🔐 What are Payment Providers? 🤔

🔐 What are Payment Providers? 🤔

Introduction

In the world of Fintechs and crowdfunding platforms, the role of Payment Service Providers (PSP) is essential. These actors act as intermediaries between investors and funding platforms, ensuring that all transactions take place smoothly, securely, and in compliance with regulatory requirements. Without them, it would be difficult to ensure the security of transactions and to comply with current legislation. 📊

Les PSP offer a range of services that allow investors to deposit money, project developers to receive funds, while guaranteeing an optimal security framework. But their role is not limited only to financial transactions. Let's take a closer look at why PSPs are crucial for the smooth functioning of financing platforms and how they contribute to the security of investment flows.

The Crucial Role of PSPs

PSPs are responsible for several key aspects of the financial process on crowdfunding platforms and other types of funding:

1. ‍KYC (Know Your Customer) : Safety first and foremost! One of the first roles of a PSP is to verify the identity of users, whether they are investors or project leaders. For this, rigorous KYC procedures are put in place. PSPs need to verify identity documents, proof of life, and other items that can attest to the identity of the user. This step helps prevent fraud and ensures that transactions are carried out by legitimate individuals. 🔒
2. Creating Wallets : PSPs make it easier to manage funds by creating Wallets (virtual accounts) for investors. These wallets are used to deposit money, make investments, or even transfer funds between the investor's wallet and the funded projects. These virtual accounts allow for the smooth and rapid management of investments, while ensuring a high level of security.‍
3. Securing Transactions : PSPs ensure that all transactions between investors and projects are carried out in a secure environment and in accordance with international standards, such as PSD2 directive in Europe. In addition to ensuring payment security, PSPs also facilitate real-time transactions and offer complete traceability of operations.

Investment Flows: How does it work? 🔄

Financial transactions between investors and projects take place in various forms. Here is an overview of the main payment flows:

• ‍Pay-in : This term refers to the process by which an investor credits his account on the platform by transferring money from his bank account or bank card. This flow is essential to feed the wallets of investors before they make investments in projects.‍
• Pay-out : After investment, pay-out refers to the debit of funds from the investor's wallet to an external bank account. This may be a repayment of an investment or a withdrawal of the gains made.‍
• P2P (Peer-to-Peer) Transfer : These are transfers between the investor and the project leader. These transactions allow funds to be transferred directly from the investor's wallet to the project, creating a direct financial link.

PSPs at the heart of Fintech Innovation

Chez Capsens, we work with renowned PSPs like Lemonway and Mangopay, two partners that allow us to offer our customers robust payment solutions that comply with current regulations. These PSPs are particularly suited to the needs of crowdfunding platforms and online financing platforms in general.

The advantages of partnering with PSPs like Lemonway and Mangopay are multiple:

• ‍Regulatory compliance : Our PSPs comply with legal and fiscal requirements for data protection and transaction security.‍
• Optimal user experience : These PSPs ensure a smooth experience for users, with fast payments and simple but secure identity validation processes.‍
• Scalability : These solutions allow platforms to finance large-scale projects while effectively managing a high volume of transactions.

Why Choose the Best PSPs for Your Platform?

Choosing the right PSP is essential for the proper functioning of a financing platform. A well-integrated payment solution not only secures investment flows, but also ensures regulatory compliance, while providing a seamless payment experience for users.

Payment providers don't just process transactions; they manage key processes, like managing funds, authenticating users, and ensuring compliance. They therefore play an essential role in the development and success of fintech platforms.

If you are a financing platform looking for robust and adapted solutions, Capsens is there to support you in choosing and integrating the best PSPs, while ensuring an optimal and secure experience for your users. 🚀