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Introduction:
In recent years, the growth of ecommerce has been nothing short of phenomenal. With the world becoming more digitally connected, the number of online stores and marketplaces has exploded, and businesses are constantly looking for ways to streamline their online sales capabilities. One key aspect of online sales is the ability to accept payments securely and efficiently. This is where Payment Service Providers (PSPs) such as PayPal, Stripe, and Square have come in, offering easy and quickly deployable solutions for online merchants. However, the cost of using these PSPs can quickly add up, making them less attractive for small and medium-sized businesses (SMBs). In this blog post, we will explore how Paymath can help your business cut costs and streamline your payment processing.
What are Payment Service Providers (PSPs)?
Payment Service Providers (PSPs) are companies that act as intermediaries between merchants and acquiring banks, which issue merchant accounts. When a merchant signs up with a PSP, the PSP creates a sub-account within their own merchant account, eliminating the need for the merchant to go through the complex and time-consuming process of creating their own merchant account. This makes it easy for businesses to accept payments online quickly and efficiently.
Why PSPs Come at a Cost
While PSPs provide an easy solution for merchants to accept payments online, they also come at a cost. PSPs charge a risk premium that accounts for the risk associated with all the other merchants registered under the same parent account. Since signing up with a PSP does not require any financial diligence, merchants end up paying a higher premium – typically between 0.5% and 1% more than they would have paid with their own merchant accounts. Furthermore, PSPs’ lack of intimate knowledge about the individual workings of their clients means that they are more prone to misjudge financial transactions as fraudulent, adding a heightened risk of erroneous account freezing or even shutdown.
Enter Paymath
Paymath is a Fintech consultancy company that is able to help ecommerce businesses best select, set up, and run online payment options in a more cost-efficient manner compared to PSPs. Paymath undertakes underwriting and creates the merchant accounts for its clients totally hassle-free. Through its partnerships with financial technology solutions providers, the company is able to help its clients set up their payment systems using the tools that best fit their needs and optimize conversion by creating a superior customer experience.
Why Paymath is a Cost-Effective Solution Paymath represents a cost-effective, long-term solution for merchants. To put this in numbers, Merchant Service Providers’ fees average around 2.3% per transaction, whereas the typical fee for a transfer through a PSP hovers around 2.9%. This may not seem like much, but as your online sales grow, the extra costs can quickly add up and potentially reach tens of thousands of dollars depending on your sales volume. Using the rates above, for example, a merchant making $500,000 in yearly sales would save $3,000 in transaction costs by using Paymath. That’s 50% of the payment processing markup fees that become available to you to reinvest in your business.
Benefit of using paymath
There are several benefits to choosing Paymath as your payment solutions provider:
- Cost-Effective: As mentioned earlier, Paymath provides a cost-effective solution for merchants. With fees that are on average lower than those charged by PSPs, Paymath saves merchants thousands of dollars in transaction costs, which can be reinvested back into their business.
- Hassle-Free: By undertaking the underwriting and creation of merchant accounts on behalf of its clients, Paymath eliminates the need for merchants to go through the complex and time-consuming process of setting up their own merchant accounts. This frees up valuable time and resources that can be used to focus on other aspects of the business.
- Customized Solutions: Paymath works with its clients to identify their specific payment needs and tailor a payment solution that fits those needs. By partnering with financial technology solutions providers, Paymath is able to offer a wide range of payment tools that can be customized to fit each client’s unique requirements.
- Improved Customer Experience: By creating a superior customer experience through optimized payment systems, Paymath helps its clients increase conversion rates and grow their business. This is achieved by providing a seamless and user-friendly payment experience that is easy to use and understand.
- Enhanced Security: Paymath is committed to providing a secure payment environment for its clients and their customers. By using advanced fraud detection and prevention systems, Paymath is able to minimize the risk of fraudulent transactions and protect its clients’ financial data.
Is paymath legit
Yes, Paymath is a legitimate fintech consultancy company. It is registered in the United Kingdom under the company number 13183517, with its registered office located in London. Paymath is also a member of the Financial Conduct Authority (FCA), which is the financial regulatory body in the UK, ensuring that it operates within the regulations and standards set by the FCA.
Furthermore, Paymath’s website features several testimonials from satisfied clients, which is a testament to its legitimacy and the quality of its services. The company also has partnerships with reputable financial technology solutions providers, which further strengthens its legitimacy.
It is important to note that, as with any financial services provider, it is important to do your own research and due diligence before working with Paymath or any other similar company. However, based on its registration and memberships, partnerships, and testimonials, there is no indication that Paymath is anything other than a legitimate and trustworthy company.
Conclusion
In conclusion, Paymath offers a cost-effective and hassle-free solution for merchants looking to accept online payments. By providing customized payment solutions that are tailored to each client’s unique needs, Paymath is able to improve the customer experience and increase conversion rates. Additionally, Paymath’s commitment to security ensures that merchants and their customers are protected from fraudulent activity. If you’re looking for a payment solutions provider that can help you save money and grow your business, Paymath is the way to go.
Summary
In summary, Paymath is a Fintech consultancy company that helps businesses set up online payment systems in a cost-efficient manner. Unlike Payment Service Providers (PSPs), which charge merchants a risk premium that accounts for the risk associated with all the other merchants registered under the same parent account, Paymath undertakes underwriting and creates individual merchant accounts for its clients totally hassle-free. Through its partnerships with financial technology solutions providers, Paymath is able to help its clients set up their payment systems using the tools that best fit their needs and optimize conversion by creating a superior customer experience.
Choosing Paymath over PSPs represents a cost-effective, long-term solution for merchants. PSPs’ fees average around 2.9% per transaction, whereas the typical fee for a transfer through Paymath hovers around 2.3%. This may not seem like much, but as online sales grow, the extra costs add up and could potentially reach tens of thousands of dollars depending on the sales volume.
Paymath is a legitimate company that is registered and regulated under the UK’s Financial Conduct Authority (FCA) and adheres to its rules and regulations. Additionally, Paymath’s partnerships with established financial technology solutions providers such as Adyen, Stripe, and PayPal, further validate the company’s legitimacy and expertise in the field of online payments.
Overall, Paymath provides a hassle-free, cost-effective, and customized solution to online payment systems for businesses looking to boost their online sales capabilities. By leveraging Paymath’s expertise and partnerships, businesses can optimize their payment systems to provide a superior customer experience, increase conversions, and save money in transaction fees.
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