As more software platforms and independent software vendors (ISVs) seek to monetize payments, the concept of Licensing as a Service is gaining momentum. Traditionally, becoming a licensed acquirer or full payment facilitator (PayFac) has involved complex regulatory, technical, and financial hurdles.
But UK- and Europe-based payments provider Cashflows is working to change that, offering a modular, scalable approach to embedded payments.
We caught up with Philip Harding, Commercial Director at Cashflows, at Money20/20 Europe 2025 in Amsterdam, just days after the company announced a strategic partnership with white-label fintech provider Cardstream.
Harding shared insights into how Cashflows is streamlining access to embedded payment capabilities and transforming how ISVs and platforms scale their payment operations.
A Step-by-Step Path to Payment Ownership
Cashflows supports businesses at different stages of their payments journey. Whether a company is operating under a basic referral model or looking to become a full PayFac, Cashflows offers incremental steps.
Harding explains that some businesses begin with a referral model, evolve into an ISO model, PayFac-lite structure, and eventually become a full payment facilitator.
This flexibility allows ISVs and software platforms to generate revenue from payments earlier, without immediately needing to build full risk management, underwriting, and compliance infrastructures.
By leveraging Cashflows’ acquiring capabilities and partnerships like the one with Cardstream, businesses can outsource or co-own different parts of their payment stack while they prepare for licensing in the background.
Reducing Barriers in Complex Markets
Harding highlights the challenging task of entering markets like the UK as a licensed PayFac, requiring years of effort and substantial investment in underwriting, contract management, chargeback handling, risk, and compliance.
That’s where Cashflows comes in. Their approach allows businesses to embed payments without reinventing the wheel, making it easier for companies to test models and scale gradually with reduced upfront cost.
Real-World Use Cases and Growing Demand
Harding shared a use case of a major retail platform with tens of thousands of merchants. The business had once considered becoming a PayFac but abandoned the idea due to long timelines and high investment. Instead, it stuck with a referral model, which presented onboarding and customer experience challenges.
“Under a PayFac-lite model, that company can now own onboarding, CX, and underwriting,” says Harding. “That brings greater control, better merchant relationships, and improved valuation.”
Cash flows are also enabling cross-border expansion. Indian payment processor Mswipe, for example, onboarded 20,000 merchants per month and needed a way to enter the UK market while retaining its stack. Cashflows facilitated this via BIN sponsorship, handling settlement, and scheme interactions while Mswipe maintained its front-end systems.
The Evolving Role of ISVs and Processors
Harding sees growing interest from both ISVs, who want more control, and processors who want to act more like acquirers.
30% of merchants choose payment providers via ISVs, projected to rise to 70% within three years, emphasizing the importance of payment embedding within ISV platforms.
Cashflows prioritizes risk and compliance infrastructure to support Licensing as a Service, ensuring a strong compliance foundation for access to the platform and reputation.
Looking Forward
According to Harding, Cashflows has two strategic priorities: growing its traditional acquiring business and expanding its licensing-as-a-service offerings. He anticipates that licensing services could make up the majority of Cashflows’ business within five years.
The opportunity is massive, with a 50:50 split or even 70:30 split, and currently, all acquisitions are being made.
With a rising demand for faster, lower-risk routes to embedded payments, Cashflows is positioning itself at the forefront of the Licensing-as-a-Service revolution.
