Why Online Payment is Important and What are the Challenges of Online Payments?

Online payment is quickly displacing traditional payment methods, which include personal contact between business owners and customers. Regardless of business size, the majority of businesses are moving toward using electronic payment systems, so in this article, we will discuss why online payment through online payment gateway has become so important.

1-Easy & Quick Choice to Facilitate More Sales

Setting up a choice to accept online payments is quick and simple, and you can start selling right away after activating it. There are also numerous service providers available nowadays, who offer low-cost plans with no fees and very low transaction rates.

2-Expanding Sales to reach Global Levels

The most important aspect of using payment systems is reaching a global audience, which means opening up shop to the entire world. Because more than 56 percent of online customers prefer shopping cross-borders, you will eventually get the opportunity to market your products globally, and your sales will undoubtedly expand and increase.

3-Reliability

If you use online payment, there is no need to create invoices for both clients and businesses, write checks or send cash; additionally, credit cards allow clients to participate in transactions without instant cash, and all financial arrangements are completed quickly.

4-Immediate Payment 

Online payment facilitates immediate payment arrival for businesses because it allows customers to shop and pay while sitting comfortably at home. Once the transaction is completed, the customer receives an instant notification, which gives him reassurance about the purchased items.

5-Payment Security

Receiving online payments carries fewer financial risks for business owners than traditional methods, where merchants may have to deal with fees associated with a bounced check, in addition to the need to verify the integrity of the money.

6-Optimized Customer Experience

Nowadays, global clients prefer to save time and effort, so they only want to choose products in any global market at any time of day. The convenience of making purchases is often the real motivator that leads customers to choose online payment through the best online payment gateway, and as a business owner, you should consider this.

What are the Challenges of Online Payments?

Expectations of both clients and business owners are increasing in today's digital technology era, as both expect fast and safe digital trials, with regard to the customer, he expects shopping online, facilitating online payments, and surfing, while business owners expect marketing, showcasing, and transforming payments digitally. Let's now look at the Challenges of Online Payments.

1-Poor Support 

Many electronic payment service providers do not provide simple and effective solutions to technical problems that clients may encounter, as many online payment gateway service providers refer customers to the company's website to search for a solution to their problem, or send them to the service center, where they must wait for a long time for their turn.

2-Effectual Authentication 

Before beginning any transaction, clients should be properly identified and their behavior should be analyzed to avoid new vulnerabilities that cybercriminals may discover with the use of new APIs, so it is preferable to use modern technologies such as biometrics, geolocation-based authentication, multi-factor authentication, and encryption mechanisms to make all transactions more secure.

3-Cross-border transactions

Cross-border online payments may be ineffective, slow, and high-priced, but it still represents a big place in global trade, as national banking features can’t deal with cross-border methods. As a result, it is expected that payment systems will make greater efforts to improve that process by:

• Taking control of credit, liquidity, and cost risks.

• Increasing processing efficiency, and decreasing costs.

4-Handling Cheating

To ensure that this does not happen, online theft has already exceeded $ 22 billion this year, and it is expected to exceed $ 48 billion by 2023. PSPs should be PCI compliant and have the necessary certificates, and service providers should look for more effective security options online, in addition to traditional rule-based systems that can observe risks, process information directly, and make decisions about the validity of transactions in real-time, preventing unusual and fraudulent transactions from passing through the system.