As payment is making its shift to digital, the role of Payment Service Providers (PSP) increases. To make sure the payment trajectory goes fast and without friction, a couple of things are important. For starters: every transaction with every payment method at any place and any time should run smoothly, both online as well as offline.

Characteristics of Payment:

  • Payment convenience / customer convenience
    Digital payment cannot be a threshold. This means that every transaction should run quick and smooth, either in an online or an offline space. 
  • Mobile payment
    an increasing amount of customers shop online. The possibility to mobile payment has therefore also become more important. 
  • Security and privacy
    - PSD2
      A European guide that should make payment more overt, more convenient, more competing, and safer within the European Union;
    - SCA
      Strong client authentication that should have at least two of the following three elements: something you know (password), something you own (could be a phone), and something you are (fingerprint); 
    - 3DS2
      An authentication solutions that takes care of a better shopping experience and less fraud. The person paying needs to take a little step so the bank is able to verify the payers identity.
  • Service
    Payment is part of service targeted sales. This not only entails payment, but also returning. If one of those steps does not run smoothly, you lose clients.
  • Unified commerce
    The fusion of online and physical store. When, for example, the brick and mortar store is out of stock, the client can directly order online and pay in the physical store.

There are basically two PSSs: those who take care of the technical aspect and outsource the financial parts, and the PSPs who have it all in house, from the technical to the financial aspects.

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