Payment service provider(PSP)
E-commerce
E-commerce
A payment service provider (PSP) handles payments in your webshop or app: iDEAL, card, Bancontact, PayPal and buy-now-pay-later, including settlement and payout.
Well-known providers in the Netherlands are Mollie, Adyen, Stripe and Buckaroo. You choose on available payment methods, per-transaction fees, payout terms, integrations with your shop and accounting, and checkout experience.
For a Dutch webshop iDEAL is often the most important method; if it is missing or the payment step is slow, you see it immediately in abandoned orders.
In practice
Choosing on transaction fee alone. A few cents of difference does not offset revenue lost to missing payment methods or a clunky payment step.
Related terms
- CheckoutThe checkout is your shop's payment flow: from cart to confirmation. This is where most of the revenue you almost had disappears.
- Cart abandonmentCart abandonment is when someone adds products but doesn't complete the order. In webshops this happens to the majority of carts.
- E-commerceE-commerce covers everything around selling products or services online: the store, payment, stock, shipping and the service afterwards.
- ShopifyShopify is a hosted e-commerce platform: you rent the store software, hosting, security and checkout for a monthly fee plus transaction costs.