A PSP is a payment service provider; these are companies that facilitate the processing of a wide range of digital payment types. Any business that operates within an online marketplace will need to make use of a PSP in order to accept payments from their customers, no matter which niche they operate in.
Meeting the Needs of the Business
When choosing a PSP, it is vital that a business considers its needs. For example, if a business expects to be selling across geographical borders, it would make sense for it to choose a PSP that offers global payment solutions. A business should also take into account the type of payments it will be accepting and the number of transactions that it expects to process.
The Importance of Reliability
PSP entrepreneur and payments expert Ruchi Rathor knows that, as part of the process of choosing a PSP, a business needs to ensure that the potential provider is reliable. This means it’ll be able to process transactions consistently, promptly and without issue. It’s also important to ensure that the PSP offers 24/7 support.
Any PSP that a business uses should be fully PCI-compliant to ensure that its customers’ data will be kept safe. To this end, businesses should check the provider’s website for details regarding their certifications and the security protocols that they follow. Businesses could also consult the PCI website to check the credentials and status of any PSP they’re considering using.
The processing fees and costs associated with each payment method need to also be considered; for example, the transaction costs for certain payment types might be higher than others, depending on the PSP. Comparing the rate sheets of different PSP options can help businesses make a decision.
Ability to Scale
When choosing a PSP, it’s a good idea for a business to consider its future – and current – needs. When it comes to scaling up, this could mean assessing the ability for the business to add new payment methods in the future and to integrate with third-party platforms, such as e-commerce and social media sites, to take payments from customers. All businesses should think about futureproofing when choosing a PSP.
Take a look at the embedded PDF for more things a business should consider as part of choosing a PSP.