Today’s era is the best time for all online service providers. The rapid growth of the e-commerce sector has given birth to innovative online payment solutions as well such as e-wallets, bank transfers, mobile apps and many more. A study by Stastista says the online payment sector currently amounts to approximately $4.1 million and is still rising.
However, this rising dependence on online payment systems has also led to some problems concerning the security of these solutions. This article will introduce you to these problems and we will share some effective tips to deal with them.
As an online service provider, your payment system has to be fast, secure, and efficient. The most preferred card payment system may be secure, but it cannot offer these features all the time. The card payment system lacks an interface between processing systems, which restricts its linkage.
Even if you use an integrated system, there are tons of regulations that restrict its efficiency. Some of them may need a specified application while the other may be out of reach for your business.
Therefore, you would end up in delayed payments, lost transactions, and sometimes even extra expenses for the fund transfer.
You have to find online payment providers who can offer multiple third party integration for your app or website. You can also obtain an application programming interface, or API and then have your development team to integrate them. These integrated systems will address the liquidity issues and minimize delays. They will also open the client account in multiple banks, which will further boost the fund transfer processes.
You can also consider adding support for new technologies like cryptocurrency payment with your payment system. How about building a seamless Stellar peer-to-peer payment app to deliver great financial freedom?
Multiple payment ecosystem
The whole point of an online business is to provide services without any regional borders. The feature is profitable for business, but it also means that you will have to deal with multiple currencies. You will need multiple bank accounts around the globe and will be facing many different payment rules and regulations. Apart from the payment, your web or app will also have to deal with multiple languages, security standards, and banking infrastructure.
As an online service provider, you have to consider all these issues while designing your payment system. You have to ensure that your business can deal with the currencies preferred by your consumers. The payment system should also align with international taxes, trade rates, and other charges.
The best solution for it is to use a third-party payment system rather than developing a new one. You can simply search for online payment service providers who already have the required infrastructure for international payments. The service provider will take native currency from the consumer and convert it into your currency.
The service provider experienced with international payments can also provide you with tools and knowledge to better understand your customers in different countries.
Risk of fraud
One of the drawbacks of online purchase and payment is the risk of data theft. According to Statista, the US alone faced 1244 data breaches in 2018, which exposed over 446 million records. The leaked data included information about the companies, personal information, as well as payment details of users.
Both the government and online stores are taking measures to secure consumers from these problems. They have started to use data encryption, secure sockets layer certification, and many other techniques to secure confidential data. Merchants are must also meet the payment card industry data security standards before accepting card payments.
The main security arena of this standard includes:
- Building and maintaining a secure network
- Implementing a vulnerability management program
- Regular testing and monitoring of the payment system
- Use of strong access control measures
- Developing and using an information security policy
- Encrypting cardholder data and protecting it
Though there is no way to stop data fraud completely, there are tricks to prevent them. For them to work, you have to find an online payment service provider who follows the latest security standards. You should also analyze your network for vulnerabilities like weak passwords and exposed systems.
Moreover, you can consult some security experts and conduct audits to find the weakness of your application or websites.
The most considerable challenge in a payment method is changing user preferences. The consumer doesn’t want to spend time in complicated procedures or checkouts. They want simple, straightforward, yet secure payment methods.
In simple words, you need to develop a friendly user interface and provide all the required options. It should include support for cards, mobile payment, e-wallets, and all the other well-used payment modes. Moreover, you should never stick with just one or two debit or credit cards. Include at least the popular types such as American Express, Visa, and Mastercard. The same theory also applies to e-wallets.
Apart from payment, it is also best to integrate recurring payments, customization, payment tracking, and similar management tools.
Following are some more ways to ease out the payment process for your customer:
- Allow purchase and payment without signup requirements.
- Use a consistent design with minimal distractions to prevent your consumer from confusion
- Skip unnecessary information like a surname
- Reassure security using Secure Socket Layer and minimizing redirect pages.
- Offer to save payment details and use it for one-click payment in the future.
- Enable auto-fill wherever possible.
- Assist users and use input masks to prevent errors.
- Always display a brief description to explain errors.
- Optimize your payment page for mobile tablets and all other smart devices.
Online payment systems are the latest trend in today’s internet-driven world.
With these payment systems, you can get rid of the regional barrier and acquire consumers from all over the world. They can also remove the hassle of visiting a particular address for availing services or getting payments. Furthermore, new technologies such as blockchain offer new ways of securing sensitive data and offering more transparency.
So, research, prepare and get ready for business growth that comes with these systems. In the meantime, check out how we helped IPG with building and integrating their core payment system.