10 questions to ask yourself before choosing a PSP

5 October 2020

Business Insight

For a marketplace or alternative finance platform, the payment experience plays a crucial role in the conversion. The choice of a payment service provider (PSP) is therefore particularly important. With so many solutions and so many options available, however, it can be difficult to find your way. To help you in this task, here is a list of 10 questions to ask yourself to find the PSP that best suits your business.


1.      How long does it take to integrate a PSP?

The time required to launch a new payment interface varies from one PSP to another. This process depends on your internal resources: if your developers are already familiar with API integration and you already have a pre-designed payment page, integration with a PSP can be done quickly.

Some PSPs have ready-to-use payment pages that can be deployed during the day. However, if your platform requires a customized payment page, the process can take one to two weeks to complete.


2.      How do you want the integration to go?

Depending on your needs and level of technical expertise, you will have to choose between three options for integration:

  • For platforms that want to fully control the user experience and have the ability to code, relying on an API is the best choice. Financial flow management, control processes, fraud protection… With an API system, the PSP operates behind the scenes, while the platform operator maintains control over the checkout process.
  • For platforms that have neither the desire nor the means to code everything themselves to create their own payment pages, some PSPs offer turnkey payment pages (hosted checkout).
  • Finally, it is possible to choose a hybrid approach, combining API and turnkey pages.

If you choose to start on a turnkey payment page, ask about the services included. Few PSPs offer comprehensive functionality on this type of solution. Language, currencies accepted, payment methods offered… The PSP selected must meet the expectations of your target.


3.      Does the PSP provide a personalized and international customer experience?

If you want to be able to interact with international customers and transact at a global scale, it is necessary to design customer experiences that are customized to each individual’s country.

This involves presenting information in local languages, currencies and means of payment, but also ensuring that cross-border and international transactions will be supported by the PSP. If your users face too many difficulties when it comes to paying, they will simply abandon the payment act.

It is therefore essential to find a PSP that is able to offer a transparent and personalized purchasing experience according to the countries targeted, while respecting local regulations.


4.      Is the PSP compatible with your business model?

Make sure that the chosen solution is able to adapt to the specificities of your activity and its business rules. It is therefore advisable to opt for a PSP without any restrictions linked to the business model, which allows you to launch free trial offers, subscription-based formulas or payment in several installments.


5.      Does the PSP offer an optimized solution for mobiles?

A PSP that does not offer optimized solutions for mobile devices would not be in phase with the evolution of the web, which would question the robustness of its solution. Instead, look for a PSP with a payment interface optimized for mobile, simple, elegant and intuitive. Offering a simplified mobile experience is essential to increase customer satisfaction.


6.      What fraud protection can I get?

Guaranteeing the security of transactions, ensuring the protection of both the payer and the beneficiary, is one of the main missions of the PSP. Therefore, give priority to payment service providers that straddle regulations, to avoid any risk of fines and guarantee secure payment to your customers.

That said, the anti-fraud device must work for you, not against you. That’s why it’s important that the chosen PSP can adapt to the requirements of your business, while providing first-rate protection. For example, if you are in the gaming industry, where a large number of customers can quickly purchase many tokens, most anti-fraud systems will report these transactions as fraud by default. That’s why the flexibility of the solution is essential.


7.      How am I paid and how often?

Being able to have fast cash flow directly transferred to the right accounts is essential for a newly established company. For a large company, the dashboard must allow easy access to the details of the different transactions. Another important aspect is that the chosen solution must be able to integrate with existing tools, including billing, accounting and ERP tools. To achieve this, you need to look for a flexible PSP that is able to make payments to various banking accounts, regardless of the country where the account is registered.


8.      What type of invoicing is preferred?

In the PSP world, prices are extremely competitive and relatively uniform. Most suppliers have a tiered, revenue-shared pricing structure, which means that the success of the PSP is directly linked to the success of your business. If you are going through a difficult period, the supplier will feel the effects.

This transaction-based pricing model is win-win because it ensures that the payment provider will be actively invested in the success and growth of your business.

A good practice is to ask your PSP to review your transaction history and assess any cost variances, based on transaction volume and types, buyer location, and the combination of credit and debit card payments.

Therefore, choose a payment provider with a transparent pricing model. Some PSPs have moved away from the traditional fee structure to make life simpler for operators by charging a global price.


9.      Is it better to choose a PSP located in the same country as my business?

As long as the PSP is able to manage different currencies and is able to accompany an international development, its nationality does not matter. On the other hand, for all support matters, it is preferable that the selected partner has teams that speak your language.

Finally, you should know that when it comes to the security of online transactions, French regulations are one of the strictest in Europe. Choosing a French PSP is therefore a good idea to ensure a high level of regulatory requirements and thus avoid any disappointment in terms of compliance issues. With the European Payment Services Directive or PSD2, which came into force in January 2018, it is all the more important to choose a passported payment solution to be able to operate in different countries, and thus develop more serenely internationally.


10. What is your strategy to increase your current conversion rate?

There are many reasons why a payment may be refused or why a payer may abandon his payment act. The key is to understand why these payments are not converting and why customers are not finalizing the transactions. Without knowing where you’re succeeding, how do you know where to move forward? Platforms that don’t have access to website analytics lose up to 40% of conversions.

Thus, a good PSP should be able to provide you with metrics, indicating strategies to increase conversion rates. As a certified and internationally available payment provider, Lemonway supports many marketplaces and crowdfunding platforms. Contact us today to learn more!


Marketplace : choose your PSP