As the world continuously evolves, systems have now gone online, and man’s day-to-day activities have significantly been controlled by technology. Everything and anything you need is now accessible within a click of your finger – from shopping to booking for food or travel, and even paying bills.
With this, eCommerce allows business transactions to be more accessible over the Internet. Along with this comes online payment and the rise of third-party merchants and online payment gateways or entities, which have been inevitable by-products of the steady increase of emerging online businesses.
In learning about these business technological developments, you as a consumer should be more or less familiar with these terms:
Payment system – this serves as a monetary exchange system, in which when a sale or business transaction is perfected, payment is given in exchange for goods and services facilitated over different platforms that are regularly used in commerce. One good example is over-the-counter payments through bank systems.
Third-party merchants – companies often employed to accept payments from debit and credit cards on behalf of a business. Not all businesses online are capable or have their system of receiving payments through online credit and debit card payments. Third-party merchants allow these businesses to use their platform in managing monetary transactions.
Payment gateway – also one payment service provider that assists eCommerce entities when it comes to online business transactions. Payment gateways often manage credit card payments and ensure the security of the customer’s information.
Which is more preferable, third-party merchants or payment gateways?
So, do you need both third-party merchants and payment gateways to have seamless monetary transactions? Most often, companies end up availing both. However, how these systems work, although useful, can also be very costly.
Hence, for small businesses, choosing whether or not they go for both or just choose one – it is essential to know which payment solution options are more practicable and cost-effective for their business transactions. Here are some of the five best online payment solutions to help you in your online business:
Established in 1998, Paypal is considered the world’s leading payment gateway for millions of users and business enterprises worldwide.
It is an online payment service that allows you to use your credit card in paying orders online through a secure account. Upon checkout, you are provided the option to choose which kind of payment you would prefer, and then you are requested to fill in your credit card information. If you have different cards on hand, you may choose a default account to use in transactions.
This is all protected through high encryption and security. Therefore, you shouldn’t worry about your credit card information being captured by third-party entities.
As a vendor, Paypal can also assist in receiving payments through customers and keeping such payments secured in your account until you want to use such money for your spending. The best part about Paypal, though (aside from it being the leading payment gateway worldwide), is that it’s free!
Amazon.com launched Amazon Pay as its payment gateway, allowing users to make payments for goods, services, or donations even to websites other than Amazon itself.
To make a payment, you can choose any of the methods enlisted under the checkout menu, which includes putting in your credit card information and stored under your Amazon.com account. Credits under your account in the website can also be considered as payment for purchases.
One good thing about Amazon Pay is that there are no hidden charges upon using its service for payment transactions as it is free for Amazon.com account holders. These hidden charges might be in the form of transaction fees, membership fee, currency conversion fee or foreign transaction fee – but is not charged when you use Amazon Pay.
This is considered one unique payment platform. Among its extensive developer tools, it has an API (application programming interface) that integrates your business’s website into its platform.
Ideal for online retail businesses, you as an owner can customize how you would want your checkout process, including the payment options, to turn out. It is a platform that is also embedded within the website and is accessible through your gadgets other than your desktop – be it on your phone or tablet.
Apple users extensively utilize this through the App Store. This serves as a counterpart of the company Apple to Google Wallet and Paypal. Instead of availing a third-party merchant or payment gateway’s services, the company decided to create its own payment platform.
With the continuous releases of new models for all Apple products – Macbook, iPhone, iPad, Apple Pay is custom-fit for Apple users, specifically iPhone handlers, for easy transactions and purchases in the App Store.
Last but not the least worthy contender is Google Wallet. Launched in 2011, it allows customers to make online purchases by credit or debit cards linked to their account.
Merchants on their checkout pages often integrate Google Wallet by incorporating, as a payment option, a “Buy with Google” button. On top of this, the service is free for users and can store credit, debit, loyalty, and other card information.
Given these various payment solution options, it is no wonder that mobile payments utilized by an online business can greatly improve their business sales and revenue by simply making it easier for customers to check out the items they wish to order, minus all the hassle.
It is best to choose an online payment solution that matches your business needs and people who would like to make use and avail of the goods and services you offer.