Guide: The most important factors when choosing a payment provider

Choosing the right payment service provider can be complicated. The multitude of options available and the different requirements of the various business models do not make the decision-making process any easier. In order to make the most strategically flexible and sustainable decision, a number of factors need to be considered. These factors can make the difference between a smooth payment process and frustrated customers. In this blog post, the most important factors are presented.

In today’s digital business world, choosing the right payment provider is critical to a company’s success.
However, with the variety of options available and the different needs of each business, choosing one can quickly become a challenging task.
From cost to variety of payment options to data security, there are numerous factors to consider.
A well-thought-out decision can not only increase efficiency and customer satisfaction, but also boost sales and security.
This guide can help you identify the most important criteria and avoid common mistakes in order to choose the best payment provider for your business.

Variety of payment options

Today’s customers expect a wide range of payment options.
If a store does not meet these requirements, this can lead to abandoned purchases and have a negative impact on sales.
It is therefore important to choose a payment provider that supports a wide range of payment options.

PayPal Checkout gives you an effective all-in-one payment processing solution to drive more sales and conversions by allowing you to accept multiple payment methods online and in-store:

  • PayPal Wallet
  • PayPal installment payment or payment after 30 days1
  • Credit cards
  • Debit cards
  • Apple Pay
  • Google PayTM

International sales

Another point is that supporting local payment methods is particularly important for internationally operating companies.
Different payment methods are preferred in different regions.
For example, in some countries credit cards are the preferred payment method, while in other countries digital wallets or bank transfers are more popular.
A payment provider that supports these local preferences can help companies expand their reach and effectively tap into new markets.

Did you know?

International online stores that accept PayPal, in contrast to online stores that do not offer PayPal payments, record an average increase in sales of 146%.²

Simplicity of integration

In addition to supporting different payment options, the seamless integration of these options into the checkout process is also crucial.
The payment process should be simple and user-friendly to ensure a smooth and pleasant experience for the customer.
A well-integrated payment platform minimizes hurdles and allows the customer to pay quickly and securely.

At the same time, the payment provider should be able to connect seamlessly with the selected store system.
Thanks to the partnership between collana pay and PayPal, we have succeeded in creating a smooth integration that can be activated quickly and easily.

Transaction management

Managing all payments in one place gives you more control over your transaction data.
With the all-in-one PayPal Checkout solution, you get an overview of all transactions, sales and reports in one dashboard.
This allows you to better manage your cash flow and transfer money immediately to your PayPal business account.

Security and risk management

Security is another crucial factor.
Data breaches and card fraud can not only damage a company’s reputation, but also lead to significant financial losses.
A secure payment provider that proactively prevents fraud and complies with PCI DSS standards is therefore essential.

A reliable payment gateway and a provider that has integrated robust security measures can strengthen customer trust and minimize the risk of fraud.

Did you know?

79% of PayPal users surveyed are convinced that PayPal protects them from fraud.4

Because PayPal’s fraud and seller protection tools for eligible transactions ensure that you can focus on your business instead of worrying about fraud.
Fraud protection covers card payments and digital wallets.
With Seller Protection³, you’re also covered for PayPal payment methods for eligible transactions.

Conclusion

Choosing the right payment service provider requires thorough analysis and careful consideration.
The cost structure, the variety of payment methods offered and the security measures are decisive factors that can contribute significantly to the success of your company.
It is important to pay attention not only to the fees, but also to the quality of the support and the technical capabilities of the provider.

By avoiding common mistakes, such as neglecting security aspects or overestimating low fees, you can ensure that you choose a payment provider that meets your business needs and satisfies your customers.
A well-thought-out selection will not only increase the efficiency of your payment processes, but also build trust with your customers, contributing to the long-term growth and success of your business.

Steffen Joniak
Senior Manager Partner Business Development
sjoniak@paypal.com / Linkedin

¹Qualification and availability dependent on dealer status, industry and integration.
Customer availability subject to creditworthiness.
Apple, Apple Pay, Apple Wallet, Apple Watch, iPhone, iPad, and Mac are registered trademarks of Apple Inc.
Google Pay is a trademark of Google LLC.
² ACA Research, commissioned by PayPal, November 2022.
Consumer study consisting of a 15-minute online survey in 12 different markets (BE, FR, DE, GR, IE, IL, IT, NL, PO, ES, SE, UK) among n=15,221* consumers aged 18-75 from June 15 to July 22.
Additional data collection between August 26 and September 9 and September 13-18.
Note: The total sample for France and Germany includes additional consumers from additional studies on the topic of “pay later” or cross-border shopping.
Base: All consumers aged between 18 and 75, n=13,177.
Conditions and exceptions apply to chargeback protection.
Fees also apply.
Chargeback protection can be used for accounts registered for extended credit and debit card payments.
You can find the conditions here.
4 Nielsen study on behalf of PayPal, Nielsen Attitudinal Survey of Germany (October 2023) with 4,120 recent (last 2 weeks) purchases from large businesses, including 2,000 PayPal transactions and 2,120 transactions with other payment methods.
Base: n (PayPal users) = 3,388.

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