What does the future hold for retailers who are accepting online payments? With the rapid speed of advancements in technology, the payment ecosystem is also changing. There are also changes as well in how merchants market their products and services.
Not necessarily new technology
You might be wondering: What will happen soon to how online payments are made? You might be pleased to discover that payment innovation will not always require merchants to use new technology. Retailers can be updated with their payment systems. When it comes to money matters, it is the very heart of all commerce activity. The concept of money has hardly changed for over 2,000 years, and during all those years, physical money was the acceptable form. Nowadays thanks to online payment providers like Paxum.com, people are easily making international payments with their credit cards.
Credit cards
When credit cards came into the financial scene in the eighties, these plastic cards were commonly used for local transactions. They were not usually accepted for an international payment transaction. It is only in the last couple of decades that there have been developments in technology that have made world markets accept credit card payments and other payment methods.
Payment innovations
There are those payment innovations such as credit cards that become popular but are no longer commonly used nowadays. One of the key drivers of such changes in the preferred payment method has been mobile technology that is fueled by the consumers wanting convenience.
Convenience
The cutting down of the cost and the effort involved with using cash was one of the primary reasons for the worldwide success of credit cards since the first appearance of the Diners Club credit card. These plastic credit cards cannot provide the same convenience required by consumers during this digital age.
Electronic wallets
One of the popular e-wallets was launched in 1998. It became successful and is still one of the preferred methods of payment nowadays. To use this e-wall, the account holder only needs the recipient’s email address, who must also have that e-wallet account. The driving force of the success of this electronic wallet was the convenience it provides. Soon after, many other e-wallets were created as well as alternative payment solutions
Challenges
One of the challenges of the payment systems is that of gaining the consumers’ trust. Security is also one of the most significant challenges. Credit card companies attempted to bridge this lVis of trust and concern about security by introducing a standard known as Secure Electronic Transaction (SET). But, it was deemed to be much too complicated, and the affiliated banks were not able to provide those SET certificates, and a majority of the consumers failed to install that software. Thus, in the attempt to gain trust and implement this security measure which did not work out, other security measures were put in place.
Payment gateway
Keep in mind that payments innovation that we use today also faces specific challenges. When retailers implement their omnichannel strategies in order to provide the desired user experience, it is possible their payment gateway might not be using the right payment provider, which has the options for the omnichannel payment methods.