At the end of February, The Paypers published a report: PSP ecosystem explained and global mapping of key players.
The mapping starts with distinguishing 4 principal sections of payment providers (Payment Service Providers, Payout Solution Providers, PSP Enablers, and PSP Connectors) and proceeds with a complete summary of the industry.
All the PSPs in this study have been analyzed based on the variables presented in the report. The variables are classified into categories and based on a selection of variables (Geographical presence,Omnichannel/Pure e-commercePayment capabilities). The research covers PSPs, Payout Solution Providers (which can be PSPs), PSP enablers, and PSP connectors.
Today we want to share an interesting point of views from the paper.
1.Payment Service Providers
They offer entities of merchants for accepting electronic payments through a variety of payment methods through their partnerships with acquiring banks.
While PSPs began implementing connections to process the payments in the Internet channel, they allow a full variety of further financial assistance to their clients. A PSP is an aggregator of connectivity and financial progress.
2.Payout Solution Providers
Most often these are companies that offer mass payments solutions. A similar payment infrastructure is a preferred method of integration. In this way, a business can ensure security in the customers’ payment process.
3.PSP enablers
These are payment services that combine into different components. The main goal is to optimize several processes. The services provided by PSP enablers vary from offering access to card acquirers and Alternative Payment Models (APMs), to processing and collection services for APMs, and a wide range of other value-added services.
4.PSP connectors
PSP connectors are a new series of technology solutions vendors, offering merchants the ability to connect (through an API) with multiple PSPs. These connectors optimize the payment process. Merchants thus optimize and save costs.
The Payment Service Provider segment in the payments value chain is growing, and the increase process can be carefully defined in two important words: dynamism and fragmentation. Understanding how the business currently includes hundreds of PSPs, staying on top of the game is pretty challenging, and it will ultimately need new strategies.
