Why White Label PSP is the key to business success: 5 arguments

Sooner or later, every business aiming for growth and development will face the issue of high-quality payment acceptance and processing. Two strategies exist for solving this problem. 

Launching your own payment platform (PSP) and using White Label solutions are two different approaches to managing business financial flows, each with its own advantages and challenges. 

Creating their own PSP is a step that gives businesses full control over processes and infrastructure but requires significant resources, time, and expertise in financial technology and regulations. 

On the other hand, a white-label solution allows you to quickly enter the market using a ready-made infrastructure with minimal development and integration costs. 

In fact, there are more differences between the two than meets the eye.

Businesses are interested in creating their own payment solutions. This becomes especially relevant in the context of rapid expansion into new markets. However, developing your own payment infrastructure is quite different from integrating a White Label solution.

Below we have calculated approximate timelines for both strategies, based on Tranzzo's many years of experience.

Talking about the budget required to develop your own PSP, the amount can reach up to more than $500,000. At the same time, if you choose a white label solution, your company can expect to spend between $10,000 and $100,000.

In the payments industry, this product is called a White Label PSP (Payment service provider). It has different configurations and can include only access to payment integrations or an entire product SaaS solution that allows you to quickly enter the market as a payment service provider.

Still in doubt whether you should choose the white label? Apart from quick development time and saving a significant portion of your budget, there are a few other factors worth mentioning.

🔷 Global scalability and flexibility

White Label PSP has inbuilt access to dozens of payment methods in different currencies. Accepting payments in Europe, Asia, or America is impossible without signed contracts with local banks and payment systems/providers. Behind the ready-made contracts and integrations is the work of a team of business developers and developers. This can take weeks or even months. As a result, the connection of new payment methods is delayed, and business development is slowed down.

At the same time, interaction with White Label PSP allows you to scale your business and connect payments in different regions in a few days.

Tranzzo, for example, offers:

• 180+ payment methods
• 100+ currencies
• 330+ leading banks and PSPs

Simply notify support of your desire to include new methods or currencies, and you can start accepting payments in just a few days.

🔷 Maintenance and support

Any product needs constant maintenance and updates. Let's say your business has decided to develop its own PSP the hard way. You'll have to maintain a team of developers, testers, and technical support to ensure that the system runs consistently and smoothly. They will control the speed of operation and reliability.

At the same time, choosing White Label means that the software setup and maintenance fall on the provider's shoulders. That is, your task as a company is only to develop your business, and a professional support team takes care of any issues related to technical infrastructure.

🔷 Payment security

Working with payment data is impossible without an anti-fraud system that detects and blocks suspicious transactions. It is also necessary to pass PCI DSS certification and prove that the developed infrastructure complies with all 12 international standard conditions. In addition, to work in European Union countries, it is mandatory to comply with GDPR requirements, which ensures the safety of confidential customer data. Add 3D Secure 2.0 integration and compliance with KYC principles, and you get a huge amount of work, which again requires a separate team of specialists.

By default, the finished White Label PSP product contains all of the above components. On the provider's side - passing mandatory audits, obtaining certificates, developing and implementing the necessary data protection technologies. For the business, minimum efforts are needed: only integrations and the start of secure payment acceptance.

As you can see, there are more than enough arguments ‘in favor’ of a White-Label PSP solution for the quick launch of secure payments worldwide. A ready-made SaaS product frees you from the cost of several million dollars and saves time. This approach is aimed at companies that want to focus on solving global business development tasks instead of managing a development and technical team.

White Label PSP from Tranzzo is a ready-made SaaS solution for launching payments under your own brand. By purchasing it, a business gets all the necessary services under its own brand on its domain - merchant portal, payment page, documentation, APL and back office for independent project management. More than 330+ integrations with banks and payment providers enable you to grow your business worldwide. The stable system is built on a microservice architecture, is easily scalable, and delivers an SLA of 99.9%.