Electronic Payment Systems and Their Core Features

The past decade has led to major innovations in the electronics space. E-payment systems are rapidly replacing conventional payment systems due to their unmatched convenience and widespread compatibility. With the massive surge in consumer adoption, businesses need to explore offering digital payments to meet customer requirements. The Covid 19 pandemic and the concern for new variants have further accelerated the importance of implementing viable electronic payment systems for customers. A number of electronic payment providers have emerged to bridge the gap and provide viable solutions for customer needs.

However, before we delve deeper into the most popular electronic payment solutions, let’s explore what e-payments are.

What are Electronic Payments

Electronic payments are ways of making digital transactions without the usage of physical cash or contact. These payments are used to replace conventional use cases, including bill payments, shopping purchases, and digital transactions. Similar to conventional payments, e-payments come with embedded costs and fees required to manage the transaction.

Popular Electronic Payment Methods

The growth of digital products has led to a subsequent increase in the number of electronic payment providers. A number of innovative fintech companies have emerged to provide innovative solutions to customers.

Here are some of the most popular options:

Credit/ Debit Cards

Even though credit cards gained popularity for their application in conventional business and Point-of-Sale (POS) use cases, these cards are amongst the most commonly used forms of electronic payment. Leading credit card processors including Discover, Visa, and Mastercard handle the wide majority of electronic payments today thanks to the seamless integration of credit cards with digital stores and eCommerce outlets.

Features

• Credit cards have attained global accessibility due to the expansive network established through the 1-Link initiative. Popular credit and debit cards can be seamlessly used across different payment gateways without any complications.
• Credit cards offer lightning-fast transaction processing thanks to the integrated nature of the processing network.
• Credit card payments are highly secure with integrated features including 2 Factor Authentication (2FA) and 3DS secure verification.

Downsides

• Credit cards often come with high transaction processing fees and currency conversion costs that can increase the cost of transaction handling.
• Debit cards can have security vulnerabilities in case they are used on potentially unsecured platforms. Leaked debit cards can cause significant financial damages to consumers.

Virtual Debit Cards

Virtual debit cards represent a significant step forward from the conventional credit card approach. These temporary cards can be configured at a limited cost to have added transaction security. Consumers have the ability to impose transaction limit control and have access to a wider range of benefits in contrast to typical credit/debit card products.

Features

• Virtual credit function similar to conventional credit cards with widespread acceptance across leading payment gateways on the internet.
• Virtual cards offer a much more secure payment processing option as the user has more control over spending limits and transaction control mechanisms.
• Virtual debit cards limit the potential damage in case the card gets leaked. Customers can seamlessly generate a new card in case the old card gets compromised.

Downsides

• Virtual credit cards can often have a significantly longer waiting time for vendors. These cards also have limited acceptance across key platforms.
• Temporary credit cards can also have limited applications on platforms where subscriptions are required to procure services regularly. Some providers refrain from allowing temporary cards due to the security risks involved in the process.

Mobile Wallets/ Applications

Mobile wallets are rapidly becoming the most popular form of digital payments because of the simplicity of integrating payments into the phone. Mobile Wallets allow customers to seamlessly make electronic payments without worrying about carrying their credit cards with them. The improvement in smartphone technology and identification tools has paved the way for intuitive mobile wallets, including applications such as Google Pay, Apple Pay, and Samsung Pay.

Features

• Mobile wallets allow customers to track their spending with inbuilt expense logging, budgeting, and other advanced features that allow customers to make better financial decisions.
• Mobile wallets allow customers to shift to an integrated banking model centered around their smartphones instead of requiring other financial instruments. The convenience of having an integrating solution provides better functionality than other alternatives.
• Existing mobile wallets, including Cash App and Zelle, offer free internal payment transfers within seconds. This removes the hassle from conventional transactions and provides a viable method for customers to manage cash payments.

Downsides

• Even though mobile wallets offer a transformational way of payments, there are a limited number of retailers that currently support phone payments. The compatibility depends on the application you use during the transaction.
• Mobile wallets can often require comprehensive Know-Your-Customer (KYC) verifications and bank accounts to allow you to configure a wallet.

These e-payment solutions are allowing consumers to enter a new era of digital banking centered around streamlined electronic payments. It is becoming essential for businesses to consider adding online payment processing systems to cater to customer requirements and enhance their operational efficiency.

Want to know more about credit card processing for electronic payments? Check out Credit Card Payment Processing for Online E-Payment.

Conclusion

This monumental behavioral shift makes it essential for enterprises to embrace the different forms of electronic payments and facilitate customers by simplifying transactions. The features of electronic payment systems are also designed to help businesses decrease churn and improve transaction management.

If you’re thinking about integrating electronic payment systems into your existing business ecosystem, it can be a great idea to consult with a professional company to help you with the deployment. Working with a professional can help you skip the hassle and get started with cost-efficiency payment processing through electronic payment solutions.

Oceanpayment is the global leader in helping businesses shift to e-payment. Thanks to our cutting-edge solutions, we’re helping the company shift to faster payment processing and lower transaction fee. Our experienced team works on your personal requirements to ensure that you’re able to handle e-payments seamlessly.

To learn more about Ocean payment and our digital services, check out more at https://www.oceanpayment.com/.