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Can switching PSP increase your marketplace’s sales?

Published on May 29, 2024

Marketplace : Changer de PSP et booster CA

Switching Payment Service Provider (PSP) is an important decision for any marketplace. This transition may seem complex, but it offers significant growth opportunities. Not only will it simplify your payment processes, but it will also increase your marketplace’s revenue. Learn more about the benefits of such an approach, the criteria to consider when selecting the right provider, and best practices for a successful transition.

The role of the PSP in a marketplace

The role of a Payment Service Provider (PSP) in a marketplace is really important. It does lots of different things. The PSP doesn’t just provide a payment interface for buyers; it also ensures that money is transferred securely to merchants’ accounts. As an intermediary, it plays an important role in authorising, organising, regulating, and securing each transaction.

This makes the PSP a great partner for any marketplace. The quality of the payment experience offered is directly linked to customer satisfaction. A smooth, secure transaction increases user confidence, which can translate into greater loyalty and, ultimately, a positive impact on the platform’s sales.

There are different types of PSP, each with its own characteristics and specific features. Some offer global solutions, while others focus on specific niches with features tailored to particular needs. Finding the perfect PSP is all about understanding your market and making the most of your partnership.

Why switch PSP?

Changing Payment Service Provider can be beneficial for several reasons:

  1. Cost reduction: This can help reduce operational costs and transaction fees, a key factor in improving a marketplace’s profitability.
  2. Diversity of payment methods: Marketplaces expand their customer base by adding a new PSP with a wide range of payment methods. They adapt to the different payment preferences of their users and open up to a more diverse customer base.
  3. International expansion: Changing PSP makes a marketplace’s global expansion much more straightforward. A PSP specialising in international payments can provide the local payment facilities essential for accessing new foreign markets.
  4. Better risk management: Changing PSP can improve risk and fraud management. The most advanced providers use state-of-the-art technology to detect and prevent fraud, thereby increasing the security of transactions. This is particularly important as the market grows and becomes a prime target for fraudulent activity.
  5. Faster payouts: Choosing a Payment Service Provider that offers faster payouts can improve seller satisfaction. Faster, more efficient payouts can boost merchant trust and attract new sellers looking for agile, reliable payment solutions.
White paper: Marketplace how should you choose your PSP?

PSP criteria to increase your profitability

When selecting a Payment Service Provider, there are several criteria to ensure that it will make a real contribution to the profitability of your marketplace.

  • An efficient PSP must offer a variety of payment methods to meet the diverse expectations of its users. This includes traditional credit cards, fractional payments, and international bank transfers.

  • The user experience must be optimal; a simplified and intuitive checkout process can significantly improve conversion rates. This is often the result of a well-designed interface that minimises the steps required to complete a transaction, thereby reducing cart abandonment.

  • International openness is also an important consideration. A good PSP must facilitate access to new markets by offering payment options adapted to local preferences while managing the complexities associated with different currencies and regulations.

  • Security and compliance are non-negotiable. Compliance with international standards such as PCI DSS for card data security, RGPD for personal data protection and other regulations is essential to ensure the security and credibility of your marketplace.

  • Tracking and managing financial flows is facilitated by advanced dashboards and reporting tools, enabling you to manage your business better. These tools must provide real-time analysis and accurate insight for fast, informed decision-making.

  • Choosing a PSP that acts as a local partner is also critical. Your new service provider must ensure a flexible, personalised approach tailored to your business needs and can keep pace with your growth. Integrating the PSP with the other tools in your system is also a point to consider. Seamless integration reduces costs and improves process efficiency.

  • In terms of costs, the PSP’s structure costs must be transparent and competitive. Understanding the details and impact of each expense type helps control spending and optimise profits.

  • Finally, responsive support is essential. Practical and available support can significantly influence the continuity of your marketplace’s operations. A responsive service helps to resolve technical problems or service interruptions quickly, minimising potential loss of revenue. A good PSP should provide fast and competent assistance for routine and emergencies.

 

By choosing your new PSP based on these criteria, you can transform your payment experience into a genuine source of growth for your business.

Lemonway, a PSP that ticks all the boxes

Lemonway is a Payment Service Provider that meets all these criteria. It stands out for its personalised support, technological resources and solid expertise in adapting precisely to the needs of each market. Lemonway’s approach also focuses on the modularity of its solution. This flexibility allows marketplaces to choose and customise the modules they need. This modular offering helps marketplaces react nimbly to market changes and ensures they only pay for their required services.

Another strength of Lemonway is the automation of KYC processes, which is a real-time saver for marketplaces. By automating these necessary but often time-consuming checks, Lemonway enables marketplaces to focus more on their core business while ensuring regulatory compliance. Finally, Lemonway’s pricing is competitive and tailored to all marketplaces. Lemonway’s fee structure is transparent, allowing marketplaces to understand their costs better and maximise their return on investment. Want to learn more about Lemonway? Contact us now!

Case study: How did Lemonway help make the ESF marketplace a success this winter season?

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