E-Commerce Payment Systems for Business in 2020

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E-Commerce Payment Systems for Business in 2020
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• The Definition
• An E-payment system is a system that allows your
  customers to pay for products and services
  online. This complex mechanism works with the
  purchaser, merchant, purchasers bank, merchants
  bank, payment processor, and payment gateway.
• Types of Electronic Payment Systems
• Depending on the electronic payment method,
  E-payment systems can be divided into
• Cash Payment Systems that include Direct Debit
  and E-Checks.
• Credit Payment Systems that include Credit Cards
  and E-Wallets.

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• Of course, cash will be around for a long time
  but according to WorldPay, the global part of
  E-payment transactions, including credit cards,
  debit cards, and mobile wallets, will increase to
  83 by 2022. Here is some additional information
  from Infopulse on how the total transaction value
  of digital payments will grow.

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• How Does Electronic Payment Processing Work?
• We have discussed the importance and benefits of
  having a modern electronic payment system now,
  lets dive into specifics. Whether you run a
  marketplace, own a big E-commerce business, or
  represent any other industry online, you need a
  payment solution that will help you and your
  customers get all the benefits mentioned above.
• To accept and process E-payments online,
  businesses need an E-payment gateway. This is a
  service that is used for both online and
  brick-and-mortar stores and enables transactions
  between buyers and sellers. The gateway is
  protected with security protocols and encryption
  to provide the safest transactions possible
  between all parties. Determining what gateway you
  will choose also defines what currencies your
  business can accept, the cost of transaction
  fees, and the speed of transactions.

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• Choosing the Best Way to Integrate an E-Payment
  Gateway
• There are three methods to integrate a payment
  gateway the best fit will depend on the size of
  your business.Small business owners will probably
  prefer the Hosted Payment Gateway method if they
  are fine with processing the payment externally.
  Like in the previous case, no PCI compliance is
  required, as all the processing is handled by the
  service provider. This method is simple and fast
  to integrate. However, the drawbacks here are
  quite significant you cant control a hosted
  gateway. To make a payment, customers must leave
  your website this is not good in terms of
  conversion and marketing in general.
  Additionally, some buyers may be suspicious about
  going to third-party websites, which weakens your
  brand image. On the other hand, integration is
  easy all you need to do is to add JavaScript
  code, which will serve as your Buy button and
  direct the customer to the third-party website to
  make a transaction.

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• Businesses of any size can use the Direct Post
  method. After the purchase, the data instantly
  gets to the gateway and processor. You dont need
  to have PCI compliance, because your platform
  will be used only for shopping and none of the
  money transaction details will be on your server.
  With this approach, you will have room for
  branding and customization options also, a
  customer wont leave your website for the
  purchase. The downside is that Direct Post is not
  the safest method in terms of security. To
  integrate this way, the vendor must make an API
  connection between a payment gateway and the
  shopping cart on your website to transfer the
  information.

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• If you have a medium to large sized business,
  your brand image and user experience are very
  important and are crucial factors in revenue and
  potential growth. Thats why the integrated
  method can work best here. This approach will
  keep your customer on your website all the time
  and you will get complete control over the
  payment process. You will be able to adjust and
  customize the payment system just as you want.
  The main drawback is because you need to support
  a payment system yourself, it could get very
  expensive. You will store the financial
  information of your customers, so you need to get
  PCI compliance to even be able to do that. If you
  have custom features in mind, they may be quite
  sophisticated to implement. You need a team of
  experts to successfully execute the integration
  and add APIs to your server. While vendors offer
  detailed guides on this process, it is better to
  find the right team to perform it.

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Sources

1. https//spd.group/ecommerce-solutions/e-payment-sy
   stems/
2. https//www.altexsoft.com/blog/business/how-to-cho
   ose-and-integrate-payment-gateway-online-payments-
   transaction-processing-and-payment-gateways-provid
   ers/
3. https//elogic.co/blog/7-best-magento-2-payment-ga
   teways/
4. https//www.bigcommerce.com/blog/payment-gateways/
   3-types-of-payment-gateways
5. https//www.infopulse.com/blog/overview-of-payment
   -processing-trends-and-top-solutions-for-business/