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Going Multi-PSP in the EU

Blog post from Basis Theory

Post Details
Company
Date Published
Author
Basis Theory
Word Count
1,149
Company Posts That Month
8
Language
English
Hacker News Points
-
Post removed?
No
Summary

European merchants commonly use multiple payment service providers (PSPs) to reduce dependence on a single provider, improve authorization rates across transaction types and countries, lower processing costs, and avoid disruptions or restrictive account policies. The approach is especially relevant in the EU because its diverse national payment preferences, frequent cross-border commerce, and Instant Payments Regulation—which requires banks to support near-immediate euro transfers—are expected to encourage further alternatives to card networks. While a single full-service PSP can offer faster implementation, predictable pricing, reduced development work, and help limit PCI-DSS compliance responsibilities, multi-PSP arrangements can broaden consumer payment options and enable transaction routing based on factors such as geography, fees, volume, and chargeback risk. To manage such strategies, merchants need secure payment-data collection and storage, often through PCI-compliant tokenization vaults, along with a decisioning system that directs each transaction to the most suitable provider.

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