The rise of the e-commerce industry in the last decade helped set up various small-scale businesses across the globe.
Furthermore, this exponential growth of the e-commerce industry led to the rise of digital payments, with different online payment platforms offering payment solutions to small and large businesses.
This is why you must know about a suitable payment gateway for small businesses if you wish to expand it. So what is a payment gateway, and how does an online payment platform work as an all-in-one payment solution? Read below to learn more.
Since the world has become a global village, many small businesses receive cross-border or international payments.
Therefore merchants require online payment platforms for small businesses to collect payments from their local and international customers.
Moreover, the collection of cross-border payments is crucial for small businesses to expand so they do not lose their customers in international markets.
However, specific threats that come with online payments, such as data breaches and theft, can have a negative impact on the growth of small-scale businesses. In addition, merchants cannot trust online payment solutions unless they offer encrypted payment transfers.
The technology that can process online payments via credit or debit cards is called a payment gateway.
This consumer-facing interface can collect the funds from a customer and deliver them to the merchant effortlessly. Thus, a payment gateway works precisely like a checkout payment portal in online stores.
It requires a customer’s credit card information to process the online transaction. Next, it processes the information, verifies it, and safely transfers funds to the merchant account.
Payment Gateway for Small Business
A payment gateway is essential for small businesses to process their credit card payments. Suppose a small-scale business wants to expand its market globally, it will have to collect international payments quickly.
A payment gateway will help set up a payment processing system that is not only efficient but also highly secure.
Thus, a reliable payment gateway will help ensure that the local and cross-border payments are efficiently transferred from the customers to the merchants.
It will also protect all the entities involved in the payment transaction so your small-scale business won’t experience data breaches or security threats.
How Do Online Payment Platforms Work?
The online payment platforms for small businesses have three primary components. These are a payment processor, a payment gateway, and a merchant account.
When you set up a business, your customers make a transaction for purchase by using their credit or debit card.
Here are the following entities of a payment platform involved in processing the transaction.
Merchant Account, Payment Processor & Payment Gateway
A payment processing company or a bank issues a merchant account to business owners. This merchant account enables online payment transactions for their businesses.
The issuing company or financial institution receives the money your customer transfers.
Next, the transaction between the issuing bank and the customer’s account is managed by a payment processor. A payment processor is a financial institution that keeps a check of security, available funds, credit card validity, etc.
It is also responsible for ensuring that the credit card information is correct. Some top-notch payment processors also have security protocols to keep fraudulent activities at bay.
The next vital component of an online payment platform is the payment gateway, which is an online point of sale. Your customers use debit or credit cards to make online purchases from your ecommerce store.
The payment gateway collects the card details and provides the customers with a payment page when they purchase and click on “check out.”
This payment page transfers the customer details to the payment gateway for final processing.
Thus, a payment gateway is essential for internet payments as direct bank transfers are not allowed. A payment gateway ensures that the merchant securely receives funds from a customer.
Oceanpayment | The Best Online Payment Solution for Small Businesses
Before choosing a payment solution for your business, you must ensure that it supports a wide range of alternative payment methods.
A small business must accept alternate payment methods because it helps expand the business.
Suppose your customers do not use Mastercard or Visa and you do not offer them with alternate payment solutions; you can lose potential customers.
Since customer conversion is of utmost importance for the growth of small businesses, you need to provide them with very convenient alternatives.
Oceanpayment is one such online payment platform that has simplified the process of card payments by offering up to 500 alternate payment methods.
Moreover, this online payment solution for small businesses and large-scale e-commerce stores supports various interfaces such as mobile, desktop, Tv, etc, allowing customers to pay from any available channel.
This way, Oceanpayment is a comprehensive payment solution for all types of businesses.
For example, suppose you wish to expand your business over time. In that case, you can also eventually offer more convenient ways of payment to international consumers without having to worry about changing your payment accepting ways.
You can generate more revenue when you accommodate a maximum number of customers with various payment methods and customized payment solutions.
However, many customers do not trust online payment platforms due to the prevalence of theft and data breaches.
But Oceanpayment has worked with thousands of businesses and provided them with maximum transparency due to end-to-end encryption and various security protocols.
Besides that, Oceanpayment is the best online payment solution for small businesses because it will help resolve initial payment problems that many startups have to fix by themselves. Thus, it works as an all-in-one online payment solution for business needs.
By using reliable online payment solutions for your business, you can receive money on time. So you must partner up with a trusted global payment service that can guarantee safe payment transfers.
Oceanpayment’s end-to-end encrypted fund transfers will not only be efficient but also provide your business with transparency. All you have to do is consult this global payment solution through a phone call or contact form.