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Case study

The path to becoming a trusted and relevant payment service provider

Friday 27 April 2018 | 08:44 AM CET

What are the main attributes that a payment service provider should encompass in order to become trusted and relevant? Payneteasy has identified some of them

It is no secret that the payment industry is evolving at a rapid pace. With new and dynamic features constantly being introduced, payment service providers can find it quite challenging to stay on top of the new trends and technology available. However, merchants don't keep away from complex demands, and, if you want to position yourself as a leading payment provider, you need to be able to deliver the opportunities and capabilities that the industry requires.

Choose between in-house vs. white label solutions

The approximate cost of launching your own payment solution starts from 3-4 million USD, and this is just the starting point. Ongoing development requires a large investment as well, not to mention the operating costs of such a business. Take for example Adyen, the payment gateway that built their impressive, feature-rich solution in-house. When you build your product from scratch, you can customise it so that you can fully exploit every payment opportunity. However, Adyen spent over a billion USD in development costs, and most PSPs and other banks or financial institutions have no interest in investing such funds or spending this amount of time to go-to-market.

The alternative to lengthy R&D proceedings and billion dollar investments is to white-label a payment platform. You will receive a payment suite with the tools and features you need in order to accept payments. However, if you want more for your business and you have specific needs to address, these bodies unfortunately cannot customise or offer you this layer of flexibility.

Think differently

Choosing between different almost good enough options is a compromise you don't have to make. You don't need to settle for a global platform that is over-boarded with thousands of clients, lacking in personal service, that causes loss of profitability on your side, due to their inflexibility. You don't need to change your body for the suit to fit, you need to find the tailor who will customise it for you. This is the same in the payment industry. Instead of white-labeling a global solution, go straight to the technology platform provider that has just the flexibility layer that you are looking for.

When taking this business-savvy decision, there are some imperative factors you should consider. Based on our research, consultations, and use cases, we've identified the three most recurring client requests, and the most significant attributes that a payment platform provider should encompass.

1. Speed of integration

Time is money in the business world, and, more often than not, companies don't have the time for lengthy integration processes. The ever-evolving payment industry moves fast, and, by the time many platform providers get you up and running, half a year has passed and you have already missed strategic opportunities. Most platform providers don't hesitate to convey their advantages, so looking for those that advertise and claim their fast integrations as their strong suite is a good way to start.

2. Customisation capabilities

As one of our clients said, "Nowadays, the payment industry is all about customisation" - we believe this to be accurate. You cannot claim to maximise merchant profitability if you can't offer them a customisable solution for every potential payment interaction. Customisation should be fast, simple, and effective, and, in order for this to happen, the technology has to be extremely sophisticated, designed and developed with customisation in mind. For example, if you’re dealing with a high-risk merchant partner with a special payment flow scheme (such as enabling a third party system integration for a transaction processing) there could be strong anti-fraud requirements into place, which specify that the traffic must first go through that third party and a response must be sent out, before the acquirer gets it. Alternatively, there could be a case when your client would like to open a new greenfield or launch a project of a P2P loan system, which requires an e-wallet system, in addition to classic payment methods. If you’re unable to cater to these needs, you could lose the merchant. However, if you can deliver without losing time, then you not only will retain the merchant, but you will boost its profitability, and sequentially, your own.

3. Innovative technology

Once you have fast integration and customisation capabilities, you also want to ensure that your platform provider is leading your business to an innovative road. Modern day merchants also want to position themselves as global, innovative, and evolved from a technological point of view, and, as their payment provider, you should enable that. For example, take a situation when your merchant has recently understood the benefits of accepting cryptocurrencies and wants to start implementing them immediately. You don't have the time to invest in this development, but, hopefully, your platform provider is already one step ahead and has the necessary infrastructure to integrate you with this solution instantly. Therefore, it is crucial to find the platform provider that sets the trends, not just follows them.

In conclusion, the payment industry is very dynamic, demands are increasing, and new levels of profitability are possible with sophisticated technology. Developing your own technology is lengthy and very expensive, and white labeling an existing solution could be compromising your potential. Going straight to the technology platform provider has proven to be the most cost-effective and efficient path to a speedy go-to-market and optimising business solution. Choosing the right technology provider is key, and can be the driving force behind the success of your business. Smart decisions between providers are based on their ability for fast integrations, customisation, and innovating technology. A well-managed flexibility layer enables growth and can be what sets them apart from their less effective competitors, and exactly the added value that boosts and empowers your business.

About Kirill Zlatolinskiy

Kirill Zlatolinskiy, the founder of Payneteasy, has more than 15 years of experience in payments and technologies. Working at the Payneteasy platform, he built a team of high-skilled payment enthusiasts and professionals, which have been working together for 10 years already, developing and improving top payment technologies.


About Payneteasy

Payneteasy provides PSPs, banks, fintech and more with the cutting-edge payment technologies. When working with Payneteasy, you can entrust us with all the issues related to payments, not wasting your own resources on the technology development and integrations. Fast integrations, flexible customisations and up to date payment innovations will empower your business.