2023-08-10 23:23:56
While it is still entirely possible to implement internal solutions, the vast majority of marketplaces today opt for an external service provider for the payment solutions and methods necessary for the proper functioning of their platforms. The benefits of using PSP are multiple. For this, it is essential to make your choice with the greatest care, in particular so as not to be left behind by the competition. Here are some key things to consider to make sure you give your platform a nice edge.
Take into account the payment methods offered
It is important to keep in mind the main function of a payment solution for a marketplace: it is to simplify and streamline transactions by allowing as many players as possible (sellers and buyers) to find their account. If a large majority of online purchases are now made by credit card, it should be noted that alternative options are developing rapidly. To stay competitive, you’ll need to bet on a PSP that can offer some variety. And to achieve this, it is necessary, for example, to take into account your market, customer expectations and habits, etc. A provider like Adyen represents in this case an interesting interlocutor for shops and marketplaces covering very diverse sectors.
Consider the nature of marketplace services
A payment solution must be useful and adapt as much as possible to the range of products and services you offer. Indeed, payment providers prohibit certain products or services depending on their objectives, regulations, or geographical area. Products related to tobacco or online betting and clairvoyance will, for example, be clearly prohibited by certain PSPs. Other lesser-known services or activities may also be subject to specific regulations under the PSPs. The objective for your market platform will be to choose a service provider that is as close as possible to the sector of activity and the products and services that you intend to promote on the market platform. The finer your selection, the better the PSP will offer in terms of functionality or effectiveness for all buyers and sellers who will use it.
The geographic reach of your marketplace
If your goal is to expand your business beyond local borders or even internationally, it is best to scrupulously check whether the PSP covers the regions or areas concerned. Banking systems can vary widely from one country to another, depending on regulations or the habits of market players. The diversity of payment methods or the multiplicity of currencies will be taken into account by the most important PSPs, while others will limit themselves to providing specific solutions in local markets. So be sure to consider your expansion ambitions.
The question of prices and user safety
PSPs generally operate on a commission basis. In general, it will be a fixed amount charged, or a specific percentage. These differences between PSPs can turn out to be a criterion of primary importance. Also take the time to choose solutions that ensure maximum security for customer and user data.
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