The digital payments industry is growing steadily owing to the rising adoption of mobile and contactless payments and online shopping. Total transactions from these payments are expected to reach $4.6 trillion by 2028 at a CAGR of 10.73% (2024-2028). 

This necessitates efficient and secure payment systems capable of facilitating transactions using a range of payment methods. Consequently, the number of payment service providers (PSPs) in the market has been growing exponentially. Choosing the right PSP for your business in the current landscape, therefore, can be a time-consuming task.  

In this article, we’ll give you a rundown of the top payment service providers in 2024 so you can decide which one is best for your business.

List of Top PSPs

Payment service providers help businesses make shopping more convenient for customers by allowing them to pay with their cards, digital wallets, bank transfers, etc. They also offer other services that make payments easier and safer. A good PSP will ensure that your payment system is PCI DSS compliant, offer protection against security threats, and provide point-of-sale (POS) solutions.

Before going any further, let’s go over two terms you need to know about — platform and direct processors. Platform processors act as intermediaries between merchants and acquiring banks.  In other words, they manage the entire payment process, including transaction routing, security, and compliance. 

Meanwhile, direct processors connect merchants directly to acquiring banks or card networks, so transactions can be processed more quickly and often at a lower cost. The downside is that merchants may have to manage more of the payment process themselves, including compliance and security measures.

Here’s a rundown of the best PSPs including their key features, pros and cons, and pricing information.

PayPal

PayPal is still one of the most affordable payment service providers out there. 

• Key features. The PSP supports multiple currencies and offers excellent transaction security. It also offers additional features like buyer protection.

• Pros and cons. PayPal is practically a household name and a great option for businesses with low transaction volumes. It’s known for its 24/7 customer service and offers pay-as-you-go payment options. However, its fees can be higher than some of the other PSPs on this list.

• Pricing. PayPal has different fee structures for domestic and international payments. The charge for domestic transactions is 2.99% and an additional 1.5% on international payments (plus a fixed fee).

• Reach. PayPal can process and faciliate payments in the US, Canada, and multple other countries. 

• Designation. Payment processor, PayFac, merchant of record. 

Stripe

Stripe Connect is an embedded payment system from Stripe that can be easily integrated into software platforms and marketplaces. 

• Key features. It is specifically designed for businesses and platforms that need to offer clients a way to process payments among many third-party users. It enables businesses to handle complex transactions easily and supports multiple currencies and payouts in many countries.

• Pros and cons. Apart from handling complex and global payments with ease, Stripe Connect provides its clients with KYC (Know Your Customer) compliance and onboarding tools. It also offers tax and compliance reporting features. Stripe Connect has a robust API and excellent documentation for integration. However, because it’s a feature-packed tool, businesses may need more resources to implement and maintain it.  

• Pricing. There are two types of Stripe Connect accounts businesses can set up based on their needs — Standard and Express. Custom accounts can also be created. You can let Stripe handle pricing for you or do it yourself. If you choose the latter, you will be charged $2 per month for each active account and a 0.25% plus 25¢ on every payout.

• Reach. Stripe can process payments in the US as well as internationally, supporting 135 currencies.

• Designation. Payment processor, PayFac, merchant of record. 

Finix

Finix provides a customizable payment infrastructure, allowing businesses to manage payments in-house.

• Key features. It supports multiple payment methods and offers robust security features.

• Pros and cons. With Finix, businesses have full control over payments and scalability. However, it is a complex platform to set up and the initial implementation costs can be quite high.

• Pricing. Finix offers a custom fee structure to its clients based on transaction volume and special business needs. 

• Reach. Finix can process payments in the US and Canada.

• Designation. Payment processor, PayFac. 

Adyen

Adyen for Platforms has a host of features that allow it to handle complex payments and provide secure transaction processing facilities to its clients. 

• Key features. This application is built to handle transactions among multiple users. It has a robust revenue management system so commissions, revenue, and fees can be handled with ease. 

• Pros and cons. Adyen offers excellent monitoring, analytics, and reporting features to allow clients to understand their financial situation and monitor all payouts. The company also helps clients stay compliant with security regulations like PCI DSS. Businesses can use Adyen’s flexible onboarding to stay compliant with KYC regulations. Similar to other PSPs in this list, Adyen facilitates international business by supporting multiple currencies. However, more resources and effort may be needed to implement and maintain Adyen for Platforms.

• Pricing. Adyen offers its customers a customized pricing strategy based on specific business needs. Usually, a percentage fee plus a fixed rate is charged on each transaction.

• Reach.  Adyen can process payments in the US as well as internationally, supporting almost 100 countries.

• Designation. Payment processor, PayFac. 

Payrix

Payrix is best used as an embedded payments provider offering robust API integration. 

• Key features. As with other PSPs, Payrix offers customizable options and supports many different payment methods. 

• Pros and cons. Payrix offers seamless integration with existing software, enhanced security measures, and increased flexibility. However, for small businesses and beginners, Payrix can be complex to install and more expensive due to high costs on low transaction volumes.

• Pricing. Payrix offers a custom fee structure to its clients based on transaction volume and special business needs.

• Reach.  Payrix can process payments in the US as well as internationally, through Worldpay's global reach

Designation. Payment processor, PayFac. Authorize.Net

This PSP has been around since 1996 and is known to be one of the most comprehensive service providers in the market today. 

• Key features. Authorize.Net offers recurring billing, fraud detection, multi-currency support, and safe payment services. 

• Pros and cons. Authorize.Net has an award-winning API integration process and offers a host of features that make it useful to a wide range of businesses. However, transaction fees can be higher than other PSPs and the interface isn’t modern.

• Pricing. $25 monthly fee plus 2.9% + $0.30 per transaction.

• Reach.  According to their website, you can “accept international transactions from customers worldwide. Your business must be based in the United States, Canada, United Kingdom, Europe or Australia.”

Designation. Payment processor, payment gateway, Braintree

Braintree is a PayPal company and offers services similar to that of PayPal. 

• Key features. It allows businesses to accept payments in over 40 countries and supports 130 currencies. Braintree integrates easily with other software, especially PayPal.

• Pros and cons. It has good security features and integrations are seamless. However, set-up can be complex and fees can be higher for beginners.

• Pricing. Braintree offers custom and standard pricing. Standard pricing is 2.59% plus a fixed fee of $0.45 per transaction.

• Reach.  According to their website, Braintree can process “almost anywhere in the world.”

• Designation. Payment processor

Stax

Stax offers an all-in-one payment processing platform.

• Key features. It includes features like analytics, invoicing, and recurring billing. It supports multiple payment methods too.

• Pros and cons. Businesses appreciate Stax for its transparent pricing options and extensive features. However, Stax’s international support is limited compared to others on this list. Fees can also be on the higher end.

• Pricing. The company follows a subscription model starting at $99 per month.

• Reach.  Stax can only process payments in the US.

• Designation. Payment processor, PayFac.

Worldpay

Worldpay is a company based in the UK that has been in the industry for over 30 years.

• Key features. Apart from providing PSP features like multi-currency support, reporting, and fraud detection, its clients can also get online stores set up by Worldpay.

• Pros and cons. Worldpay offers excellent transaction security with encryption and tokenization. It also provides PCI DSS assessment tools to its customers. If you procure an online store from them, you also get comprehensive expert support.

• Pricing. The fees for Worldpay start at £19 per month.

• Reach.  Worldpay can process payments in the US and intertinally, supporting 120 currencies. 

Designation. Payment processor, PayFac. BlueSnap

BlueSnap offers an all-in-one payment platform with global processing.

• Key features. Its key features include subscription billing and fraud prevention. It also supports multiple currencies and payment methods.

• Pros and cons. BlueSnap has a global reach so it is an excellent option for businesses with transactions in different countries. It also offers extensive integrations with other applications. However, its fees can be higher than others in this list and set-up can be complex for small businesses. 

• Pricing. BlueSnap fees depend on the region and the PSP offers custom pricing depending on the needs of a business. 

• Reach.  According to their website, “In addition to offering you an international payment gateway for cards, we can help you process payments on a 110 of the most popular payment types around the world. For example Alipay is crucial if you plan to sell into Asia. Sofort is popular in Germany, and Ukash is expected in Russia to name a few.”

• Designation. Payment processor, PayFac.

Criteria for Evaluating PSPs

While creating this list of the best PSPs for 2024, the following are the factors we considered. 

• Risk in ownership

• Security features

• Fees and pricing structure

• User experience and ease of integration

• Support and customer service

• Global reach and currency support

How to Choose the Right PSP for Your Business

With a PSP, you can be assured that your transactions are safe, secure, and compliant with industry and security standards. Before you choose a PSP, keep the following tips in mind.

• Analyze your business data to figure out your transaction volume and size. Use this information to select the PSP that offers the best fees for your business. 

• Before choosing a payment service provider, find out your customers’ preferred payment methods. Some PSPs may not support all the payment methods that your customers use. 

• Think of your long-term business goals and select a PSP that matches them. If your goal is to expand your business and offer your services in different countries, find a PSP that offers multi-currency support and easy scalability.

Final Words

Finding a payment service provider that is the right fit for your business can be daunting. Thankfully this list is here to help and guide you. Use it to compare different options and make an informed decision for your business. If you’re looking for a platform that brings your PSP, customers, data, and services together in a single platform, contact us today.