Electronic Payment Systems. All must-known facts
We do not often think about what electronic payment systems (eps). However, this does not stop us from using their full potential, making our lives as easy as possible. No matter whether it is morning, afternoon or night, each of us can go to e-commerce sites and buy the product we need. Time and territorial restrictions no longer matter.
When covid-19 became a problem for everyone, it became a real boon for e-commerce payment systems, as all people had to sit at home and order goods using the internet.
In this article, we will look at all the important points related to electronic payment systems. You will know what are the types of electronic payment systems, what electronic payment systems are used in Europe and also we will get answers to other questions.
What are EPS and how do they work?
Electronic payment systems are used to pay for goods and services quickly and conveniently.
Before choosing a payment gateway provider and implementing electronic payments in your company, you need to understand without which components electronic payments will not be possible.
Electronic transactions include the following parties: the cardholder, the merchant company, the processing bank, the card issuer, the payment gateway and the acquirer.
All electronic payments can be divided into 2 groups. The first group consists of one-time payments between vendors and the second group consists of recurring payments between vendors and buyers.
In the latter case in order to make a purchase the cardholder will have to enter all data into a special form, place an order. Regular payments are more convenient, and the clients of the companies do not have to recollect them all the time.
Types of EPS
Regardless of how long the pandemic situation will last, we can say for sure that eps will continue to grow and the whole question will be the pace of this growth. Like many things in this world, eps never stand still and are constantly evolving. Those payment methods, which were popular yesterday, may not be popular tomorrow.
How can a company stay ahead of its competitors? It will have to offer customers not only better products, but also better payment terms, and to do this, it is important to know the current trends in the payment world.
Today’s popular payment methods are:
- Mobile wallets. The popularity of mobile wallets increases every year, and they have allowed many people to get rid of the need to carry cash with them. Paying for your purchases with mobile wallets is easy and convenient, but more importantly, they help reduce the likelihood of fraudulent activity by guaranteeing a high level of security.
- Peer-to-peer payments. Before you can quickly send a payment, all you need to do is use your debit or credit card and the e-wallet payment application. But before making these payments, it will be necessary to pass a simple registration, indicating a bank account, under which the plastic card was issued.
- Handheld devices. Many years ago, clocks may have been used only to tell the exact time. Today, they can be successfully used to pay for any goods. An example is the Apple Watch. In addition to the Apple device, other handheld devices such as a fitness tracker are also used for payments.
- Payments using biometric technology. In order to pay for purchases in stores, customers have to enter a pin code all the time. This is not only annoying, but also increases the chance of error and wasted time. Make the shopping process as convenient as possible for your customers! Biometric payments will help you do it. All you have to do is touch a fingerprint scanner and the payment will be made. In addition to fingerprints, facial recognition and retina tracking are often used.
Besides the above mentioned ways of payment, the QR codes, contactless payments and also the payments that are made with the use of technologies based on the artificial intelligence are especially popular. The latter are rightfully considered to be a real breakthrough in the sphere of payments.
The benefits of electronic payments
Shoppers around the world are well aware of how electronic payments are more convenient and easier than traditional payment methods. But the most interesting thing is that these payments are beneficial not only for customers, but also for the companies themselves.
The main benefits for the buyer are:
- High security. The companies responsible for electronic payments use state-of-the-art security measures that minimize the likelihood of fraud or theft of customers’ personal information.
- Convenience. Long lines are a thing of the past. Today you can pay for goods literally in a few seconds and by making 1-2 simple actions.
- Getting various bonuses. In order to win in the competition, companies offer clients who use electronic payments, various cashback, discounts, promo codes and other interesting offers.
The electronic payment system offers many advantages to the companies themselves. First, these companies can provide customers with a wide variety of payment options, increasing their loyalty and increasing their chances of successfully completing a purchase.
Second, providing interesting additional options, such as cashback and discounts, will keep a customer with your company for a long time.
Additionally, electronic payments are key to increasing sales. Because of the convenience, customers can purchase from your store over and over again. Plus, you’ll be able to attract customers not only within your country, but around the world as well.