Everything You Need To Know About Electronic Payment System and its Impact on Businesses
Internet and emerging technologies together have made our lives easier than we could ever imagine. Every product/service is available with a click on your smartphones and payments are done securely online. Electronic Payment Systems are touching commendable heights as people are now using this service to pay for any small to the big commodity they purchase.
Not limited to online shopping but some e-payment gateways facilitate offline purchases as well. The inspirations being GPay, Paytm, and ApplePay.
Even during the COVID-19 crises when the entire world learned the lesson of social distancing and self-sufficiency, the demand for electronic payment systems skyrocketed. People learned that staying at home is the only way to stay safe and therefore are shopping and paying online for their essentials.
Most of us started using e-payments as a measure to combat COVID-19 but now it has become the ‘new normal’ and there is no looking back from here. In fact, to blend in with the current scenario businesses are now revamping their traditional payment structures to make it a full-fledged online ecosystem with the help of the best eWallet Mobile App Development Company. Physical payment is still an option but not the only option left.
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What is an Electronic Payment System?
Electronic Payment System is a secured online gateway that allows people to pay for their purchases electronically via their smart gadgets. The system holds the potential to completely replace the culture of physical payment while letting the customers pay for each and every commodity online.
From online shopping to ordering food or payment at your nearby store, everything is possible via a full-fledged electronic payment system.
An E-payment system is not a luxury but a necessity for companies that are planning to start an online business. They need robust software for secure online transactions of money.
Owning an electronic payment system is a long-term investment for online shopping portals or third-party vendors ultimately contributing to their financial success.
Fact: Top 3 e-Wallets ruling worldwide are Paypal, Alipay, and WeChat.
If you own an online business or are planning to start one, this is the time to think about having an integrated payment system. You can discuss your requirements with an experienced digital e-Wallet mobile app development company.
Advantages of Electronic Payments
It is a quoted fact that E-Payments are far better than physical payment modes as they encourage digitalization over the liquidity of money.
From complete security to any small/big payment in minutes and online transfer on money, here is the list of advantages that is creating an urge for companies to switch to e-payment modes:
1. Extended Reach
In this post-COVID era, more and more people are shopping online while paying for their purchase then and there via a secured e-payment system. This truly remote shopping experience is a reason why e-commerce sites are booming.
2. Easy and Quick Payments –
Gone are the days when a long line was stuck because a random person is running out of change? Now one can easily shop and pay any odd amount from their smartphones and enjoy their purchase. Exceptional services always turn into profitable sales – good for businesses.
3. High-End Security –
There are a lot of tools that can be integrated into an e-payment system to process highly secured payments. Though there have been cases when a company has faced digital frauds but that was due to lack of security measures and improper integration of tools. Make sure to consult with the best eWallet Mobile App Development Company only for your e-payment software/app requirement.
4. Elevating Sales –
Why limit it to a particular area or country? If you have a scope in the international market then do not hesitate from growing your business. The more you outreach your traditional premises the more sales and profits you will earn.
5. Great Flexibility –
You can offer discounts, cash backs, promos, gift vouchers, and a lot more and your clientele can easily withdraw with the e-payment portal being the middlemen. By extending these benefits and having a full-fledged portal for convenience, you can easily seal your sales targets.
Working of Electronic Payment System
Prior knowledge is always the best. So if you are planning to integrate an electronic payment system in your online business, then pause for a while and pay attention to how it works?
The ecosystem includes the cardholder, the merchant, the mediator bank, issuer, acquirer, and the payment gateway – none of these can be overlooked.
Electronic Payments work Two Ways:
1. Single Time Payment – Buyer enters his card details/or selects pre-entered details to authorize the payment every time he purchases from the portal.
2. Recurring C-V Payments – This facility is allotted to constant buyers or buyers of monthly subscriptions. As per the process, some portion is auto-deducted from the buyer’s account in lieu of the commodity or service he has purchased. However, the payment period and pattern should be pre-determined.
Please Note: Be extra cautious while selecting your expertise for e-payment software/app development, go for an experienced resource.
Top 8 E-Payment Trends prevalent in 2021
Technology is dynamic and so are the trends for online payment. The E-payment sector is constantly evolving, surprising people with high-tech features and functionalities. Stay updated with the current trends and beat your counterparts in the race to the top.
Here is the list of the top 8 digital e-payment trends that prevail in 2021:
1. Mobile Wallets
This is the most sought-after online payment mode. As the dependence on smartphones is increasing, the mobile wallet or the virtual wallet is gaining popularity.
People can now go cashless and still purchase most of the commodities via mobile wallets. The increased popularity of mobile wallets has led IT development and FinTech companies to focus on making user-centric e-payment ecosystems for seamless and secured financial transactions.
2. Overseas Payments
The process of sending money overseas. For instance, a foreign worker needs to send money to his hometown, he can easily transfer the money through mobile wallets. He can set the fixed exchange.
3. Peer-to-peer Payments
The software/app that allows transaction of money in-between two parties with the help of credit or debit cards pre-linked with the account. Provided that you need to link your credit or debit card with your profile on the e-wallet app. Once you are done with linking your account, you can easily send money to your friends and family.
4. Involvement of Smart Wearables
Not limited to PCs, laptops, or smartphones, the e-payment services can now be accessed via wearables. As the trend for wearables like smartwatches and activity trackers is increasing, there is an extra perk that these devices use payment services to connect with the user’s bank account and deduct money on command.
Examples: Samsung Pay, Apple, and Fitbit
5. High-Tech Biometric Payments –
Biometric Payments are a step ahead of password-protected transactions. In this process, payments are authorized by eye-tracking, fingerprint scanning, or facial recognition. This eliminates the need for entering the PIN for every transaction (securing the laundering of your passwords).
6. QR Codes –
This is another sought-after feature and is a highly recommended utility for payments from smartphones. One wrong digit in the phone number or a wrong id will make some other random person rich with your money. QR code leaves no room for mistakes as the person only has to scan the QR (of the receiver) with his wallet app and the payment will be processed in the right account.
7. AI Integration
Artificial Intelligence has changed the way we used to look at the internet and computers. Now computers have become smart enough to analyze and intelligently respond. Thanks to AI. Just like other IT developments, AI has contributed a lot to payment technologies. For instance, chatbots can help people with general queries and also help them place orders.
Voice assistance/recognition are also good sources for placing orders, the in-built voice recognition will fetch the details and accordingly process payments.
8. Contactless Payment –
Contactless payments or Tap and Go payments are the best way to ensure quick payments. There is no need to swap the card and then wait to enter the PIN to authorize the payment. Instead, you can just bring your smartphone, wearable, or card near the merchant’s electronic payment machine and the money will automatically get deducted. The communication is in between the magnetic chip and the bank.
Get Your E-Payment System Secured
While the major chunk of enterprise owners is heavily banking on online e-payment portals, there still remains a noticeable group that doubts the security of digital payments.
If you are planning to own an e-payment gateway for your online business, here is the silver lining for you. below-mentioned are the ways for you to secure your electronic payment system:
1. Secured Transaction System –
SET is a collection of security protocols that are used to ensure safe, smooth, and accurate transactions via e-payment systems. With the help of SET, digital wallets, and other payment solutions, the software can guarantee the confidentiality of the payments.
2. Make Sure Your E-Payment Gateway is PCI compliant –
While you are planning to switch to an electronic payment system to modify your business, make sure that the portal is PCI compliant.
The Payment Card Industry (PCI) – is a data security standard that ensures a secured pathway
3. Incorporate Digital Signatures –
Digital Signatures authenticate all the digital payments done from your system. These connect the cardholders to the merchant’s payment system ensuring fast and safe transactions. The guarantee of digital signatures without which no transaction is processed makes your payment system completely secure and organized.
4. Use SSL Encryption –
SSL aka Secure Sockets Layer develops an encrypted connection and helps establish authenticity and trust. No frauds can happen as long as the merchant’s e-payment system is secured by authentication, end-to-end encryption, and integrity.
How much does it cost to develop a secured E-Payment System?
A robust E-Payment system is a long-term investment for any business. The system can handle enormous transactions accurately and effectively leaving no room for mistakes or external laundering of accounts. If you own a fairly good business and have an online shopping portal then, e-payment is your way to go.
Talking about the cost to develop an e-payment portal, the deals might fluctuate based on the severity, design, and feature integration on your e-payment portal.
The major cost deciding factors being the application type, UI/UX (design and development), security, software development company, size of your businesses, location, and portfolio.
On average, the cost for building an electronic payment system varies in-between $ 50,000 to $1,00,000.
Once done right, an e-payment portal can help you achieve commendable heights in your business even in tough times like ‘corona crises’ because of people’s increasing dependency on online portals. When it comes to financial transactions and secured national-international payments, it’s highly recommended to trust an experienced and authentic digital eWallet mobile app development company. These experienced companies have a knack for current technologies and security compliances, which can increase your reach to the international market without the fear of being conned digitally.
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