An online transaction process, or the sale of goods and services over the Internet, involves three main parties: merchants, customers, and payment providers. A merchant is a business offering its products over the Internet, while a customer is someone who buys them.
Payment providers allow customers to complete their payments using credit cards, debit cards, e-wallets, etc., without complications.
The efficiency of such a system depends on the provider being able to offer merchants and customers services like a secure payment system, highly responsive servers, multiple payment channel options, and POS integration.
Payment platforms or payment as a service platform (PaaS) provide technical and customer support to providers, enabling them to offer the best merchant experience. An essential part of that experience is allowing the merchants to connect with their customers.
Payment providers collaborate with these platforms because they offer a wide range of services, including integrated (POS) in-store solutions, value-added services, a modern merchant dashboard, real-time support monitoring, and a cloud-based API integration layer.
But what types of solutions do they provide, and in what ways can they help acquirers and facilitators of digital payments? Read on to know.
Types of solutions provided
Holding PII data
PII refers to Personally Identifiable Information that helps identify a particular individual. The payments and banking sector involves information such as social security numbers, credit and debit card numbers, login credentials and passwords, and biometric records.
A payment-as-a-service platform stores such sensitive information on behalf of the merchants, making the task easier and more convenient for them. This is crucial because PII is highly prone to hacking, with fraudsters using the slightest breach to hack an entire account.
Multi-channel payments
These include in-store, kiosk, virtual terminal and online.
In-store
It refers to any payment made by a cardholder to the merchant’s bank while being physically present in the store. An in-store solution integrates a payment terminal into the point-of-sale system in seconds. It allows processing payments from anywhere inside the store quickly and conveniently.
Kiosk
A kiosk is a machine that enables users to generate a bill payment in return for the services or goods purchased. A PaaS platform supports mobile terminals that combine into the point-of-sale (POS) practice management software system on devices like smartphones or tablets.
Virtual terminal
A virtual terminal system is highly beneficial as it allows merchants to accept card payments without requiring the presence of the card or the cardholder. A web-based application lets merchants enter the necessary details to complete a transaction process.
However, security is a prime concern in such transactions. Hence, the platform must ensure a secure virtual terminal allowing users to take and receive payments quickly. Merchants can track payments in real-time (or as soon as they occur) and process refunds through the merchant dashboard.
Merchant dashboard
It enables merchants to manage and track payments, besides getting live performances of their stores in various locations.
Value added solutions
A cloud-based integration platform allows payment providers and merchants to seamlessly integrate value-added services into a single offering, including cash flow lending, actionable insights and loyalty.
Sales and support
Choosing the right payment platform also helps payment facilitators to create new sales referral channels. It is better to choose those with experience working with payment providers and acquirers who can generate high-quality leads, besides offering extensive support in technical pre-sales to POS training.
Payment platforms help deliver an enhanced merchant experience enabling providers to connect smoothly with merchants and their customers. From integrated POS solutions to value-added services, they offer a variety of solutions focused on technology and innovation.
