As the payment industry continues to evolve, payment gateways should evolve with it. Businesses should focus on emerging trends such as wearable payment devices and social payments, which have grown by 177% in the past few years. Businesses can also learn more configuration techniques to make their payment gateway systems more effective. Many payment gateways offer open APIs that enable them to customize their systems to meet specific needs.
Asia
As digital payments continue to increase across Asia, businesses will need to adapt to the new payment methods and accept new ones to stay competitive. IDC reports that online payment gateways can boost business revenues by up to 12%. As businesses expand and transaction volumes increase, the need for cost optimisation is more important than ever. As new payment types become available, merchants will need to be prepared to accept them quickly and efficiently.
The market in Asia is rich and diverse, but there are still untapped opportunities. The rise of blockchain technology, for example, has the potential to transform the payments industry in Asia. Blockchain technology can enable faster, cheaper and more secure transactions. These benefits will boost the success of businesses in Asia.
Digital financial providers are critical to helping small merchants adapt to new payment methods. These companies offer online payment and logistics services, as well as access to new customers. By 2025, digital financial providers predict that the volume of funds flowing through wallets in Southeast Asia will triple. While the growth of these digital platforms is different from country to country, the region is poised to become an online payment powerhouse.
The growth of online payments in Asia is driving new technology and systems. New payment systems that bridge in-person and online payment methods are being developed by global fintech companies. In Singapore, Stripe, one of the most valuable startups in the world, recently unveiled a point-of-sale system that allows merchants to process credit card and e-money payments in-store while tracking sales data.
North America
The online payment gateway industry continues to grow in North America, and the industry is positioned for continued growth. The growth in the online consumer market is largely due to the increasing demand for contactless payment methods. Additionally, the rise of cybersecurity concerns has prompted service providers to implement highly secure platforms. Consumers are increasingly relying on online payment options for convenience and security.
Despite these challenges, global commerce is still experiencing significant growth. The number of mobile phone users has surpassed five billion worldwide, and over half of the world’s population is connected to the Internet. Last year, 360 million new people came online for the first time. The rapid growth of online shopping fueled the adoption of online payment gateways. Whether you’re selling a product or making a purchase online, payment gateways are a vital piece of the puzzle in enabling a successful online commerce experience.
As a part of this growth, online payment gateways have emerged as the backbone of the e-commerce industry. Despite the growing popularity of online payments, credit/debit cards remain the most popular mode of online payment. Rising e-commerce, mobile wallet use, and COVID-19 pandemic have all contributed to a rise in the market for payment gateways.
Digitalization has also made payments easier for consumers and retailers. Online payment solutions eliminate the need for paper receipts, making the process simple and convenient for consumers. Many of these gateways also offer e-receipts and notifications to make the process even easier. In addition to these benefits, technological advancements have also increased the reliability of online payment options. Some companies even offer OTP or other secure payment methods to improve the security of online payments.
Social networks
The emergence of social networks is making it easier for people to make purchases online. This trend has many benefits for businesses, but there are also some drawbacks. First, it decreases the control of brands. Secondly, it is not very convenient for consumers. As social networks become more popular, more people use them to make purchases. Ultimately, this means that businesses should make their payment methods as convenient as possible.
Mobile device usage is on the rise, and this trend will only continue to grow. In fact, 40% of Facebook users access the site exclusively through a mobile app. Moreover, a majority of Africans own mobile payment accounts. As a result, most Africans are comfortable using mobile payment systems. Moreover, the concept of mobile payments is very similar to social network payments.
The rise of social networks has created a new paradigm in commerce. Social media platforms have become essential for almost every type of business. According to recent research, social commerce will grow from $89 billion in 2020 to $605 billion in 2027. For brands to be successful, a social strategy must be incorporated into their multichannel selling strategy. In order to make this happen, they must first understand what works in social commerce.
Blockchain applications reduce fees
Blockchain applications can reduce fees associated with online payment gateways and improve transaction processing speed. The technology can eliminate the need for expensive middlemen and improve the efficiency of many businesses. Many of these blockchain applications support fiat currencies and cryptocurrency, allowing businesses to expand their customer base and tap new markets.
These applications can improve customer security by eliminating human errors and paper-based communication. Additionally, they can increase the speed of lending. Taking the middleman out of the equation will benefit financial institutions and borrowers alike. Blockchain applications will also improve data privacy. Blockchain applications for the internet of things are expected to be especially helpful in this area, as the growth of IoT products presents a number of security concerns. For instance, by making payments in real-time, consumers are protected from unauthorised third-party access to personal information.
Blockchain applications will allow businesses to eliminate third-party processing fees by enabling faster, more secure payments. The blockchain can also eliminate third-party verification, eliminating the need for banks to provide security and speedy processing. A recent survey revealed that over 90% of European Payments Council members expect blockchain technology to fundamentally change the industry by 2025. The current payment system is antiquated and adds trillions of dollars in fees.
Blockchain applications can reduce fees by reducing the amount of data required to complete KYC processes. For example, banks currently spend $500 million per year on KYC compliance. By using blockchain technology, these banks could save $160 million a year, while reducing the need for human intervention. Furthermore, blockchain tech can help institutions with identity management, risk management and credit scoring.
Checkout on site, payment off-site
Online payment gateways allow you to accept payments on your site without the hassle of having to send your customers elsewhere. You can choose between on-site checkout and off-site checkout, and both have their advantages. On-site checkout requires the customer to remain on your website from product selection to payment, while off-site checkout takes the customer to a third-party payment processor. The payment processor handles all the transaction details and ensures that all data is secure.
Checkout on site, payment off-site online payment gateways are a great option for those who want a seamless customer experience. You can customize your payment page with your online store’s logo, color palette, and branding. However, payment gateways may not accept all credit card types, but this is something you can always add with software updates. Some payment gateways also have difficulties handling international transactions, as each country has different authentication protocols and currency restrictions.
On-site payment gateways are similar to off-site payment methods, except that your customer completes the checkout on your own site. Instead of being redirected to another website, they use a third-party payment service. This is convenient and easy to implement, and it increases trust and decreases abandoned carts.
Another advantage of online payment gateways is that they are PCI compliant, meaning your payment information is protected. This helps to avoid logical and legal issues and can help you retain your customers.
Security
As more people opt to pay for their purchases using credit cards, debit cards, mobile apps, and online stores, securing these payment methods has become essential. In addition to allowing consumers to shop safely, a secure payment system also ensures the protection of sensitive financial information. When choosing an online payment gateway, ensure that it uses encryption technology to ensure the safety of your customers’ financial information.
Tokenization is a secure encryption process that replaces sensitive data with an equivalent that is meaningless and cannot be exploited. This is done by using a token, which is stored in the payment gateway. It can be shared across wired or wireless networks without the risk of unauthorized access.
Another way to protect your payment information is through the use of PCI-compliant online payment gateways. PCI-compliant payment gateways have PCI-certified security measures, and a firewall acts as a bodyguard. It controls the access of users and programs to the payment network, and restricts the number of possible malicious transactions. Another feature is the use of 3D Secure, which connects a credit card institution and a bank. This increases transparency and minimizes chargebacks. In addition to this, usage isolation limits the surface area of a payment gateway, making it more difficult for hackers to attack.
Another way to ensure the security of an online payment gateway is to look for the Secure Sockets Layer (SSL). Using SSL encryption ensures that information is encrypted and safe from hackers. The HTTPS address will show a padlock icon on websites that use this protocol.