May 8, 2020
Let’s start with explaining what a PSP offers and how that’s different from a cashier. A PSP or Payment Service Provider is essentially a third party that allows merchants to accept a variety of payments through a single channel. A PSP works with different payment processors to manage the monetary transaction from A to Z. However, from the moment the customer inputs their payment details through to when the money appears in the merchant’s bank account.
So what does a cashier software like Praxis offer and how do we fit in?
1. A PSP is a single solution while a cashier integrates all PSPs into a single interface – this is mission-critical for any company operating globally
The PSP makes it easy for you, the merchant, to accept and manage multiple payment types. While this is a very important function, this is its sole function.
A cashier solution like Praxis goes further by integrating multiple different PSPs into a single interface. This is especially relevant if you’re operating in multiple markets as not all PSPs work (or work the same) in all markets. In fact, it’s better to work with PSPs that specialize in local markets to ensure that your customers are getting the best user experience.
2. A PSP wants your volume; a strong cashier wants your business to grow and succeed
A cashier service like Praxis is PSP agnostic and our goal and focus is on your business – unlike a single PSP that’s looking for the majority of your volume. Merchants opt to use multiple PSPs to ensure the highest rate of acceptance for their customers. This not only ensures a better user experience which leads to increased customer loyalty but simply put – you’ll be able to process more payments which is what’s best for your bottom line. In fact, we’ll work with any PSP that you bring us if they’re not already in our ecosystem. We don’t play favorites.
3. A PSP is simply a payment gateway while a cashier solution offers all the supporting functionality to help you with operations and business management
The best way to think about it is that a PSP is the engine but the cashier is the car. First and foremost, you need the engine but without the car, you won’t go anywhere. The most “extras” a PSP will offer is basic security services and multi-currency functionality. That’s not enough support for your business. With a cashier like Praxis, you’ll benefit from our automated rules engines to help you gain the highest acceptance rates for your payments. Moreover, our software is designed to improve the implementation of your KYC and Risk Management policies.
4. A PSP can operate locally but it can’t think globally – a cashier can do both
A single PSP is only as good as its individual reach. This is why merchants operating in multiple countries know that they need to use more than one PSP. The more local the PSP, the better the customer experience. Praxis provides the missing link that connects the user, based on their geography, to the PSP that will convert the best. The Praxis cashier solution lets you set rules for automating payment processing by customer profile, geography and more, to ensure the highest acceptance rates. We’ll route your customer to the PSP that we know will work – this ensures that your payments are going through and your volume is growing as you expand your business globally.
5. A strong cashier grows with your business – A PSP continues to provide the same singular service
A PSP’s sole purpose is to help you process payments. While they might expand their offering by entering new markets, their core services will remain the same. A cashier like Praxis on the other hand, is focused on the changing and evolving needs of your business. We’re on top of changes in the industry as it pertains to risk and compliance and help you stay on top of the ever-changing regulatory landscape. We adapt our services based on the comprehensive needs of your business and offer you services that surpass payments processing.
Bottom line? Your business needs multiple PSPs to send and accept funds in the markets in which you’re operating. However, to ensure that these payments go through smoothly and that your business operations and optimized and protected, you need a partner that cares more about the amount of volume you’re processing and really listens and meets your ever-changing business needs. For that, you need a cashier like Praxis to help you optimize your PSP relationships.