What is a Payment Aggregator and How Does It Facilitate Online Transactions?

What is a Payment Aggregator and How Does It Facilitate Online Transactions?

If you often shop online, you’ve probably noticed that many online stores and marketplaces offer many payment methods. There is a simple explanation for this: Consumers prefer to use various payment methods. According to Oberlo data, the most popular ones are digital wallets (49%), credit cards (20%), and debit cards (12%). 

Source: Oberlo

When a user sees a convenient option for depositing funds, for example, by credit card, it increases the chances of successfully completing the purchase.

How to bring all modern payment acceptance options together on one site? Use payment aggregator. PsPark specialists prepared an article in which they talk about what this service is, to whom it will be useful, and what advantages it provides.

What is a Payment Aggregator?

A payment aggregator is a universal system that allows an online trading platform to be connected to several cashless payment options at once. 

You do not need to connect something additional or sign contracts with banks. The company that manages the payment aggregator independently establishes partnerships with financial institutions, payment operators, and systems. You get a fully operational tool that allows your customers to pay for their purchases in the way that suits them best.

Importance of Payment Aggregators in E-Commerce

Merchant aggregator is crucial for online business. As the owner of an online store or marketplace, you probably care that it is convenient for customers. If it is difficult to find a product, add it to the cart, or pay for it on the site, the customer is unlikely to purchase.

Paying for an item is one step where everything should be quick and easy. There are many ways to deposit funds, including bank cards, Apple Pay and Google Play, e-wallets, and online banking. Not considering any of them means losing some of your customers.

You can set up all the methods yourself, facing the legal and technical nuances of paperwork and integration. This is overly troublesome, time-consuming, and very expensive.

If your goal as a merchant is to quickly start accepting online and bank card payments with minimal effort, a payment aggregator is the best choice.

How Payment Aggregators Work: A Simplified Explanation

Let’s consider the principle of operation of payment aggregators on the example of PsPark service:

• A buyer places an order on the website. A unique number or other principle identifies the goods.
• Having chosen online payment, the buyer goes to the payment page.
• The user chooses a convenient way to pay for the purchase and enters the data.
• The system performs a security check and makes the transaction. 
• The buyer returns to the store’s site, and the server receives data about the successful transaction.
• The site manager receives a notification about successful payment. The order status automatically changes to “Paid”. The product with a unique number is booked for shipment.

The whole process takes the user a couple of minutes at most.

Advantages of Using a Payment Aggregator from PsPark

We offer a reliably functioning payment service for online stores and other commercial platforms, providing business owners with numerous benefits:

Easy Application

Opening a merchant account is a lengthy process that involves checking your creditworthiness and scrutinizing your business model. Our payment aggregation does not require many documents and checks for the merchant.

Versatility 

You don’t need to connect each payment method separately. All methods that are in demand among customers are combined in one service.

Single Merchant Account

All transactions are directed to one account. This allows to simplify control over transactions and also facilitates sales management.

Speed

All processes in the payment aggregator are streamlined so that transactions are processed quickly – just like direct acquiring.

Simple Fee Structure

By having a structure that does not provide for fixed contracts, it is easier for sellers to understand what aggregator fees they will need to pay for processing payments.

Security

The aggregator ensures that transactions are made through a secure page via encrypted channels. Anti-fraud filters require additional confirmation for suspicious and freeze fraudulent transactions.

The PsPark service is easy to use and provides fast connection, flexible settings, and convenient management.

Disadvantages of Using a Payment Aggregator

Despite the numerous advantages, payment aggregators also have their minor disadvantages.

Delays in Payment of Funds

This is a situation when a payment aggregator does not transfer funds from buyers to the owner of an online store or other commercial website within the established timeframe. The most common reason for delays is fraudulent actions. The waiting time is usually 24-48 hours; in exceptional cases, it can last a month, which entails inconvenience and liquidity problems.

High Commissions

Aggregators take a commission from the payments received. Its size may vary depending on the payment method and the store’s turnover. The greater the volume of transactions, the higher the commission rates. This is because large transactions increase the risks of payment processing.

These risks can be prevented by choosing a reliable aggregator from PsPark that will meet your requirements and business goals.

Who Should Use a Payment Aggregator?

Our payment aggregator suits all types of online businesses:

• Online stores
• Educational platforms
• Commercial online services
• Betting sites
• Trader’s resources
• Digital content sellers
• Ticket resellers
• Freelancers

If you need the best payment aggregator, turn to PsPark. We consider all the specifics of your business and configure the service to provide your customers with the fastest and most convenient payment process for goods/services.

Comparison of Payment Aggregator with Other Solutions

A payment aggregator is a convenient tool that allows you to make payments on websites, such as online stores, using various methods, with further transfer of funds to your company’s account. 

Whether a service is the best choice for your business depends on your needs and goals. We have compared a payment aggregator with other solutions. This will help you make the right decision on how best to process payments.

Payment aggregator vs. Payment service provider

A payment aggregator is an intermediary between a business and various payment service providers, including banks. An aggregator provides a more convenient way to manage transactions. It also allows businesses to work with multiple payment systems through a single integration.

Payment aggregator vs. Payment gateway

Both solutions provide payment processing, but there is an important distinction. A payment aggregator offers a wider range of payment methods and usually easier integration. Payment gateways are more complex and may require a large technical base. 

Payment aggregator vs. Payment facilitator

These are two different business models. The facilitator is an intermediary between customers and payment processors, providing them with individual merchant accounts. An aggregator provides shared accounts that multiple customers can use.

Payment aggregator vs. Payment processor

Both provide fast payment processing, but an aggregator offers a broader range of services. Payment processors are geared towards larger businesses and provide more customized solutions. Small and medium-sized businesses most often use an aggregator.

Payment aggregator vs. Merchant account

Merchant accounts are designed individually for each business and involve formalities and paperwork. An aggregator provides shared accounts that multiple customers use and makes it easy to accept payments quickly and easily.

A payment aggregator wins the battle against other solutions because of its versatility, ease of use, a wide range of payment methods, and other business benefits.

Forget about complex multiple integrations and bureaucratic hassles. Use a payment aggregator from PsPark. You will be able to provide a variety of methods, making the purchase process convenient and accessible for every customer.