Payment service provider: guide to the best solutions

What is a PSP?

A PSP, or payment service provider, is a company that enables merchants to accept online payments by various means . It must comply with safety and anti-fraud standards.

According to the legal definition, a PSP is a service provider authorized, generally by an authorization issued by a competent authority in the Member State in which it is located, to provide payment services planned in the European Payment Services Directive ( directive 2015/2366/EU known as DSP2 )

These players play an essential role in digital commerce by facilitating transactions between buyers and sellers. There are several types, each offering specific services and rates, which means you need to select the right one for your needs.

How do I choose my payment service provider?

To choose a payment provider effectively, it is essential to consider the following points:

1. Know your customers' payment needs

2. Offer enough suitable options

3. Manage currencies, if necessary

4. Compare rates

Understand your customers' payment preferences

To do this, you can :

• Ask them directly, for example via a survey or a form.

• Analyze statistics of your website or application.

• Find out about the most popular payment methods in your business sector or in the countries where you operate.

For example, according to a Deloitte report the BNPL (buy now pay later) is a solution that is set to expand rapidly which allows both B2C and B2B customers to defer payment after purchase.

Hero proposes justement a solution from BNPL highly flexible, to be integrated into the payment solutions you offer your customers.

Offer as many payment solutions as possible

To satisfy all customer profiles and reduce cart abandonment rates, you can choose a payment provider that accepts :

• Bank cards

• Transfers

• Sampling

• Electronic wallets

• Invoices made easy with a payment link

• Cryptocurrencies

Consider international aspects

If you have an international business, it is essential to enable your customers to pay in their local currency. And without any conversion or commission fees, otherwise your abandoned cart rate will rise sharply. Make sure that your payment provider supports this functionality, without costing you excessive additional fees.

Choosing the right payment solutions for the B2B sector

If you're in the B2B sector, you need solutions tailored to your business customers. They often have longer payment terms, higher amounts, and specific needs billing and accounting. You can choose a service provider that offers direct debit, outstanding credit or any other functionality suited to these conditions.

The Hero product suite includes many B2B-specific solutions:

• BNPL for your B2B customers with high outstandings

• Immediate collection of your customer invoices

• Advance payment of your supplier invoices

• An API, automations and a tracking table, without accounting pain

Compare the prices of different payment providers

It is important to compare the rates of different payment providers, taking into account :

• Fixed costs

• Variable commissions

• Hidden costs

• Des services inclus

What are the top 5 payment service providers?

Here are the top 5 payment service providers:

• Hero

• Stripe

• PayPal

• Mollie

• Adyen

Each of these providers has its own advantages, but Hero stands out as the most optimal online payment solution for the B2B sector because :

• BNPL up to several thousand euros per order.

• You offer your customers the option of paying in 30 or 60 days, or in instalments.

• Easy integration with numerous platforms, and Hero support.

Which payment service provider should you choose?

Here is a summary table of the 5 payment service providers (PSPs) mentioned:

Hero checkout

It's an online payment solution that allows you to accept with a better acceptance rate all at a price 5 times lower than the market!

Hero offers you many advantages, such as :

• Quick and easy integration to your e-commerce site, thanks to plugins compatible with the main platforms (Shopify, WooCommerce, PrestaShop, etc.).

• Compliance with European standards (DSP2, RGPD, etc.) and card network requirements (PCI DSS, 3D Secure, etc.).

• Guaranteed security and protection against fraud with risk detection and prevention tools.

• No hidden costs.

• No commitment period.

Stripe

Stripe is a payment service provider offering an online payment platform. Stripe offers :

• A powerful, easy-to-use API which enables you to personalize your payment experience and integrate third-party services (billing, accounting, CRM, etc.).

• Support for over 135 currencies and more than 40 local payment methods which allows you to reach a wide international audience.

• A complete, secure management platform which enables you to control and optimize your payment flows, reimbursements, etc.

But Stripe is quite expensive, with some of the most expensive rates on the market.

PayPal

One of the world's leading online payment providers . Paypal allows you to accept payment by credit card or bank transfer, direct debit, electronic wallet, etc. Paypal also offers you advantages such as :

• Recognized reputation and trust by consumers, which encourages conversions and loyalty. This is thanks in particular to the "guaranteed delivery" insurance offered to your customers.

• An easy, secure management interface, which allows you to track and manage your transactions, reimbursements, subscriptions and more.

• Efficient customer service available 24/7 We're here to help you solve your problems and grow your business.

Mollie

A payment service provider that offers an online payment solution. simple and transparent . Mollie also offers you benefits such as :

• Quick and easy integration with many e-commerce systems.

• A wide range of payment methods accepted.

• Transparent, competitive fees.

• Responsive customer service and available technical support.

Adyen

A payment service provider that offers an online payment platform. global and unified. Adyen offers you advantages such as :

• Global and local coverage with over 250 payment methods and more than 150 currencies available.

• A robust, flexible API for customized integration.

• Fast, reliable payment processing.

How does a PSP work?

A PSP enables merchants to process online payments. It acts as an intermediary which receives customer payments and transfers them to the merchant's bank account.

Is it better to use a single PSP or several payment solutions?

Opt for a single PSP simplifies your operations by reducing the number of intermediaries and contracts to manage. You benefit from an overview of all your payments for easy monitoring and analysis.

On the other hand, the use of several payment solutions offers a wider range of payment methods, adapted to the local specificities of each market. This can improve your conversion rate, but can also lead to disadvantages such as :

• Complex coordination and maintenance

• Additional costs

• Reduced reliability

• Fraud risks

In conclusion, the choice between a single PSP and several payment service providers depends on the specific needs of each company. However, it is essential to prioritize simplicity, security and diversity of payment options.

Hero, which specializes in B2B payments, is particularly advantageous for optimizing financial operations. Select the right payment service provider is therefore a crucial decision that requires a thorough analysis of the needs and options available in your niche.

Frequently asked questions

Is Stripe secure?

Yes, Stripe is a PSP authorized and regulated by the Irish Central Bank, respecting security standards such as PCI DSS.

How much does a PSP cost?

Fees vary according to the services offered. Generally, set-up fees range from from €0 to €1,000, transaction fees of 0.5% to 4% of the amount and fixed fees of €0 to €1 per transaction.

Does a PSP allow recurring payments?

Yes, some PSP authorize recurring payments such as subscriptions. Hero Checkout offers this functionality.

Does a PSP allow deferred payment?

Yes, some PSPs allow deferred payment, such as Hero Checkout with a 30 to 60-day payment option.