According to Statista, global e-commerce sales are expected to reach $6.54 trillion by 2023. This indicates the significant role of e-commerce payment providers in facilitating online transactions. By offering fraud prevention, customer experience enhancements, data analytics, security, compliance support, and value-added services such as loyalty program software e-commerce acquirers and PSPs enable merchants to focus on growing their business while leaving payment processing and some other business issues to the experts.
To ensure these and other solutions, providers must expand their technical capabilities, building a flexible and easily scalable ecosystem. This can become a serious challenge if PSP providers build their products on third-party software like white-label payment gateway, so their choice must take into account modern e-commerce processing needs.
Now let’s take a look at solutions that have become an integral part of competitive e-com acquiring.
- Payment gateway integration into merchant website or mobile application. This gateway allows customers to pay for their purchases securely using various payment methods, including credit/debit cards, mobile payments, and digital wallets.
- Hosted payment page, hosted on the online payment gateway service provider‘s website and are designed to integrate with the merchant’s website or online store. Payment processor takes care of the security and compliance requirements for handling sensitive payment information. This can be particularly beneficial for smaller merchants who may not have the resources to implement and maintain their own payment processing systems.
- Fraud prevention tools that ensure safe and secure transactions, including address verification, card verification, and risk scoring to identify potentially fraudulent transactions.
- Chargeback management. Chargebacks occur when customers dispute a transaction, and e-commerce processors help resolve these disputes with chargeback tracking, notifications, and dispute management.
- Recurring billing. Ability to set up recurring billing for customers who want to make regular payments. This feature is useful for subscription-based businesses, service-based businesses, and membership-based organizations.
- Multi-currency support. For merchants who sell products or services globally, e-commerce processors offer multi-currency support. This feature enables customers to pay in their local currency, making transactions more convenient and reducing currency conversion fees.
- Payment analytics tools enable merchants to track and analyze their payment data. This data can help make informed decisions about pricing, product offerings, and marketing strategies.
- A variety of API options to enable merchants to integrate payment processing functionality into their own platforms and applications.
- User and role management functionality to enable merchants to manage access and permissions for their staff members who are involved in payment processing operations.
- Order management to enable merchants to manage and track their orders and associated payments, including order tracking, viewing details such as order numbers, shipping information, payment status, order editing, payment capture and refunds, notifications and alerts, order history and reporting.
- Reconciliation and financial reporting management functionality to enable merchants to manage their financial data and reconcile their payment transactions. Here are some common features: automated reconciliation, dispute resolution, financial reporting, account reconciliation, and data analytics.
According to a report by Grand View Research, the global payment gateway market size is expected to reach USD 42.9 billion by 2027, growing at a CAGR of 16.3% from 2020 to 2027. This growth is being driven by the increasing adoption of e-commerce and mobile payments, among other factors. And it also means increased competition. So modern e-commerce payment services providers use value-added services as a way to ensure a competitive edge and expand their participation in merchants’ expenses. Let’s figure out what specific solutions we mean.
- Fast onboarding and compliance with anti-money laundering (AML) regulations. Such solutions automatically verify the identity of merchants, make risk scoring, watchlist screening, ongoing monitoring, and onboarding in all your products in minutes.
- Self-service onboarding allows merchants to sign up and begin accepting payments quickly and easily. This may involve an online application process that can be completed in a matter of minutes.
- Automated verification to quickly verify the identity of merchants and ensure that they meet the company’s compliance requirements. This may include tools such as document scanning and facial recognition technology.
- Partner integrations. Payment processing companies may partner with other service providers, such as e-commerce platforms, to offer fast onboarding solutions for their merchants.
- Mobile onboarding solutions that allow merchants to sign up and begin accepting payments using their mobile devices. This can be especially useful for small businesses.
- White-label loyalty program software. It allows merchants to set up and manage loyalty programs that reward customers for making repeat purchases or taking other desired actions. Those programs usually include:
- Points, where customers earn points for every purchase they make. These points can then be redeemed for discounts, free products, or other rewards.
- Tiered Programs, where customers can earn rewards based on their level of engagement with the merchant. For example, a customer who makes a certain number of purchases may be upgraded to a higher tier with more rewards.
- Referral Programs, where customers can earn rewards for referring their friends and family to the merchant’s products or services.
- Personalization tools to help merchants provide rewards and offers based on individual customer behavior and preferences.
- Reporting and analytics tools that allow merchants to track the performance of their loyalty programs and make data-driven decisions to optimize them.
- SMB management tools to help small merchants manage operations more efficiently. streamline their operations, reduce costs, improve their bottom line, from inventory management to bookkeeping and beyond. By offering these tools, payment processors can support SMBs in growing their businesses and serving their customers. Here are some examples:
- Inventory management tools that help SMBs keep track of their stock levels and reorder products as needed. These tools can also integrate with e-commerce platforms to automatically update inventory levels after each sale.
- Bookkeeping to track merchant revenue, expenses, and other financial data. These tools can generate reports and help SMBs stay on top of their cash flow.
- CMS/CRM systems. These tools can track customer behavior, preferences, purchase history, help SMBs personalize their marketing efforts.
- Marketing automation tools to automate marketing campaigns and reach customers more effectively. These tools can send targeted email campaigns, social media posts, and other messages to customers based on their behavior and preferences.
In conclusion, modern e-commerce payment processing solutions offered by acquirers and PSPs go beyond simply enabling online transactions. These companies provide a range of value-added services that help merchants streamline their operations, drive customer engagement, and grow their businesses.
As e-commerce continues to grow and evolve, payment processing companies will need to keep innovating and expanding their service offerings to stay ahead of the competition. By providing a comprehensive suite of payment and value-added services, these companies can help merchants succeed in a rapidly changing digital landscape.
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