Why are online payment systems so popular today?

Why are online payment systems so popular today?

June 14, 2023

Online payment has hit a new high during the Covid19. This triggered a new trend of cashless payments. Today, DXB Apps (we) will discuss why online payment systems are so popular in today’s world.

1. Financial services (Modern)

Any act of service provided by the banks is known as financial services in a crude language. The act of changing savings into an investment can also be called a financial service. Globally the financial service market is said to reach a worth of $28529.29 billion by the year 2025. The major providers of financial services in the market include the Agricultural Bank of China, Bank of China, AXA, and so on.

Financial services modification and development can be influenced by a number of factors including politics and morbidity.

2. What is an online payment system? What are its features?

Payment systems can be simply defined as a way of transferring money between people, government, or businesses. These payment systems also include credit- mechanisms.

There is a modernized concept of electronic payment now. Here, the payment is transferred from one bank account to another. This is done by using an electronic method.

While talking about electronic payments it is necessary to consider the legal and technical aspects.

3. How are online payments processed?

The process behind an online payment transaction is quite lengthy. There are several steps that the consumer using online payment services remains unaware of. Let’s go through each element in the process.

  • Firstly, the payee purchases some goods or services on the internet.

  • The seller may be an institution (or an individual or a company) providing the goods and the services the payee purchases.

  • The bank or the issuer of a financial institution will enable the payee to make the payment using a debit or credit card.

  • The supplier who is in charge of a merchant account helps in confirming the legality of the account of the recipient.

  • The payment processor company helps in conducting online payments. It is done by processing the payments between the supplier and the recipient.

  • The payment gateway helps in preventing frauds in online transactions.

4. Some of the examples of Online Payment Systems

4.1 Stripe

Stripe is said to be a leading international payment system. It works with both the individuals and businesses. It provides top notch security and reliability to its users. The system comes with a high level of integration that helps in alleviating its performance. Most of the bank credit and debit cards are supported by it. Some of the examples are as follows: MasterCard, Visa and so on. It also supports mobile wallets such as Google pay.

4.2 PayPal

This online payment system is said to be universal. This online payment system has existed for almost 20 years. It has worked with about 25 different currencies in 200 different countries. It provides higher security and privacy to its users as the user does not necessarily have to disclose their bank account number or credit card number. It helps in increasing the speed of the transactions as well. This is the reason why the system is so popular across the world.

4.3 Checkout

This is the youngest out of the three. However, it provides the services with the same format and level as the other two. It provides services across 200 markets around the world. It works with over 50,000 merchants. It accepts payments in over 80 different currencies across the world.

5. Advantages of the online payment system

Some of the major advantages of using online payment services are as follows:

  • The system not only helps in saving human resources but also helps in saving the time of its users.

  • It helps in increasing the sales without taking into reference the working hours.

  • Reporting of the month-based automatic reports becomes simpler with this mode of transaction.

  • This system provides end-to-end SSL security for the transaction that takes place through this system.

6. Dis- advantages of the online payment system

There are several advantages however there are two sides to a coin. It also has some disadvantages. They are as follows:

  • While users are making transactions they need to withhold their money for several days.

  • For the success of a transaction, the user has to make a mandatory payment of a fixed amount.

  • For the transactions, the user needs uninterrupted internet and technical stability.

In spite of the disadvantages, the online payment system is popular today. It is a growing industry without a speed breaker. It simplifies making payments and the interactions between a merchant and customer. You can even make your own online payment application. In case of any assistance is required we are always there to help. Feel free to contact us if needed.

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