enhanced fraud prevention capabilities for digital transactions

Negative

• Service not yet launched - pending Q1 2025 deployment
• Entering competitive payment processing market

Insights

Financial Analyst

OLB Group's launch of a new Payment Facilitator (PayFac) service represents a strategic expansion of their fintech offerings targeting the underserved small business segment. This service addresses several friction points in payment processing for small merchants, potentially creating a new revenue stream for OLB.

The PayFac model positions OLB as an intermediary that assumes financial risk and compliance responsibilities, creating value through simplification for merchants while potentially generating transaction-based revenue for OLB. By targeting convenience stores and bodegas—traditionally cash-heavy businesses—OLB is addressing a market segment that larger payment processors may have overlooked.

The company's integration of fraud prevention tools specifically designed for digital products shows awareness of segment-specific challenges, particularly for the company's MOOLA Cloud brands mentioned in the announcement. The scheduled Q1 2025 market launch of expanded merchant services suggests this PayFac offering is part of a broader strategic rollout.

While the announcement represents a logical extension of OLB's existing fintech capabilities, investors should note that the payment facilitation space is highly competitive, with established players like Square, Stripe, and PayPal already commanding significant market share. The article lacks specific details on implementation costs, revenue projections, or competitive differentiation strategies that would help assess potential financial impact.

NEW YORK CITY, NY / ACCESS Newswire / March 4, 2025 / OLB Group, Inc. (NASDAQ:OLB) ("OLB" or the "Company"), a diversified Fintech eCommerce merchant services provider and Bitcoin mining enterprise, OLB Group announced today the launch of a new payment facilitator (PayFac) service for small businesses.

Ronny Yakov, CEO of OLB Group, said, "We are excited to announce the launch of our innovative Payment Facilitator (PayFac) service designed specifically for small businesses. This cutting-edge solution revolutionizes the way small enterprises process payments, offering a host of benefits that will streamline operations and boost business growth."

Key Benefits for Small Businesses

Rapid Onboarding and Instant Acceptance

OLB Group's PayFac service enables small businesses to start accepting payments immediately, with a streamlined onboarding process that can be completed in a matter of hours. This feature eliminates the traditional wait times of days or weeks associated with setting up a merchant account.

Simplified Compliance and Reduced Paperwork

By leveraging OLB Group's PayFac service, small businesses can significantly reduce their compliance burden. PayFac handles complex regulatory requirements, allowing entrepreneurs to focus on growing their business rather than navigating payment industry regulations.

Comprehensive Payment Options

The PayFac service supports a wide range of payment methods, including all major card networks, ACH, and even Electronic Bill Pay and RTP (Real Time Payment). This versatility ensures that small businesses can cater to diverse customer preferences, potentially increasing sales and improving customer satisfaction.

Enhanced Security and Fraud Prevention

Small businesses benefit from PayFac's integrated fraud prevention tools and chargeback management services. This robust security infrastructure protects both merchants and their customers, fostering trust and reducing financial risks.

Cost-Effective Solution

OLB Group's PayFac service offers a transparent, easy-to-understand fee structure, eliminating surprise charges and helping small businesses manage their budgets more effectively.

Empowering Small Business Growth

By providing access to enterprise-level payment processing capabilities, the PayFac service levels the playing field for small businesses. It enables merchants to compete effectively in the digital marketplace, expand their customer base, and focus on what they do best - running their business.

For more information about OLB Group's new Payment Facilitator service and how it can benefit your small business, please contact our sales team or visit our website.https://www.olb.com

Small convenience stores and bodegas can significantly benefit from the PayFac (Payment Facilitator) model in several ways:

Simplified Onboarding

The PayFac model streamlines the merchant application process, allowing small businesses to start accepting payments quickly. This means convenience stores and bodegas can begin processing electronic payments within hours, rather than waiting days or weeks for traditional merchant account approvals.

Reduced Complexity

PayFact handles underwriting, compliance, and risk management, reducing the burden on small businesses. This capability allows store owners to focus on their core business operations instead of worrying about complex payment processing regulations.

Integrated Services

PayFact often provides additional value-added services such as fraud prevention, chargeback management, and payment analytics. These productivity tools can help small stores better manage their finances and protect against potential losses.

Multiple Payment Methods

The PayFac model offers flexibility in accepting various payment methods, including credit cards, digital payments, and alternative payment options. This versatility is crucial for convenience stores and bodegas to cater to diverse customer preferences.

Enhanced Customer Experience

By simplifying the payment process, PayFact contributes to a smoother transaction experience for customers, leading to increased customer satisfaction and loyalty, which is vital for small neighborhood stores.

Lower Entry Barriers

The PayFac model makes it easier for small and micro-merchants, who might have been underserved by traditional payment systems, to access electronic payment processing which levels the playing field for smaller stores competing with larger retailers.

By leveraging these benefits, convenience stores and bodegas can improve their operations, enhance customer service, and potentially increase their revenue through more efficient payment processing.

The payment facilitator (PayFac) model offers several key benefits to small businesses and bodegas:

Quick onboarding: PayFac provides a streamlined, simplified onboarding process that can be completed in hours or days, allowing small businesses to start accepting payments almost immediately.

Reduced paperwork and compliance burden: As sub-merchants under a PayFac, small businesses face fewer compliance regulations and documentation requirements compared to traditional merchant accounts.

Lower risk:

PayFac assumes most of the financial risk, reducing the burden on small businesses.

PCI compliance handling:

PayFac manages PCI compliance, relieving small businesses of this complex responsibility1.

Improved cash flow:

PayFac often offers faster fund settlement, allowing small businesses to access their money more quickly.

Access to diverse payment methods:

PayFac enables small businesses to accept various payment types, including credit cards, digital wallets, and ACH transfers, improving customer satisfaction.

Enhanced fraud protection:

PayFac typically provides robust fraud detection and prevention measures, offering small businesses greater security.

Simplified support:

With a PayFac, small businesses have a single point of contact for payment-related issues, streamlining problem resolution.

PayFac benefits are particularly advantageous for small businesses and bodegas, as they reduce barriers to entry in accepting electronic payments, minimize operational complexities, and provide access to sophisticated payment technologies that might otherwise be out of reach.

Advantages of PayFac for OLB Group and its subsidiaries

For Bodega owners, the merchant services OLB Group offers to customers, the most beneficial products are the MOOLA Cloud brands, such as Black011.com and BlackWireless. Including recently announced the services for 3D Secure fraud preventing tools These services are particularly advantageous for digital downloads and eSIMs, which have often been associated with fraudulent transactions on digital product orders. MOOLA Cloud offers an innovative and proprietary solution for the unbanked and under-banked consumer sector serviced by bodegas and convenience stores in the region. With a scheduled market launch in the First Quarter of 2025, OLB Group will dramatically expand its merchant services offerings.

About OLB Group, Inc.

The OLB Group, Inc. is a diversified Fintech eCommerce merchant services provider and Bitcoin mining enterprise. The Company's eCommerce platform delivers cloud-based merchant services for a comprehensive digital commerce solution to merchants in all 50 states. In addition, through its ownership of the MOOLA Cloud and Black 011 platform, OLB Group can provide its services to an additional network of 31,600 convenient stores and bodegas in the United States. DMint, a wholly owned subsidiary of OLB Group, is engaged in the mining of Bitcoin in a facility in Tennessee utilizing sustainable hydroelectric and solar power.

Forward-Looking Statements

This press release includes information that constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on the Company's current beliefs, assumptions, and expectations regarding future events, which in turn are based on information currently available to the Company. Such forward-looking statements include statements regarding the proposed spinoff of DMint described herein and are characterized by future or conditional words such as "may," "will," "expect," "intend," "anticipate," "believe," "estimate" and "continue" or similar words. You should read statements that contain these words carefully because they discuss future expectations and plans, which contain projections of future results of operations or financial condition or state other forward-looking information.

By their nature, forward-looking statements address matters that are subject to risks and uncertainties. A variety of factors could cause actual events and results to differ materially from those expressed in or contemplated by the forward-looking statements, including the risk that the licensee understands and complies with various banking laws and regulations that may impact the licensee's ability to process transactions. For example, federal money laundering statutes and Bank Secrecy Act regulations discourage financial institutions from working with operators of certain industries - particularly industries with heightened cash reporting obligations and restrictions - as a result of which, banks may refuse to process certain payments and/or require onerous reporting obligations by payment processors to avoid compliance risk. These and other risk factors affecting the Company are discussed in detail in the Company's periodic filings with the SEC. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether because of the latest information, future events or otherwise, except to the extent required by applicable laws

Contacts
OLB Group Investor Relations
Rick Lutz
ir@OLB.com
(212) 278-0900 Ext. 333

SOURCE: The OLB Group, Inc

View the original press release on ACCESS Newswire

FAQ

What are the main features of OLB Group's new PayFac service for small businesses?

OLB's PayFac service offers instant payment acceptance, streamlined onboarding within hours, comprehensive payment options (cards, ACH, RTP), integrated fraud prevention, and simplified compliance management.

When will OLB Group launch its PayFac service through MOOLA Cloud?

OLB Group's PayFac service through MOOLA Cloud is scheduled for launch in the First Quarter of 2025.

How does OLB's PayFac service benefit small convenience stores and bodegas?

It offers simplified onboarding, reduced complexity in payment processing, integrated fraud prevention, multiple payment methods, and lower entry barriers for electronic payment acceptance.

What security features does OLB's PayFac service include?

The service includes integrated fraud prevention tools, chargeback management services, and 3D Secure fraud preventing tools, specifically designed for digital transactions.

Which payment methods are supported by OLB's new PayFac service?

The service supports all major card networks, ACH, Electronic Bill Pay, and Real Time Payment (RTP) options.