Payment Service Providers (PSPs)

PSPs are third parties that enable merchants to accept electronic payment transactions – including credit and debit card payments, Direct Debits, bank transfers, and real-time bank transfers – by connecting them to the broader financial infrastructure. Examples include PayPal, Stripe, and Airwallex.

PSPs provide merchants with access to a seamless payment gateway. This secure online portal connects their websites or applications to their payment processing system, facilitating the secure transmission of payment information to their customers and banks.

During this process, PSPs authorize, clear, and settle transactions. Having communicated with the customer’s bank or card issuer to verify their details and check for sufficient funds, they obtain authorization. This gives these intermediaries the go-ahead to execute the transfer of funds between the customer’s account and the business’s account.

PSPs offer several benefits for businesses that operate online or accept electronic payment transactions and the customers they serve:

Seamless integration

Intuitive APIs and integration tools allow businesses to start accepting payments on their e-commerce platforms, websites, and mobile apps expeditiously – eliminating the need to establish a dedicated merchant account and integrate a separate payment gateway.

Multiple payment methods

PSPs’ ability to accept different payment methods via a single platform simplifies the payment process, enhances the customer experience, and helps businesses stay competitive.

Faster transactions

PSPs provide the infrastructure, technology, and security measures necessary to facilitate instant transactions securely. This removes the friction associated with manual payment processing, allowing for faster transfers of funds.  

Fraud protection

PSPs protect merchants and customers by implementing advanced client-side security features like authentication, encryption, tokenization, and monitoring for suspicious activity – a proactive approach to cybersecurity that prevents unauthorized transactions, improves cash flow management, and enhances customer satisfaction.

Compliance

PSPs must ensure their systems and processes comply with industry standards and regulations that govern data protection and fraud prevention, such as the Payment Card Industry Data Security Standard (PCI DSS). With sensitive payment data stored, processed, and transmitted securely, businesses achieve compliance and customer trust.

Global reach

PSPs allow businesses that operate across borders to accept payments in multiple currencies and settle transactions in their operating currency. This provides them with a platform to expand their reach, attract overseas customers, and tap into new markets.

Scalability

PSPs offer features that easily scale as businesses of all sizes grow. Whether they’re processing a few payments per day or handling a large volume, PSPs can handle fluctuating transaction volumes without significant infrastructure changes. This means businesses can use the same PSP as they grow without switching providers or establishing new payment processing arrangements.

With two-thirds of adults worldwide now using digital payments, it’s no surprise that they are set to more than double in value: the global digital payments market is projected to be worth $15.27 trillion by 2027, rising from $7.36 trillion in 2021. Amid this growth, PSPs will play a pivotal role in delivering fast, efficient, and secure digital payments on an eye-watering scale.

Client-side vulnerabilities and web page protection in JavaScript go hand-in-hand when the concern is client-side security. JavaScript security threats and risks are a real concern. Moreover, JavaScript may represent a security vulnerability for businesses when the source code is provided by third-party providers, for example.

• First-Party JavaScript - The code an organization generates may have been secure when written. However, the code may have been tampered with after it went into production or reverse-engineered by malicious actors.

• Third-Party JavaScript - JavaScript code originating from third-party sources poses a significant risk because it has all the same privileges as first-party JavaScript code. Since there are no default security settings for third-party JavaScript, the organization that operates the website or app pulling in that code is responsible for enforcing security and continuous monitoring.

• Use of Forms and Secure Form Data - More than 90% of websites use forms to collect users’ personal information. Therefore, businesses must be committed to preventing breaches. On average, the personal information collected has a high level of exposure, involving more than 15 third-party domains, which increases the risk of unauthorized access to data and script misbehaviors.

Why do businesses need client-side security?

Client-side attacks have increased in cost and scale as companies expand their investments in the end-user digital experience. From Jscramblers’ experience, we give three fundamentals to start improvising the client-side security of your applications:

• Identify all third-party JavaScripts running on your web applications and website;

• Understand what these third-party JavaScripts are doing and why;

• Define which scripts are allowed to access data in forms on payment pages and block those that should not.

Web applications typically load 20 or more third-party scripts as part of the digital user experience. By not developing a client-side security strategy and approach, security teams allow third-party code libraries to run amok on their servers.

The relevance of third-party scripts for users’ digital experience creates a JavaScript supply chain, and the lack of client-side security measures generates potential vulnerabilities to a software supply chain implemented almost in real-time on users’ devices. That said:

• For businesses that accept online payments, users’ browsers may be facing a silent war.

• Website forms are open windows for data breaches.

• It is urgent to control third-party script behaviors on the client side, including tracking pixels and chatbots.