Payment service providers: Explained

Payment service providers: Explained

Payment service providers: Explained

Payment service providers: Explained

Find the best payment service provider for your business – download Mollie's guide to choosing the best PSP to support your growth.

Find the best payment service provider for your business – download Mollie's guide to choosing the best PSP to support your growth.

Mar 14, 2022

We no longer live in a world where cash is the most preferred means of payment; instead, people expect to make electronic payments that are easy, secure and quick. From shopping online, eating out to subscribing to services, consumers have become more demanding when it comes to payment options.

This shift is important for businesses, particularly those doing business online. On one hand, offering multiple payment options can enhance customer satisfaction and expand market reach. On the other, navigating the complexities of payment processing, security protocols, and regulatory compliance can be daunting. This is where Payment Service Providers (PSPs) come in.

Understanding the role and benefits of PSPs is crucial for any business that wants to succeed in the current market. The right PSP not only simplifies the payment process but also enhances security, ensures compliance with industry standards, and provides valuable insights through reporting and analytics.
In this guide, we will explain what PSPs are, how they work and what factors to consider when selecting a PSP for your business.

What is a PSP (payment service provider)?

A payment service provider acts as an intermediary between merchants and the financial system, helping businesses accept various payment methods such as credit and debit cards, bank transfers, and digital wallets. By connecting merchants to the broader financial infrastructure, PSPs facilitate the processing of electronic payments, ensuring transactions are completed securely and efficiently.

What's the purpose of a payment service provider?

The main goal of a PSP is to simplify the payment process for companies. Here’s how a payment service provider helps businesses:

  • Payment acceptance: PSPs help merchants accept a wide range of payment methods and help cater to diverse customer preferences.

  • Transaction processing: They take care of the authorization, processing, and settlement of transactions, ensuring merchants receive payments from their customers.

  • Security and compliance: They implement strong security features to avoid exposure of sensitive data and also to meet industry standards and regulations.

  • Reporting and analytics: PSPs provide businesses with detailed reports and analytics on transactions, aiding in financial management and strategic planning.

By managing these aspects, PSPs allow businesses to focus on their core operations without worrying about the complexities of payment processing.

Benefits of using a PSP

Working with a PSP offers businesses several advantages:

  • Wide variety of payment methods: PSPs help businesses accept various payment options, including credit cards, debit cards, and digital wallets, catering to different customer preferences. 

  • Enhanced security: PSPs offer advanced security protocols to protect against fraud and data breaches, ensuring safe transactions.

  • Simplified regulatory compliance: PSPs can help businesses adhere to regulatory requirements, reducing the complexity of compliance management.

  • Scalability: As your business grows, PSPs can scale their services to handle increased transaction volumes and support international payments.

  • Improved cash flow: Efficient processing and quicker settlements can enhance cash flow, benefiting the overall financial health of your business.

We no longer live in a world where cash is the most preferred means of payment; instead, people expect to make electronic payments that are easy, secure and quick. From shopping online, eating out to subscribing to services, consumers have become more demanding when it comes to payment options.

This shift is important for businesses, particularly those doing business online. On one hand, offering multiple payment options can enhance customer satisfaction and expand market reach. On the other, navigating the complexities of payment processing, security protocols, and regulatory compliance can be daunting. This is where Payment Service Providers (PSPs) come in.

Understanding the role and benefits of PSPs is crucial for any business that wants to succeed in the current market. The right PSP not only simplifies the payment process but also enhances security, ensures compliance with industry standards, and provides valuable insights through reporting and analytics.
In this guide, we will explain what PSPs are, how they work and what factors to consider when selecting a PSP for your business.

What is a PSP (payment service provider)?

A payment service provider acts as an intermediary between merchants and the financial system, helping businesses accept various payment methods such as credit and debit cards, bank transfers, and digital wallets. By connecting merchants to the broader financial infrastructure, PSPs facilitate the processing of electronic payments, ensuring transactions are completed securely and efficiently.

What's the purpose of a payment service provider?

The main goal of a PSP is to simplify the payment process for companies. Here’s how a payment service provider helps businesses:

  • Payment acceptance: PSPs help merchants accept a wide range of payment methods and help cater to diverse customer preferences.

  • Transaction processing: They take care of the authorization, processing, and settlement of transactions, ensuring merchants receive payments from their customers.

  • Security and compliance: They implement strong security features to avoid exposure of sensitive data and also to meet industry standards and regulations.

  • Reporting and analytics: PSPs provide businesses with detailed reports and analytics on transactions, aiding in financial management and strategic planning.

By managing these aspects, PSPs allow businesses to focus on their core operations without worrying about the complexities of payment processing.

Benefits of using a PSP

Working with a PSP offers businesses several advantages:

  • Wide variety of payment methods: PSPs help businesses accept various payment options, including credit cards, debit cards, and digital wallets, catering to different customer preferences. 

  • Enhanced security: PSPs offer advanced security protocols to protect against fraud and data breaches, ensuring safe transactions.

  • Simplified regulatory compliance: PSPs can help businesses adhere to regulatory requirements, reducing the complexity of compliance management.

  • Scalability: As your business grows, PSPs can scale their services to handle increased transaction volumes and support international payments.

  • Improved cash flow: Efficient processing and quicker settlements can enhance cash flow, benefiting the overall financial health of your business.

We no longer live in a world where cash is the most preferred means of payment; instead, people expect to make electronic payments that are easy, secure and quick. From shopping online, eating out to subscribing to services, consumers have become more demanding when it comes to payment options.

This shift is important for businesses, particularly those doing business online. On one hand, offering multiple payment options can enhance customer satisfaction and expand market reach. On the other, navigating the complexities of payment processing, security protocols, and regulatory compliance can be daunting. This is where Payment Service Providers (PSPs) come in.

Understanding the role and benefits of PSPs is crucial for any business that wants to succeed in the current market. The right PSP not only simplifies the payment process but also enhances security, ensures compliance with industry standards, and provides valuable insights through reporting and analytics.
In this guide, we will explain what PSPs are, how they work and what factors to consider when selecting a PSP for your business.

What is a PSP (payment service provider)?

A payment service provider acts as an intermediary between merchants and the financial system, helping businesses accept various payment methods such as credit and debit cards, bank transfers, and digital wallets. By connecting merchants to the broader financial infrastructure, PSPs facilitate the processing of electronic payments, ensuring transactions are completed securely and efficiently.

What's the purpose of a payment service provider?

The main goal of a PSP is to simplify the payment process for companies. Here’s how a payment service provider helps businesses:

  • Payment acceptance: PSPs help merchants accept a wide range of payment methods and help cater to diverse customer preferences.

  • Transaction processing: They take care of the authorization, processing, and settlement of transactions, ensuring merchants receive payments from their customers.

  • Security and compliance: They implement strong security features to avoid exposure of sensitive data and also to meet industry standards and regulations.

  • Reporting and analytics: PSPs provide businesses with detailed reports and analytics on transactions, aiding in financial management and strategic planning.

By managing these aspects, PSPs allow businesses to focus on their core operations without worrying about the complexities of payment processing.

Benefits of using a PSP

Working with a PSP offers businesses several advantages:

  • Wide variety of payment methods: PSPs help businesses accept various payment options, including credit cards, debit cards, and digital wallets, catering to different customer preferences. 

  • Enhanced security: PSPs offer advanced security protocols to protect against fraud and data breaches, ensuring safe transactions.

  • Simplified regulatory compliance: PSPs can help businesses adhere to regulatory requirements, reducing the complexity of compliance management.

  • Scalability: As your business grows, PSPs can scale their services to handle increased transaction volumes and support international payments.

  • Improved cash flow: Efficient processing and quicker settlements can enhance cash flow, benefiting the overall financial health of your business.

We no longer live in a world where cash is the most preferred means of payment; instead, people expect to make electronic payments that are easy, secure and quick. From shopping online, eating out to subscribing to services, consumers have become more demanding when it comes to payment options.

This shift is important for businesses, particularly those doing business online. On one hand, offering multiple payment options can enhance customer satisfaction and expand market reach. On the other, navigating the complexities of payment processing, security protocols, and regulatory compliance can be daunting. This is where Payment Service Providers (PSPs) come in.

Understanding the role and benefits of PSPs is crucial for any business that wants to succeed in the current market. The right PSP not only simplifies the payment process but also enhances security, ensures compliance with industry standards, and provides valuable insights through reporting and analytics.
In this guide, we will explain what PSPs are, how they work and what factors to consider when selecting a PSP for your business.

What is a PSP (payment service provider)?

A payment service provider acts as an intermediary between merchants and the financial system, helping businesses accept various payment methods such as credit and debit cards, bank transfers, and digital wallets. By connecting merchants to the broader financial infrastructure, PSPs facilitate the processing of electronic payments, ensuring transactions are completed securely and efficiently.

What's the purpose of a payment service provider?

The main goal of a PSP is to simplify the payment process for companies. Here’s how a payment service provider helps businesses:

  • Payment acceptance: PSPs help merchants accept a wide range of payment methods and help cater to diverse customer preferences.

  • Transaction processing: They take care of the authorization, processing, and settlement of transactions, ensuring merchants receive payments from their customers.

  • Security and compliance: They implement strong security features to avoid exposure of sensitive data and also to meet industry standards and regulations.

  • Reporting and analytics: PSPs provide businesses with detailed reports and analytics on transactions, aiding in financial management and strategic planning.

By managing these aspects, PSPs allow businesses to focus on their core operations without worrying about the complexities of payment processing.

Benefits of using a PSP

Working with a PSP offers businesses several advantages:

  • Wide variety of payment methods: PSPs help businesses accept various payment options, including credit cards, debit cards, and digital wallets, catering to different customer preferences. 

  • Enhanced security: PSPs offer advanced security protocols to protect against fraud and data breaches, ensuring safe transactions.

  • Simplified regulatory compliance: PSPs can help businesses adhere to regulatory requirements, reducing the complexity of compliance management.

  • Scalability: As your business grows, PSPs can scale their services to handle increased transaction volumes and support international payments.

  • Improved cash flow: Efficient processing and quicker settlements can enhance cash flow, benefiting the overall financial health of your business.

What makes a good PSP?

The right payment service provider (PSP) should be a partner who will support your growth by guiding and refining your payments strategy. That means bringing you closer to your customers, allowing you to offer the payment methods they prefer and making international expansion ­– and payments – effortless. They should take care of the entire electronic payment transfer process, provide a clear overview of your payments, and offer advanced technology, security, and support.

The right payment service provider (PSP) should be a partner who will support your growth by guiding and refining your payments strategy. That means bringing you closer to your customers, allowing you to offer the payment methods they prefer and making international expansion ­– and payments – effortless. They should take care of the entire electronic payment transfer process, provide a clear overview of your payments, and offer advanced technology, security, and support.

The right payment service provider (PSP) should be a partner who will support your growth by guiding and refining your payments strategy. That means bringing you closer to your customers, allowing you to offer the payment methods they prefer and making international expansion ­– and payments – effortless. They should take care of the entire electronic payment transfer process, provide a clear overview of your payments, and offer advanced technology, security, and support.

The right payment service provider (PSP) should be a partner who will support your growth by guiding and refining your payments strategy. That means bringing you closer to your customers, allowing you to offer the payment methods they prefer and making international expansion ­– and payments – effortless. They should take care of the entire electronic payment transfer process, provide a clear overview of your payments, and offer advanced technology, security, and support.

How to select a payment service provider for your business

It can be hard to know exactly what to look for when choosing a PSP, so download our guide to discover more about everything they should offer to help your customers feel confident to buy and grow your online business, including:

Conversion-optimised checkout – A seamless, user-friendly checkout experience reduces friction and cart abandonment, increasing completed transactions. Look for a PSP that supports one-click payments, mobile-friendly design, and smart payment routing for higher authorization rates.

Leading and local payment methods – Offering a mix of global card networks, digital wallets, and region-specific payment options ensures customers can pay how they prefer. A PSP with strong omnichannel capabilities can unify online and in-store payments, enhancing the customer experience.

Rapid reconciliation – Timely and accurate settlement of funds is crucial for cash flow management and financial transparency. A PSP should provide real-time reporting, automated reconciliation tools, and easy integration with accounting systems.

Transparent pricing and contracts – Hidden fees and rigid contracts can erode profits, so opt for a PSP with clear, competitive pricing and flexible terms. Understanding transaction fees, chargeback policies, and potential extra costs helps businesses make informed decisions.

Download Mollie’s guide to choosing a payment service provider.

It can be hard to know exactly what to look for when choosing a PSP, so download our guide to discover more about everything they should offer to help your customers feel confident to buy and grow your online business, including:

Conversion-optimised checkout – A seamless, user-friendly checkout experience reduces friction and cart abandonment, increasing completed transactions. Look for a PSP that supports one-click payments, mobile-friendly design, and smart payment routing for higher authorization rates.

Leading and local payment methods – Offering a mix of global card networks, digital wallets, and region-specific payment options ensures customers can pay how they prefer. A PSP with strong omnichannel capabilities can unify online and in-store payments, enhancing the customer experience.

Rapid reconciliation – Timely and accurate settlement of funds is crucial for cash flow management and financial transparency. A PSP should provide real-time reporting, automated reconciliation tools, and easy integration with accounting systems.

Transparent pricing and contracts – Hidden fees and rigid contracts can erode profits, so opt for a PSP with clear, competitive pricing and flexible terms. Understanding transaction fees, chargeback policies, and potential extra costs helps businesses make informed decisions.

Download Mollie’s guide to choosing a payment service provider.

It can be hard to know exactly what to look for when choosing a PSP, so download our guide to discover more about everything they should offer to help your customers feel confident to buy and grow your online business, including:

Conversion-optimised checkout – A seamless, user-friendly checkout experience reduces friction and cart abandonment, increasing completed transactions. Look for a PSP that supports one-click payments, mobile-friendly design, and smart payment routing for higher authorization rates.

Leading and local payment methods – Offering a mix of global card networks, digital wallets, and region-specific payment options ensures customers can pay how they prefer. A PSP with strong omnichannel capabilities can unify online and in-store payments, enhancing the customer experience.

Rapid reconciliation – Timely and accurate settlement of funds is crucial for cash flow management and financial transparency. A PSP should provide real-time reporting, automated reconciliation tools, and easy integration with accounting systems.

Transparent pricing and contracts – Hidden fees and rigid contracts can erode profits, so opt for a PSP with clear, competitive pricing and flexible terms. Understanding transaction fees, chargeback policies, and potential extra costs helps businesses make informed decisions.

Download Mollie’s guide to choosing a payment service provider.

It can be hard to know exactly what to look for when choosing a PSP, so download our guide to discover more about everything they should offer to help your customers feel confident to buy and grow your online business, including:

Conversion-optimised checkout – A seamless, user-friendly checkout experience reduces friction and cart abandonment, increasing completed transactions. Look for a PSP that supports one-click payments, mobile-friendly design, and smart payment routing for higher authorization rates.

Leading and local payment methods – Offering a mix of global card networks, digital wallets, and region-specific payment options ensures customers can pay how they prefer. A PSP with strong omnichannel capabilities can unify online and in-store payments, enhancing the customer experience.

Rapid reconciliation – Timely and accurate settlement of funds is crucial for cash flow management and financial transparency. A PSP should provide real-time reporting, automated reconciliation tools, and easy integration with accounting systems.

Transparent pricing and contracts – Hidden fees and rigid contracts can erode profits, so opt for a PSP with clear, competitive pricing and flexible terms. Understanding transaction fees, chargeback policies, and potential extra costs helps businesses make informed decisions.

Download Mollie’s guide to choosing a payment service provider.

Grow your way with Mollie

At Mollie, we make accepting online payments effortless. As a leading payment provider, we handle the entire payment process, allowing you to easily accept credit and debit cards, as well as locally preferred European payment methods. We integrate seamlessly with major ecommerce platforms, with no monthly fees - you only pay for successful transactions. With advanced security and dedicated support teams who speak your language, we ensure a smooth and secure payment experience. Get in touch today to see how we can help your business grow.


At Mollie, we make accepting online payments effortless. As a leading payment provider, we handle the entire payment process, allowing you to easily accept credit and debit cards, as well as locally preferred European payment methods. We integrate seamlessly with major ecommerce platforms, with no monthly fees - you only pay for successful transactions. With advanced security and dedicated support teams who speak your language, we ensure a smooth and secure payment experience. Get in touch today to see how we can help your business grow.


At Mollie, we make accepting online payments effortless. As a leading payment provider, we handle the entire payment process, allowing you to easily accept credit and debit cards, as well as locally preferred European payment methods. We integrate seamlessly with major ecommerce platforms, with no monthly fees - you only pay for successful transactions. With advanced security and dedicated support teams who speak your language, we ensure a smooth and secure payment experience. Get in touch today to see how we can help your business grow.


At Mollie, we make accepting online payments effortless. As a leading payment provider, we handle the entire payment process, allowing you to easily accept credit and debit cards, as well as locally preferred European payment methods. We integrate seamlessly with major ecommerce platforms, with no monthly fees - you only pay for successful transactions. With advanced security and dedicated support teams who speak your language, we ensure a smooth and secure payment experience. Get in touch today to see how we can help your business grow.


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MollieGrowthPayment service providers: Explained
MollieGrowthPayment service providers: Explained
MollieGrowthPayment service providers: Explained