Importance of Payment Service Providers (PSP)

Customers want flexibility and choice of payment processors where possible. This is especially true when looking at business transactions and managing merchant accounts as a cross-border e-commerce shipper. 

Generally speaking, the more payment types, rather mobile payment or even with virtual cards, boosts customer experience. And in turn, it means that it’s more likely a customer will complete the transaction. An August 2022 press release detailing the upcoming global decline of cash payments shared that “Cards and digital wallets are the most common payment instruments in most regions worldwide. Digital payments in the Asia-Pacific region accelerated, with China being one of the frontrunners toward a cashless society.” 

Important, strategic choices have to be made regarding what payment service provider (also known as merchant of record) to use. Looking at an online payment transaction from the front-end is one thing, but, what about the other side, including direct bank transfers accounts or refunds and chargebacks? How do you choose the right merchant of record (MOR) and what differences do they offer? This article will cover the basics of payment services providers and what to look for.

What is a Payment Service Provider?

Payment service providers connect merchants to more extensive financial systems. This enables companies to accept certain payment types from their customers. Some typical payment options include card transactions, Apple Pay, and more. 

Thus, payment service providers create a straightforward paying experience for the seller of record and their customers. In essence, the right MOR pay model is crucial to keep e-commerce businesses running behind the scenes.

Key Characteristics of Quality PSP MOR Pay Type

Besides simplifying the payment process, working with such companies and service providers yields these additional benefits:

  • Automation – Payment service providers function as the process operator for your customers’ transactions, using automation along the way. This saves your resources and time, and in turn, streamlines your transactional process. Well-known payment types and popular service providers, such as PayPal, Venmo or Zelle, also enable automated recurring transactions for monthly subscriptions.This removes much administrative and operative work that otherwise went into completing these multi-currency transactions manually, especially for repeat purchases within MOR pay types.
  • Reliability and Issue-resolving – A large and experienced merchant of record typically provide guarantees of service and are usually seen as more reliable. They often work to reduce missing revenue following unsuccessful payments or resolve problems themselves. Disputes are handled by the payment service providers which again, contributes to your resource efficiency as you do not need to handle any MOR pay sticky situations yourself.
  • Transparency and Clear Communication – Most payment service providers are also fully transparent. Their complete clarity in all activities combines with straightforward communication. More visibility helps build a strong and reliable relationship with the seller of record. Plus, they often provide 24/7 support meaning that issues can be resolved quickly, should they arise. Customers in turn should expect minimum downtime and are less likely to bounce before completing their order.

Now that you have insight on some of the key benefits of using a a particular payment type and service provider, you might ask yourself, why shouldn’t I use one?’

Of course, everything comes with downsides or costs. Payments service providers usually charge you a fee per transaction. Some payment gateways might even charge additional fees such as initial partnership fees or just a monthly fee.

Payment service providers help contribute to business reliability and flexibility. Remember that the benefits of using a well-known, professional payment service provider outweigh the cost or investment needed.


The financial technology industry is rapidly growing and resulting in the introduction of many innovative payment solutions. Customer payment types preferences are also changing. Everyone from seller to consumer and the  merchant of record and seller of record is impacted by these changes.

For instance, there is a clear increase in completed mobile, contactless, or cryptocurrency-based transactions. Even ‘buy now, pay later’ is now mainstream, and it all indicators industry-wide growth. 

Streamline Your Payment Types and MOR Pay Compliance With ModusLink

It is important to keep track of the newest and most popular developments in the payment world. Keeping up means you know how to maintain a competitive advantage, and in fact, many businesses often seek external professional advice to maximize the efficiency of their MOR pay networks.

Would you like to know more about how your Business can improve by staying up to date with the latest innovations regarding payment types and payment service providers? Talk to a ModusLink Expert today by clicking here!


(August 2022) Global Online Payment Methods 2022 . yStats GmbH & Co. KG, Accessed October 11, 2022, From

R-07_How e-commerce has changed CRM

Fibontix. (2022, 9 januari). Top Payment Service Providers | Key Factors & What to Expect. Fibonatix. Geraadpleegd op 11 februari 2022, van

Innovative Payment Solutions Across the FinTech Landscape. (2022, 7 januari). FinTech Magazine. Geraadpleegd op 11 februari 2022, van

The Top 11 Online Payment Service Providers in 2021. (2020, 27 november). WildApricot Blog. Geraadpleegd op 11 februari 2022, van

What Are Payment Service Providers? – Insights | Worldpay from FIS. (z.d.). FIS Global. Geraadpleegd op 12 februari 2022, van




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