What are the benefits of working with a payment processor?

Tag: payment gateways

What are the benefits of working with a payment processor?

What are the benefits of working with a payment processor?

Reliable and foolproof payment processing is of utmost importance for any online business. While an online business can choose to have its own payment processing system installed, it is generally advisable to collaborate with a specialized payment processing service providers. Such collaboration brings several benefits such as dedicated services and access to latest technologies. So here are some of the pointers to let you decide whether you should go on your own or should work with a payment processor.

What is Payment Gateway or Processor?

First off, you need to be clear about the comprehensive definition of payment gateway or payment processor. These are the service providers which enable businesses and organizations to process online transactions made through debit or credit cards. Payment processors are able to support the payments made using website or apps. While choosing a pp service provider, you should ensure that they accept wide range of cards to let you expand your business without any hassle.

Payment processors may provide additional services such as carrying out validity checks and encryption of transaction details. These service providers may further ensure that the payments are sent to the correction destination and the responses are appropriately decrypted.

Why Work with a Payment Processor

Security: Since online payments require transfer of highly sensitive data, it is important that the security of such data is ensured. In the absence of any such securities, the clients may not be willing to share their details, leading to revenue loss for the business. Payment processors are dedicated service providers and hence invest in providing state of the art technological solutions to ensure the safety and security of the data. Overall, collaborating with payment processors can help you make your business more user friendly and secure.

Wider Payment Options: with the help of a pp, you can offer larger number of payment options to your customer, which will then lead to higher potential revenue for your business. Typically, payment processors support payments made through online banking, debit cards and credit cards. They may also extend their services to the use of online wallets. Through this service, a business may design a payment mix to ensure that it is able to provide different options to its clients. A business can widen its customer base by letting the clients make the payments the way they are most comfortable.

Flexibility: Collaborating with a pp lets you scale your business in an efficient manner. As payment options are changing rapidly, it is important that your business is able to change itself accordingly. Dedicated payment processors are in a position to provide latest services and technologies to aid the process of online payment.  With the help of these service providers, a business can offer cutting-edge payment solutions to its clients without incurring formidable transformation costs. While some processors may be directed towards certain specific business forms such as startups, still they are able to grow their services in a prompt manner.

Payment System Integration: Business organizations employ a large number of systems for their smooth operations. It is important that these systems are properly aggregated to ensure that there is smooth flow of information throughout the organization. Similar is the case of a payment system where it is optimal to integrate with other systems running in the organization. Payment processors offer integration services so that their clients are able to draw synergies in their operations and are able to economize.

Better Analytics: Working with a pp offers a business access to larger amount of data, which in turn helps in better analysis. Such collaborations are highly conducive for analytics purposes. Payment processors also tend to provide state of the art tools designed for analytics. With the help of these tools, businesses can analyze big data and determine trends to better forecast the future. Such analytics are helpful in several ways including for the purpose of planning and controlling. Analytics also aid the process of innovation by providing useful information.

Overall, it can be concluded that working with a pp is an ideal option for small and medium scale businesses. Large business may have enough internal resources to set up their own online payment system, however, even such businesses may be better served with collaboration.

Expand Your eCommerce Business by Offering Newer Payment Options

Expand Your eCommerce Business by Offering Newer Payment Options

The e-commerce landscape is changing drastically. According to the latest trends, when it comes to the entire shopping experience, customers are looking for flexibility and convenience. With regard to that, the payment function online is very troublesome. Most of the customers will cancel their purchases if their favorite payment option is not available.

According to a survey by YouGov, more than 40% of the participants said that they feel more comfortable if the web store they have chosen offers multiple gateways and different modes of payment. E-Commerce sites are offering more and more payment options. With digital wallets and contactless & mobile payment options, people are looking for credit card alternatives.

In order to maintain a higher conversion rate, you need to be aware of the growing demand of customers for better alternatives and inclusion of popular methods of payments. Because of the diversity of demographics and the choices available, people have developed biases against particular modes of payment – and it can either be a credit card or a particular digital wallet.

Here are a few necessary things to take care of when offering payment options:

Make it convenient, simple and easy
Convenience is the key when it comes to choosing the mode of payment. Many people abandon the effort when they reach the Shopping Cart because an e-commerce web-store doesn’t provide them with the required payment options. Customers get impatient and demand better service and ease of use. So, if you provide additional modes of payment, you make the life of your customer easy.

Bring in a touch of professionalism
If you take customer psychology into consideration, you will find that that web stores that provide multiple modes of payment look more professional, reliable and worthy of endorsement.

Capture an international audience
With lots of choices available, you will do better to have an eye on international customers who have to use different modes of payment according to their personal and local preferences. Forget about countries, sometimes even different regions in a country have different preferences.

Create loyal customers
customer frustration is not just about preferred modes of payment. Transaction failures are also responsible for customers looking for alternatives. Sometimes, they get frustrated when they choose a particular mode of payment and the transaction fails repeatedly. Even customer support is not able to address these issues immediately and the entire experience may result into customer leaving your site and going to your competition.

According to the research firm, Bain and Company, if you increase the rate of customer retention by 5%, you are definitely heading towards increasing your profits by more than 95%. So, give your customers a wide range of options, so that in case of transaction failure, you can still divert them to another mode of payment and save their purchase.

Choose the right option between Integrated and hosted gateways
Again, there are two types of payment gateways:

  1. Integrated gateways
    With integrated gateways, the customer performs the entire checkout process on your website without being redirected to the third-party website. It offers them the smoothest experience, but it can be less secure. In this case, the responsibility of maintaining security lies on you as the service provider. Make sure that you are PCI compliant, so that the payment process taking place on your website is safe and secure.
  2. Hosted gateway
    When you redirect a customer to a hosted gateway, they are being directed to a third-party website which takes care of the customer’s transaction. In this case, customer experience might suffer. It is not as smooth as the first option, but in this case, you need not worry about the security issues as the responsibility of maintaining security lies with the third-party website. If you are a startup and have a low budget, you can go for this option, because to ensure security you need to invest heavily.

Therefore, payment gateways play an important role in customer retention and customer experience. Make sure that you provide enough payment options to your customers, so that they love the entire experience on your site and, especially when they are making their payment. It will ensure less customer loss or abandonment at the shopping cart and increased customer loyalty.

5 Key Factors Driving Online Payments in UAE

5 Key Factors Driving Online Payments in UAE

The recent surge in global online payments has been pretty evident across the world and the growth has been driven by stupendous growth in e-commerce transactions done in the Middle East. In fact, in one of our earlier posts, when we clearly stated that as per Capgemini’s World Payments Report 2017, the global growth in non-cash transactions has been driven by CEMEA (Central Europe, Middle East and Africa) & Emerging Asia, with UAE paying a leading role as the biggest contributor to growth in e-commerce and online payments.

The following 5 factors are driving the growth of online payments in UAE:

Increased Card Penetration:

The number of cards being used for any transaction has in fact risen to 10% of all transactions in the UAE and most of the transactions are being done online.

Growing Tourism:

UAE attracts a whole host of tourists and they always tend to pay online for most of their services like hotel booking and air ticketing.

Large upwardly mobile expat population:

The UAE has long been a global melting pot which is a testimony to the large expat population who are more tech savvy and purchase online.

Macro-economic scenarios:

The flattening of oil prices has meant that the country is diversifying its economy and focusing more on new age sectors such as e-commerce which has been aided by robust internet and smartphone penetration in the country.

Demographic Dividend:

The UAE has a relatively young population. Roughly about 24% of its 9 million+ population are below 24 years of age. Therefore it comes as no surprise that significant population in the UAE transact and pay online and pay online.

If you are interested in more such insights, feel free to subscribe to our blog alerts. Moreover, do not forget to sign up for a free demo of PayTabs, to understand how PayTabs can add value to your business.

The State of Global Payments

The State of Global Payments

In our last post, we had given you a bird’s eye view on how the world has shrunk. Through this post we aim to put forth that view in perspective with some data that testifies the current phenomenon of global online payments.

Developing Countries have witnessed a 21.6% average annual growth in non-cash transactions during the period of 2011-15, whereas the mature markets have grown at a pace of 6.8%. The similar trend continues even in 2017. Growth in global non-cash transactions is driven by significant growth in two regions: CEMEA (Central Europe, Middle East and Africa) and Emerging Asia.

Interestingly, while we have seen the surge of non-cash transactions globally, cash still remains the preferred mode of payment for low value transactions. Having said that, the growth in non-cash transactions have been fuelled by effective, efficient and secured payment gateways and online payment technologies, such as wallets, etc…

The increased adoption of mobile payments and wallets in Emerging Asia has contributed to the high growth of non-cash transaction in that particular region of the world. The emergence of Electronic Bill Presentment and Payment Solutions (EBPP) that utilizes real time payments network and infrastructure has boosted credit transfers in the region.

In CEMEA, the growth has been fuelled primarily by Saudi Arabia and Poland. High growth in card transactions and credit transfers has fuelled the high volume of non-cash transactions.  This holds good for countries where the card development network isn’t mature enough.  In fact, in Saudi Arabia, the SADAD payment system is a national EBPP service provider, enabling businesses, banks, individuals and the government to avail of a wide range of payment options. SADAD has grown over the years and expanded in 2016 with the launch of a new e-account service which facilitates the connection between banks and retailers, thereby increasing the scope of online payments in Saudi Arabia.

That being said, developing markets have recorded an accelerated volume growth of non-cash transactions driven by individual countries such as China (63.2%), Russia (30%), India (16%), Mexico (10.9%) and South Africa (10.7%).


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(DATA SOURCE: Capgemini’s World Payments Report 2017)