How can you leverage PSPs to offer more payment options and increase customer satisfaction?

So why choose PSP? Streamlined Operations: PSPs simplify payment processes, consolidating various payment methods, currencies, and markets into one interface, easing operational complexities. Cost and Risk Reduction: By outsourcing payment infrastructure, security, and fraud prevention to PSPs, businesses mitigate investment costs and minimize the risks associated with managing these aspects independently. Enhanced Customer Experience: Leveraging PSP capabilities, businesses offer customers a broader spectrum of payment options. Efficiency and Scalability: With PSPs handling technical aspects, businesses can focus resources on core operations, promoting efficiency and scalability.

Retailers with brick-and-mortar POS and e-commerce particularly benefit from PSPs through seamless payment processing in both channels. PSPs offer all-in-one services such as payment processing, compliance and customer support and even hardware such as card terminals which simplifies administration (e.g. by syncing ERP/backend across sales channels) and enables consistent customer experiences. This integration optimizes operations, increases efficiency and reduces operational complexity. Overall, PSPs make it easier for retailers to grow their sales and improve the customer experience. Of course other sectors such as service, travel, hospitality, ... profit from a PSP integration because of the beforementioned aspects.

While PSPs offer convenience with multiple payment methods and services in one place, I disagree with the idea that they’re the best solution, especially for businesses handling large volumes. The reality is that all those “extra services” come at a higher cost, hidden in the rates they charge. Relying on just one PSP? That’s a mistake—your approval ratios can drop, and you’re at the mercy of one provider. A smarter move? Diversify with multiple PSPs and go straight to acquiring banks or APMs to get lower rates. It may take more setup, but using a payment orchestration platform can handle the tech side and save you money.

Security. Scalability. Granular Conversion Control. First and foremost, you have to consider the compliance burden. It takes a considerable amount of time, money and specialist experience to achieve PCI level 1 compliance, which you will need to do, if you're planning on DIY-ing a payment solution. It is incredibly complicated and there are some great PSPs to chose from now. Save yourself the headache (and risks). Plus, with a PSP that supports payment orchestration, you have the power to control all aspects of the purchase, from localised payment options to payment routing. This empowers to you to optimise for conversion and reduce costs at scale - globally. Effective payment orchestration at scale will save you millions of dollars.

Utilising a PSP offers a cost-efficient and quicker way to access new markets and payment methods. By partnering with a PSP, you can bypass the complexities of building your own technical infrastructure, allowing you to leverage external technical support while focusing on your core business operations. Look into PSPs that provide payment orchestration and support the payment methods relevant to the regions you currently serve and plan to target in the future. This approach not only streamlines your payment processes but also sets your business up for future growth. Additionally, be sure to evaluate their reporting capabilities, pricing structures, and PCI compliance.

I'd suggest considering the following criteria: Market Alignment: Assess if the PSP caters to your target market's preferred payment methods and currencies, ensuring seamless transactions and customer satisfaction. Business Fit: Evaluate how well the PSP aligns with your business model and requirements. Look for flexible pricing structures and terms that accommodate your transaction volume and growth trajectory. Technical Compatibility: Ensure the PSP's platform and API integrate smoothly with your existing systems and technical capabilities. This includes assessing compatibility with your e-commerce platform and any customization or control requirements.

Consider among other this the following aspects: Are you a marketplace? Look for a marketplace specialized PSP. Am I not? Look for a PSP that is experienced in/covers your vertical. Do you have E-Com or POS focus? Book demos for both segments and check the feasibility for YOUR business needs. Do you need to process crossborder payments? Look for a PSP that works in the countries you do business in. If you are in a multi-country-setup, consider multiple PSPs. How big is the integration effort and also the support from PSP side? Manage your roadmap and resources accordingly with regards to that. It can make a (costly) difference. Compliance standards and regulation? Get legal counsel and look out for verification on PSP side.

When picking a PSP, focus on these key criteria: 1. Price: Competitive transaction fees and overall cost structure are crucial. 2. Settlement Period: Fast and predictable settlement times to keep cash flow healthy. 3. Rolling Reserve % & Period: Low reserve percentages with short hold periods are ideal. 4. Downtime: Minimal or no downtime ensures your payments are always running. 5. Approval Ratios: High approval rates mean more transactions get through. 6. Responsive Support: Quick, helpful support when you need it. Everything else? Nice to have, but secondary!

While choosing your cross-border payments, make sure that the PSP is regulated by the relevant regulatory authority in your country and have reputable Banking partnerships for international money movement. The PSP should offer competitive pricing, state their fees and policies transparently, provide real time customer support and provide necessary compliance documentation for the payments processed.

Understanding what all is included in the PSP’s platform and capabilities will help you understand what you’ll also need from 3rd parties.

If you have own tech resources, fine. If not and you have budget (use it!), hire an agency to facilitate the integration (there are fintech specialized agencies). Always in a 3P setup, you, PSP, agency. Take a project manager and leverage tools for mutual project steering.

Let’s simplify it: ? If you’re small, stick with Stripe and/or PayPal—they’re easy to integrate. ? If your volume exceeds 30K, opt for PSP(s) and either outsource services or hire an integration manager. ? If you’re managing or planning to use more than 2 PSPs, go with a payment orchestration platform—it will take care of all the technical challenges. ? If you’re large, well-established, and have the resources, building your own in-house payment orchestration system is an option (just be prepared for a minimum cost of 250K EUR per year).

Agree with the Mark below - Hosted Checkout allows you to shift your PCI compliance burden all while maintaining a slick and frictionless checkout experience for the consumer

Most PSPs will let you create your own checkout system and then connect via an API but this is the highest risk approach and increases your PCI compliance burden. Where possible, it's safer (and easier) to use your PSPs hosted checkout page. If you must use your own pages, use your PSPs embedded input fields, if they offer them.

When integrating a PSP you'd need to go through a thorough process, in financial institutions it's most of the time called KYC. So as a rule of thumb you would need to provide business information: Share essential details about your business, including legal name, address, bank account, and tax ID, as part of the Know Your Customer (KYC) process. This helps PSPs verify your identity and ensure compliance with regulations. If you're implementing a checkout system you'd need to integrate the PSP's Application Programming Interface (API) or Software Development Kit (SDK) into your website or app. This involves embedding code provided by the PSP into your codebase to enable payment processing functionality.

Facilitate QBRs and let you get walked through the checkout data by the PSP. They are the experts and should offer that anyhow. Dashboards, analytical tools etc. are mandatory and should be provided by the PSP. As weel: not only the PSP but also the payment method providers, schemes, etc. need to share the relevant data. So if you can and need, make sure to integrate a PSP that works with providers who are transparent with the data you need in order to evaluate your sales.

For businesses using multiple PSPs, smart payment routing is king ?? Directing each transaction to the gateway with the highest authorisation rates can notably boost your acceptance rates. Plus, the smart router’s ability to find the lowest-cost way for each transaction can save you up to 30% in payment fees.

?? The rule of thumb for optimizing payment performance is simple: understand your options, then juice them to the max! ?? Start by setting up routing rules that prioritize the cheapest provider. If a transaction gets declined, cascade it to the next provider in line. You can get creative by routing based on country ??, amount ??, time of day ??, customer segments and any other criteria you have in mind. The main goal? Maximize your approval ratios ??. The better you fine-tune your routing, the fewer declines you’ll face—and the more successful your payment system will be. It’s all about squeezing every bit of value! ??

The most effective method of optimizing your payment performance is utilizing a CRO team, assisting you with your conversion rates, processes, checkout flow and cart abandonment strategies.

To optimize your payment performance, ensure you have enough relevant data to understand your current state. Utilize dashboards that showcase key metrics like authorization rates, decline percentages by reason, and risk metrics to make informed, data-driven decisions. Additionally, consider implementing payment orchestration services. This approach liberates you with greater flexibility in optimizing payment metrics through smart routing, cascading (gateway failover), and other advanced features, opening up new possibilities for your payment performance.

To enhance your business operations, just ask for help and access to the PSPs network. A true partner will assist you regardless. If you need consultation in a specific area, such as migrating to a new shop system, many PSPs have extensive experience with migrations and their associated impacts. Additionally, they can connect you with a consulting partner who possesses in-depth knowledge on the subject and can guide you through the process.

I would suggest : 1. Explore partnership opportunities within the PSP's ecosystem to expand your reach. 2. Utilize the PSP's infrastructure for secure and reliable payment processing. 3. Collaborate with other businesses connected to the PSP for mutually beneficial initiatives. 4. Tap into the PSP's data analytics capabilities to gain insights into customer behavior and market trends. 5. Take advantage of any value-added services offered by the PSP, such as fraud prevention or payment optimization tools. 6. Stay informed about updates and new features from the PSP to maximize the benefits of their network and infrastructure.

Traditional invoice payment terms can create cash flow gaps. PSPs often offer tools like dynamic discounting and early payment options. These features incentivize customers to pay sooner, accelerating your cash flow and reducing reliance on external financing. Many PSPs offer additional services beyond basic transactions. Tools like automated invoicing and billing can reduce administrative costs. Some even offer capital advance options. The streamlined access to capital can be a game-changer, especially for young businesses or those facing seasonal fluctuations.

A good PSP will be able to uncover trends across their entire customer base and make recommendations to you about what is working where. A great PSP will share those trends with you. This is especially true when partner up with a PSP who is a specialist in your industry. Recurring transactions (from a subscription) have significantly different challenges than that of one-time retail transactions. Pick a PSP that specialises in your niche and you'll get the best value from them.

Relying on a single PSP in one region could be risky, primarily because of possible outages and downtimes. Consider having at least one failover option to save your sales and protect your business from financial and reputational losses.

Communication is key and it comes from people. Ensure your PSP provides dedicated account managers and responsive support teams who are accessible, proactive, and have a good track record in handling queries and resolving issues. Be cautious of partners who are hard to reach or slow to respond, as this can cause operational disruptions.

With DCC (Dynamic Currency Conversion), customers can choose to pay in their preferred currency during the checkout process, even when shopping internationally. Imagine an online travel agency partnering with a PSP offering DCC. A customer booking a hotel abroad can view prices and pay in their local currency, eliminating confusion and currency conversion fees.

Payments are a cornerstone of online business strategy and are essential for future-proofing businesses in an increasingly digital world. Consider the 9 steps below in future proofing your payment strategy: 1. Understanding Customer Preferences 2. Prioritizing Security 3. Optimizing Checkout Process 4. Mobile Optimization 5. Adopting Emerging Technologies 6. Monitoring and Analysis 7. Compliance and Regulations 8. Customer Support 9. Planning for Scalability