What is an online payment solution?
An online payment/e-payment/electronic payment implies paying for goods or services online (on the internet). When a customer visits an e-commerce portal or website for purchasing goods or services from it, he/she can make the payment on the spot with the help of the payment solution/terminal. The e-payment solution includes all the financial operations using devices like computers, smartphones, etc. E-payments help with several methods like credit card/debit card payments or bank transfers. In today’s time, it is observed that the most niche method of making online payments is via cards.
Why Online payments?
Online payments are required because of one major reason of growing demand in the country for online payment solutions/card payments.
Source: World Payments Report
Aforementioned statistics reveal that Asia is emerging as a continent with more and more of non-cash transactions. Since this is a huge positive impact on the digital payments’ economy, the growing demands of online payment solutions are met with the rapid advancements. In addition, it is expected that Asia will continue on a high-growth trajectory. It is anticipated that the CAGR will reach 28.8% before 2021. This estimation is on the basis of the factors, such as government efforts for financial inclusion even of rural areas, increase in the smartphone use across the country and an increased awareness about the benefits of e-payments.
In simple words, every business in today’s time in India majorly requires online payments’ option to be on par globally.
Besides, there are several other reasons a business requires an e-payments’ arrangement:
- Instant money transfer is possible with the help of online payments’ channel
- Easier and preferable method of making payments by customers/clients
- Maintaining database becomes much simpler
- Prevents fraud with its safe mechanism, and avoids accounting errors
- The merchant can receive payments 24/7 with an online payments’ mechanism set.
Parameters for choosing the best online payment solution
While choosing an online payment solution for your business, a set of parameters needs to be checked for making the correct decision. These parameters help the business to adopt that payment solution, which provides it the sustained customer loyalty and an uninterrupted settlement of the received amount. Prior to choosing an online payment solution, the merchant must ensure that all of these be in alignment:
Easy sign-up and on boarding process-
While deciding on an online payments solution, a merchant must ensure that the sign up process is easy and quick respectively. When sign up is simple, the merchant does not have to go through much of hassle, and hence, makes itself a part of the service providing company in no time. Making the process simpler is the easy on boarding process of the payment service provider. Earlier, the tasks that added the work load were handing over the documents in person, waiting for approvals for months and following up with payment solutions company. Finishing all the aforementioned requirements manually would take a toll on the business, since it would not be able to commence its payment operations for a long time.
High success rates –
The success rates of various online payment solution companies is what defines them as suitable or not for the business to get onboarded. It must always be taken care that the online payment solution considered for the business has all payment modes. This leaves customers free to make payments from any mode, and thus, increases the customer loyalty and satisfaction. Mainly easy checkout, several payment options and uninterrupted transaction flow all lead to higher transaction success rates.
Low Charges –
When a business integrates with a payment service provider for receiving payments from its customers, the major cost depends on the price of every transaction. This simply means that the company providing the business with payment pathway charges for each transaction that goes through its platform. Cost of each transaction sums up to be a huge amount ultimately. Hence, the business must understand beforehand about several types of cost/charges like setup fees, transaction charges, and such similar costs. Most importantly, the business must also enquire about any hidden charges (if any) to avoid any confusion later.
Several Payment Options –
There are various payment options that are a must for the business to include for liberating its customers with regard to making payments. Including all payment methods helps the business gain an additional advantage. This way, a customer can make payment with any of the options below most suitable for them:
- Credit/Debit card
- Net banking
Seamless checkout –
The checkout process must be optimized for customers so as to provide them with the smooth payment flow and consequently, a great experience. Such an easy-to-use checkout interface makes shopping simple and quick for the customers. Be it mobile application or website, there should be availability of uninterrupted checkout process for the customers on a shopping website/portal.
Highly Secure –
Payments done via e-payments’ platform are highly secure since they are regulated and validated. Validations by certificates such as EMVCO 3D Secureand PCI-DSS make online payments secure against rising cyber frauds. Consequently, the process of the transaction flowing from cardholder’s bank account to merchant’s bank account is firmly secured by the relevant compliances and a regular follow up on the same.
Powerful dashboard for tracking the transactions –
Providing merchant with access to the back office is an additional advantage to the business since the merchant is then able to get an insight into the details of transactions until settlement. Hence, a powerful merchant dashboard is a must for maintaining a track of transactions. Moreover, the dashboard must be optimized for all the devices, like mobile phone, tablet and desktop.
Here is a glimpse below of Lyra’s merchant dashboard. It shows all that a merchant may need to follow up in order to sort out its transactions on a daily basis.
An e-payments solution must provide to a business such a quality in its services, which helps to increase the benefits for it in the long run. A safe, convenient and robust online payments’ solution is a must for businesses looking to constantly grow in the future.