Why you should choose a PSP-licensed payment partner

Secure transactions are a prerequisite for your business – but hardly your main focus. To ensure convenient and accurate payment flows for employees and customers alike, you must choose partners wisely. Here we explain what your company gains from your payment partner having a PSP license. Especially if you want to grow in new markets in Europe.

What is a PSP (Payment Service Provider)?

A PSP (Payment Service Provider) acts as an intermediary between your business and the acquiring bank when you receive payment from your customers. There are different PSP licenses for different types of payment services. Some famous PSP companies include Tink, Stripe, and Klarna.

By managing payments through the PSP company’s platform, you can offer your customers fast and secure transactions with multiple payment methods, without having to spend time and resources on manual administration.

What does it mean to be – and choose – a licensed PSP?

To obtain a PSP license, payment service providers need to meet different requirements and certifications relating to information security and risk management, for example. Licensing also means that the company is supervised by the Swedish Financial Supervisory Authority.

Since 2023, Billogram has been a PSP-licensed operator. Pelle Ekedahl, Process Project Manager, sees this as an important quality stamp:

“The license is proof that we meet high standards in one of the most heavily regulated industries in the market. This knowledge gives our customers extra peace of mind about payment processing, and enables them to fully focus on their own core business.

How Billogram’s PSP license facilitates international growth

Pelle says that Billogram’s PSP license shortens the starting line for those seeking to establish their company in new markets within the EU:

“Several of our customers are growing in Europe right now. With our PSP licensing, they can get up and running quickly with the same seamless payment platform in every new country, without time-consuming research and tedious adaptations to national payment service laws.”

Pelle explains that Billogram's license can be passported into other Member States:

“Essentially, the Swedish Financial Supervisory Authority notifies the corresponding authorities that we, as a payment service provider, meet the required conditions and that we are under their supervision.”

Scalability and future-proofing part of the service

Growing internationally with Billogram as a payment partner also increases scalability, since the need for different third-party providers is minimized.

“Our PSP status enables efficient connection to the SEPA infrastructure in Europe, without your company having to enter into agreements with different local actors,” says Pelle.

Reducing complexity and dependence on third-party providers will also make it easier to comply with EU regulations in areas such as information security, operational reliability, and money laundering prevention.

“The PSP license is not a one-time investment. At Billogram, we update our processes continuously as legislation changes. So you don’t have to think too much about how directives and regulations like PSD3, DORA and NIS2 affect the way you handle payments. That future-proofing is part of the service,” concludes Pelle.