Let’s start by talking about what “successful” means to us when it comes to payment service provider business models.
We’ve been working in the realm of global card processing for the e-commerce market for decades. But how do you translate success into operational excellence? After all, a successful payment service provider should be reliable, with a solid grasp on business, finance and risk management, and completely compliant with all changing policies and regulations in the industry.
Today, PSPs are facing more and more competition from new players in the market who are highly-experienced in e-commerce. But with so many opportunities for cross-border e-commerce, retailers are discovering new avenues for revenue as they expand their online business to new markets. Within this new environment, a successful PSP is challenged by local customer preferences, foreign industries and regulations, and by the card scheme policies in the different regions they operate.
Here’s three basic criteria for a successful payment service provider model:
Get regulatory approval for the services you provide
If you want to set up a PSP company, you should first know all the offerings and services you’ll be providing so you can understand the kind of license you need to get up and running.
Be PCI DSS compliant
The direct benefits of having this in place are too important to forget. With this, you’ll be able to offer trustworthy secure systems, avoiding any data breaches or payment card data theft. For all merchants’ customers who accept credit cards, you’ll become a reliable partner while keeping their customers’ data secure. This is one of the most important features you can provide within an increasingly globalized online payments market.
Plus, receiving your PCI DSS Compliance Certificate also proves that your company has a certain level of structure and maturity to deal with the complexity in the payment processing industry. The PCI Data Security Council will provide you with a set of tools and measurements and an ongoing framework to set up and maintain a sound payment card data security process. This covers prevention, detection and proper reactions to security incidents.
Observe the market and understand your peers
Who are they? What services and features do they offer? How can you differentiate yourself? In today’s global e-commerce landscape, you should have a down-to-earth approach and not expect that you’ll be able to compete with the likes of PayPal or Google Wallet right out of the gate. As a newcomer, your most important competitor might be just around the corner, in your region, or on the other side of the world. Pay attention to your competitors’ strengths, pricing policies and innovations. Understand what makes you unique and stand out among the rest, so you’re the first choice out of all the payment service providers in the market.
We're a global payment processor that’s driven by a passion for technology and simplifying payments. With one single, secure platform, we power transactions for businesses across the globe. We know our way around the latest techniques in artificial intelligence, omnichannel strategies and advanced fraud prevention. The dedication to our clients shows – this is where we truly make a difference.