Marketplaces: 10 reasons to upgrade your current PSP

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.

2. Reduce shopping cart abandonment

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.

4. Support for international expansion

A PSP with a wide range of currencies and a pan-European licence will support your international expansion. Allowing customers to pay in their preferred currency can significantly improve their user experience and increase conversion rates. A pan-European licence also ensures that your PSP complies with European regulations, guaranteeing secure and smooth European transactions.

5. Transparent pricing

A PSP with a transparent and competitive pricing policy helps you to control your costs better, optimise your pricing and maintain stable and predictable financial management. By reducing hidden expenses, you can maximise your profit margins and offer more attractive prices to your customers and merchants.

6. Easy integration and maintenance

An easy and intuitive PSP to integrate means developers can focus on improving your marketplace rather than wasting time on complex integration (and maintenance). A payment solution that's easy to integrate and update speeds up the deployment of new features, reduces errors, and ensures excellent compatibility with your existing systems. Choosing a payment solution that works with the industry's major players, whether they are connectors or technological allies, also helps you to save resources and time.

7. Tool stability and reliability

Choose a PSP that can handle high volumes of transactions without interruption or security breaches, even during peak connection times. The system's stability and availability will build customer and merchant trust and prevent a loss of revenue from service interruptions or user frustration.

8. Responsive and efficient customer support

A PSP with good support, fast response time and relevant solutions helps maintain a positive user experience. Good customer support frees your teams to focus on higher value-added tasks like innovation and platform improvement.

9. Enhanced security and compliance

A PSP that uses advanced encryption technologies and complies with security standards such as PCI DSS protects your users' information and builds their trust in your marketplace. Robust security measures prevent fraud and cyber-attacks, ensuring optimum protection of sensitive data. Adhering to local and international regulations mitigates the risk of sanctions and significantly boosts your credibility.

10. Flexibility and customisation

Choosing a PSP with scalable and customisable solutions allows you to tailor your payment services to your marketplace's needs. The ability to tailor your payment offering to meet customer preferences and market demands will help you grow. Greater flexibility means you can innovate quickly and adapt to market changes.

Enhancing these aspects with a provider like Lemonway can transform your payment management into a lever for growth and loyalty. With scalable functionality, robust security, and efficient handling of local and international payments, Lemonway streamlines your transaction management and facilitates seamless expansion. To discover how Lemonway can meet your needs, please get in touch.