7 Ways to Choose the Right PSP: Checklist (2024)

7 Ways to Choose the Right PSP: Checklist (2024)

By 2026, retail ecommerce sales are expected to reach $8.1 trillion. As the ecommerce market continues to expand rapidly, staying ahead of the game with your payment offerings is a must. After all, your customers demand diverse payment methods and a smooth checkout experience. However, payment processing can be a headache, and not all PSPs are created equal. 

So, choosing a seamless online payment process for your business and your customers’ needs is crucial. The checkout is the lifeblood of ecommerce, and one hiccup could mean lost revenue and abandoned carts. Ready to level up your payment game? Follow our checklist to find the best PSP for your business below! 

What is a Payment Service Provider (PSP)?

A PSP is a helpful partner for your business, facilitating the payment process behind the scenes and managing payment details, to keep transactions secure and smooth. They link your customers to your bank account. They make payments easy, so you can concentrate on growing your business. PSPs enable you to accept various payment methods, serve customers globally, and stay PCI compliant with rules and laws.

4 Reasons Why You Need a PSP

  • Payment Processing

PSPs are like the superheroes of the payment world, helping merchants offer convenient and secure payment options to their customers. 

They handle the technical aspects of payment processing, securely transmitting and authorizing transactions between customers, merchants, and banks. They ensure that payments are processed smoothly and quickly.

  • Checkout Conversions

Don’t let problems during checkout frustrate your customers and lead to abandoned carts. With so many alternatives available to shoppers, you must offer a reliable and seamless checkout experience. 

That’s why online retailers work with PSPs, which can simplify their payment process. Streamlining the checkout process can improve customer retention, boost checkout conversions, and lower checkout abandonment rates. This is a crucial factor to consider as an online retailer when choosing a PSP.

  • A One-Stop-Shop Solution

Keeping track of multiple tech stacks, add-ons, and integrations can be time-consuming and complex. That’s where PSPs come in to offer a complete solution with all the functionalities in one place. 

The suitable PSP can handle various payment methods, currencies, and regions in one convenient package. They can bring all your payment processes under one roof, and you can simplify your operations by integrating them into a single platform.

  • Compliance and Security Issues

Compliance and security are essential in online retail and cross-border transactions. It would help if you had a rock-solid payment partner on the compliance front, ensuring that you meet all the legal requirements and protecting your business from fraud and other threats. 

When expanding to different regions, regulations can be significant and they can differ from region to region, so having a reliable PSP that keeps you compliant is essential. Partnering with a PSP that prioritizes compliance and security will bring peace of mind to your business.

Finding the right PSP opens the doors to a smoother customer experience, increased sales, and valuable data insights to move your business forward. But with so many providers, finding the perfect partner can feel like finding a needle in a haystack. To make your life easier, we have a checklist of things to consider when searching for the ultimate payment provider.

Checklist: 7 Things to Consider When Choosing a PSP

  • Your Challenges & Needs

It may sound basic, but starting by identifying the challenges you’re trying to solve is crucial. Take a moment to consider what you truly need from a payment processing solution. For example, the products or services you provide may be subscription-based. In this case, you’ll need to find a PSP that supports recurring payments.

Knowing your priorities, you can avoid irrelevant offerings and be specific about your expected services. This streamlines your business operations and ensures a better experience for your customers. 

Keep in mind that processing providers should be attentive listeners. They should want to hear about your unique business – your challenges, goals, customer base, business model, and growth strategy. This way, they can tailor a payment system that fits your needs.

📌 Bonus Tip: Doing most of the talking at the start of a conversation with a payments expert is a good sign. After all, a payment expert is useless if they apply a one-size-fits-all approach to your unique business. However, a provider who considers your KPIs, target market, and business structure and comes up with a tailor-made solution will add value to your existing model. That’s the kind of partnership you’re searching for!

  • Simplicity Behind Payments

Having a straightforward infrastructure makes the implementation phase a breeze and takes your customers’ experience to the next level. It’s a win-win situation regarding online transactions, and it’s something to consider when choosing the suitable PSP for your business. As we always say, changes should be brilliantly simple. 

  • Technological Capabilities: Omnichannel & Cross-Border

It would help if you had a PSP that offers you a complete solution as an online merchant. You want a plethora of options to choose from, but that doesn’t mean that you’ll need them all. So Your PSP should be able to adapt to your specific business and be flexible in the solutions they provide you.

The core of successful payment processing is the ability to meet diverse customer requirements, especially as you expand to other regions. That’s why the perfect PSP solution should empower you to accept various payment methods, from international and domestic card payments to bank transfers and digital wallets—no limits here! And let’s not forget about currencies. In ecommerce, handling various currencies is vital to offering local payment methods and delighting global customers.

  • Integration Options

Ensure the integration capability of your PSP aligns with your existing platform or systems.
The right payment partner should offer seamless integration with your current systems. You should be working with people and technology that simplifies the integration process and provides flexibility for a smooth payment experience for your customers.

  • Security & Compliance

When choosing a PSP, security should be your top priority. It’s essential to carefully evaluate your partner’s PCI certifications carefully, as maintaining compliance with regulations is your responsibility as an online merchant. This is especially critical for cross-border/international retailers. Partnering with a suitable PSP will provide peace of mind, knowing that your business complies with regulations and your customers’ payment information is secure.

  • Customer Support

As a merchant, you should choose a payment service provider that offers proactive support, including guidance on fraud prevention, regulatory compliance, and optimizing conversion rates.
Accessible support is vital for meeting changing consumer and industry demands, maintaining customer service, and smooth operations.

At Shift4, we pride ourselves on delivering round-the-clock support to our valued customers. We understand that your business doesn’t sleep, nor should your payment solutions. That’s why our systems and teams constantly monitor your online transactions and are designed to be reliable, ensuring uninterrupted service for you and your customers 24/7.

  • Trustworthy Partnership

The payments industry can be a maze of confusing jargon, and you don’t have to be fluent in it. When understanding a payment processing solution, a good provider will go the extra mile to ensure you grasp every concept.

The suitable PSP should guide you through complex explanations, making sure you’re fully informed every step of the way. They’ll be eager to do so because they care about your understanding as much as they care about providing you with the ultimate payment experience. That’s why you should expect the technology used for payment processing to be secure, fast, and efficient to ensure that transactions are processed without any hiccups. With the right provider, you’ll navigate the complex world of payments with confidence and clarity.

Wrapping Up: Key Considerations for Selecting the Right PSP

At Shift4, we understand that choosing the right PSP can be tricky, but we’re here to help you at every stage! Our flexible technology focuses on security and compliance, and our dedicated support team is always ready to assist you. Partnering with us means you can simplify your payment processes, make your customers happier, and stay ahead of the ever-changing world of ecommerce.
Get in touch for more information.