Are you starting a webshop? Then choosing the right online payment provider is one of the most important decisions you will make. Because without a good payment solution, you won't generate any revenue. In this article, you will discover exactly what a Payment Service Provider (PSP) does, how an internet checkout works, what costs you need to take into account, and how to choose the right payment provider for your situation.
What a Payment Service Provider is (and how it differs from a Payment Gateway)
How a payment works, from checkout to settlement
Why a PSP helps you get started professionally, securely, and quickly
Which payment methods should you offer for maximum conversion
What PSP costs you need to take into account
And: how to choose the right provider
An online payment provider, or Payment Service Provider (PSP), is a digital link that ensures your webshop can easily receive payments. A PSP offers access to multiple payment methods, such as iDEAL, Bancontact, credit cards (including MasterCard and VISA), Apple Pay, and Klarna, all via a single platform.
As an entrepreneur, you don't need to sign separate contracts or link up with different banks or card companies — the payment provider has already done that for you. A good PSP not only takes care of the technology, but also security, compliance (regulations), and settlement. All you have to do is sign one contract, link your website to the PSP payment platform once, select your preferred payment methods, and you're ready to accept online payments. The payment provider handles the rest.
Online payment provider, Payment Service Provider (PSP), Internet Point of Sale, or online checkout – these terms are often used interchangeably. And to be honest, in practice, people usually mean the same thing. However, there is a slight difference between them.
Whereas the term 'online checkout' primarily refers to paying for goods in a webshop, a Payment Service Provider takes it one step further. In addition to the checkout, it also offers extras such as real-time dashboards, reports, links to accounting software, and tools for fraud prevention. In short: a complete payment solution, not just an online checkout system.
So there is a nuance between terms such as Payment Service Provider, online payment provider, and Payment Service Provider (PSP). Nevertheless, we also use them interchangeably. Simply because everyone uses a slightly different keyword in Google, and because it keeps the text readable. So, when we talk about comparing online payment services, we mean the same thing as comparing PSPs.
A Payment Service Provider (PSP) offers an all-in-one payment solution that allows your webshop to quickly start receiving online payments. Most payment providers offer:
connection to banks and local and global payment methods
security measures such as fraud detection and encryption
a clear dashboard with insight into transactions
transaction processing and settlement of your turnover
plugins and integrations for popular e-commerce platforms (such as WooCommerce, Shopify, and Magento)
For start-up webshops, it is particularly important that everything is as plug-and-play as possible. And that is exactly what a good online payment provider excels at.
The online checkout provided by the PSP is the environment where customers actually pay for their purchases. As soon as a customer clicks on "checkout", the PSP springs into action. The process is roughly as follows:
The customer selects a payment method on the checkout page, for example, iDEAL
The PSP processes the selection and securely redirects the customer to his/her banking environment
After payment, the bank sends a confirmation to the PSP
The PSP then sends a confirmation to your webshop
The customer sees that the payment has been successful
You receive the amount - minus payment method and processing costs - from the PSP
This entire transaction process usually takes only a few seconds and is fully automated. Thanks to the Payment Service Provider, you can accept payments quickly and efficiently as a webshop without any technical hassle or knowledge.
When you're just starting out with your online shop, focus is key. You're busy selecting products, marketing, getting your first customers, and sorting out logistics. That's why it's crucial that your payment flow doesn't cause any extra stress. A good online Payment Provider takes care of everything for you — and helps you grow faster.
Here are the five most important reasons why a Payment Service Provider (PSP) is indispensable for new webshops:
A major advantage of an all-in-one payment provider such as Mollie or Buckaroo is that they take care of the entire technical infrastructure behind your payments. As an entrepreneur, you don't have to establish complex relationships with banks, credit card networks, or payment methods like iDEAL or Klarna — the PSP handles that for you. Everything is already connected, tested, and securely set up.
The PSP acts as an intermediary that is directly connected to dozens of financial parties. You only sign one contract, and that single connection gives you access to all those payment methods. This saves you a significant amount of time, money, and technical stress.
Are you planning to build your e-commerce website using platforms like Shopify, WooCommerce, or Magento? Then it's even easier: use a plug-in developed and maintained by the PSP (check in advance to ensure it supports the required plug-in). Instead of spending weeks building your shop, you can be connected to a complete online payment solution in just a few clicks. No technical hassle, no expensive IT specialists, and no waiting weeks to go live.
Learn more:
Consumers expect to be able to pay with their preferred method: iDEAL in the Netherlands, Bancontact in Belgium, Klarna for Buy Now Pay Later, and Apple Pay on mobile. Most PSPs offer these options directly through a single integration. If you don't offer these payment methods, customers are likely to abandon their purchase, especially at the crucial moment of checkout. That's a waste of your marketing budget and a missed conversion opportunity.
Most payment providers support a wide range of well-known local and international payment methods. However, there are clear differences. It is therefore worth comparing them, especially if you already know which countries you want to operate in. If you choose too quickly, you run the risk that your provider does not support an important (local) payment method. This can not only be inconvenient later on, but also cost you revenue.
Learn more:
A reliable and smooth checkout page – even on mobile devices – makes a good impression right away. Your customer will feel like they are dealing with a professional webshop, even if you have just started out from your living room. With a payment solution from a Payment Service Provider (PSP), you get access to:
Mobile-friendly checkouts
Customised payment pages in your own house style
Fast confirmations and emails after payment
It all contributes to trust and conversion. When your customer arrives at a professional, secure, and recognisable checkout page – for example, with the iDEAL or Klarna logo and a clear interface – they feel more confident about their purchase. Trust is crucial at the moment of payment: if the environment feels unclear or unsafe, people will abandon their purchase. A trusted and well-designed online payment solution lowers that threshold, resulting in more visitors actually completing their purchase. That is a direct gain in your conversion rate (visitors converted into paying customers) and therefore in your turnover.
As a new online store, you want to focus on sales, customer service, and improving your offering, not on legal or technical risks. However, online security and compliance are crucial for your customers' trust and for your own protection. Fortunately, a reputable Payment Service Provider for online stores assumes this responsibility.
A PSP payment solution automatically complies with the strictest requirements, without you having to delve into complex regulations such as PSD2 (European Payment Services Directive) or PCI DSS (security for processing card payments).
What does the PSP do for you?
Encrypted data transfer (SSL): All customer data and payment information is sent securely, so hackers don't stand a chance.
Fraud prevention and chargeback management: Many PSPs use smart algorithms that automatically block or flag suspicious transactions. This prevents losses and damage to your reputation.
Automatic updates in case of legal changes: Is there a new EU regulation or security standard? Your PSP will adjust the systems automatically without requiring any action on your part.
Audit trails and transaction documentation: For your accounting or in the event of a dispute with a customer, you always have access to the complete transaction history.
As a start-up, you want to keep your costs under control, avoid surprises, and, of course, not overpay. Fortunately, many Payment Service Providers (PSPs) offer standard packages or special starter rates. Because payment providers compete with each other, rates and conditions vary, so it makes sense to compare them.
With every PSP, you pay per transaction. There are usually two types of costs:
A rate per payment method – for example, a fixed amount per iDEAL payment, or a percentage of the amount for credit card payments such as MasterCard. For accepting iDEAL payments, you typically pay a fixed amount per transaction, ranging from €0.25 to €0.50. For MasterCard payments, the rate is usually between 1.75% and 3.50% of the purchase amount.
A processing or platform fee – a fixed amount per transaction for using the payment platform, sometimes even if the payment fails. The processing fee is typically between €0.10 and €0.35 per transaction and often depends on the number of payments you expect to process.
Additionally, there may be other costs, such as one-time connection fees, monthly subscription fees, or expenses for additional features, including a fraud prevention module. In short, in addition to the range of payment methods and services on offer, it is wise to carefully compare the total costs of PSPs, especially when starting or switching providers.
Tip: Use our free Payment Provider Selector and receive quotes from providers that suit your situation.
If you are looking for an online payment provider for your webshop, you will quickly discover that there is quite a lot of choice in the United Kingdom. That is good news — but it also makes choosing a little more difficult. Every Payment Service Provider (PSP) has its own approach, price structure, focus, and technical capabilities. That is why it is wise to take your time and compare them carefully.
Below is a brief overview of some well-known names on the Dutch market:
Mollie
Very popular among start-up web shops due to its user-friendliness, transparent cost structure, and easy integration with Shopify, WooCommerce, Magento, and other platforms.
Adyen
A global PSP with a strong focus on scalable, international payment solutions. Particularly suitable for larger e-commerce players or entrepreneurs with serious growth plans.
Buckaroo
Flexible PSP that offers solutions for subscriptions, donations, and marketplaces in addition to standard payment methods. Ideal if you need more customisation.
Pay.
A wide range of Dutch payment methods with numerous local integrations. Supports both small businesses and larger e-commerce platforms, offering valuable tools for omnichannel retail.
CCV
Known for its physical POS payment terminals, but also active as an online PSP. Interesting if you are looking for a combination of online and offline payments via one partner.
Worldline
One of the largest European players, with extensive experience in sectors such as retail, travel, and finance. Often chosen by larger companies with specific compliance requirements.
CM Payments
Part of CM.com and strong in mobile payments, ticketing, and digital communication. Suitable for platforms and companies focused on conversion and reach.
As you will understand, there are clear differences in focus, price, and technical capabilities. One PSP is ideal for rapid integration and low volumes, while another excels in international payments or subscription models. The right choice, therefore, depends entirely on your type of webshop, your ambitions, sales expectations, and technical requirements.
💡 Tip: Use our Payment Provider Selector to find the right payment provider for your situation in just a few minutes.
Choosing the right online payment provider isn't just a box to tick on your to-do list. It's a strategic decision that affects your conversion rate, customer satisfaction, and long-term growth. That's why we've written a separate blog about it, especially for start-ups like you. It's a good idea to read it before you make your choice — it'll save you time, money, and hassle later on.
Here is a brief preview: the right choice always starts with understanding your webshop's needs. Be sure to ask yourself these five questions:
Which payment methods do I want to offer?
Consider local payment methods, such as iDEAL, Bancontact, and credit cards, or Buy Now Pay Later options like Klarna. Not every PSP supports everything.
Which webshop platform do I use?
Do you work with Shopify, WooCommerce, or Magento? Then choose a PSP with ready-made plugins for quick integration.
What are the total costs?
Look beyond just the transaction fees. Also, pay attention to fixed monthly amounts, payout costs, and costs for refunds or chargebacks.
How good is the customer service?
As a start-up, you want immediate help if something goes wrong, without long waiting times or technical jargon.
Can the PSP grow with you?
If you plan to sell internationally or work with subscriptions in the future, you want your PSP to support you effectively.
Read the full blog here: How to choose the right Payment Service Provider?
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