How can a PSP help your business?
May 25, 2022
Payment service providers and the financial evolution
For thousands of years, money has existed in different forms: Native Americans once used shells to trade goods, while ancient Fijians counted their earnings in whale teeth. Paper currency was introduced in China around 700 CE, eventually spreading across the world and simplifying trade (and relieving the shoulders of merchants who previously had to carry strings of coins around). Nowadays, notes and coins are becoming less common, and money often flows along the binary signals sent out across the digital world.
In this new landscape, finances continue to evolve: cryptocurrencies multiply, monetary policy advances, and fintechs simplify processes. In ecommerce, a new wave of payment service providers (PSPs) now act as partners to help businesses accept payments and manage their money, offering online payment services that go beyond just transferring funds between buyers and sellers.
This article will help you navigate this new world, explaining:
- What a payment service provider does
- Different payment processing options and online payment tools
- What benefits a good payment provider offers
What is a payment service provider?
The dictionary definition of a payment service provider defines them as “third-party companies that assist businesses to accept online payment methods, such as bank transfers, credit cards, debit cards, e-wallets, and more. They ensure transactions make it safely and securely from A to B.”
This is a basic explanation of what a payment processor does. But the best payment service providers offer more than that – they help you set up an online payment system and provide a range of advanced features, products, and benefits that can help make doing business (and selling more) straightforward.
Full-service PSP vs payment gateway
Given the variety of services offered by PSPs and other payment tools, it’s not always easy to understand how payment services differ. Basic PSPs provide simple connectivity services, while more advanced firms will allow your business to collect and disburse funds and offer a range of other features. Read our in-depth article comparing a full-service PSP vs a payment gateway provider to find out more about the differences.
We’ve now defined what a PSP is, so let’s explore what they can offer your business. Using payment processing providers allows you to set up an online payment system for your website. The best payment companies also simplify financial processes and offer other tools. They should help you:
Take care of the entire payment process
You save time because you no longer have to handle the payment process yourself. The PSP payment system takes care of all the necessary data processing. They will also deal with all fund transfers, including refunds and reversals.
Offer multiple payment methods with one integration
One of the best ways to increase your checkout conversion rate is by offering your customers their favourite ways to pay. And offering locally preferred payment methods is also crucial when moving into new markets. Data shows that 56% of shoppers want to see a range of payment options when they go to buy. Working with payment processing companies for online payments allows you to offer a range of methods using just one partner and system. It can also help you.
Save money by using just one provider
Using an online payment provider means you don’t spend time and effort setting up contracts and dealing with multiple online payment solutions. Instead, you can access a range of payment methods through one provider, such as card payments and buy now, pay later options. This means you pay less in transaction fees and can also…
Manage all your payments in one place
Online payment processing can become complicated, especially if you’re selling high volumes of goods. Using a PSP helps you manage all your payments in one place, and a good payment partner should offer features – such as a dashboard and app – to give you a clear overview of your transactions and even send insights and reports to improve what you do.
Provide payment security and fraud tooling
PSPs offer high payment security and minimise the risk of payments defaulting. The best PSPs also help you initiate legal proceedings in delayed or defaulted payments. They should also offer peace of mind by providing innovative fraud monitoring tools.
Offer multi-currency payouts and settlements
Using a PSP enables you to expand your international business more efficiently by simplifying doing business in multiple currencies. Good PSPs offer multi-currency features, such as allowing you to have additional balances in different markets to hold, send, and receive money in a range of currencies. You will need to have a merchant account in that country, but it can help you avoid paying fees.
The best PSPs offer more than just payments
Money is evolving, and so are the services that help you manage it. For PSPs, that means going beyond just providing basic payment technology. The best PSPs will offer other products, features and benefits to make doing business effortless. This includes things like powerful integrations to simplify workflows, support teams to guide your growth, and advanced payment features that you can use to increase conversions.
How to choose a payment service provider
The best PSPs should help you offer your customers’ favourite payment methods, provide tools to increase conversion, and features and benefits to drive growth. Download our guide to discover everything the best PSPs should offer.
Effortless payments with Mollie
As one of Europe’s fastest-growing payment service providers, here at Mollie we understand how important payments are to a successful business. And we aim to support you with an online payments solution that offers all the tools you need – multiple payment methods, a conversion-optimised checkout, advanced integrations, human support teams across Europe, and a Dashboard and app so you can easily manage your money. We offer all this with easy onboarding, transparent pricing, and no lock-in contracts or hidden fees.
Whether you’re running a small business and looking to process card transactions or work for a larger company dealing with tens of thousands of payments each day, we’re here to help. Find out more about payments with Mollie, or discover more about how we support our customers.