What is a Pay by Link Service Provider

For many companies, the key partner in this process is a pay by link service provider.

Understanding Pay by Link Services

A pay by link service provider is a platform or payment processor that lets companies generate secure payment links and send them to customers. Think of it as a bridge between a business and its customers, where the provider handles the technical, compliance, and security aspects of processing payments.

Here’s how it works:

The merchant generates a payment link with the amount, currency, and payment details.
The link is sent to the customer via email, text, chat, or invoice.
The customer clicks the link, enters their payment details, and completes the transaction.

Unlike traditional point-of-sale systems or checkout pages, pay by link removes friction and adds flexibility. It’s not about replacing card terminals or e-commerce checkouts; it’s more like giving businesses another way to accept payments.

How a Pay by Link Service Provider Works

The process of using a pay by link provider is straightforward:

Generating the Payment Link

Merchants log in to their dashboard, set up the transaction details (amount, currency, expiration date), and create the link. Some systems allow links to be customized with logos or reference numbers for branding.

Sending the Link to Customers

Businesses share the link via email, SMS, WhatsApp, chatbots, or even QR codes. Branded messages reassure customers the request is genuine.

Completing the Transaction

Customers click the link and complete payment on a secure page. Options often include card payments, bank transfers, or digital wallets like Apple Pay or what is Google Pay.

This flow keeps things smooth, secure, and highly adaptable for businesses that need quick payment solutions.

Benefits of Using Pay by Link

Using a pay by link service provider comes with several advantages:

Convenience for Businesses and Customers: Companies don’t need a full online store, and customers can pay instantly with a single click.
Global Reach: Links can be used across borders, allowing customers to pay in their local currency.
Security and Compliance: Providers typically meet PCI DSS standards and include fraud detection tools.
Flexibility Across Industries: From healthcare appointments to retail promotions, pay by link fits multiple use cases.

It’s also part of a bigger trend known as contextual commerce, where payments are embedded naturally into digital experiences without requiring a dedicated checkout page.

Key Features to Look for in a Pay by Link Service Provider

When choosing a provider, here are the most important features to consider:

Multi-Currency Support: Essential for businesses serving international customers.
Integration with Existing Tools: Ability to sync with accounting software, CRMs, or invoicing systems.
Customization Options: Branded payment pages, custom invoices, and personalized messaging.
Real-Time Reporting: Tools to track revenue, payment statuses, and customer activity.
Security Features: Tokenization, encryption, and strong authentication to protect data.

Pay by Link vs. Other Payment Methods

Here’s how pay by link compare to other payment solutions:

Card Terminals: Great for in-person sales but limited for remote transactions.
Online Checkout Pages: Perfect for e-commerce but requires setup and integration.
Mobile Wallets: Convenient but depend on customer adoption.

Pay by link is most effective for small businesses without a full e-commerce setup, service-based industries, or companies needing to collect remote or recurring payments. Rather than replacing other methods, it complements them.

Challenges of Pay by Link Services

Despite its strengths, there are challenges businesses should be aware of:

Phishing or Fraud Risks: If customers can’t verify the source of a link, they may hesitate to click.
Trust Signals: Lack of branding on payment pages can discourage customers.
Transaction Costs: Fees may be higher than traditional methods.
Connectivity Issues: Internet access and digital literacy are required for both businesses and customers.

Providers mitigate these risks with secure branding, encryption, and fraud-prevention features.

Industries That Benefit Most from Pay by Link

Pay by link services have applications across many sectors:

Retail and E-Commerce: Perfect for flash sales, pre-orders, or invoice payments.
Healthcare and Professional Services: Ideal for collecting consultation fees or telehealth payments.
Hospitality and Travel: Useful for securing deposits and advance bookings.
Education and Training: Allows schools or online platforms to collect tuition and workshop fees efficiently.

Global Perspective on Pay by Link Providers

Adoption trends show rapid growth in North America and Europe, where digital payments are already mature. In Asia, pay by link adoption is accelerating due to widespread use of mobile payments and super-app ecosystems.

However, regulations vary by region. Data protection laws like GDPR in Europe and local banking rules in Asia influence how links can be created and shared. Global providers ensure compliance by adhering to international standards while offering localized payment methods.

For businesses ready to take the next step, solutions like payment processing with Vellis show how providers can combine security, compliance, and innovation into one streamlined platform.

Frequently Asked Questions (FAQs)

What is pay by link?

Pay by link is a payment method where a business generates a secure link and sends it to the customer, who clicks and completes the transaction online—for example, paying for a consultation via a link sent by email.

What is a pay by link service provider?

A pay by link service provider enables merchants to create, send, and manage secure digital payment links through channels like email, SMS, or chat.

Is pay by link secure?

Yes, reputable providers use PCI DSS compliance, encryption, and fraud prevention tools to protect both businesses and customers.

Which businesses should use pay by link?

It’s especially useful for retail, healthcare, professional services, education, and hospitality businesses that need flexible, remote payment options.

Can pay by link handle recurring payments?

Many providers support subscriptions, installment billing, and automated recurring payment schedules.

How does pay by link compare with online checkout?

Pay by link is simpler to set up, doesn’t require a full website, and is often cheaper, while online checkout is better for high-volume e-commerce.

Are pay by link services available globally?

Yes, most providers offer global solutions, though regulations and accepted payment methods vary by region.

References

SwipeSum. (2024). What is a Pay by Link Service Provider and how can it transform your payments? Retrieved from SwipeSum website

Stripe. (2025, July). Pay-by-Link: An in-depth guide. Retrieved from Stripe website

Magestore. (2025, July 29). What is pay by link? A guide for omnichannel retailers. Retrieved from Magestore website