Marcel van Oost’s Post

Well structured by Marcel van Oost. Indeed 3 options. Depending on the merchant size and long term strategy, one option will prevail over the other. Tokenization is key to: 1) improve customer experience at the online checkout making it effectively frictionless. 2) enable unified commerce to offer - customer centric- innovative services at physical check-out as well as across the different channels (mobile app, internet,...) and 3) finally potentially exchange data (with customer, third parties,...).

**Top Payment Gateways in 2024: Simplifying Global Transactions** In today's fast-paced digital economy, choosing the right payment gateway is crucial for businesses to provide seamless customer experiences. Whether you're running an e-commerce platform, subscription service, or brick-and-mortar store, the right gateway can make all the difference. Here’s a look at the top payment gateways leading the market in 2024. 1. Stripe: Developer's Favorite Stripe continues to dominate as a versatile and developer-friendly solution. Known for its powerful APIs, Stripe supports subscription billing, fraud prevention, and global payment processing. It's the go-to choice for online businesses scaling internationally. Key Features: *Advanced fraud detection with Stripe Radar. *Supports over 135 currencies. *Easy-to-integrate APIs for custom solutions. How to Choose the Right Payment Gateway When selecting a payment gateway, consider the following: *Business Model: Subscription services benefit from gateways like Braintree, while international businesses might favor Adyen. *Costs: Analyze transaction fees, monthly charges, and hidden costs. Integration: Choose a gateway that fits seamlessly with your existing platform. *Customer Support: Reliable support can save time and prevent revenue losses during technical issues. 2. PayPal: Global Trust PayPal remains one of the most recognized payment platforms. With multiple payment options, including cryptocurrency and Venmo, it's a trusted choice for businesses looking to cater to diverse audiences. Key Features: *Instant international transactions. *Integrated invoicing tools. *Buyer and seller protection programs. 3. Adyen: International Leader Adyen excels in providing localized payment methods for global businesses. It offers dynamic currency conversion, allowing customers to pay in their preferred currency. Key Features: *Real-time fraud monitoring. *Transparent pricing. *Broad range of payment methods, from credit cards to digital wallets. 4. Worldpay: Performance Excellence Worldpay is recognized for its high transaction speeds and reliable uptime. It’s an excellent choice for both online and physical stores, offering robust analytics tools to optimize operations. Key Features: *Seamless integration with POS systems. *Comprehensive payment analytics. *Excellent uptime and customer support. 5. Braintree: Subscription-Friendly As a PayPal company, Braintree specializes in recurring payments and secure merchant accounts. It’s ideal for businesses offering subscription services. Key Features: *Multiple currency support. *Customizable checkout experiences. *Strong encryption for secure transactions.

Online payments come in many different flavors. As new payments tech emerges, merchants are doing their best to offer more choices and keep up with consumer expectations. Some of the most common types of online payments include credit and debit cards, digital wallets, instant bank payments and the ACH network. But, how do these digital solutions work? In my latest article for @NMI, I outline the basics of online payments, including: -How payment processing works (from submission to funding) -What to expect from online payment security measures -Common business models for online payments -How to choose the right payment processing partner This article is especially relevant for SaaS providers and developers who are curious about how online payments work and how to incorporate them into their software solutions. To learn more, read my full article here: https://lnkd.in/gbJFkerB #Fintech #SaaS #Payments

Terms and Terminologies commonly used in the Fintech and Payments Industry. PART 4 26. Refund: The process of returning funds to a customer's account for a cancelled, returned purchase and partial Service. It can be full refund or partial refund of the transaction amount. Examples are when a customer pay excess for a value of Goods, returned goods to a shop due to damages or when service is not reminder complete based on the agreed time frame in the likes of hotel where a customer paid for 15 days but end up spending 10 days. The different between refund and reversal is that a refund is the process of reimbursing somebody for a transaction which has already been completed while Reversal refers to situations where a client has sent the money and value was not given as the amount is yet to impact the Merchant account. 27. Tokenization: The process of replacing sensitive payment card data with unique identification symbols (tokens) to enhance security and protect cardholder information. Tokenization makes it more difficult for hackers to gain access to cardholder data 28. USSD or Unstructured Supplementary Service Data: is a protocol for mobile phones that can be used to send money and perform value added services by inputting the merchant account number, transaction amount and PIN for payment, phone number for airtime and data and other bill payment. USSD services are typically accessed using a code that starts with * (star) and ends with # (hash), and runs over the phone network rather than requiring data and the internet. 29. Blockchain: A decentralized and distributed digital ledger that records and verifies transactions across multiple computers, providing enhanced security and transparency. Blockchain is ideal for delivering information because it provides immediate, shared, and observable information that is stored on an immutable ledger that only permissioned network members can access. A blockchain network can track orders, payments and accounts. 30. Payment Gateway: A service provider that connects merchants' payment systems to the payment networks, enabling secure transaction processing. payment gateways sit between buyers and payment switches, aggregating payment methods for merchants and also can offer multiple payment options to a merchant’s customers. In other words, it is a company that acts as an intermediary between merchants and payment networks, facilitating secure online payment transactions. 31. Customer onboarding: Registration on new merchant in your payment gateway. For financial businesses to take on new customers, there are requirements to Know Your Customer and Know Your Intermediary – or soon, Know Your Identity. While the onus currently falls on the bank or financial institution to find out if you are who you say you are.

What are tokens and how do they work in payments? ✅ PSP tokens A PSP token is a token issued by a single payment processor. Most PSPs offer built-in tokenization, however PSP tokens are only valid for the processor that issued it and are not easily transferable between other processors. This can lead to major complications for businesses who work with multiple payment processors, like enterprise merchants do. The average enterprise merchant works with four or more processors as routing transactions over a variety of PSPs increases payment success and lowers costs. However, if you want to use an existing PSP token with a new or different processor, you will have to initiate a token migration with the processor that has issued the token. In practice this is a near impossible process, because it’s not possible to just migrate cards from one PSP to another because PSPs do not support outgoing and incoming integrations of each other. ✅ PSP-agnostic tokens PSP-agnostic tokens, on the other hand, are fantastic for medium and large companies that require both control and flexibility over their payment processing. PSP-agnostic tokens offer the same benefits as PSP tokens with the key difference being that PSP-agnostic tokens aren’t tied to one specific payment processor, meaning that these tokens can be used across multiple processors without locking in the merchant with one single service provider. If you start with a PSP-agnostic token to begin with, then you can avoid the entire hassle of the migration process. Whereas PSP tokens are developed by a single processor and stored in their own payment vault, PSP-agnostic tokens are developed by payment operating systems like Payrails and kept in their dedicated token vaults. The payment operating platform issues the agnostic token to the merchant, which the merchant can then use across all of their active PSPs. ✅ Network tokens Network tokens introduce a new layer of security and efficiency and are considered to be the next phase of payment tokenization. Network tokens are issued directly by card networks like Visa or Mastercard and act as a replacement for card details. They can be used instead of cards or PSP tokens and work with any PSP that also has a connection with a network. Network tokens are considered best for medium-sized businesses and large multinational companies. When it comes to payment acceptance, network tokens typically have higher conversion rates. Although the upfront costs for network tokens are higher, it’s cheaper to process them because the interchange fee for network tokens is lower in a lot of countries and because they are considered more “trustworthy” by all participants in the payment chain, due to their low fraud risk and low chargeback ratio Subscribe for more insights https://lnkd.in/d94JgWBU Source Payrails #payments #tokens #fintech Arjun Panagiotis Alex Monica Enrico

In the world of online payment services, a new player has entered the game: PSD2. But what exactly is PSD2 and how is it shaking up the industry? PSD2, or the Payment Services Directive 2, is a European regulation that aims to increase competition in the online payments market, improve security for consumers, and drive innovation in the industry. It requires banks to open up their APIs to third-party providers, allowing them to access customer account information and initiate payments on their behalf. This means that consumers can now use a variety of new and innovative payment services, rather than being limited to the traditional offerings of banks. So, how is PSD2 impacting online payment services? For starters, it is forcing banks to up their game when it comes to security. With the new regulation, banks are now required to implement Strong Customer Authentication (SCA) for online payments, adding an extra layer of security for consumers. This means that customers may need to provide multiple forms of verification, such as a password and a fingerprint scan, when making a purchase online. But while the increased security measures may be a hassle for consumers, they ultimately lead to a safer and more secure online payment environment. With the rise of online fraud and cybercrime, PSD2 is a welcome step in the right direction for protecting consumers and their financial information. In addition to improved security, PSD2 is also driving innovation in the industry. Third-party providers, known as Payment Initiation Service Providers (PISPs) and Account Information Service Providers (AISPs), are now able to offer new and exciting payment services to consumers. From one-click payments to personalized financial management tools, these new providers are revolutionizing the way we pay for goods and services online. Overall, the impact of PSD2 on online payment services is clear: it is creating a more competitive, secure, and innovative landscape for consumers. While the new regulation may require some adjustment on the part of banks and consumers, the benefits far outweigh the challenges. So, get ready to experience a whole new world of online payment services, thanks to the game-changing impact of PSD2. The post The Impact of PSD2 on Online Payment Services appeared first on We Tranxact .

Why Pix Might Dominate Global Payments Could a government-initiated payment system really outshine Silicon Valley's best? Since its launch by Banco Central do Brasil in November 2020, Pix has not just disrupted but redefined the payments landscape. With over 122 million users and processing billions in transactions daily, Pix’s meteoric rise is an anomaly in the world of account-to-account payments. Pix’s success hinges on several critical factors. Its real-time transaction capability, available 24/7, has transformed how Brazilians conduct financial transactions, making it an indispensable tool for both personal and business use. The minimal to zero transaction fees make it an attractive alternative to traditional credit cards, especially for small businesses and everyday consumers. The integration into government services and social welfare programs has significantly boosted its adoption, ensuring that Pix reaches even the most financially underserved populations. Additionally, the Central Bank's strong regulatory framework and proactive promotion of Pix have cultivated a high level of trust and security among users. In comparison, other A2A payment systems like iDeal (owned by EPI Company) in the Netherlands and BLIK in Poland have also found success but on a different scale. iDeal’s dominance in the Dutch e-commerce market is due to its seamless integration with local banks and focus on online payments. Blik, on the other hand, has grown through versatile use cases and strong bank collaborations. However, both systems lack the comprehensive, real-time capabilities and broad application that Pix offers. Despite these advantages, other account-to-account payment methods have struggled to achieve similar success. The main reason lies in their limited scope and lack of strong institutional support. Many of these systems operate within narrow niches or regions, without the extensive backing from central authorities that Pix enjoys. Additionally, high transaction fees and cumbersome user experiences have hindered their widespread adoption. Pix is not just a local phenomenon; it’s poised to expand its reach internationally. Pix's potential to revolutionize payments in other countries is immense, given its proven model of combining real-time processing, low fees, and government integration. As other countries observe Pix’s success, there’s a growing recognition that the future of payments might very well follow Brazil’s lead. In other words, Pix’s ability to integrate seamlessly into everyday life, coupled with its broad support and innovative features, sets it apart from other payment systems. As it eyes international expansion, the global payments landscape might soon be witnessing a Brazilian revolution. Do you think Pix’s model will set the standard for future payment systems worldwide? Let me know in the comments. P.S. Check out my newsletter https://buff.ly/3RXzt7Z

Are you tired of navigating the complexities of online payments? Have you ever wondered what a payment gateway is? We've got you covered! Understanding how payment gateways work can revolutionize your business operations. Check out our comprehensive guide that breaks down: 💳What payment gateways are 📚How they work 🔐Security measures & transaction fees 💰Popular options like PayPal, Stripe, and Square 🛠️The possibility of building your own gateway Are you looking to streamline your payment process and grow your business? Give Pinks Pay a try! Our easy-to-use platform provides secure transaction processing, advanced fraud detection, and a committed support team to guarantee seamless transactions. Explore our payment gateways and discover how Pinks Pay can benefit your business. 👉 Read the Guide Here: https://vist.ly/39qt9 #payments #paymentsolutions #paymentprocessing #pinkspay

IT Spending By Mobile Payment Service Providers Market Challenges, Analysis and Forecast to 2033 https://lnkd.in/dGdqc7R6 IT Spending By Mobile Payment Service Providers Market size was valued at USD 2.98 trillion in 2023 and is projected to grow from USD 3.84 trillion in 2024 to USD 27.81 trillion by 2032, exhibiting a CAGR of 28.1% during the forecast period (2024-2032). The IT spending by mobile payment service providers market refers to the expenditure made by companies offering mobile payment services on various IT solutions and services. With the increasing adoption of mobile payment methods globally, driven by the convenience and security they offer, mobile payment service providers are investing significantly in IT infrastructure to support their operations, ensure data security, and enhance user experience. Market Drivers: Rapid Digitalization: The shift towards digital transactions and the increasing penetration of smartphones have fueled the demand for mobile payment services. Convenience and Accessibility: Mobile payment services offer users the convenience of making transactions anytime, anywhere, without the need for physical cash or cards. Contactless Payments: With the rise of contactless transactions, mobile payment solutions have gained traction as a secure and hygienic payment method, especially amid the COVID-19 pandemic. Technological Advancements: Innovations in mobile technology, including near-field communication (NFC), biometric authentication, and mobile wallets, have contributed to the growth of the mobile payment market. Growing E-commerce Sector: The booming e-commerce industry has increased the demand for secure and efficient payment processing solutions, driving the adoption of mobile payment services among merchants and consumers. Market Challenges: Security Concerns: Despite advancements in security measures, mobile payment platforms remain vulnerable to cybersecurity threats such as data breaches, identity theft, and fraudulent transactions. Regulatory Compliance: Compliance with diverse regulatory requirements and standards across different regions poses challenges for mobile payment service providers, especially concerning data privacy, anti-money laundering (AML), and Know Your Customer (KYC) regulations. Interoperability Issues: Lack of interoperability between different mobile payment platforms and systems can hinder seamless transactions and limit the adoption of mobile payments, particularly in markets with multiple competing providers. Consumer Trust and Adoption: Building trust among consumers regarding the security and reliability of mobile payment services is crucial for widespread adoption. Education and awareness campaigns are needed to address consumer concerns and promote the benefits of mobile payments. Infrastructure Limitations: In regions with inadequate mobile network coverage or