Are you planning to launch your new e-commerce website? Or maybe you want to monetize the current one. Among the many decisions that you should make is your choice for a payment solutions provider.
Here are the leading reasons for working with PSPs.
- Low Processing Fee
PSPs act as enablers between merchants and credit card companies. With the vast client base, they get discounts for large and bulk processing. This translates to lower integration and processing costs.
But that’s not all!
PSPs integrate with several payment options resulting in lower fees. If you’re working directly with a bank, you’ll have to pay processing fees for every payment. Over time, the costs add up, making the exercise quite expensive.
- Reduce Risks
Engaging a payment solutions provider helps you to reduce or minimize risk. The PSPs have a risk department to protect themselves and their clients. With this, they’ve developed knowledge and expertise that smaller e-commerce firms can’t match.
Investing in risk management is vital in protecting clients from fraud and hacking. No merchant wants to lose their hard-earned cash to fraudsters. Unfortunately, banks and credit card companies don’t employ concrete measures to protect merchants.
- Helps You Meet Market Demands
For the past seven years, the eCommerce market has been growing steadily. Even now, it doesn’t show any signs of declining. Scientific projections estimate that global retail sales will exceed $5 trillion by 2021.
Further, customers are comfortable making online purchases or services at the comfort of their homes. Thus, setting an online shop or eCommerce store is a sure way to grow. It exposes a broader market reach.
- Faster Payment
Manual payments are becoming obsolete thanks to digital cash. Checks take some days to mature and might bounce back due to insufficient funds.
Well, online payments are instantaneous, making them ideal for online transactions.
- Ease of Integration
Operating an e-commerce store requires you to offer several payment options. For instance, do you want the customers to pay by debit card, credit card, or PayPal?
Customers have their preferred mode of payment. Some might shift to your competitor if you don’t allow them to use their convenient options. Well, a PSP performs one integration to ensure your firm accepts payments from different payment methods.
The results, a more extensive market audience is resulting in higher sales revenue.
- Process Several Payments
Thanks to technology, you can trade beyond your country borders. In this case, you have to accept and settle foreign currencies.
Not only this, you can customize the payment plan to suit your cash flows. If not, PSP allows you to get a settlement from your credit card company before it matures.
Conclusion
Most entrepreneurs have to choose between PSPs and credit card companies for their eCommerce stores. Well, the benefits of working with PSPs exceed those of engaging the bank directly.
All these make payment solutions providers an ideal option for traders. As such, you’ll be assured of safety, speed, and efficiency when processing payments.
