In this continuation part of this article, we will dive deep into the benefits of using online payment solutions for your ecommerce business or online business and we are sure this article will go a long way in helping you understand how they work.
As Payment service providers generally offer immediate account approval, merchants can start using it right away. Typically, a payment provider will provide integrated POS software, card swiper, and online checkouts.
As for pricing, some providers have monthly fees, and others may also apply processing fees.
- Payment Service
An online payment service, also called a payment system, refers to the types of payment gateway a payment provider has. For example, PayPal has multiple online payment systems, such as PayPal Express Checkout and Payflow Pro, with different features and pricing.
- Merchant Account
A merchant account is a special bank account enabling a business owner to receive payments through credit or debit cards. This is a must-have if an ecommerce seller wants to accept credit card payments for their stores.
A business owner usually sets up a merchant account with a payment provider. Funds accumulated from successful online transactions will be transferred to this account regularly.
Why Use an Online Payment Solution
Besides enabling a business to accept a wide range of payments and providing customers with various options to suit their preferences, using online payment solutions also bring other benefits to your business, such as:
- Secure and Reliable
Online payment solutions generally come with security measures, such as encryption and tokenization, to protect sensitive data, such as a customer’s credit card information.
Customers can also conveniently save payment details, so they don’t have to reenter them, with an option to use a one-time password to authenticate the user.
- Low Theft Risk
Since your revenue is stored in a bank account, which basically has security measures, there’s a lower chance for the funds to get stolen compared to keeping the cash physically in your offline shop.
- Time Efficient
Online payments are quick and easy to set up. While some options may require technical experience to run optimally, the whole process is generally user-friendly.
They’re also faster than manual payments like cash or cheques. The online payment process, from customers submitting their data to updating your bank account, typically takes only several seconds.
Some even handle post-payment tasks, like sending a purchase confirmation, and provide automated payments. As a result, you can set up recurring billings easier.
- Easy Management
Managing money and financial data will be easier with online payments. The payment tools store funds from various bank accounts and digital wallets and keep track of the financial information in real time, making it easier to get on top of your finances.
Top 5 Popular Online Payment Solutions
1 Paypal
2 Flutterwave
3 Paystack
4 Stripe
5 Square
6 Amazon Pay
7 Google Play
8 Payoneer
These are tested and trusted online payment service companies. They are monthly cost friendly, very efficient for running small business payments and some have free payment process, e.g Google pay.
Most of this PSP’s have a drawback feature. its a feature whereby a transaction payment is put on hold and the funds returned back to the payer once the system detects a suspicious act from the selling the account. In other words it has strict terms of use resulting in fund withholding, account freezing, or even termination, although it may be helpful for user safety.
How to Pick the Best Online Payment Solution for Your Needs
- Security
Online payments are vulnerable to fraud and data theft, so payment solution security should be a high priority to ensure your data and customers’ safety. Check if the tool complies with the PCI security council standard. For increased security protocols, some options offer fraud detection to protect your business.
- Cost and Sales Volume
Costs in payment platforms generally come in setup, monthly, and transaction fees. Consider your transactions’ volume and value to find the most cost-effective option.
- Customers
Since lack of payment options is one of the top reasons for cart abandonment pick payment methods your customers prefer. Different regions and generations may have specific preferences.
For example, in the US and UK, citizens generally use card payment and PayPal, while ELV is one of the most popular online payment methods for German consumers. Baby Boomers love shopping and purchasing offline. while the new generation folks uses digital payments like Apple Pay and Google Pay more often than older generations.
So If you target a global market, choose a platform that can handle online payments with multiple currencies.
Conclusion
Before building an online store, finding a suitable online payment solution is important. This tool helps you securely accept payments online globally and check the real-time payments in one place.
As each solution comes with specific online payment services, consider your business model, existing tools, customers, and sales volumes when choosing one. It also needs to be PCI (payment card industry) -compliant to protect your customers’ data.
We hope this article has helped you filter the options and pick the best one to process payments according to your business needs. Thanks for reading.
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