Innovative technology has allowed online payment solutions to evolve drastically in these last two decades. Online shopping has become a norm, which provides immense opportunities for merchants to expand and succeed in their business. However, constant evolution and intricacies of financial terms can make it difficult to comprehend certain concepts prevalent in the Southeast Asia online payment industry. Read on to find out the basics in simplified terms.
What is a Payment Gateway?
A payment gateway is a technology that acts as a
middleman between the customer and the merchant in online financial
transactions. It ensures that the customer's card details are validated, funds
are available, and payment is securely made to the merchant account. It is a
service provided as an online payment solution in Thailand or
elsewhere, which protects merchants from fraudsters, closed accounts, exceeding
credit limits, and the nuisance of chargeback.
Who are Payment Service Providers (PSP)?
Payment service providers, also known as merchant service
providers, help merchants as third parties. They enable merchants to accept
card payments, bank transfers, real-time bank transfers, etc., and connect them
to the broader financial world. They make sure that the collection and
management of payments are done efficiently. PSPs work with the acquiring bank
to manage the payment transaction from start to finish. As the customer
initiates the payment, transaction details will be sent to the acquiring bank.
It is passed to the payment service provider, which shares the result with the
merchant and customer. Look for a reputed e-commerce management company that
uses innovative technology to offer online payment solutions in
Thailand.
Alternative Payment Methods
Online payment platforms offer various alternative
payment methods and traditional ones such as debit or credit cards. An e-wallet
provides a customer with a facility to add money by linking to their bank
account and managing it through mobile applications or a computer dashboard.
Mobile payment solutions allow the customer to make a transaction by scanning a
QR code. In bank transfers, customers can use their regular bank details to
make offline and online payments. Any of these payment methods will be used by
the customers to make purchases on various platforms. It is essential to
understand customers and their preferred payment methods when choosing an online
payment solution in Thailand.
It is vital for your business to consider various
features offered by Southeast Asia online payment platforms.
When your business has a presence in international markets, keep in mind that
buyers will be more comfortable to pay in local currency. Consider encryption
standards that payment service providers follow, as they will handle customers'
payment data, which is sensitive. Negative incidents can hamper your brand's
reputation. Therefore, make the right choice!
