What is PSP? Learn all about this online payment method solutionReading Time: 4 minutes
Normally, a digital entrepreneur is used to a series of tools, techniques, and acronyms that are part of this universe. Thinking specifically about online payment methods and the expansion of e-commerce, would you know what PSP is?
As well as the technologies that integrate e-commerce, the payment services available to customers and business owners also undergo several changes. This is because these platforms must follow the main trends and function according to user demand.
Knowing how to receive digital payments has become an obligation for new entrepreneurs since consumption habits are increasingly digitized. With that in mind, we wrote this article to explore what PSP is and the main advantages of using it in favor of your business.
What is it?
PSP stands for Payment Service Provider. In general, it is the entity responsible for productive operations between sellers, consumers, and acquirers, that is, financial institutions.
Monetary transactions are processed using a secure channel and customers can request authorization for credit card purchases from banks without disclosing the buyer’s data. In this way, the tool is an intermediary to ensure the safety of all parties in the purchase process.
Through payment gateways, that is, technologies that operate as a link between consumers, financial institutions, and credit card operators, practical solutions are available to be used. In addition, it guarantees benefits to everyone involved, from the buyer to the acquirers.
As a main advantage for the buyer, it is a way to provide different online payment methods in the purchase journey. In addition, it is a process that guarantees the safety of customers, which becomes an important practice to prevent the leakage of user data and information.
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They are known as acquirers as entities that carry out the communication process between buyers and as credit card operators. However, because they use their platforms, sellers pay a percentage of the purchase price for each purchase.
After the customer pays for the product or service, acquirers send the transaction information to the financial institution responsible for the card. With payment confirmation, the amount paid is automatically redirected to the seller.
Entrepreneurs who wish to contract a more simplified service can opt directly for a sub-acquirer. This entity acts as an intermediary between the acquirers and the other parties involved in the transaction. It is a model widely used by e-commerce owners.
The difference between sub-acquirers and acquirers is that they allow the inclusion of extra resources that can optimize transaction security, and periodic billing systems, among others. In addition, the cost of business implementation and maintenance is reduced.
What are the advantages of using a PSP?
To use a payment service provider in favor of your business, it is very important to identify whether this model is viable for your structure. This is because, due to the complexity of the company and the level of demand met, a PSP may not be enough to handle all operations.
However, if it makes sense to use it in your e-commerce or physical establishment, it is possible to take advantage of this payment system in terms of the agility of financial operations. Some of its main advantages are:
- complete payment system;
- speed and reduced cost of adhesion, implementation, and maintenance;
- security for customers, acquirers, and credit card operators;
- simplified finance control;
- no requirement for a minimum volume of transactions;
- support for multiple payment types and currencies.
Which provider to choose?
It is necessary to keep in mind that when we talk about what PSP is, there is not the best option, but the one that best suits your business. Therefore, when deciding on this system in your company, it is necessary to plan the cost of joining, such as the incidence rates charged and other factors.
Acquirers and sub-acquirers have become increasingly popular around the world, largely due to the security they offer and the different payment methods available, which makes the purchase journey more assertive. Therefore, it is important to research in-depth to find a more economical option.
Speedy.io: like a bank, but better.
Now that you already know what is PSP, how about getting to know Speedy.io?
We are here to contribute to the day-to-day of your company!
Speedy.io payment account offers:
- Dashboard for managing and controlling your charges;
- Customer registration and control;
- Notifications about the status of your charges;
- Personalized SpeedyPay Invoice issue with description and your company logo;
- Tax note issue;
- Your client chooses how to pay the invoice or invoice, which can be via credit card, PIX QRCode, bank transfer, PEC Flash, or cryptocurrency;
- Account deposits via credit card, PIX QR code, TED, bank transfer, PEC Flash, and cryptocurrency;
- Online and exclusive support during business hours and much more!
Speedy.io helps you manage your finances while you focus on what matters most: delighting your customers.
And the best: no monthly fee or membership fee.
Discover the benefits of the Speedy.io payment account
Visit the website to learn more!