The Beginning of a Simplified Solution
Following this period, online merchants learned that tapping into the capabilities of a Payment Service Provider (PSP) wasn’t such a bad idea. PSPs could be convenient middlemen between a merchant and the payment world, offering vertical connections with acquirers and alternative payment methods (APMs).
Not only do they promise an easy start and fast market entry, but they can also provide businesses with a decent suite of tools to easily steer payments. These solutions allow merchants to become hands-free in their relationships with the payment partners they need.
However, the unfortunate truth is that pairing up with a single PSP leaves merchants vulnerable to potential provider downtimes.
In addition, even if a PSP can offer a strong selection of payment connections, merchants will often struggle to balance between offering local specialization and global coverage.