With that in mind, you might start looking into popular online payment service providers. Unfortunately, it can end up being a costly and inconvenient ordeal. Service fees can quickly add up, forcing you to deal with additional costs. What is more, such payment services are not tailored to the unique needs of your business. As a result, it may be difficult for you to find one equipped with all the features you are interested in.
Luckily, you do not need to rely on a third-party payment service to accept payments.
Instead, you could opt for a dedicated payment solution. The following article will explore what such a solution is, as well as touch upon its benefits and downsides. We will also explain how such a system is made. Once you are finished reading, you should be able to make an informed decision about whether a custom payment solution is something you should invest in.
What is a dedicated payment solution?
It is designed to meet its needs in terms of transaction processing, infrastructure, and security, among other things. It consists of five key components. The said components include an easy-to-use interface, reliable forms of authorization, multi-currency support, a fraud detection and prevention system, and strict adherence to compliance standards.
|Intuitive interface||The interface of a dedicated payment solution should be straightforward and user-friendly. It should provide customers with an easy way to enter necessary payment information and complete purchases without any hassle.|
|Solid authorization||Since payment processes involve the exchange of sensitive financial data, a payment solution must be equipped with reliable forms of authorization, such as two-factor authentication. If you do not put in the time and effort to ensure secure payment processing, you risk losing customers’ trust.|
|Multi-currency support||A reliable payment solution should be able to accommodate different currencies. It is especially important if you intend to deal with clients from around the world. After all, you do not want to lose out on potential sales because customers can only pay in one currency.|
|Security measures||Investing in a fraud detection and prevention system is a must when it comes to payment solutions. Such a system should be able to detect any suspicious activity and alert you immediately. Additionally, it should be able to prevent fraudulent transactions from going through.|
|Adherence to compliance standards||Lastly, a dedicated payment solution should comply with all applicable regulations and standards. The most popular ones you might already be familiar with include the Payment Card Industry Data Security Standard and the second Payment Services Directive. The former is a standard developed by the Payment Card Industry Security Standards Council, while the latter is a framework of laws and regulations for payment services devised by the European Union.|
Who needs a custom payment solution?
Numerous businesses can benefit from a dedicated payment solution, regardless of their niche and industry. The ones that would find it particularly useful include banks, large corporations, and retail companies, as well as big online stores and IT firms looking to branch out into payment services. If you fall within one of the categories listed above, read on to discover the benefits and downsides of developing a custom payment solution!
Benefits of using a dedicated payment solution
|Enhanced profitability||The primary benefit of using a custom payment solution is that it can help you increase profits. With no middleman involved, you will be able to keep more of the money you receive from customers. In contrast, a third-party payment service usually keeps a percentage of each payment it processes.|
|Better customer service||If the third-party provider you are using suddenly suffers technical difficulties, it can lead to a significant drop in customer satisfaction. Worse yet, you have no control over the actions being taken to resolve the issue at hand. If you are lucky, it might get fixed in an hour or two. If you are not lucky, it might get fixed after a week or two. On the other hand, a dedicated payment solution is designed to minimize downtime and guarantee a smooth customer experience. If an issue arises, you can have it fixed as soon as possible.|
|Centralized transactions||A custom-built payment platform can help you monitor the progress of each payment and ensure that everything is running as smoothly as possible. Moreover, it allows you to easily view activity reports and analyze data to make informed business decisions, such as whether it is time to invest in additional resources or reduce overhead costs.|
|Simplified installation||Third-party solutions are unlikely to be tailored to the systems you are currently using. For instance, you might need to invest in additional hardware or software to make them work properly. With a dedicated payment solution, you can easily integrate it with your existing infrastructure and get it up and running in no time.|
|Improved performance||If you opt for a custom-built payment platform, you can have it built to achieve a certain processing speed. In case it ends up being insufficient, you should be able to upgrade it soon enough. On the flip side, a third-party service may not allow for such an upgrade or may charge you an exorbitant fee for doing so.|
|Superior scalability||Imagine that the number of transactions you need to process increases significantly. With a dedicated payment solution, you should be able to scale up quickly and easily. A third-party service might not have the same level of scalability, leaving you struggling to keep up with the demand.|
|Investment opportunity||In case you own an IT company, you could have a payment platform developed and start selling it as a white-label solution to other companies. It can end up being quite a profitable venture, provided you manage to find enough customers. Plus, you can use it as a way to promote other services you are offering.|
|Exceptional flexibility||Finally, a custom-built payment platform allows you to cash in on popular trends. If a certain feature starts becoming popular, you can have it incorporated into your platform quickly and easily. Such flexibility can be invaluable in today’s highly competitive market, as it allows you to stand out from the competition and attract more customers.|
Downsides of using a dedicated payment system
|High development and maintenance costs||The creation and maintenance of a dedicated payment solution can be expensive. You will need to invest in developers and other professionals to create the platform, as well as in the hardware and software required for its operation. It does not end here, though. After launching the platform, you will need to keep investing in its maintenance and upgrades. So, if you are looking for a cheap way to accept payments, a custom payment platform is not the way to go.|
|Increased responsibility for data security||Third-party payment services are equipped with state-of-the-art security measures to protect customer data. As a result, you do not need to worry about the security of transactions. With a custom payment solution, however, you will be solely responsible for the security of customers’ data. If anything goes wrong, you will be held accountable and might even face legal action.|
|Lengthy development process||Creating a payment platform of any kind can take several months or years, depending on the scope of the project. A seemingly insignificant flaw in the system can take a significant amount of time to fix, leading to delays and additional costs.|
|Established competition||Finally, you should keep in mind that the market is already saturated with established payment solutions. In consequence, it might be difficult for you to stand out from the crowd and gain traction.|
How to create a dedicated payment solution
Having written down a solid plan of action, the development team decides on the design, picks the best technologies for the job, and creates a working prototype. When the prototype is approved, you can move on to the quality assurance stage. Last but not least, it is time for product launch, as well as solid support and maintenance. In case you would like to learn more, here is a brief description of each step mentioned above!
To begin with, you have to come up with a general idea of what your custom payment platform should look like. Before you start, conduct thorough market research. It is the best way to figure out the kind of features customers are looking for and what the competition is offering. Next, consult a development team. They should be able to tell you whether it would be feasible to bring your vision to life and how much it is going to cost you.
If you are certain that the idea you came up with is feasible, you can hand it over to designers. Aside from creating the layout of the platform, designers will make sure that it is user-friendly and intuitive. After all, you do not want to frustrate customers with a cumbersome payment process that is hard to navigate.
Once the design is approved, it is time to move on to the development phase. It is the most arduous part of the process, as developers have to build custom code from scratch. Depending on the complexity of the project, it might take anywhere from a few weeks to several months to complete. Make sure to stay in touch with the development team and provide feedback whenever needed.
When the platform is built, it needs to be tested and debugged. Quality assurance experts will examine whether the features you requested work as intended and make sure that the code is free of errors. If the system is up to par, you can move on to the next step.
When all goes according to plan, you can launch the platform. If you have the time to do so, you could release it as a beta version. That way, you can collect feedback from users and make improvements before you make it publicly available.
Support and maintenance
Finally, you will have to invest in maintenance and support, including regular updates, a team of experts who can help you troubleshoot any issues that may arise, and a customer support team ready to answer customers’ questions.
While such a project is not easy to pull off, it can be made much simpler with the help of experienced developers, such as the ones who work at Neontri!
Neontri is one of the leading Polish companies building innovative e-commerce and payment systems. We have already completed more than 300 projects, including a custom payment platform for Decathlon. So, if you are looking for help with developing a dedicated payment solution, feel free to drop us a line! We would be more than happy to help you out.