Why should an online retailers use multiple Payment Service Providers simultaneously?
As an online retailer, you face the challenge of offering different payment options for your customers. To simplify this process, it makes sense to use several payment service providers (PSPs) at the same time. This article explains the key arguments for doing so.
Minimising risks
If you only use one PSP, you are dependent on it. If this PSP fails for any reason, payments can no longer be accepted. By using several PSPs, you spread the risk over several providers and ensure greater stability.
Cost savings
By using several PSPs, you can choose the cheapest offers and save costs. However, you should be aware that the use of multiple providers can also be associated with additional costs such as increased effort when reading in reconciliation files.
Customer satisfaction
Every customer has different preferences when it comes to payment options. By using multiple PSPs, you can offer customers a wider choice of different payment methods and increase their satisfaction.
Internationality
If you only use one PSP, it may not be supported in all countries and regions. By using multiple PSPs, it is possible to adapt the payment options to the needs of customers in different regions.
Innovation
The competition between different PSPs ensures that they are constantly evolving and offering new functions and features. By using multiple PSPs, you can benefit from these innovations and keep one’s e-commerce platform up to date.
Fraud protection
By using multiple PSPs, you can increase fraud protection. Different providers use different methods to combat fraud and offer greater protection against fraudulent transactions.
Summary
In summary, the use of multiple PSPs has many advantages for online retailers. In addition to increased reliability and cost savings, you also benefits from higher customer satisfaction, greater internationality, constant innovations and improved fraud protection. However, when using several PSPs, you should also make sure that they can be integrated into your own system and that no unnecessary costs will be generated. This is where collana pay comes in, providing significant cost savings through its pre-existing integration with major PSPs. By utilizing PSPs from various clients with different business scenarios, the process quality is at its highest level – practically at an “enterprise level.”
For online retailers, it is therefore advisable to utilize different PSPs in order to leverage the benefits and enhance their payment capabilities. By selecting the appropriate PSPs, you can enhance customer satisfaction and boost the success of your e-commerce business.
Contact us if you have any questions about choosing the right PSPs and payment methods.
