6 Things to Consider When Choosing the Right Payment Service Provider for Brazil

Choosing the right payment service provider company depends on many factors, so it isn’t an easy decision, especially in a complex market like Brazil. To help you with the selection process, we’ve listed the top six things to consider when looking for prospective payment service providers.


When choosing the right payment service provider for your business, there are many factors to consider. Choosing the option tailored to your specific needs is crucial to your company’s success. It will help you develop a secure, reliable, and suitable payments flow and experience, convert and retain customers, and maintain a good reputation among clients and prospects. Consumers want more than a product, they want connection and experience; they want to be heard and seen.

This article lists the steps you should consider to choose the right payment service provider (PSP), whether in Brazil or elsewhere. 


  • Define your business goals and needs

Before you type anything on Google, you should first be sure about your goal in partnering up with a PSP. If you aren’t sure what your short, mid and long-term goals are, and what your business needs to grow, you might end up with a payment service provider that doesn’t focus on what is critical to your business, but instead, just “nice-to-have” options. 

Gather intel information across your organization to see what the priorities and requirements are, and ask yourself how a PSP can help you resolve these matters. 


  • Look for specialists in the market

The best payment service provider for your business will ideally specialize in your business model or target markets. Every country has its specific market behavior and requirements, so it’s crucial to work with a focused PSP with experience in the local and most preferred payment methods and your customer needs and expectations within the given market.

Read more: How Fintechs are Revolutionizing the B2B Payment Realm in Brazil

One good example is what’s happening in Latin America. Many payment service providers market themselves as specialists in LatAm, and, more often than not, they use the one-size-fits-all approach. However, each country has its particularities. For instance, in Mexico, 45% of all transactions are done with a debit card, while in Brazil, buyers prefer to pay with a local credit card, especially in installments.


  • Check what types of payment methods and services they provide

In Brazil, for instance, the online shopper is twice as likely to shop for a specific product with a merchant who offers the payment method of their choice. In other words, Brazilians won’t think twice about reaching out to the competition if they provide their preferred payment method. Brazil’s most preferred payment methods are primarily local: credit card (with installments), boleto bancário, and Pix.

Read more: Pix: 10 Questions and Answers About Brazil’s Instant Payment Method

Understand the providers’ solutions and see how well they suit your business needs. This includes not only the payment methods but also the payment model they support. For instance, a streaming business would require recurring payment features, while a marketplace needs a robust payout solution. What are the ideal features and model for your business?


  • Quality vs. pricing 

It’s a common practice in the market to sacrifice quality so that some payment service providers can work with lower pricing. Price is an important consideration; however, focusing solely on price when choosing a product or service can come at a cost. 

Saving on fees and choosing a PSP exclusively focused on price may compromise the quality of some services such as customer support, safety, stability, and checkout performance. If one (or all of them) are poor, you might be compromising UX and performance and losing sales. 

Read more: Why Payment Processing Fees Are Irrelevant and Learn How to Choose the Right PSP For Your Business


  • Customer support

The costs of poor customer service are high, and, according to Forbes, businesses have lost $75 billion due to a negative customer service experience. Thus, it isn’t worth overlooking this service, at the end of the day.

“Problems will always exist, so you should rely on your payment service provider’s help when you need to,” said PagBrasil’s CEO and co-founder, Ralf Germer. Humanization of this kind of service is an opportunity to treat the buyer with empathy, creating a bond and customizing communication.


  • Transparency in fees and commercial terms

You need to have a clear picture of the fees and commercial terms involved to determine the best payment service provider for your business. Besides, it is important to compare fairly: you should not compare a payment solution for the U.S. market with one for Mexico. The payment structure and conditions can vary according to the market’s complexity. Find out if the PSP has any unclear pricing model or the slight possibility of hidden costs, including transactional fees, currency conversion, chargebacks, and setup fee.

The best payment service provider will tick all the boxes on the list above. But, more than that, a PSP that’s right for the cross-border merchant who has little to no experience in the complex Brazilian market will help you navigate it seamlessly. 

Read more: Brazil Among the Main Digital-first Consumers in the World


PagBrasil will boost your conversion rates with our robust platform and unique services, helping whenever you need high-quality customer support. Our 25+ years of experience in the Brazilian market have helped us develop the best payment experience and services for our partners that want to thrive in Brazil, from all over the world, across many industries and niches. If you wish to learn more about our solutions, get in touch with our team today!

Camila Santiago

This page uses cookies to improve the user experience on our website. By clicking "Accept", you consent to the collection and use of the information to ensure the best browsing experience. To find out more, read out our Privacy Policy.