Category: Technology

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 Statista says the online payment sector’s transactional value amounts to approximately $8.49 trillion 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.

Payment integration

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 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.

Time and time again companies have trusted us as a software development provider. Read more about some of our projects and find out why.

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. 

User experience

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.

Final thoughts on building secure and customer-friendly online payment solution

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.

See also:

• How you can capitalize on the recurring payments trend
• Micropayments discovered: Micro power in fintech

Though both recurring payments and subscription systems share some similarities, they are still distinct from one another. Choosing the best one without knowing the concept behind them both is challenging.

With the rise of digitization and e-commerce, the demand for flexible payment options has also increased. Some businesses and customers want a subscription system, while others prefer recurring payment models.  Let’s check what is the best model for your business to receive online payments.

This post will guide you with this aspect. You will know the difference between recurring and subscription payment options. Read this and select the one that fits well for your business.

1. What is a recurring payment system? 

Recurring payments involve an auto-pay system that works with a one-time payment setting. Consumers have to provide you with the details of their payment method, usually debit or credit card. Then the whole thing is on your system. It has to save the details and automatically transfer funds from the consumer accounts to yours after a set interval.

The main benefit of this payment model is that you don’t need the customer’s permission every time, so there are no delays. Of course, the user will have the right to cancel, but before the start of a new payment cycle.

2. Fixed payment and variable payment

The payment mode further has two subcategories — fixed payment and variable payment.

Fixed recurring payment:  The fixed recurring system is similar to the method followed for magazine charges, gym subscriptions, and automatic bill paying systems.  You have a set amount for a particular service, and the customer will pay that for every cycle. It may be a monthly, yearly, weekly, or quarterly cycle.  

Variable recurring payment: The term itself suggests that this model will deal with payment cycles that include changes in the principal amount. This system works best for usage-based services such as internet charges, utility bills, and more.

3. Benefits of recurring payment

The benefit of this payment model is that it saves consumers and businesses a lot of time. However, this is not the only reason that makes it a preferred option.  The following reasons also contribute.

4. Implementation of recurring payment model

The deployment of recurring payment in your business is not a very complicated task. You can employ the system by following the steps given below:

• Select the platform that can help you to create a recurring payment option. 
• Create guidelines for the customer.  You have to guide them through all the terms and the procedures of the payment.
• Set the elements such as payment start date, billing frequency, end dates, amount, and more.
• Take measure and develop a system to store sensitive payment information. There are Payment Card Industry Data Security Standards that you have to follow. 

5. What is subscription payment?

The subscription payment system is an advanced payment model developed to enhance customer retention rates. The model involves providing a small preview of your services and encourages consumers to buy your services.

The basic concept of the method is similar to the recurring payment. But in this case, the consumer achieves more flexibility.  They can choose from multiple programs and can switch between them.

Moreover, in most subscriptions, the periodic payment will be manual. It means the consumer will have a total control over the payment and will not have to share confidential details with the business they are dealing with.

6. Benefit of a subscription system

The subscription is a preferred payment model for software as a service products.  The following things make the subscription accessible.

7. Implementation of subscription payment model

The deployment of the subscription payment model is a multi-layer process that works on both backend and frontend. You have to create a network that can receive, save, and sort the consumer details and payment status in real-time. Following are the things that you have to undergo for adding a subscription:

• Ask the consumer for signup and receive their information.
• Collect and safely store their payment details for future references.
• Add the consumer to the subscriber list along with the dates, time, and other similar information.
• Once the customer has connected, create the subscription status chart.

8. Final thoughts on recurring payments vs. subscription

The recurring and subscription are very similar to each other in almost every aspect. They are modern, widely accepted, and help to retain consumers. They even share common benefits like payment security, more extensive exposure, and more.

The only difference that you will find in them is the timing and payment options. The recurring payment entirely depends on credit or debit card, while subscription may be developed for other payments. Moreover, in the recurring model, you have to store payment details, but the subscription system if flexible with it.

So, the final answer to the question, “Which one is the best?” It depends on the type of services you offer, the flexibility you need, and the audience you are targeting. Analyze these aspects, combine them with the above data, and you will have your answer.

See also:

• How to build a secure and customer friendly online payment solutions
• Intelligent Payments group success with Espeo Software
• Micropayments: how your business can benefit from them
• Micropayments discovered: Micro Power in Fintech
• Recurring payments and how to use them