What Startups Should Expect from Their Payments Provider?

On top of a myriad of other challenges, startup founders also need to handle all the down-to-earth and administrative matters including payment systems or taxes.  Here are five key elements startups should expect from their payments’ provider to help them cope with day-to-day challenges and grow their business.

This article was written by Efi Dahan, VP, General Manager, Central and Eastern Europe and Israel at PayPal.

Being a startup founder comes with a myriad of challenges, which, if not addressed effectively, can slow down or even detain their venture’s progress. Providing the best and most innovative product or services possible, assembling the right team, securing funding, scaling the business – these are only a few examples of major hurdles founders need to deal with every day. On top of that they also need to handle all the down-to-earth and administrative matters including payment systems or taxes that are key for the business day-to-day operations and success.

With limited resources and large number of things to take care of, focusing on what’s most important or profitable is not easy. That’s why many startup founders seek support from business partners that can help them cope with day-to-day challenges and grow their business. However, choosing the right partner is not an easy feat. Let’s take the payments sector as an example. There are a lot of companies providing payments support for the startup ecosystem, both on a local and international level. Such a broad range of payments providers may cause headaches in founders who often don’t know what services or products they should choose to speed up their business’ growth.

To make this decision easier I put together a list of five key elements startups should expect from their payments’ provider.

Business Growth Support

If you’re an early-stage startup, you seek for every opportunity to grow your business. A good payment provider should not only help you navigate a complex payments landscape subject to strict compliance laws and regulatory requirements, but also facilitate at least some of your business growth struggles. To give you an example, if your main goal is to develop your customer base, you should look for a payments partner that combines local payments’ expertise with global presence, thus can help you access their global customer base and potentially expand your market reach.

Multiple Payment Options and Solutions

A payment provider should offer you multiple solutions catering to your needs and helping you to pay and get paid quickly, in multiple currencies and across devices. Today’s customers want to pay for their purchases as seamlessly as possible. Providing your buyers with various methods, including credit/debit cards and local payment options, helps to enhance their checkout experience, and reduces cart abandonment rates. In addition, depending on your business model and priorities, you should also look for more advanced solutions, including mobile payments that can help you cater to customers who prefer making purchases through their smartphones and other mobile devices or subscription and recurring payments if you offer subscription-based services or products.

Ease of Use and Protection

Technical issues accompanying the payments’ system integration process can trigger headaches and delay its implementation. A payments platform offering user-friendly interface and simple integration options for websites, mobile apps, and other e-commerce platforms, can help you get up and running quickly, and minimize potential transaction errors and delays. From the startup perspective, the most efficient solution would be to have a payments partner that can help them get started in one, easy integration for all their payment needs, including credit cards, digital wallets, and local payment methods.

Credibility

Being a startup you’re most probably still in the process of developing your company’s recognition and earning customers’ trust and loyalty. The unknown brand and the lack of social proof can have a negative impact on your sales results, as customers may be hesitant to transact with lesser-known businesses. Building trust and loyalty among buyers takes time and resources, but it can be accelerated by collaboration with credible and recognized partners. By working with a well-known and trusted payments provider that has a strong reputation for security, you can instill trust and confidence in your customers, and as a result boost your sales.

Excellent Customer Service

Managing and moving money is complex and so are systems that support this process. Given the amount of data payments system process day by day technical failures or breakdowns may happen and need to be addressed quickly and adequately. Cooperating with a payments partner offering a 24/7 customer service and live support that can help you with any technical issues is key to provide you with a feeling of security and allow you to focus on your business development.

If you want to learn more about what to expect from your payment provider and how can they help you scale your business globally, come and meet PayPal team members at sTARTUp Day 2024!
⚡️ Keynote: What Fast Growing Global Startups Should Expect from Their Payment Provider? – Thursday, January 25, 3:25pm–3:50pm, Insight stage
⚡️ Seminar: From Local to Global. Tips and Trends to Scale Your Business Globally – Friday, January 26, 11:00am-11:45am, Seminar Room

Any information provided is general only and does not take into account your objectives, financial situation or needs.
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