When payment service providers partner, most of them tend to go with a single partner for each capability. This approach, however, limits the payment program manager’s negotiating power and often leaves them at the mercy of their chosen provider.
In contrast, a payment service provider with multiple partners for each capability gives the payment program manager the power in negotiating deals. Here are some of the main reasons why:
Diversification of Risk
Having multiple partners for each capability allows the payment program manager to spread the risk across different providers. This approach ensures that if one provider fails to deliver, the program manager can quickly switch to another provider without any significant disruption to the program.
Working with multiple providers means that the payment program manager has access to a wider range of services and solutions. This approach allows the program manager to leverage the strengths of each provider to create a more robust and competitive payment program.
Having multiple partners for each capability gives the payment program manager considerable negotiating power. With several providers competing for their business, the program manager can negotiate better rates, terms, and conditions. This approach puts the program manager in a stronger position and ensures that they get the best deal possible.
Making sure to have multiple partners for each capability puts payment program managers at a significant advantage in negotiating deals. By diversifying risk, gaining a competitive advantage, and increasing negotiating power, program managers can create a more robust and effective payment program that meets the needs of their organization.