For all sizes of merchants, the global potential for digitising payments is $19 trillion. In this blog, you will learn about what it takes to build a successful digital merchant payment service.
Prior the merchants used to deal in cash and manual processes to manage their businesses. But in today’s era, several fintech startups came with digital solutions. Making their business grow and operate smoothly.
Let’s jump into the blog.
Who is the merchant and what is their role?
A merchant can either be an individual or a small business. The purpose is to sell goods and services to consumers within and outside of a country.
So the merchant service providers act as a bridge between the clients and customers. It enables clients to receive money from customers through various payment methods like:
- Credit cards
- Mobile money
- Bank transfers, etc.
Providers act as a middleman between a company wishing to acquire funds and a customer wishing to buy goods and services. Merchants are usually required to have accounts, either directly or through a referral partner such as a bank.
Merchant service providers, but, supply businesses with more than just payment processing. These include:
- Systems for tracking payments
- Managing inventory
- Understanding business data
- Collecting unpaid debts.
What does it take to create a profitable digital merchant payment service?
Here at Payomatix, we thrive to make the business run smoothly and successfully. So read on the following advice for getting started with digital payments.
- Analyse your business.
First, you need to evaluate whether your business is even meant for online purposes or not. Ask yourself the following questions:
- Will you only be available online?
- What is the size of your present customer base?
- What city are you in?
- What exactly are you trying to sell?
- Will your consumer spend on your product or services?
Once you have analysed the above question, it’s time for you to decide the form of digital payment.
For example, you have a large scale business and have to work on multiple payment gateways. In that case, you need a platform like Payomatix. Payomatix is an all-in-one platform. You can monitor payments under a single API from multiple payment gateways. The good part about it is that you don’t have to learn coding to maintain multiple gateways.
- Make a growth strategy
Think about your future ambitions when putting up a digital payment system.
Let’s imagine your company makes and sells pillows online. After doing some research, you conclude that paying by link is the ideal option. Because you’ll only be dealing with a few consumers each month at first.
What if, six months later, your superb marketing efforts yield in a flood of orders? Is manually invoicing 10x the number of customers the most efficient use of your time?
A payment gateway, on the other hand, maybe now used in the future. If you choose a payment provider that offers individualised pricing (spoiler: like us! ), you will only pay what is required.
Related Article: How are digital payments creating a revolution in today’s era?
- Research different options
Once you have figured out the growth strategy, it’s time for you to research the payment options. There are various payment methods, like:
- Payment gateways
- Pay by link
- Virtual terminals.
But remember when you have a large business you need a secured payment platform. A platform where you can collect both national and international payments.
- Set up a merchant account
You will need a merchant account if you are planning to take card payments. So for digital payments, you need to set up an account.
When a consumer pays, the money is with you in your merchant account. The bank later runs all the appropriate checks. Only before giving the money to your business account.
It sounds complicated, right? Don’t worry, that’s when Payomatix comes into the picture.
It makes your payment journey hassle-free. It lets you monitor your online payment from different modes under one roof.
All you have to do is just set up a merchant account. After a click, get your gateway integration done and start monitoring it.
Making merchant services a success
You act as a link between merchants and their customers as a payment tech firm. Achieving merchant payment success begins with a thorough grasp of your client’s demands.
Providers must also ensure that, besides processing payments, they provide a single platform. A platform with everything a business requires.
To connect two apps, an API (Application Programming Interface) is typically utilised. As a result, they must communicate with one another to give users a seamless digital experience. It has a significant impact on merchant services.
What should be the criterion for evaluating merchant service providers?
As a merchant, you should look for the security services of the provider. Is making payment on the provider platform safe and secure or not.
There are two industry compliance standards to keep an eye on:
- The Payment Application Data Security Standard (PA-DSS)
- The Payment Card Industry Data Security Standard (PCI-DSS).
These two requirements relate to the:
- Security of credit card information
- Secure payment portals.
A merchant service provider should also provide more than a simple payment processor. It’s not cost-effective to have numerous vendors performing different things. This is due to the time and cost of hiring one developer for multiple integrations.
It’s preferable to get one that provides a comprehensive solution with numerous features.
It’s a wrap
We hope that building a digital merchant payments service is no more a challenge. Doing a thorough r&d plays a crucial role. If done properly then enjoy the successful payment services return.
Moreover, partnering with Payomatix will help you in making your consumer life easy. Which in return will help you get more orders and conversions. Have 24*7 chat support in case you are stuck on the dashboard. We ensure that your concern becomes our priority.