Over the years, more and more payment methods have become available to customers to make online payments, which has made the process more convenient than ever. Due to this trend, any business can reap huge benefits by offering its customers multiple payment options.
If you’ve decided to figure it all out, then you might already own a business or are just thinking about starting one. Either way, you need answers and solutions. Today Finscanner will help you understand what Payment Service Providers or PSPs are and how you can benefit from this for your business.
Guide to Payment Service Providers (PSPs)
Over the years, more and more payment methods have become available to customers to make online payments, which has…
A Payment Service Provider (PSP) is a company that mediates between a customer and an online business to process payments, making transacting easier and more convenient. They allow businesses to accept all types of online payments, including credit cards, debit cards, cash cards, e-wallets, and more. PSPs partner with various card and payment networks, as well as a wide range of acquiring banks. Businesses using the PSPs outsource the responsibilities and offer wide options for payment, keeping the transfers running smoothly and securely for their customers. Thus, they are less financially liable to both banks and customers, allowing PSPs to take care of all the financial risk.
How it works
When paying for an online purchase, the customer enters his card details and clicks the “pay” button through the payment gateway, which securely collects all the transaction details and passes them to the PSP. The PSP then checks the customer’s card details and verifies that the customer has sufficient funds in his card account to make the payment. After all verifications, PSP initiates the transfer of funds from the client’s bank to the merchant’s account, registered and owned by the business. Finally, the PSP sends a notification to both parties that the payment was successful.
The converse situation may also arise. If a transaction is declined for invalid card or insufficient fund reasons, PSP will complete the transaction and send a status message notifying the business and its customer of the failed transaction.
Advantages for business
- Multiple payment methods. PSPs ensure your customers can conveniently choose from a variety of payment options. This level of accessibility helps to improve customer service and ensure satisfaction. Additionally, PSPs allow adding new payment methods.
- Multiple currencies. PSPs provide support for multiple currencies, allowing fast and secure payments from customers around the world.
- Protection against fraud. By accepting payments, businesses comply with Payment Card Industry Data Security Standards (PCI DSS) that ensure the consumer’s financial data is handled securely. Moreover, all information is heavily encrypted using Secure Socket Layer (SSL) encryption.
- Reporting payments. Most PSPs offer businesses monthly reporting features for payments and transactions made to your business. Plus, they can offer real-time reporting features for an additional cost.
- Easy account opening with acquiring banks. A business needs to create a merchant account with an acquiring bank. PSPs can help with this process and shorten the usual waiting period. They may also have already approved and functioning accounts with acquiring banks.
The best PSP for your business!
Payment Service Provider can become an important partner for your business to facilitate and secure your payments. With hundreds of PSPs to choose from, Finscanner is pleased to present the following providers as excellent examples:
- Alipay — is a payment solution provider that processes over 100 million daily transactions and has over 800 million monthly active users around the world. Its primary product is an e-wallet to conduct transactions directly from mobile devices. Originally based in China, it now operates in the UK.
- Klarna — is a Swedish payment solution that makes it easier for people to shop online. It has more than 90 million users with a total number of 250,000 merchants in 17 countries. It offers several payment options: pay now (card payments), pay in 30 days (invoice), pay in 3 installments, and financing (plans of 6, 12, 24, and 36 months with flexible payments).
- Ingenico — is a trusted payment solution for global merchants, banks, and financial institutions backed by 35 years of expertise. It offers businesses basic payment acceptance, as well as advanced features and functionality.
Find more payment service providers at the Finscanner Marketplace and explore all the benefits for your business!
Feel free to contact us directly today to get started!