Payment as a service. All must-known facts
The world is changing at an incredible rate. It applies not only to new technologies but also to payment systems. If a few years ago payments were associated with banks, now the requirements for payments have become stricter. Banks are no longer monopolists, and major players like Apple are able to compete with many banking institutions, forcing the latter to outsource payment functions.
The new payment as a service model is becoming increasingly popular, as it allows not only to save money but also to significantly improve the efficiency of payments, providing companies with many opportunities. Who would pass up an opportunity to make payments not only faster but also cheaper?
All companies are interested in finding a partner who will take over the function of accepting payments, making payments a source of profit rather than a cause of problems. Payment as a service is the choice of companies that strive to gain new market share even in spite of increasing competition, but also want to guarantee their customers maximum security in everything, and first of all, in payments.
Why is Payment as a service so popular?
There have been major changes since the crisis of 2008. Payment services directives PSD2 of ISO 20022 are constantly being updated. Companies are forced to adjust to the new requirements and update their packages to ensure they are clearly in line with them.
By implementing the PaaS model, companies gain a distinct advantage. Not only do they help update their system to meet new regulatory requirements, but they also gain the ability to scale their payment operations, ensuring that they can process large volumes of payments on the best terms for themselves.
A particular value of PaaS is the ability to integrate all functions and payment channels into a single platform. This integration makes it easier not only to accept payments but also to issue invoices.
According to a recent survey, more than 60% of banks chose payment as a service precisely because it provides the flexibility they need. With PaaS, companies are able to move away from on-premises servers to cloud-based software, significantly reducing their operating costs.
It has also provided the ability to bring new products to market faster. To understand how important this is, just think about how quickly the needs of today’s customers change. Today they want one thing, tomorrow something completely different, and companies have to adjust to these needs to best meet them. In order to make shopping as quick and convenient as possible, companies simply have to offer their customers new options. In particular, this applies to payments. If these options are not offered by your company, they will be offered by your competitor, and then you risk losing customers.
It is very important to offer customers different ways to pay for goods and services because if the right way at the time of making a decision is not there, the customer will simply change their mind about purchasing from you.
Security as an important factor in online payments
We’ve seen an incredible explosion in online payment volume in 2020, and there’s no reason to think that will change in 2021 and 2022. As online payments grow in popularity, so does the desire for fraudsters to steal important customer information and money. As a result, all companies that work with customers are required to follow high standards to protect sensitive payment cardholder data. Payment-as-a-service providers are able to provide an increased level of security and offer companies products that ensure this security for every customer. All this will allow companies to focus less on security, as they will be sure of it, and pay more attention to doing business and creating new services and products.
Of course, revenue growth is the most important motivator to turn to payment-as-a-service providers, but don’t forget about another important factor, such as significant savings on software. Companies can avoid hiring teams of specialists by turning to a payment service provider. It will also save on the costs associated with technology management.
Thus, by using payment as a service, the company will have the opportunity to fine-tune a payment system that will have high value, maximum simplicity, and incredible flexibility, as well as being secure. However, most importantly, PaaS will allow company employees to spend more time on business development than on technical issues related to payments.
Don’t know who to trust with accepting payments yet? Contact PayOp now. We have prepared the best conditions for you and are ready to offer a comprehensive solution for your business.