PSPs and Banks: Two Different Online Payment Solutions
When an online merchant launches a business or wants to optimise payment management, the same question always comes up: should you work with your professional bank or choose a specialised payment service provider (PSP)? This decision determines the architecture of your payment environment in the long term.
Professional banks offer online payment services as part of a broader banking package. PSPs, also called payment service providers or online payment solutions, specialise in the orchestration and processing of payments. They combine acquiring services with advanced technology infrastructure. Understanding the fundamental differences between these two approaches will help you make an informed choice that fits your business model and growth ambitions.
There is no single best online payment solution for every merchant. The right choice depends on your industry, transaction volume, international expansion plans and technical resources. Each model has strengths and limitations that deserve a clear, objective review.
PSPs: A Technology-First Approach to Payments
What is a payment service provider and how does it work?
A PSP is a payment specialist that combines payment expertise and technology infrastructure. It orchestrates the entire payment process by connecting merchants, acquirers and banking networks. The PSP manages the complexity in the background so that transactions remain secure and seamless for you and your customers.
Unlike a simple technical gateway, a PSP delivers a complete solution. It brings together the technology layer, such as APIs and PCI DSS security, and the banking services, including acceptance, management of financial flows and settlement to the merchant. With a PSP, you work with a single partner for your whole online payment chain.
Fast integration and modular setup
One of the main advantages of PSPs is fast integration. Platforms usually offer plug-ins for the leading e-commerce CMS solutions such as WooCommerce, Shopify, PrestaShop and Magento. This makes it possible to go live in a matter of days, rather than weeks. By comparison, some bank integrations follow slower internal processes and can take longer to implement.
Modularity is another key benefit. A modern online payment solution lets you activate new payment methods quickly, add features such as instalments, recurring payments or Pay by Link, and adapt your offer as your business evolves. Most of these changes can be made directly from an intuitive dashboard without involving development teams each time.
Monext provides plug-ins for the main e-commerce platforms and guides on how to choose the right one for your business.
Wide coverage of payment methods
PSPs stand out for the breadth of payment methods they support. They typically offer international cards such as Visa, Mastercard and American Express, digital wallets like PayPal, Apple Pay, Google Pay and Samsung Pay, mobile payments, Buy Now Pay Later (BNPL) solutions such as Klarna or Floa, and local payment methods tailored to each market, for example Bancontact in Belgium, iDEAL in the Netherlands or Bizum in Spain.
This diversity has a direct impact on your commercial performance. When shoppers see familiar payment options at checkout, they are more likely to complete their purchase. Presenting the right payment method at the right time reduces friction and cart abandonment. Displaying too many options, on the other hand, can create confusion, so orchestration matters.
For merchants targeting international markets, these online payment solutions make it easier to handle currencies and local payment habits. Instead of negotiating separately with banks in each country, you gain access to a wide range of payment methods through a single integration, one contract and a consolidated view of your payments.
Monext’s content on how payment methods influence conversion gives more insight into these performance gains.
Advanced features that boost conversion
PSPs enhance their offers with advanced features that can make a real difference. Recurring payments support subscription models. Pay by Link turns quotes or phone orders into secure payment links. Click to Pay can simplify the final step at checkout into just a few clicks. Automatic instalment options and Smart Display, which adapts the display of payment methods to the user’s context, further refine the experience.
These innovations contribute directly to a smoother customer journey. In a highly competitive environment where every friction point counts, they can help you recover abandoned baskets and increase your conversion rate. For example, Smart Display allows you to show only the most relevant payment options based on criteria such as basket amount, delivery method or customer country.
BNPL features are another powerful lever for higher average order values, especially beyond £100. Partners like Klarna or PayPal Pay in 4 make it easier for customers to spread payments while you still get paid upfront.
How PSPs charge for their online payment solution
Most PSPs use a pay-per-transaction pricing model, sometimes with an additional fixed fee. This structure suits many businesses.
For small and medium transaction volumes, proportional pricing reduces heavy fixed costs. You only pay when you process payments. Pricing grids are usually transparent, and some providers offer simulators to estimate fees based on your volume.
The overall cost of an online payment solution often includes services that you would otherwise outsource separately: PCI DSS security, fraud management, automated reconciliation, detailed reporting and technical support. This all-in-one model simplifies operations and reduces the number of partners you have to manage.
For higher volumes, PSPs usually provide decreasing fees and negotiated tariffs aligned with your growth, which can remain competitive even at scale.
Points to watch when choosing a PSP
Several aspects deserve careful consideration when you select a PSP.
Relying on a third party for a critical function such as payments naturally creates a dependency. A major technical incident, a change in terms or a provider failure could affect your business. This is particularly important if payments are central to your strategy.
You should also evaluate the transaction-based pricing model against your current and forecast volumes. Make sure the conditions on your online payment solution can evolve with your growth so that margins remain sustainable.
Support quality matters too. Some very standardised payment solutions offer less personalised assistance than an established banking relationship. In a complex or urgent situation, response time and problem-solving can vary widely from one provider to another. It is worth testing support channels before committing.
Finally, certain PSPs limit or refuse service to sectors considered high risk, such as gambling or specific digital services. Check compatibility with your industry from the outset.
Professional Banks: A Global, Integrated Relationship
What banks bring to your online payment setup
Professional banks take a different approach, with specific advantages that can be decisive depending on your situation.
One key benefit is full banking integration. Having your business account, loans, insurance and payment solutions with the same provider can simplify administration and give you a consolidated view of your finances. This centralisation can also make access to funding easier, since the bank has a detailed understanding of your flows and your business.
Perceived stability is another asset. Well-known banking brands inspire trust, particularly in B2B relationships or traditional industries. Their financial strength and long history can reassure both partners and customers.
In some cases, working directly with a bank lets you maintain a closer relationship with your financial institution, without adding another intermediary into the payment chain. For organisations that care deeply about data sovereignty, this can be a relevant factor.
For very high annual volumes, for example tens of millions of pounds in transactions, negotiated conditions with a bank can become extremely competitive. Large corporates and marketplaces often benefit from bespoke tariffs, especially when they use several banking products.
Constraints of traditional banking solutions
However, traditional bank-based payment solutions also come with constraints, especially in a fast-moving e-commerce environment.
Implementation times tend to be longer. Internal approval processes, less standardised technical specifications and development cycles can extend the initial deployment. Where a PSP might go live in days, a bank solution may require several weeks, or even longer for highly specific configurations.
In terms of payment methods, banks often focus on cards and a small number of digital wallets. More innovative options such as BNPL, advanced mobile payments or local methods for international expansion are less frequently available out of the box. That can limit some of your conversion levers.
Operational flexibility can also be more restricted. Adding a new payment method, changing your setup or activating advanced features often means going back through your banking contact, with associated delays. This is very different from the self-service approach in modern online payment dashboards.
Fixed costs, such as monthly subscriptions, setup fees, maintenance, or virtual terminal rental, can weigh heavily on businesses with lower volumes or seasonal activity. A transaction-based model might be easier to manage in those cases.
Finally, reporting tools provided with bank solutions are sometimes less sophisticated than the dashboards offered by PSPs, which can include real-time analysis, custom exports and detailed breakdowns by channel or payment method. This gap can make precise steering of your payment activity more difficult.
How to Choose the Best Online Payment Solution for Your Business
The decision between a PSP and a bank depends on several factors specific to your business.
Your technical maturity is a first criterion. PSPs usually make integration easier with ready-made plug-ins and clear APIs. Bank-based solutions may require more internal development and technical effort.
Your international ambitions also play an important role. PSPs have a strong advantage when it comes to handling multiple currencies and local payment habits. Traditional banking offers rarely include methods like Bancontact or iDEAL natively, while PSPs often provide them as part of their standard catalogue.
You should also think about which payment methods you want to offer. If your strategy relies on instalments, a wide variety of digital wallets or Pay by Link, specialised online payment providers generally offer more options. If you only need classic card payments, a bank solution might be enough.
Autonomy is another key consideration. PSPs often let you manage payment methods, settings and features directly through a back office. Bank solutions more frequently require you to go through your adviser to update your configuration, which can be slower.
You may also want a consolidated financial view. If tight integration between your business account and online payments is strategic, for example for financing or cash-flow management, a bank can naturally provide that consistency.
Finally, you should clarify your priorities. If speed to market matters most, a specialised online payment solution is likely to be more suitable. If you value a long-term relationship with a partner who oversees all your finance-related matters, the bank may still be the preferred option.
For a deep dive into selection criteria, you can consult Monext’s guide on how to choose the right payment service provider.
Monext: An Online Payment Solution Designed for Growth
Monext, a subsidiary of Groupe Crédit Agricole, combines the flexibility of a specialised PSP with the strength and credibility of a major banking group. This hybrid positioning offers an innovative and reliable online payment solution tailored to the needs of growing merchants.
A complete, scalable platform
Monext’s platform covers all the essential payment methods you need to maximise conversions. It supports international cards such as Visa, Mastercard and American Express, digital wallets including Apple Pay, Google Pay, PayPal and Samsung Pay, BNPL solutions like Klarna, Floa and PayPal Pay in 4, and local payment methods adapted to European markets such as Bancontact, iDEAL and Bizum. Meal vouchers and other specific methods can also be integrated where relevant.
Integration is fast thanks to plug-ins for leading e-commerce CMS solutions and well-documented APIs for custom builds. Most clients can go live within a few days, which makes Monext a strong candidate when time to market matters.
A unique hybrid model
Monext stands out with a hybrid model that adapts to your economic profile and maturity.
In full PSP mode, Monext manages the entire payment chain. The platform covers the technology layer, acquiring services, financial flow management and settlement. This turnkey configuration is ideal if you want to focus on your core business rather than on payment complexity.
In gateway-only mode, Monext acts as a pure technology provider while you retain your existing acquiring contracts. This setup is particularly suited to large accounts that have already negotiated attractive banking tariffs on high volumes, or to specific activities that require particular acquirers. You benefit from your negotiated conditions on one side and Monext’s technology and catalogue of payment methods on the other.
This flexibility allows you to adjust your configuration as you grow, without disruptive migrations.
Features that make a tangible difference
Monext integrates concrete innovations designed to improve commercial performance and user experience. Smart Display automatically shows the most relevant payment methods based on customer profile and context. Optimised recurring payments with automatic card updates reduce failures on subscriptions. Split payments across several cards make it easier to share higher amounts. Pay by Link turns quotes and phone orders into secure payment journeys in just a few clicks.
These features help streamline checkout, reduce friction and support the kind of experience customers expect from the best online payment solution. Monext’s articles on payment page performance and abandoned carts offer further insights into these optimisation levers.
Professional monitoring and powerful reporting
Monext provides professional tools to help you manage your payment activity effectively.
A centralised dashboard brings together all your payments, whether they come from your website, mobile app or physical points of sale, and whatever payment method customers use, from cards to wallets and instalments. This consolidated view saves you from juggling multiple tools. You gain a clear understanding of your business with custom exports and detailed analysis by channel, method or period.
On the technical side, Monext uses proactive monitoring to ensure continuity. Transaction flows are continuously analysed to detect anomalies. During peak periods such as sales or Black Friday, reinforced monitoring helps maintain smooth and reliable payments when activity spikes.
Tailored support for different profiles
All Monext clients benefit from responsive technical and expert support. Requests are handled through a ticketing platform that offers clear traceability, with average response times of just a few hours and resolution targets aligned with business needs.
For large accounts, a dedicated account manager complements this setup. They work with you on your overall payment strategy, performance optimisation, international expansion and adoption of new payment methods.
Ready to Optimise Your Online Payments?
Choosing between a PSP and a professional bank depends on your specific challenges, but for many online merchants, especially those in a growth phase or expanding internationally, a specialised provider like Monext offers the right balance. You gain a flexible and scalable online payment solution, a wide range of payment methods, fast implementation and dedicated support.
If you want to understand precisely how Monext could improve your payment performance, you can request an assessment of your current setup. Monext’s experts will analyse your existing configuration and propose a personalised optimisation plan, with no obligation.
To learn more or speak directly with a payment expert, you can contact Monext’s teams through the support page.
