How payment service providers are driving innovation in the digital payment landscape
The digital payment landscape continues to change. As new payment methods are hitting the market, more and more consumers are looking at alternative ways to pay. And as consumer demand changes, merchants must respond.
And often it is payment service providers that are helping them to do so.
What is a payment service provider
A payment service provider (PSP) is a third party that helps merchants take payments from their customers. In simple terms, they enable merchants to accept different types of payments by connecting them to the broader financial infrastructure.
In many cases, they provide both a merchant account and a payment gateway. PSPs exist to enable businesses to collect and manage their payments in a simple and efficient way. They are integral to the future of the payment industry and they continue to drive innovation.
5 key PSP innovations
- Adopting alternative payment methods
Not only do PSPs enable merchants to accept credit and debit card transactions, but they also ensure merchants can keep up with the latest alternative payment methods. These include the likes of Google Pay and Apple Pay, but also branch into cryptocurrency and peer-to-peer payment methods. Buy Now Pay Later (BNPL) is also fast becoming the payment method of choice for many Gen Z consumers. Merchants have to keep up – innovative PSPs help them to do this and keep them competitive.
- Offering a smooth and simple checkout experience
It’s one thing to be able to offer alternative payment methods. It’s another to make it simple and straightforward for consumers. A good PSP will be able to process a transaction in seconds, connecting all elements of the payment process for a fantastic customer experience at the point of sale. PSPs are able to do this because they keep pace with changes in payment technology and bring those advances into their system, so from the customer’s perspective they experience a rapid payment for goods and can then continue on their way.
- Integrating payments into a coherent ecosystem
It’s up to payment service providers to enable merchants to accept these alternative payment methods and seamlessly integrate them into their overarching payment infrastructure. PSPs play a fundamental role in connecting merchants with the wider payment ecosystem. They enable payments to be taken in a simple and efficient way. But as more and more payments become available, it’s the challenge to integrate this into one cohesive ecosystem. This is where PSP innovation continues to abound. Today PSPs offer their customers a flexible and coherent payment platform. They can accept multiple payment options and, by leveraging cloud technology and effective API integrations, enable smooth collaboration with other systems. This helps the merchant run their business more efficiently, and it also drives customer satisfaction and loyalty.
- Adopting new payment technology in store
Payment service providers are also able to offer their merchants hardware to be used for in-person payments. Where once this may have revolved around traditional point of sale (POS) systems, innovations in the industry have now pushed us towards SmartPOS systems. Data is now processed and stored in the cloud for a highly secure and quick transactionPayment service providers have helped drive the seamless adoption of contactless payments (now accounting for around 90% of all debit and credit card transactions in the UK) as well as unattended and self-service payments.
- Offering the full omni-channel experience
Innovations in the payment industry, driven by payment platforms and PSPs, have now seen a direct connection between the online and offline worlds.Merchants are able to manage various payment systems from a single interface (both in-person and online payments). This in turn enables them to simplify their operations, reduce costs and provide a seamless checkout experience.
- Adopting alternative payment methods
Aevi: Powering payment service providers
At Aevi, we serve payment service providers by enabling them to offer a better integrated solution to their merchant customers. It unleashes digital innovation on in-person payments and taps into the capabilities of the cloud. It features innovations like SmartPOS and alternative payments.
Get in touch to discover more.