Choosing the Best A2A Payments Provider for Your Business
Choosing the best account-to-account payments (or Pay by Bank) provider for your business can be tricky. Like so much in life, not all providers are the same, particularly when it comes to A2A payments. And with so many different options and variations in service, from cross-border reach to the quality of customer support, choosing who to partner with is harder than ever.
To gain insights on what to consider when choosing a new Pay by Bank or A2A provider, we spoke with Sven Fredin, VP of Commercial Operations at Brite Payments. Sven is an ideal expert for this topic, as he has been involved in numerous Request for Proposals (RFPs) and is Brite’s go-to expert for addressing these questions. Therefore, here’s what merchants need to keep in mind when selecting the best payments provider for their business.
Why is it critical to consider a payment service’s technical aspects when choosing a payments provider?
Sven Fredin, VP Commercial Operations: When selecting a payment provider, it’s crucial to consider the technical aspects. All A2A payments providers appear to offer similar products from the outside, but it’s essential to look deeper into each provider’s underlying systems. Some key factors to evaluate include the provider’s uptime and system stability. What technology are they using? How much downtime do they experience per month or year? This information is vital for merchants, as it directly impacts their operations.
A merchant cannot afford to collaborate with payment providers that experience frequent downtime. Therefore, the technology stack and the choice of system providers and subcontractors are crucial factors.
Additionally, evaluating the entire journey after a merchant signs a contract with an A2A payments provider is essential. Does the provider simply sign the contract and disregard the merchant, or do they offer support throughout the integration process? They must assist with the integration, provide a dedicated team, and ensure the merchant is supported from contract signing to onboarding and going live.
How important is finding an A2A payments provider that listens to a merchant’s needs?
Sven Fredin: It’s crucial for a merchant to find a reliable partner. At Brite, we view our relationship with merchants as a long term partnership. Communication is key in this partnership. For instance, if you, as a merchant, have feedback regarding product improvements or a specific feature you feel is missing to streamline your operations, you should feel comfortable bringing this up with your payment partner. It’s essential that your payment partner listens and takes action based on your feedback.
One of Brite’s key strengths is our commitment towards our merchants, by listening to our merchants feedback and also incorporating this feedback into our continuous product improvements. This helps us establish strong, long-term relationships with our merchants. Unfortunately, many companies cease to care for their merchants once the contract is signed; they simply focus on the revenue they will generate.
However, the real work begins after the contract is signed. It’s important to support the merchant throughout the integration process. This means actively listening to their feedback and ensuring the technical integration goes smoothly.
At Brite, we pride ourselves on guiding merchants during the integration process and ensuring a seamless transition to the account management team. Our goal is for every merchant to feel heard and supported.
What are merchants eager to know about A2A payments and related services?
Sven Fredin: We have some common questions from merchants. They often ask about our market coverage and which markets we support in Europe. Additionally, they inquire about the currencies we accept and whether our products and services are available outside Europe.
Another important factor is pricing, which can vary depending on the stakeholder involved, such as whether we deal directly with the merchant. However, it’s important to note that merchants should not focus solely on finding the cheapest solutions.
Overall, coverage, availability, and price are the key factors that consistently arise in these discussions.
What myths about A2A Payments and Pay by Bank do you come across?
Sven Fredin: I want to address a few myths surrounding A2A bank payments. First, there’s the belief that these payments are not secure. This is a myth. Many people think logging into their bank account and verifying transactions might be unsafe, but the reality is quite the opposite. We adhere to the highest data security standards and procedures.
Another myth is that A2A payments are too complicated for the end user. I can assure you that we have measured conversion rates for both first-time and returning users, and we’ve found that the user journeys are very smooth.
The third myth is that A2A payments are too slow for users. This is also false. For instance, the majority of payments we process are settled within seconds in the majority of cases.
What cannot be underestimated or forgotten about when choosing a payments partner?
Sven Fredin: To expand on what I mentioned earlier, the availability of the payment system is crucial. Ensuring high system stability and maximising uptime—ideally aiming for 100%—is essential. Merchants cannot effectively offer payment methods at checkout if the system experiences frequent downtime or service interruptions.
Another vital aspect is customer and merchant support. After you, as a merchant, have signed the contract, it’s vital that you receive continuous support throughout the onboarding journey. You should have a dedicated account manager and always have direct access to a representative from the payment provider, rather than just sending an email to a generic address and hoping for a response. Having a personal contact ensures that you receive the support you deserve.
Additionally, regulation is important. Companies like Brite are fully regulated by the Swedish Financial Supervisory Authority (SFSA), which holds us to the highest standards in our business practices.
Finally, it is advisable to check for references from similar businesses currently working with the payment provider. Asking for references can serve as a good benchmark for you as a merchant.
What should stop you in your tracks and make you take notice?
Sven Fredin: If you’re evaluating companies that primarily compete on price, I would caution considering those that market themselves as the cheapest solution.
When their only selling point is that they are cheaper than competitors, it serves as a warning sign. We have seen companies in the market with this approach ultimately go bankrupt. Therefore, this is a red flag to watch out for.
For SMEs in particular, are there any things you should look for now and in the future, when looking to scale?
Sven Fredin: This is related to the previous answer. It’s important to seek a long-term partnership with a payment provider. Ensure that you collaborate with a provider that has established stability, demonstrated by years in the market and financial reliability. The provider should also be able to offer a pricing structure that is acceptable for both parties.
You don’t want to sign a one-year contract at a very low price only to have the renewal negotiations result in a significantly higher price for the second year. For instance, the payment partner might come back after six months to renegotiate the terms.
The key takeaway is to avoid only considering the cheapest solutions, as they can be more costly in the long run.
Who should you involve when creating an A2A Payments or Pay by Bank RFP?
Sven Fredin: To create an effective RFP, it’s essential to involve multiple departments within your organisation, not just the commercial team. In my experience, working on many RFP’s during my career, I’ve often seen companies mistakenly focus solely on pricing and commercial considerations.
Instead, you should include stakeholders from various areas. For instance, consider financial questions about settlements, such as how often you settle and which currencies you support. Additionally, it is crucial to involve the engineering team to inquire about system availability, the tech stack in use, and your organisation’s uptime SLAs (Service Level Agreements) in different areas.
Equally important is involving the operations team, which can provide insight into how issues are handled, whether you or your customers encounter problems. It’s essential to know how to reach the payment provider effectively, what different support channels are available (such as email, chat, or phone), and their respective opening hours and SLAs.
In short, involve as many stakeholders as possible when issuing an RFP. You need to conduct a thorough 360-degree review of the partner you are considering, not just concentrating on commercial elements.
Finally, what makes Brite unique in the world of A2A payments?
Sven Fredin: Brite is a fast-paced company driven by experienced professionals from various payment providers. We are not your classic startup or scale-up; we have team members with a wealth of knowledge from previous journeys. Our team includes individuals from Klarna, iZettle, and PayPal, all of whom know how to build and scale a business. This experience helps us avoid some of the significant mistakes many young companies make. While we will inevitably encounter challenges, our goal is to sidestep the most substantial pitfalls.
Use our RFP Guide to help find the Best A2A Payments Provider
Choosing the right provider can significantly impact your payments strategy. Our RFP guide will help you find the ideal partner. Download it now to learn why it’s the perfect time to adopt Pay by Bank and instant account-to-account (A2A) payments.
This guide includes essential questions to incorporate in your Request for Proposal (RFP) that cover commercial requirements and technical capabilities. It also provides insights on how to evaluate providers’ onboarding processes, reconciliation methods, and scalability options, along with key criteria for selecting a future-proof payments provider. Download the RFP guide now for more information or get in touch!
