Merchant of Record (MoR)
:::info Status: Under Active Development 🚧 Native Merchant of Record integrations are currently in development.
Today, SolydFlow operates under our production-ready Bring Your Own Keys (BYOK) model—connecting directly to your merchant accounts on Paystack, Flutterwave, Stripe, and M-Pesa. :::
What is a Merchant of Record?​
A Merchant of Record (MoR) is a legal entity that sells digital products or software subscriptions to your end customer on your behalf.
[1. Customer Purchases SaaS] âž” [2. MoR Acts as Legal Reseller] âž” [3. MoR Remits Global VAT & Sales Tax] âž” [4. Net Payout Sent to You]
Because the MoR assumes legal liability for the transaction, they automatically calculate, collect, and remit digital services taxes (VAT, GST, US State Sales Tax) in over 100+ countries, shielding software developers from complex international tax audits.
BYOK Gateway Model vs. Merchant of Record Model​
SolydFlow is designed to support both models so businesses can choose the optimal balance of margins and compliance:
| Comparison Dimension | Direct Gateway Model (BYOK) (Available Today) | Merchant of Record (MoR) (Upcoming) |
|---|---|---|
| Legal Seller of Record | Your Company | The MoR Entity (e.g. Paddle / Dodo) |
| Merchant Account Ownership | You own your Paystack/Stripe/M-Pesa accounts directly. | Managed under the MoR’s global umbrella entity. |
| International Tax & VAT | Your business must file and remit sales tax/VAT manually. | Handled 100% automatically by the MoR. |
| Typical Processing Cost | Gateway fees only (~1.5% to 2.9% + markup). | All-in platform fee (~5% to 8% + transaction fee). |
| Payout Destination | Settles directly into your local or USD merchant bank. | Monthly or bi-weekly consolidated payout from the MoR. |
Planned MoR Partner Integrations​
SolydFlow is actively designing integrations with premier digital software MoRs:
| Planned Partner | Key Strengths | Regional Focus |
|---|---|---|
| Dodo Payments | Emerging-market friendly MoR for digital software and AI products. | Global with strong emerging market support. |
| Paddle | Enterprise-grade MoR for B2B SaaS and consumer software. | Global (US, UK, EU). |
| Lemon Squeezy | Developer-friendly MoR for creators, indie hackers, and SaaS apps. | Global (US, UK, EU). |
The Hybrid Architecture: Local Rails + Global MoR​
The primary pain point for African software companies is that global MoRs (like Paddle or Lemon Squeezy) do not support domestic African payment methods like M-Pesa STK push or Nigerian Dynamic Virtual Accounts.
SolydFlow's upcoming hybrid architecture will allow you to route:
- Domestic African Checkouts (
NGN,KES,GHS): Through your direct Paystack/Monnify/M-Pesa merchant accounts (zero international tax drag, low 1.5% processing fees). - International Checkouts (
USD,EUR,GBP): Through an MoR partner to automate European VAT and US state sales tax compliance.