Key Factors Considered by Companies When Choosing a PSP

Payment Service Provider PSP

Payment Service Providers (PSPs) offer integrated solutions for electronic payments, enabling merchants to activate various collection methods and managing the technical aspects related to transaction processing.

This makes them a fundamental partner for businesses operating in an ever-evolving ecosystem like e-commerce and digital payments, where the need to rely on operational efficiency, new technologies, cost containment, continuous support, and a strong market presence becomes increasingly evident. In this article, we will explore three key priorities for companies in selecting their PSP.

3 Key Factors for Merchants in Selecting a PSP:

  • Range of Modular Payment Options
  • Efficient Onboarding Process
  • Quality Support Services

Range of Modular Payment Options

In a constantly changing landscape, companies must adapt their payment strategies to the evolving preferences of customers. Therefore, merchants no longer seek standardised solutions from Payment Service Providers but prefer customised offers that meet their specific needs. Increasingly focused on cost containment, companies are aware of how access to various payment options can improve conversion rates and, at the same time, recognise methods that generate greater efficiency for both their processes and their customers.

With these aspects in mind, there is an increased focus by merchants and PSPs on alternative payment methods, through which an estimated 360 million e-commerce transactions will be made in the coming years, representing 69% of all online payments by 2029. [1]

Alternative payment methods include cashless solutions that are alternatives to card payments and other traditional modes. Among these, account-to-account (A2A) payments like MyBank continue to gain ground among businesses and their clients, so much so that in 2023, they accounted for an 18% share of e-commerce transactions in Europe. [2]

These methods are revolutionising the payment collection landscape, making the digital payment experience more inclusive than ever and not limited to the conventional e-commerce.

Companies are also looking for flexible payment solutions to enhance their offering beyond just the e-commerce checkout. The use of pay-by-link payments is spreading, enabling merchants to receive online payments via payment links sent to customers by email or SMS, representing a tool that can easily be adapted to different sales scenarios.

Furthermore, the simplification of cross-border transactions and the need for companies to respond to specific geographical demands make the partnership between PSPs and local payment solutions invaluable.

Providing a payment solution like MyBank that meets these criteria allows Payment Service Providers to gain a significant competitive advantage, enriching their offering with a versatile payment method that effectively meets merchants’ multiple needs.

Efficient Onboarding Process

Among the various factors that companies deem crucial in choosing their PSP, the ease of the onboarding process stands out as particularly relevant. This element not only lays the foundation for a successful collaboration but also reflects the reliability and efficiency of the Payment Service Provider itself.

Even though the majority of merchants surveyed in a recent study [3]

found the onboarding process with a new PSP relatively simple—with 68.8% describing it as “very easy” or “quite easy”—a significant number of companies in Europe still highlight difficulties related to onboarding timelines (45.4%).

An efficient onboarding service is essential for strengthening trust and satisfaction among new business partners. Consequently, Payment Service Providers that aim to offer innovative and competitive services must review their onboarding procedures regularly to improve and simplify them constantly, elevating their standards.

Quality Support Services

The availability of 24/7 technical assistance is one of the most appreciated and requested services by companies. For 30.74% of European merchants, 24-hour technical support is a priority criterion in choosing a PSP. Additionally, small businesses consider marketing support (38.9%) as one of the most useful services. Finally, there is a growing demand for legal support for compliance with regulations in the context of cross-border sales.

Given its significant impact on operations, business efficiency, and customer satisfaction, choosing the right PSP goes far beyond a mere logistical decision for any company. For PSPs, recognising the need to provide a modular range of payment methods, it is important to focus on offering efficient modes such as account-to-account payments, including the MyBank solution, as well as ensuring streamlined onboarding processes and support services that meet customer expectations.

 

[1] https://www.juniperresearch.com/resources/whitepapers/whitepapersthink-global-pay-local-the-future-of-ecommerce-payments

[2] https://worldpay.globalpaymentsreport.com/

[3] https://www.bankingcircle.com/whitepapers/the-perfect-payment-partner-what-merchants-are-looking-for-from-their-psps