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What is a payment provider?

You need a payment provider to offer online payment methods. A payment provider is also called a payment service provider (PSP). A payment provider regulates payment traffic for a website.

In many cases, such a payment provider offers multiple payment options so that you can let visitors pay with, for example, iDEAL, PayPal and Bancontact. A payment provider, as it were, bundles different payment methods so that you can offer them on your website in one go.

What does a payment provider do?

A payment provider ensures that a payment is processed at a financial organization. This can be a bank, but also, for example, a credit card organization or another payment provider.

A payment provider offers many advantages. Almost all web stores use a payment provider, including the major players. By having your payments go through a payment provider, you save a lot of extra administrative hassle. After all, it is not necessary to conclude a contract for each payment method. In many cases, the payment provider will arrange this for you.

In addition, you can assume that the payment process is safe and fast. The revenue model of a payment provider lies with the transactions. A payment provider therefore benefits 100% if the payment process runs smoothly.

What does it cost?

There are many different payment providers. But which one should you choose? The rates and customer service are often decisive.

In most cases, the payment provider charges transaction fees. In concrete terms, this means that they charge, for example, 25 cents per transaction. These transaction costs often differ per payment method. For certain payment methods you pay an additional percentage commission between 1 and 5%. In addition, be aware that some payment providers charge subscription fees or start-up costs.