Is Your Payment Services Provider a Local Card Acquirer? They Should Be

Why businesses need a directly licensed card acquirer.

With the global digital payments market projected to reach 8.94 trillion USD by 2027, there’s a growing demand for payment service providers to facilitate seamless financial transactions worldwide. Payment service providers have revolutionised how businesses and consumers handle money, turning the tedious process of managing financial transactions into a streamlined, efficient and user-friendly experience. They are enhancing operational efficiency while opening up new avenues for global commerce.

What Are Payment Service Providers (PSPs) 

Payment service providers (PSPs) are a cornerstone of the modern eCommerce ecosystem, offering businesses a gateway to accept online payments from customers. These entities act as intermediaries, connecting merchants, consumers, banks and card networks to facilitate the transfer of funds. By integrating a PSP, businesses can accept a wide range of payment methods, including credit cards, bank transfers, and digital wallets, without needing multiple contracts with banks or payment processors. PSPs simplify the payment process, ensuring security, compliance, and efficiency, making them indispensable to modern eCommerce.

The PSP’s Role in Card Acquiring

At its core, a PSP’s role extends beyond processing payments. Many PSPs also take on the role of a card acquirer, which means they are authorised to process credit and debit card payments on behalf of merchants. A crucial aspect of this role involves facilitating the authorisation, settlement, and funding of card transactions. An acquiring bank or other licensed card acquirer can often provide lower fees and better support than a company that relies on a third-party acquirer. 

Why Is Local Card Acquiring So Important

Benefits of Local Card Acquiring

Local card acquiring refers to the process where an acquirer processes transactions within the same country where the card was issued. This localisation offers several key advantages:

• Higher Approval Rates: Local acquirers better understand the regional banking landscape, leading to higher transaction approval rates.
• Lower Fees: Cross-border fees can significantly inflate costs. Local acquiring reduces these fees, making transactions more cost-effective for merchants and consumers.
• Regulatory Compliance: Local acquirers are well-versed in the regulatory requirements of their jurisdiction, ensuring compliance and reducing legal risks for merchants.

Make Rapyd Your Card Acquiring Advantage

Rapyd is a directly licensed acquirer who can offer global payments and multi-currency settlement accounts. With Rapyd, businesses can access Visa, Mastercard and a network of 900+ local and alternative payment methods to grow sales worldwide. 

Rapyd’s network allows businesses to work in whatever way is best for them, whether direct connectivity to Rapyd card acquiring or full gateway services. Rapyd is one of the only direct card acquirers in the UK, Europe and Singapore to offer online and in-store payment processing.