The Rise of Digital Payments
Let’s rewind time.
A decade ago, would anyone believe if we said that you could order and buy just about anything under the sun by sitting in front of your computer or mobile? Hardly!
The digital payments industry is growing, and quite fast, for that matter.
The global payments industry has witnessed many strides. For instance, mobile wallets, PSP payments, crypto, real-time transactions. It goes without saying that payment service providers have had a crucial role to play in this.
What is a Payment Service Provider (PSP)?
PSPs are an integral part of the payments ecosystem, and they empower businesses of all sizes to smoothen their transactions flow.
Payment Service Providers are third-party authorized financial entities that facilitate transactions between two parties, such as merchants and customers.
A PSP enables businesses to transact securely and instantly with a wide range of payment methods such as credit/debit cards, bank transfers, e-wallets, UPI, and more! They take care of end-to-end payment for your business — right from the time when a customer enters their payment details, completes the transaction successfully, and the funds are settled to your accounts.
For instance, VallettaPay processes your payments.
Payment Service Provider is the umbrella term that holds Payment Gateways and Payment Aggregators together.
Payment Aggregators are financial entities that enable e-commerce businesses and merchants to collect payments from their customers using various payment methods.
In the case of a payment aggregator, the merchants don’t require to set up a payment integration system of their own. Instead, Payment Aggregators connects merchants with buyers.
On the other hand, Payment Gateways provide the technical infrastructure to route & facilitate online payments without handling the funds.
In conclusion, a payment aggregator holds contracts with the banks and regulated institutions for processing payments. On the other hand, a payment gateway deals directly with the merchant. Unlike PGs, a payment service provider offers a 360-degree service; not just processing payments but also collecting funds.
Payment service providers partner up with banks to enable businesses to transact with their customers, partners, and vendors. PSPs evaluate whether the transactions are authentic, ensure anti-fraud measures, and approve the same.
VallettaPay is here to serve you. Get in touch today.
