The rise of e-commerce in recent years has led to the exponential growth of the digital payment industry.
The ecommerce market is spread out globally. This is why merchants require online payment processing platforms to collect money from their international customers.
Collecting cross-border payments is a prerequisite for almost every business to expand its market across the border. But with the prevalence of data breaches and theft involved with online payments, merchants cannot trust every other ecommerce payment platform.
Many customers are also concerned about the security of an online payment platform. So should you choose an online payment platform? How does it work, and what is the best online payment platform for your business? Read below to learn about this in detail.
What Is an Online Payment Platform?
The growth of internet banking and ecommerce stores has opened the gates for various online payment platforms to process online payments.
An online payment platform is a payment system or service that processes all types of local and international e-payments.
There has been an increase in payment processing devices and services with technological advancement. These services process online transactions and ensure that the funds smoothly transfer from the customer’s account to the merchant’s account.
When you set up your business in international markets, you have to collect payments from global customers.
You can consult an ecommerce payment platform to receive local and international payments. In addition, an online payment platform uses various risk management steps for maximum security.
They also protect all the involved entities, ensuring that the transaction does not cause a data breach.
How Does an E-Commerce Payment Platform Work?
When you set up your ecommerce store, your customers use their credit or debit cards to make a purchase.
There are three basic components of an online payment platform. These are a merchant account, a payment processor, and a payment gateway, all in one platform.
The merchant account enables the process of online payment for eCommerce businesses. Business owners can get a merchant account through a payment processing company or a bank. This bank account will receive the money that your customers will transfer.
A payment processor is a financial institution that manages all the transactions between your bank and the customer’s issuing bank. The payment processor keeps a check of the available funds, security, credit limits, credit card validity, etc.
They also make sure whether the card information is correct. In addition, some payment processors also have security steps to ensure no fraudulent activities.
The payment gateway is an online point of sale acting like a mediator between the payment processor and the transaction on your online store. It connects the merchant account with credit/debit card issuers such as MasterCard or Visa.
When you set up your online store, the customers use their credit or debit cards to purchase. First, a payment gateway collects the customer’s card details.
It then provides the customer with a payment page when they check out from your store.
This payment page transfers the customer’s details to the payment gateway, further transferring it to the payment processor.
A payment gateway is vital for internet payment processing systems because security measures don’t allow direct bank transfers. Then a payment processor processes this information to complete the transaction.
Once the credit card information passes through this cycle, it reaches your customer’s issuing bank. Then the transaction’s authorization reaches a payment gateway to inform the merchant and the customer that the transaction was successful.
Thus an online payment platform involves these three vital entities for processing online payments.
Why Is an Online Payment Platform Important for E-Commerce Businesses?
There are several advantages of using an online payment platform. From being able to accept online payments from all over the world to increasing sales by offering alternate payment methods, an ecommerce payment platform is vital for the global growth of your business.
Here are the various benefits of an online payment platform:
- Your business receives cross-border payments, so you expand your market internationally.
- Easier to reach global audiences to increase sales
- Secure transactions due to lower financial risks
- Operational performance
- Fast and efficient transactions
- Convenient to conclude a transaction
- Optimized customer journey
- Your customers will have access to a wide range of payment alternatives
- Acceptance of local and international payments
- More marketing channels are available
Oceanpayment | The Best Online Payment Platform
Before choosing a payment platform for your business, ensure that it supports various alternate payment methods to help your business grow in a global market. If your international customers don’t use credit or debit cards, you must offer them convenient alternatives.
Oceanpayment is one such ecommerce payment platform that simplifies the process of card payments and offers up to 500 alternate payment methods.
This online payment platform supports desktop, mobile, TV, and various other user interfaces allowing customers to make payments via any available channels. Thus, Oceanpayment is a comprehensive payment solution for all types of large and small businesses.
By using Oceanpayment, you will offer more convenient ways of payment to international consumers. This way, you can generate more revenue by accommodating maximum customers with various payment methods.
Also, many customers avoid using anonymous payment platforms due to the threat of data breaches and theft. However, Oceanpayment offers maximum transparency by providing end-to-end encryption.
This online payment platform has worked with thousands of merchants to provide them with the safest methods of transactions.
In addition to this, Oceanpayment also provides your business with customized solutions for all e-commerce problems. Thus, it is an all-in-one payment solution for your business needs.
International customers have thousands of stores for shopping. This is why your online store needs to provide them with the most convenient and simplified payment methods to ensure that they become loyal customers.
For this purpose, you should partner with the best online payment platform to offer advanced payment methods and alternatives to traditional banking services.