Question

Using an e-commerce platform dictates that said platform demands a payment system that accommodate the remoteness of said solution. As such, a remote and non-physical payment system is needed. You need to determine the benefits and drawbacks of using said payment systems, as opposed to using a physical payment method. Additionally, you need to list the different available payment solutions and how each of them fulfills a specific niche. You also need to provide a comparison of the most common payment solutions available for use.

Answer 1

An e-payment system is a way of making transactions or paying for goods and services through an electronic medium, without the use of checks or cash. It’s also called an electronic payment system or an online payment system. In the case of an e-commerce platform payment system like UPI/IMPS, which are cashless.on the other hand physical payment methods which are use of checks or cash.

Benefits and drawbacks of using said payment systems, as opposed to using a physical payment method are:

Electronic payment allows your customers to make cashless payments for goods and services through cards, mobile phones or the internet. It presents a number of advantages, including cost and time savings, increased sales and reduced transaction costs. But it is vulnerable to internet fraud and could potentially increase business expenses.

Advantages:

Increased Speed and Convenience: E-payment is very convenient compared to traditional payment methods such as cash or check. Since you can pay for goods or services online at any time of day or night, from any part of the world, your customers don't have to spend time in a line, waiting for their turn to transact. Nor do they have to wait for a check to clear the bank so they can access the funds they need to shop. E-payment also eliminates the security risks that come with handling cash money.

Increased Sales: As internet banking and shopping become widespread, the number of people making cash payments is decreasing. According to Bankrate, more than two-thirds of consumers carry less than $50 a day, meaning electronic alternatives are increasingly becoming the preferred payment option. As such, e-payment enables businesses to make sales to the customers who choose to pay electronically and gain a competitive advantage over those that only accept traditional methods.

Reduced Transaction Costs: While there are no additional charges for making a cash payment, trips to the store typically cost money, and checks also need postage. On the other hand, there are usually no fees – or very small ones – to swipe your card or pay online. In the long run, e-payment could save both individuals and businesses hundreds to thousands of dollars in transaction fees.

Disadvantages:

Security Concerns: Although stringent measures such as symmetric encryption are in place to make e-payment safe and secure, it is still vulnerable to hacking. Fraudsters, for instance, use phishing attacks to trick unsuspecting users into providing the log-in details of their e-wallets, which they capture and use to access the victims' personal and financial information. Inadequate authentication also ails e-payment systems. Without superior identity verification measures like biometrics and facial recognition, anyone can use another person's cards and e-wallets and get away without being caught. These security concerns may make some people reluctant to use e-payment systems.

Disputed Transactions: If someone uses your company's electronic money without your authorization, you would identify the unfamiliar charge and file a claim with your bank, online payment processor or credit card company. Without sufficient information about the person who performed the transaction, though, it can be difficult to win the claim and receive a refund.

Increased Business Costs: E-payment systems come with an increased need to protect sensitive financial information stored in a business's computer systems from unauthorized access. Enterprises with in-house e-payment systems must incur additional costs in procuring, installing and maintaining sophisticated payment-security technologies.

Different payment solutions and how each of them fulfills a specific business niche:

An online payment solution is a credit card terminal - but on your website. It's a virtual credit card terminal that allows your customers to pay for their goods online. Of course, it's possible to run an e-store without a payment solution, but your customers would have to pay using online banking - which is less convenient since the payment process is slower and it takes longer for the money to reach your bank account so you can ship the products. By far, an online payment solution is the easiest and fastest method of payment for you and your customers.

Why does your business need an online payment solution?

Every business needs to collect payment from the customers (It’s rather obvious). But in today’s date and age, where cash is slowly becoming obsolete, accepting online payments is becoming one of the core necessities for any business. Here an online payment solution enters the frame.

Online payments are required because of one major reason for a growing demand in the country for online payment solutions/card payments.

How to choose a payment solution provider?

While choosing an online payment solution for your business, a set of parameters needs to be checked for making the correct decision. These parameters help the business to adopt that payment solution, which provides sustained customer loyalty and an uninterrupted settlement of the received amount. Prior to choosing an online payment solution, the merchant must ensure that all of these be in alignment:

1.Easy sign-up and onboarding process

2.High success rates.

3. Low Charges.

4.Several Payment Options.

5.Highly Secure.

Corporate payment solutions is a generic term to describe a wide range of products offered by banks and financial technology firms to help corporates and SMEs to simplify and improve efficiency in processing payments.

Banks have traditionally been the main provider of payment solutions for businesses. However, technological advances and regulatory changes have generated an unprecedented transformation in financial services in general and payment services in particular.

At the same time, globalization and trade liberalization have encouraged businesses of all sizes to look for growth in foreign markets. This has increased their base of foreign customers and providers in parallel with their volumes of cross-border payments.

In this context, Fintech firms have emerged as an alternative to banks with a wide range of electronic payment solutions. Their solutions provide simpler processing, operational efficiency, and transparency.

In the case of international companies with significant volumes of cross-border payments, platforms like Kantox’s Payments Hub provide substantial advantages. These include bulk payments to simplify the execution process, automated payment processing, transparent pricing in FX operations and full traceability of payments through SWIFT message.

most common payment solutions available for use and their comparison:

Amazon Payments: Amazon Payments is a safe, easy and convenient method for users to receive money by using Amazon’s API. Users can also send money via ACH (Automated Clearing House). Since almost everyone has an Amazon account, all your important information has already been stored.If you want to give customers peace of mind, then accept payments through Amazon. Whenever they make a purchase on your site, they automatically go through Amazon’s checkout. This means that they’ll use their Amazon credentials, which makes the checkout process more convenient and trustworthy.

PayPal: it’s only one of the world’s most widely used payment acquirers processing some 8 million payments every day. As of this writing, PayPal has over 137 million active accounts in 193 markets and 26 currencies around the world, which makes it easy to transfer and request payments. Other PayPal perks include accepting checks through a smartphone’s camera, a card swiper, and allowing customers to make a purchase without leaving your site.

Google Wallet: This is essentially Google’s version of PayPal, complete with money transfers and a Google Wallet Card! Since we’re all addicted to the Big G, it shouldn’t be all that difficult to send and receive money. Google also announced last month that it will be releasing a physical card connected to users’ accounts so they can utilize Google Wallet at retail businesses. For convenience, and the number of users, Google Wallet tops the list of the top 10 online payment solutions. You can store credit cards, debit cards, loyalty cards, and even gift cards to your account.

Skrill: Skrill has become a popular alternative to PayPal thanks to features like instant withdrawals and deposits, low transaction fees, exclusive offers, the ability to accept from 40 currencies, and being able to send text messages directly from your account. If you refer a friend, the company will put 10 percent of the fees they generate from paying or sending money into your Skrill account for an entire year. Skrill, formerly Moneybookers, has some intriguing features such as free setup, low fees, and the ability to send text messages straight from your account

2Checkout: 2Checkout is another trusted payment platform that allows users to accept credit cards, debit cards, and PayPal globally. It’s available in 87 different languages, offers advanced fraud protection, integrates with hundreds of online shopping carts, and allows you to automatically bill customers with recurring billing.

Authorize.net: You can’t leave out Authorize.net. After all, it’s been processing payments since 1996! It’s also the Internet’s most widely-used payment gateway and has been the recipient of the Achievement in Customer Excellence (ACE) award from 2008 to 2016. Even though the company has been around for twenty years, it stays current with trends, like being able to accept Apple Pay.