The checkout process is crucial for PSPs. Customers’ flow is disrupted and conversion rates may be lowered when they are directed to a third-party payment page. One of the main causes of cart abandonment is this friction. 19% of consumers cancel a purchase because they “didn’t trust the site” with their credit card information, and 18% do so because the checkout process is “too long or complicated,” according to data from the Baymard Institute. By keeping the customer on-site in a smooth, branded environment, a white-label payment API addresses this issue, fostering trust and assisting in the recovery of lost sales.
PSPs who wish to manage their payment stack should refer to this guide. We’ll go over how to pick the best white-label payment API partner, examining both open banking and conventional card payments to assist you in providing a smooth, branded, and cutting-edge payment solution.
What Is a White-Label Payment API?
A white-label payment API is a payment processing solution built by a third-party provider that you can rebrand and offer as your own.
Instead of your merchants’ customers being sent to a different site to pay, the API allows you to build the entire payment flow directly into their website or app. The customer only sees your merchant’s brand, creating a seamless, secure, and professional experience that builds trust and increases conversion rates.
Why Offer a White Label Payment Experience?
You can incorporate a full payment flow under your merchants’ brand right into their websites or applications by using a white-label payment API. From beginning to end, the consumer sees the merchant’s brand.
Among the advantages are:
- Boost Brand Loyalty: Customers are more likely to trust a merchant when they receive a consistent, branded payment experience.
- Increase Conversion Rates: By preventing users from being redirected, you can lower the quantity of cart abandonments.
- Long-Term Scalability: You control the user interface (UI) and user experience (UX), allowing you to adapt and update your offerings as your merchants’ needs change.
Comparing Payment Methods: Card vs. Open Banking
Your choice of white-label payment API partner will likely be based on two main technologies: traditional card gateways or open banking.
| Feature | Card Payment Gateways | Open Banking (Pay by Bank) |
|---|---|---|
| User Process | Familiar process for users | Modern, API-first flow |
| Payment Flow | Runs on traditional card networks | Avoids card networks and pays directly bank to bank |
| Transaction Fees | Higher (often 1.5% – 3.5%) | Significantly lower (no card network fees) |
| Settlement Speed | Slow (2–3 days for funds) | Instant (money received in seconds) |
| Security | Standard card security | Authenticated directly with the user’s bank |
| Fraud/Risk | Standard risk of chargebacks | Helps reduce fraud and chargebacks |
For PSPs looking to offer a competitive, cost-effective, and efficient solution, open banking is a compelling, efficient option.
Important Considerations for PSPs When Choosing an API
Use these four criteria to identify the best partner when assessing a white-label payment API.
1. Bank Connectivity and Geographic Coverage
A provider’s network determines how good it is. Enquire with possible partners:
- Do you have solid, dependable API relationships with the major banks in our target markets, such as France, Germany, and the UK?
- Check if the API covers all the banks that are majorly used in your region.
2. Regulatory Compliance: PISP & AISP
The open banking sector is subject to regulations. The appropriate licences must be held by your partner.
- To initiate payments, a Payment Initiation Service Provider (PISP) licence is necessary.
- Account Information Service Provider (AISP): With user consent, this licence enables the provider to access account data.
More value can be offered by a partner who holds both PISP and AISP licences. It enables you to provide data-driven services beyond payments, such as transaction history or balance checks.
3. Accepted Payment Methods
The needs of your merchants are different. Your partner for the white-label payment API should be adaptable. Verify whether they can assist:
- Single Payments: Typical one-time purchases.
- Processing numerous payments at once, like for payroll, is known as bulk payments.
- As an open banking substitute for Direct Debit and card-on-file, Variable Recurring Payments (VRPs) are a new option for subscriptions and one-click payments.
4. Support for Business and Customer Accounts
You need a provider that can meet the needs of your merchants, especially if they are business-to-business (B2B) firms. Retail consumer bank accounts are the exclusive focus of many API providers. Make sure your partner has demonstrated business bank connectivity because connecting to business bank accounts can be more complicated.
What is a white-label payment API?
A white-label payment API lets you process payments under your merchant’s brand. Customers never leave the site, which builds trust and improves conversion.
Why is open banking better than cards for a white-label solution?
Open banking offers lower transaction fees than cards. It also provides instant settlement in seconds, not days, which improves merchant cash flow.
Essential API Features for Your White-Label Payment API
- Control of Branding: Is it possible to alter every aspect of the payment process to align with the brand of your merchant?
- Developer-Friendly SDKs: Does the supplier provide your development team with clear documentation and SDKs (Software Development Kits) to facilitate faster and simpler SDK integration?
- Onboarding and Support: You should anticipate competent onboarding and dependable technical support as a valued partner.
- Does the white-label payment API provide value-added services like data enrichment to help your merchants gain a better understanding of their transactions?
Conversion, Settlements, and Costs
This is where the benefits of open banking are evident.
- Cost: Compared to traditional card transaction fees, you can offer a pricing model that is frequently much lower.
- Settlement: Since it improves your merchants’ cash flow, providing instant payments gives you a significant competitive edge.
- Conversion: At checkout, a quick, easy, and safe “Pay by Bank” option can boost conversion rates.
This is Where Finexer Can Help..
Finexer provides white-label payment APIs built for PSPs. We deliver the low-cost, instant-settlement benefits of open banking, allowing you to give your merchants a competitive edge. We cover 99% of all UK banks.
We are a fully licensed PISP and AISP across the UK and Europe. Our single API delivers:
- All Payment Types: Single, bulk, and Variable Recurring Payments (VRPs).
- Full Connectivity: Reliable access to both consumer (B2C) and business (B2B) bank accounts.
- A True White-Label Solution: Our developer-friendly SDKs give you 100% branding control, backed by dedicated PSP support.
You’ve seen what to look for in a partner. Now, see it in action. Get on a call with us now!
What is the difference between a PISP and an AISP?
A PISP (Payment Initiation) licence lets a provider start a payment. An AISP (Account Information) licence lets them read account data, like balances.
Why is support for business bank accounts (B2B) important?
B2B support is vital if your merchants serve other businesses. Many APIs only support personal accounts, but B2B connectivity is needed for supplier or invoice payments.
| Question to Ask | Why This Matters |
|---|---|
| Could you give us a list of every bank you work with in our main markets? | Coverage directly impacts customer reach and transaction reliability. A wider bank network ensures fewer failed connections and smoother expansion into new regions. |
| Are you an AISP as well as a PISP? | Being both AISP and PISP shows the provider can handle data access and payments securely under full FCA authorisation—reducing compliance risk for your PSP. |
| Could you demonstrate that you accept bulk payments and VRPs? | Bulk payments and variable recurring payments (VRPs) are key for merchants managing multiple payees or subscription billing. It proves scalability and flexibility of the API. |
| How are business bank accounts and B2B payments supported by your white-label payment API? | Many APIs prioritise consumer flows. Verifying B2B support ensures your PSP can serve corporate clients that require higher transaction volumes and added verification layers. |
| How does your PSP developer onboarding and support procedure look? | Strong developer support shortens integration time and lowers setup costs. It also signals the maturity and reliability of the provider’s documentation and response cycles. |
| Could you provide us with a real-world example of a payment flow that uses your API and is fully white-labelled? | A live example helps confirm that the provider’s white-labelling works end-to-end—from user authentication to settlement—ensuring the experience aligns with your brand. |
Book a demo to see how Finexer’s Fully Customisable White Label Payments API can help your business build trust!