What are payment service providers, and how do PSPs work?

Emphasizing your clear business purpose reinforces your legitimacy and might strengthen your case. Notably, the global market size for payment service providers is projected to reach USD 20.9 billion by 2028. PSR focuses on the banks’ obligations in terms of access to financial services, with a particular focus on upgrading PSD2’s fraud prevention mechanisms. Transaction monitoring is an important part of the PSR, as well as data sharing between providers. PSR legislation has been proposed to level https://www.bookstime.com/articles/how-to-scale-a-business the playing field between banks and non-banks.

Accept wider range of payment options

If you’re normal balance seeking to handle payments across borders and in multiple currencies, Airwallex may be a good fit for you. Airwallex helps you accept a wide range of international payment methods in over 130+ countries. Payments can also be settled like-for-like in multi-currency accounts, saving you on unnecessary FX fees. Airwallex has easy integration options, from no-code and low-code to fully customizable solutions for payment gateways and payment processing.

Types of Payment Methods and How to Accept Them

These may include invoicing, reporting, team management, loyalty programs, personalized marketing and a synced online store. AppsFlyer plans to take subscription payments to another level, and working with Primer will allow Shirly to integrate with a new fraud prevention tool while monitoring performance in case of any issues. “Most payment solutions aren’t very user-friendly—you need to have a deep understanding of payments to have any chance of using them. With our Observability platform, you’ll be able to see, at a glance, how all your PSPs are performing and slice and dice the data in any way required. You can, for example, check authorization rates across the past 90 psp provider days for a specific processor. But at Primer, we’ve invested a lot in making our dashboards, monitors, and platform as easy to use as possible.

PayPal for Enterprise

So far, we’ve discussed payment service providers (examples include PayPal, Stripe, Square, etc.). Next, we’ll distinguish these payment service providers from merchant account providers. Simply put, a PSP’s main job is to ensure that money moves safely and smoothly between buyers and sellers. They do this by offering a range of services to a merchant, including a payment gateway, payment processing, and merchant accounts.

Whether you’re setting up new payment methods or adjusting existing flows, Primer makes it simple and straightforward. Their systems deliver detailed monthly transaction records for accurate financial tracking. Real-time reporting capabilities offer immediate visibility into transaction flows. This transparency improves efficiency and enables quick responses to payment issues. PSPs enable businesses to process transactions in multiple currencies efficiently and securely. This capability is important for companies looking to scale globally, as it eliminates currency barriers and simplifies cross-border transactions.

• Each of these PSPs offers distinct features, pricing models, and integration options, allowing merchants to choose the solution that best aligns with their requirements.
• Meanwhile, merchant accounts are often cheaper for well-established, higher-volume businesses that can take advantage of economy-of-scale pricing.
• If you process large transaction volumes, a provider offering dedicated account managers will be a more ideal solution.
• PSPs tend to unilaterally and spontaneously freeze accounts because of the nature of their business model.
• Payment service providers may establish account limits as a preventive measure against issues like fraudulent transactions.
• They do all these because of the credit risk they bear for processing electronic transactions on your behalf.

Learn more about Airwallex’s Payment solutions

These experiences have given me a deep understanding of the challenges that entrepreneurs and small to medium-sized companies face, especially in banki… However, along with the benefits, PSPs also pose challenges, including navigating fees and transaction limits. Contrastingly, PSPs streamline this setup with easy-to-use APIs and integration tools. It’s important to consider such hidden fees when comparing the pricing models of different PSPs.