Selecting the appropriate payments vendor holds crucial importance for businesses seeking growth, especially in the era of rising online transactions. A payment service provider (PSP) capable of seamless scalability and handling high transaction volumes is essential for growing businesses. While the Request for Proposal (RfP) process aids in evaluating a payments provider, we’ve outlined seven key considerations:
Regulations: As the payments market is expected to reach $175.8 billion by 2026, it’s vital to anticipate regulatory shifts, particularly in light of innovations like Open Banking and PSD2.
Conversion: Shopping cart abandonment rates nearing 70% emphasize the significance of a smooth payment process, with 32% of customers abandoning due to lengthy procedures. Offering diverse payment options and data-driven insights are crucial.
Pricing: Assess various fees (interchange, assessment, markup, processing), billing structures, and cost-effectiveness, ensuring affordability doesn’t compromise reliability.
New Technologies: Embrace innovations like Distributed Ledger Technology (DLT), blockchain, artificial intelligence, and cloud-based Payments-as-a-Service (PaaS) for improved speed and performance.
Anti-Fragility: The COVID-19 pandemic accelerated changes in customer behavior and payment methods. Choose adaptable vendors to navigate future market shifts effectively.
Reconciliation: Seek a payments vendor that offers fast and omnichannel reconciliation to ensure consistency and accuracy in financial records.
Building Trust: Security is paramount in digital payments, given the sensitive nature of financial data. Look for vendors investing in Digital ID functionality to protect against cyber threats.
In selecting the right provider, thoroughly assess cost, features, and the level of support and security provided to earn the trust of your customers.
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