These include payment cards, bank payments such as direct debit and direct credit transfers, PayPal, mobile and crypto payments. They connect businesses to others in the financial ecosystem, including banks, card schemes, national processing networks and others, for two main reasons. Merchant services aren’t exactly known for simple, transparent pricing, but payment service providers buck the trend by drastically simplifying the costs. In most cases, your payment gateway and checkout are all covered Accounting Periods and Methods for eCommerce selling, too. Payment service providers (PSPs) are an important part of the payments ecosystem. They facilitate electronic payment transactions and enable businesses to accept a wide range of payment methods.

Account Closure Fees With Merchant Accounts & PSPs

Airwallex has easy integration options, from no-code and low-code to fully customizable solutions for payment gateways and payment processing. Unlike PSPs, merchant account providers may have application, setup and monthly fees, along with long-term contracts and termination fees. Some offer built-in business software packages, online payment gateways and Certified Bookkeeper card processing terminals, but most use a variety of third-party providers for these tools.

When to Use Alternate Payment Options?

Their fees are typically less and more transparent than other pricing methods. They are much faster than regular banks in terms of application and approval, as well as the setup process. Payment Service Providers can be integrated with many e-commerce websites and platforms to expedite the process of collecting payments. They also enable customers to make payments via their mobile devices or smartphones. Choosing the right PSP can significantly impact your company’s performance, customer experience, and potential growth. By doing your research and comparing different options, you can find the provider that best aligns with your business needs.

Key features to look for in payment service providers

This strategic routing ensures that each payment is handled by the most effective PSP, enhancing both performance and cost efficiency. Leveraging a payment orchestration platform empowers you to manage your payment processes. It makes comparing performance, reducing integration costs, implementing smart routing strategies, and maintaining better control over your PSP relationships easier. The Indian PSP ecosystem includes several other domestic PSP payment examples like Paytm and PhonePe. Paytm specializes in mobile wallet and e-commerce services, while PhonePe in UPI-based payment solutions. International players like Stripe, Square, payment service provider and PayPal also maintain a strong presence among businesses with global customer bases.

Alternatives to Payment Service Providers

Payment Service Providers offer more features for managing daily finances, online payments, invoicing and so on. Banks may have limits on the currencies you can accept payments on while PSPs offer a wide range. TPPs offer convenient services like instant payments, real-time account information, and seamless money transfers.