The payment system industry is undergoing significant changes.
Old paradigms are replaced by new ones, trends are also changing, and what seemed unreal yesterday becomes reality today.
Let's take cryptocurrencies as an example. The same countries prohibited and permitted them. There were many news that reported about the ban of cryptocurrencies in China, followed by contradictions.
Today China is not only testing the digital yuan, but they also elaborate the legal basis for the future. In October 2020, a bill was published that equates the digital yuan to legal tender.
Transformation of payment systems
Many experts predict that payment companies will react faster to new trends and pay more attention to modernizing the existing system, cloud computing, and collaboration with other industry participants.
A typical example of how to adapt to trends is PayPal, which recently added support for cryptocurrencies for its customers.
What trends in the field of payments can be highlighted today and what are they?
Let's talk about it now ...
Payments: Trends of the Future
Online sales have already surpassed $ 4.3 trillion in 2020 and the numbers continue to rise. For comparison: in 2019 - $ 3.5 trillion, and in 2018 - $ 2.85 trillion.
Payment gateways are used to process payments.
Payment gateway is a special service that defines and processes payments for online and offline stores. Such gateways ensure the smooth flow of transactions and facilitate interaction between all participants (website, store, payment processor, bank that issued the card, etc.).
In simple words, a payment gateway is a program that withdraws funds from the buyer's account and transfers them to the seller's account.
The following solutions for payment gateways can be outlined:
- Hosted payment gateway
- Licensed payment gateway
- White label payment gateway
Hosted payment gateway
Redirects customers from the merchant checkout page to the online payment processing page.
Simple and convenient, but additional actions on the part of clients are required.
PayPal is an example of such a solution.
A hosted payment gateway is suitable for small online stores.
Benefits:
- Low initial costs
- Fast integration
- Easy operation
- Seller is not required to comply with PCI DSS security regulations
Licensed payment gateway
The payment gateway software is licensed by an external company that develops the software, distributes and services the product in a PCI environment owned by the licensee.
The environment in this case can be a cloud server or the licensee's internal data center.
Benefits:
- Fixed initial cost;
- Ready multifunctional product;
- Updating the facilities of the finished product using developer resources.
Payment gateway White label
In fact, traditional payment gateway providers have added a branding feature to allow their customers (ISO, acquirers) to use their software products with their URL, logo, name and other information.
As a result, ISO is able to offer both merchant accounts and payment gateway services to its customers (even though they were actually provided by a third party).
In accordance with the basic white-label payment gateway service schema, you are using an instance of a generic gateway that can be shared by other merchants / ISOs. In this case, due to the specific settings, the user interface (for example, the appearance of the forms that your employees work with) is customized according to your requirements.
Benefits:
- Providing gateway services under your own brand
- Automate massive payouts using API
- A relatively cheap solution compared to others, etc
For those who are interested in cryptocurrencies and are considering integrating their business with digital assets, Z-Pay will be of particular interest.
Z-Pay
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Z-Pay is a confidential payment system that has extensive functionality and several confidential tools that allow you to maintain anonymity at all stages of interaction with cryptocurrencies.
A specially designed API will provide your business with everything you need to receive crypto payments as reward for goods and services.
Moreover, the built-in Z-Pay wallet allows you to instantly convert cryptocurrencies not only among themselves, but also fiat assets.
The advantages of the Z-Pay payment system also include the absence of commissions for internal transfers.
Read more about the benefits of Z-Pay on the official website and on the project's social networks.
Official site: https://z-pay.io/