Choosing a powerful payment service provider (PSP) is critical for a marketplace. A PSP doesn't just process payments, it optimises the merchant and shopper experience, improves conversion rates and builds customer loyalty.
Discover why improving your PSP can transform your marketplace and maximise its profitability.
1. Payment method diversity
Offering a variety of payment methods is essential to attracting and retaining customers to your marketplace. A study by Accenture found that 56% of consumers will abandon a purchase if their preferred payment method is not available. Whether it's credit cards, e-wallets such as PayPal and Apple Pay, BNPL (Buy Now Pay Later), or local methods specific to each market, meeting the diverse preferences of your customers will increase your sales. For example, bank cards are widely used in France, bank transfers are common in Germany, and iDeal is a popular payment method in the Netherlands. A PSP that offers a wide range of payment methods to suit your customers' preferences will significantly improve your conversion rate and keep your customers happy.
A smooth checkout experience is critical to reducing shopping cart abandonment. According to the Baymard Institute, the overall shopping cart abandonment rate is around 70%. Customers will likely abandon their shopping carts if the checkout process is slow or complex. An effective PSP delivers a fast, reliable, secure checkout experience, minimising failed transactions and shopping basket abandonment. The result is a significant increase in your conversion rate and greater customer satisfaction.
3. Personalised payment experience
A flexible PSP allows you to tailor payment flows to the specific needs of your marketplace's industry and audience segment, whether special promotions, loyalty programs or adapted payment methods. This customisation improves the user experience, conversion rate, and merchant satisfaction.