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7 Payment Processing Challenges Businesses Face and How to Overcome Them

Discover common payment processing challenges faced by businesses and learn effective strategies to overcome them in our latest blog post.

Smooth payment processing is the backbone of any online business. Whether you’re an e-commerce platform, subscription-based service, or donation platform, you must offer your customers a smooth payment transaction experience.

Smooth transaction processing creates a positive customer experience, while studies have shown that a negative payment experience can lead to cart abandonment, lost sales, and even a damaged brand reputation.

Although brands want to offer customers a smooth payment processing experience, things are not always in their control. For example, payment processing challenges and in this article we look into the most common ones.

Common Payment Processing Challenges

While different businesses may face different digital payment challenges, here are some common issues that businesses face:

1. Payment Gateway Integration Issues

A payment gateway is a tech platform that enables online businesses to accept, process, and manage various online payment modes, such as credit cards, debit cards, digital wallets, etc., in a secure environment. It is an intermediary between the customer, the business, and their respective financial institutions.

Businesses must integrate a payment gateway with their existing system to work through it. However, integration challenges may arise if you have a poor API, multiple payment providers, or a legacy infrastructure. Lack of seamless payment gateway integration can lead to slow transaction processing and a poor customer experience.

But you can fix this.

  • Choose a reliable third-party platform that can handle end-to-end payments for multiple payment modes and offers easy integrations.
  • Partner with a provider that has developer-friendly APIs. For example, with PayBy, you can easily integrate it with your website through APIs to enable cashless payments with multiple payment modes.
  • Test and validate the integrations are working fine.
  • Ensure the payment pages are mobile-optimized so customers can have a smooth transaction experience.

2. Security Concerns and Fraud Prevention

As digital payments accelerate worldwide, the UAE's scene is not so different. A report mentions that card payments in the UAE registered a growth of 14.6% in 2023 to reach AED451.4 billion ($123.0 billion).

At the same time, payment frauds are on the rise. A news report mentions that 54% of customers in the UAE have been a victim of fraud at least once. Customers and businesses are falling prey to fraudulent transactions. Data breaches and unauthorized access are leading to financial losses and reputation damage.

Building a robust security system can help you build trust. A survey report mentions that 47% of respondents are likely to return if they’re assured that payment security is correctly handled.

This is what you can do.

  • Conduct regular security audits to ensure all security systems are in place.
  • Invest in a robust payment security system.
  • Consider using AI for fraud detection to identify abnormal user behavior while making payments.
  • Investing in payment gateway security, payment tokenization, two-factor authentication, and a robust verification process can prevent fraudulent transactions.
  • Choose a platform like PayBy to ensure all your transactions are safe. The platform offers end-to-end communication encryption using TLS and SSL Protocols, security password control solutions of CFCA, AI-based fraud monitoring, and 3D secure authentication.
  • It has been given the highest levels of financial service approvals to conduct Stored Value Facility (SVF) and Retail Payment Services (RPS) operations.

3. Compliance with Payment Regulations

Maintaining compliance and payment regulations is crucial for businesses to avoid data breaches and keep customer information safe. Non-compliance can lead to hefty fines, penalties, and reputation damage for the business.

One important regulatory compliance that businesses must fulfill is the Payment Card Industry Data Security Standard (PCI DSS). The Payment Card Industry Security Standards Council governs this set of security standards, which aim to secure credit and debit card transactions against data theft and fraud.

Similarly, the General Data Protection Regulation (GDPR) is another set of compliance regulations an organization must meet when handling personal data. This regulation gives customers more control over how businesses collect and process their data.

Businesses worldwide must ensure that PCI DSS and GDPR compliance are always met to prevent data breaches and unauthorized access.

  • To ensure you’re adhering to compliance guidelines, conduct regular audits.
  • Partner with payment platforms like PayBy to ensure that your business always stays compliant.
  • PayBy ensures you’re PCI DSS compliant, conducts regular third-party audits, and has a security team to monitor your data's safety.

4. High Transaction Fees

High transaction fees always impact revenue. So, for brands, it is important to create a revenue system with minimum overheads and additional costs. While some expenses are unavoidable, some fees can be minimized, for example, by carefully choosing the pricing models of payment providers.

Some PSPs charge monthly usage and termination fees. Additionally, processing credit cards can incur higher transaction fees depending on the volume of transactions processed.

However, brands can minimize transaction fees.

  • Choose payment providers based on percentage-based and flat fees to help you save costs.
  • You can also consider negotiating with payment processors and optimizing transaction volume to reduce costs further.
  • Always stay up-to-date with financial and legal requirements to avoid any unnecessary costs from new regulations that you’re unaware of.

5. Payment Disputes and Chargebacks

Payment disputes and chargebacks are becoming increasingly common practice. Chargebacks happen when customers contact their credit card issuing bank to dispute a charge. Customer dissatisfaction and fraud claims are some of the most common causes of payment disputes. In a chargeback case, the customer claims they have not received the product or don't even remember making the payment. They then request a refund from their bank or credit card company.

Chargebacks are a costly affair for any company. It affects the company’s cash flow and increases the administrative overheads.

However, you can prevent disputes and manage chargebacks effectively.

  • Have a clear communication strategy with your customers about your refund and dispute resolution policy.
  • Maintain transaction records and supporting documents to defend against unjustified chargebacks.
  • Partner with platforms like PayBy that offer chargeback management services and shield your business against chargebacks.

6. Cross-border Payment Complexities

One of the biggest benefits of online shopping is that customers can buy products from global brands. While digital transactions can easily navigate the different payment methods within one country, the process becomes complex in cross-border payments.

Challenges arise regarding multi-currency conversion, diverse payment methods, and international regulations. Moreover, exchange rates constantly fluctuate, and high foreign transaction fees can impact total revenue. The speed of processing cross-border payments also impacts the business.

But you can solve these challenges and offer a smoother cross-border transaction experience.

  • Look for a payment processor that has experience with cross-border payments.
  • Partner with a payment processor that offers multi-currency support and real-time currency conversions.
  • Consider the local payment preferences and integrate them into your system for a better user experience.
  • Familiarize yourself with different local regulations and compliance requirements.
  • Educate international customers about the payment and delivery procedures to avoid complications later.

7. Customer Experience and Checkout Abandonment

Like it or not, a poorly designed payment processing system can frustrate your customers and negatively impact the user experience despite having good products/services. As data shows, 88% of online consumers are less likely to return to a site after a bad user experience.

As a survey suggests, 43% of customers in the UAE mentioned that an easy checkout experience is one of the reasons for online shopping. However, customers can abandon the cart if the checkout process is difficult.

Most customers abandon the cart during the checkout process if they don't see their preferred payment options, they’re unsure if the payment gateway is secured, if the payment page takes too long to load, if it is a non-responsive payment site, and if the payment site is not optimized for mobile users.

To reduce abandonment rates, focus on improving the checkout processes.

  • Build a simplified checkout process where you can minimize the number of steps by offering a guest checkout.
  • Offer one-click payments.
  • Optimize the payment page for mobile users with a responsive design.
  • Look for a payment gateway that offers multiple payment modes like QR code payment, mobile wallets, credit and debit cards, etc. Solutions like PayBy can enable cashless transactions and online payments via various international and domestic credit cards, debit cards, and over 1.5 billion wallets.
  • Enhance payment security by staying compliant with the PCI DSS regulations.

Overcome Payment Processing Challenges

Payment processing challenges can impact your cash flow revenue, lead to lost sales, and damage your brand reputation. While managing all these payment processing challenges is important, it’s difficult to tackle them separately. Investing in a solution like PayBy can be a game-changer as it helps you to navigate all the payment processing challenges effectively from one single platform.

Its secure and omni-channel digital payment solutions can help increase your revenue. PayBy offers multiple payment modes across all touchpoints, improves customer transactional experience, reduces cart abandonment, and offers better payment control.

Get started with PayBy today.

Gautham Gopakumaran
|
5 min read
June 24, 2024
|
Payment Processing

All Articles

How to Improve Payment Processing User Experience

Learn about the different ways in which your online business can improve the overall customer experience during payments and transactional processes.

As the world embraces a digital future, user experience remains the make-or-break moment for online payments. 

A poorly designed payment process is frustrating for the customer and can cause a big headache when completing the payment process. 

Result

You miss out on sales no matter how good a deal or the product/ service is. 

As data says, 88% of online consumers are less likely to return to a site after a bad user experience. 

On the flip side, a well-crafted payment processing system builds customer trust. 

This not only helps to close the transaction but increases your repeat sales.

As data says, companies see $100 ROI per $1 investment in user experience.

In this article, we’ll see how to improve user experience in payment processing. 

But before that, here is a quick recap to understand why you should be concerned about the payment processing user experience. 

Why is a good payment processing user experience important? 

A good payment processing user experience not just delights a customer but also sets the foundation for customer loyalty. 

As a result, you will see a boost in your repeat sales. 

Additionally, satisfied customers will always talk about their experience with acquaintances. 

And, any brand will admit that word-of-mouth marketing is the best marketing option any day.

Clarity and transparency

 A well-designed payment processing system instills trust through transparency. 

Offering clarity in payment processing means customers are aware of all the payment options available so that they can choose their preferred payment option. 

Additionally, maintaining transparency gives them a clear picture of the total cost of the product/service, taxes, delivery cost ( if any), or any other additional cost. 

Ensure that all the payment-related information is presented in a clear and straightforward manner. 

Convenience and speed

Today, customers are tech-savvy and prefer speed and convenience. 

Having a payment processing system that’s quick and convenient boosts the overall customer experience. 

On the other hand, a slow and floppy payment processing system turns off the customer and drives them away. 

Security

While digital payment is convenient and faster, it also comes with security concerns. 

Customers want to feel confident that the transaction process is genuine and that their sensitive personal data is handled carefully. 

Designing a payment process with PCI-level compliance is a must for businesses that ensure the highest customer security standards. 

Responsiveness

Customers value payment processing systems that demonstrate responsiveness. 

Sites that quickly resolve payment issues, disputed transactions, and 24/7 support are always preferred over transaction systems that are slow and unresponsive. 

Mobile optimization

Mobile transactions are extremely popular in the UAE.

As a survey suggests, 94% of the customers in the UAE used at least one digital feature during their last purchase.

The same survey suggests that 43% of the users suggested that an easy checkout experience is one of the reasons for online shopping. 

So, focus on mobile optimization and responsive UX designs that offer mobile users the same convenience and efficiency as desktop users.

Now, let’s understand how you can improve the payment processing experience. 

Ways to improve payment processing experience 

While each business is different and their needs vary, here are a few ways many businesses have improved their payment processing experience, and you can do too. 

Simplifying the Checkout Process

A simplified checkout process helps customers complete the transaction and creates a better customer experience. 

Customers who have a positive experience during the checkout process are more likely to return for future purchases. 

Here are a few things that you can do to streamline the checkout process.

  • Minimize the number of steps by offering guest checkout.
  • Filling out unnecessary details like birthdays and anniversaries is time-consuming and often quickly turns buyers off. Instead, gather only the necessary data that are compulsory to complete the payment.
  • Provide clear instructions for each step so there’s no confusion.
  • Use trust signals like a secure payment logo.
  • Offer one-click payments for quick transactions.
  • Keep the checkout process to a single page. Scrolling from page to page can distract a customer, causing a loss in sales. Further, it will also factor in if there are any internet issues. 

Optimizing for Mobile

Optimize your payment processing system for mobile users. A few things to consider:

  • Pay attention to responsive design that can adapt to any screen size.
  • Offer in-app payments by integrating the payment gateway into the app for a quicker payment experience instead of directing the customer to the website payment page, which may disrupt the payment flow.
  • One of the biggest inconveniences for buyers is signing up and providing login details before they can checkout. So, keep that in mind. 
  • Look for a payment gateway that offers QR code payment, mobile wallets, or displays the bank account details where you can asynchronously process the payment without logging in.

Enhancing Payment Security

Consumers need to be comfortable doing a transaction on your website. 

For this, they must ensure that your payment processing system is secure. Things that you can do:

  • You must comply with PCI DSS regulations. If you adhere to this guideline, convey this information to the consumer. That way, they’ll be assured that your system protects credit/debit card details by utilizing tokenization and multifactor authentication. 
  • Display the PCI DSS logo on your checkout page to show customers you care about their data safety. 

Offering Multiple Payment Options

Choose payment gateways that allow users to choose from diverse payment modes. 

  • While multiple payment modes are available to integrate into your website, some popular methods include credit/debit cards, mobile wallets, UPI payments, etc. 
  • Solutions like PayBy can enable cashless transactions and online payments via various international and domestic credit cards, debit cards, and over 1.5 billion wallets.
  • It easily integrates with your existing website, so you can host the payment page and customize it according to your needs. 

Improving Payment Gateway Speed

The speed and efficiency of the payment gateway can be a game-changer for your business. 

Here are some ways to improve the payment gateway speed:

  • Streamline the checkout process with minimal steps. 
  • Partner with a third-party payment processing platform that can handle multiple transactions at once. 

Providing Clear Error Messages 

After completing each transaction, send a clear communication to the customer so that they know their payment has gone through.

But if there is a transaction failure, ensure to communicate it as well. 

Few things to consider:

  • If there’s an error from the issuing bank, have the customer check the card details. If the problem persists, have the customer contact the issuing bank. 
  • Meanwhile, you can prompt the customer to use another payment option to complete the transaction.
  • If there are technical issues with the payment gateway, inform the customer immediately with a clear message, along with the details of the transaction if it has already been initiated. For example, your message may read, “Any deducted funds will be credited back to the original source in 48 hours.” 

Personalizing the Payment Experience 

Personalization is a clear winner in today’s hyper-competitive market. 

So why not bring it into your payment processing system to WOW your customers? 

Here are a few things to consider:

  • Make your customers feel valued by showing them their preferred payment options.
  • Use localization and customization features to offer your payment process in different regional languages, currencies, and markets. 
  • Combine each transaction with a loyalty or reward program to recognize repeat customers while up-selling and cross-selling your products. 
  • Once the transaction is completed, direct your customers to a thank you page to offer your gratitude. 

Continually measure and improve 

Once you have implemented the payment processing system successfully, remember to measure and track its performance continually. 

Tons of data are produced whenever a purchase is made—for example, the products purchased, when the product was sold, what payment method was used, and so on. 

Analyzing this information through a payment analytics lens can help you make a lot of data-driven decisions.

For example, whether your existing payment processing system is working or needs improvement, whether your customer is new or repeat, what their purchasing habits are, whether you need to expand on certain product offerings, and so on.

Some of the metrics that you can measure:

  • Payment types and methods to understand customer preferences.
  • Chargeback rates so that you can reduce any unnecessary chargeback rates and improve customer experience.
  • Transaction volume and velocity to understand your peak sales time.
  • Transaction amounts and values to understand how much people are spending and how you can improve that.

Time to improve your payment processing user experience

If you’re ready to improve your payment processing user experience, it’s time to partner with a payment solution that builds solutions with user-first intent and does not compromise on business needs. 

Payby enables business growth with cashless payments so that you can increase your revenue while prioritizing customer experience. 

Payby offers complete online payment solutions for businesses across all industries. 

Solutions range from payment gateways and QR code payments to virtual accounts, mobile wallets, recurring payments, and more. 

Ready to explore more?

Get started here. 

Gautham Gopakumaran
|
5 min read
March 18, 2024
|
Digital payments, Customer experience

The Role of Digital Payments in Enhancing Customer Loyalty

Learn how the digital payment experience you offer to customers boosts retention and loyalty towards your brand.

Digital payments have been around for over a decade, but the pandemic has catalyzed its adoption across countries and virtually all categories. 

As McKinsey reports in a 2023 survey, for the first time, more than nine out of ten consumers mentioned that they had used some form of digital payment during the year. 

The scene is no different in the UAE region. 

Statista mentions that the total transaction value in the digital payments market is projected to reach US$29.75bn in 2024.

Digital payments have been gaining popularity and quick adoption as a convenient and secure way of transacting. 

They’re fast, hassle-free, and can be done on the go. 

But have you ever thought digital payments can also help you build loyalty? 

In this article, we will discuss how you can leverage digital payments to enhance your customer loyalty. 

But before that, let's do a quick recap to understand why digital payments are getting so popular. 

Why is the demand for digital payments increasing? 

There’s not one but multiple reasons behind the growing appetite for digital payments: 

1. Convenience

As customers are becoming more tech-savvy, they prefer quick solutions and convenience. 

Digital payments offer convenience as a digital transaction doesn't take more than a couple of minutes.

Moreover, it can be done anytime and anywhere. 

2. Personalization

Digital payments offer a variety of payment modes.

So, brands can offer various modes of digital transaction, such as credit/debit cards, UPI, mobile wallets, internet banking, mobile banking, etc., to facilitate a smooth transaction.

Brands can analyze customer behavior, preferences, and buying patterns to personalize these options. 

3. Digital transformation

The past decade has been an era of digital transformation. 

The years between 2011 and 2020 have witnessed how digital technologies have reshaped the business world. 

The digital transformation journey is still on. 

According to the IMD World Digital Competitiveness Ranking 2023 report, the UAE was ranked 12th among 64 countries reviewed globally and 6th among 40 countries in the European and MENA group in terms of digital competitiveness.

As businesses undergo a digital transformation, digital payments become a natural part of the process. 

4. Better security and trust 

Digital payments are safe and secure.

Some of the key security measures behind digital systems include two-factor authentication, encryption, authorization, biometrics, tokenization, email validation and authentication, and secure socket layer (SSL) and transport layer security (TLS). 

This is one of the main reasons consumers today trust digital transactions and rely on it. 

How do digital payments build loyalty? 

We all will agree that building customer loyalty is paramount today for every brand, irrespective of its size and nature of business. 

Today, every brand strives to meet and exceed customer expectations, so the shift is now towards creating a seamless experience for the customer.

Digital payments powered by BaaS are at the forefront of this journey and play a crucial role in building customer loyalty. 

Let’s understand how:

1. Creating a seamless checkout experience

The checkout process is the final touchpoint between a consumer and a brand, and the ease or difficulty determines if the consumer will close the transaction.

A seamless and hassle-free checkout process can be a game-changer. As a study mentions, 88% of customers are less likely to return to a brand if they had a bad previous experience. 

So, focus on creating a seamless checkout experience to build your base of loyal customers. 

2. Frictionless experience

Frictionless experiences have become an industry benchmark in the digital landscape, and BaaS products play a pivotal role in creating a frictionless experience for the consumer. 

Integrating a BaaS layer in their product not only works as a payment gateway for the brand but also creates a frictional experience for the customer's entire checkout journey. 

By optimizing the transaction process and minimizing redirects, the entire checkout journey becomes faster and more intuitive for the customer.

Customers who value their time and prefer convenience are likely to incline towards platforms that offer frictionless experiences, making them likely to return to you for future purchases. 

Remember that a frictionless experience can be your most significant differentiator in a hyper-competitive market. 

3. Personalized experience

Digital payments can be customized based on the user preference and previous purchase behavior.

For example, if a consumer has previously used digital wallets to make a payment, brands can display the same digital wallet at the top of the payment options on the checkout page to help close the transaction faster. 

Similarly, offering loyalty rewards with their preferred digital payment options can make them feel valued and understood, which works as the foundation for building strong brand loyalty. 

The different embedded payment systems can give businesses essential insights into customer behavior, preferences, and spending habits. 

Using these data, brands can send personalized discounts, recommendations, and loyalty rewards that will help strengthen brand loyalty further. 

4. Diverse payment options

Embedded digital payment solutions are revolutionizing how businesses manage transactions. 

One of the biggest advantages of digital payments is its versatility to offer different payment modes. 

From the good old credit/debit cards to the modern digital wallets, these integrated payment options ensure businesses can meet consumers' diverse preferences. 

This flexibility to choose the preferred payment method not only improves the transaction process but also offers a great customer experience. 

And we all know how continued good customer experience helps foster loyalty in the long run. 

5. Better security 

As Statista mentions, from July 2022 to June 2023, around 38 percent of cyberattacks and network intrusions occurred in the MENA region, with the UAE in second place among the most targeted countries in the region. 

The topmost priority for the BaaS platforms is to enhance their security measures and make them a fundamental part of their services. 

Some measures the BaaS providers take include a multi-layered approach to safeguard crucial data. 

This is achieved by multi-layered encryption techniques where all transactions are encoded. 

Such strong measures not only stop cyberattacks from happening but also instill confidence and trust among brands and their customers, reinforcing the fact that digital transactions are secured. 

Foster customer loyalty with digital payments

In this digital era, businesses are revolutionizing their payment solutions with digital payments, thus reshaping the customer-business relationship. 

Businesses are streamlining their transactions by seamlessly integrating different digital payment solutions into their platforms and enhancing user experience and customer loyalty. 

You, too, can tap into the potential of digital payment systems to build loyalty. 

But this is only possible when you have the right systems in place. 

PayBy can help you get started. 

PayBy enables businesses to make cashless payments and increases their revenue with customer-first, innovative, and secure omnichannel digital payment solutions. 

You can integrate PayBy with your website to set up a payment gateway. 

PayBy also lets you enable cashless transactions, online payments via domestic and international debit and credit cards, and over 1.5 billion wallets. 

Want to enable in-app payments? 

Worry not! 

Integrate with PayBy to offer in-app payment solutions with an optimized mobile pay page and secure transaction interface.

And did we tell you that PayBy is trusted by leading brands in the UAE and licensed by The Central Bank of the UAE, which demonstrates its highest level of financial service approvals to conduct Stored Value Facility and Retail Payment Service Operations? 

Sign up today

Gautham Gopakumaran
|
5 min read
March 11, 2024
|
Digital payments, Customer loyalty

Subscription-Based Business Models

Leveraging Digital Payments for Recurring Revenue
Learn how digital payments can help subscription-based businesses secure recurring revenue by offering a positive customer experience.

Various industries have seen rapid growth in subscription-based business models over the last few years.

According to The Subscription Economy Index report, the subscription industry has grown by 435% in the past decade. And it’s expected to grow even bigger and reach a market size of $1.5 trillion by 2025. 

Seeing the data above, we can say safely that the subscription economy is here to stay. 

Be it a gym subscription, an OTT subscription, a subscription-based service, or a subscription to a SaaS tool — researchers say that eight in ten adults use some form of subscription product/ service and will continue to do so. 

But, what makes subscription business models so popular?

Subscription-based products/ services provide an affordable way for customers to access what they need. It has been proved that consumers won't mind paying for access to exclusive content/products/services. 

On the other hand, subscription commerce allows businesses to provide their services/products directly to customers, ensuring a better customer experience and a long-term relationship. 

Plus, the subscription model ensures a regular cash flow for businesses. 

However, retaining the customer long-term is not easy. While the success of the subscription business primarily depends on the continuous value added by the business, the ease of payment is equally important. 

In this article, we will discuss how subscription-based businesses can leverage digital payments to streamline recurring revenue, focusing on automation, reliability, and customer convenience.

Benefits of Digital Payments for Subscription Businesses 

From having complete control of your billing cycle and cash flow to improved customer experience through seamless transactions — there are not one but multiple benefits of digital payments for a subscription business. Let’s look at them. 

1. Improved Customer Experience

The most significant benefit of digital payment for subscription business is a seamless transaction experience for the consumers.

Digital payments make transactions faster. Consumers can set auto renewal mode with their preferred payment option to renew the subscription to the product/service. 

Consumers can even save the payment information details in a secure environment so that they don't have to enter all the details every time a transaction happens. 

They can simply set up the payment details once and enjoy the product/ service until they want to pause/cancel it. 

2. Enhanced Security Measures

Digital payments are safer than the traditional payment methods. 

With features like data encryption and fraud protection, tokenization of websites, and biometric payment methods, consumers trust digital payment methods. 

For example, PayBy, which enables business growth with cashless payments, is trusted by some of the leading brands in the UAE. 

The brand is also licensed by The Central Bank of the UAE, which helps them earn trust and a good reputation.

It has been given the highest levels of financial service approvals to conduct Stored Value Facility (SVF) and Retail Payment Services (RPS) operations. 

3. Diverse Payment Methods

Digital payment methods allow businesses to offer multiple payment methods, facilitating international transactions. 

The diverse payment methods enable customers to make cashless payments via 50+ payment modes. 

These include some of the popular customer choices like credit/debit cards, net banking, AliPay+, PayBy, Botim, and other digital wallets. 

Diverse payment options help subscription businesses reduce churn by offering various payment options for customers so that they can easily renew their subscriptions.

It also helps in global accessibility and currency support, which is essential for businesses that are operating globally. 

4. Streamlining Billing and Invoicing

Subscription businesses can automate their billing processes with digital payment methods. You can create a custom schedule to collect recurring payments from customers. 

All you need to do is set up a billing cycle of weekly, biweekly, monthly, or yearly payments for your subscription business.

With auto-debit on recurring payments, you can ensure continuous cash flow for your business. 

By leveraging digital payments, subscription business owners can create branded invoices and automate sharing via email or SMS with their recurring customers.

You can also provide customers with instant payment confirmation on recurring purchases with branded digital receipts. 

This helps build trust and reduce churn while minimizing failed transactions. 

Plus, digital payment methods empower you and the customer for a cashless transaction with a click-to-pay functionality on your invoices. 

Additionally, you can ensure further customer convenience by offering flexible payment plans, giving them full control. 

For example, you can offer options like buy now and pay later, pause payments when they don't want the subscription, change the payment mode, and so on.

5. Leveraging Subscription Management Platforms

Subscription management platforms like PayBy let you integrate payment gateways with your existing website so you can host the payment page and customize it according to your needs.  

And did you know that payment pages powered by PayBy are mobile-optimized, too?

PayBy also lets you offer customization and flexibility to your consumers. 

So, users can choose from diverse payment modes.

For example, you can enable cashless transactions and online payments via various international and domestic credit cards, debit cards, and over 1.5 billion wallets.

By leveraging subscription management platforms, subscription businesses can keep a tab of their recurring payment status on a real-time dashboard. 

Such real-time insights can help you identify inactive customers and payment failures so that you can make informed decisions to reduce customer churn. 

Improve recurring revenue with digital payments 

Payments are now an important part of the customer experience. 

Subscription businesses that rely on recurring payment, offering multiple payment options, directly address the customer's need for a seamless payment experience. 

Additionally, recurring payments help businesses to grow by ensuring continuous cash flow. 

PayBy helps subscription businesses to collect recurring payments easily. It offers everything a business needs to collect a payment on schedule. 

It gives complete control of the billing cycle and cash flow with auto debit on recurring payments. 

Get started with PayBy today. 

Gautham Gopakumaran
|
5 min read
February 26, 2024
|
Subscriptions, Cashless Payments

Do Payment Gateways Impact Checkout Conversion Rates

Learn how the payment gateway you use for online and offline transactions can impact the overall checkout conversion rate.

Irrespective of the industry your business is in, the checkout is often the make or break point. 

According to Baymard Institute, the average documented transaction abandonment rate is as high as 70-89% across industries. 

And one of the leading factors for abandonment is reported to be the payment gateway one offers. 

In this post, we look into how payment gateways impact your conversion rate and what you can do to improve it. 

How do payment gateways impact conversions 

Let’s take a quick look at why and how the payment gateway impacts how many consumers complete a transaction: 

1. Speed to checkout

A good payment gateway helps convert the consumer before they can change their mind about making the purchase. The lesser the time to think, the higher are conversion rates - enabling impulse and momentary interest in product/ service is key. 

A very long checkout process or technical glitches that slow down the same can create room for drop-offs of even the highest purchase intent buyers. 

Good payment gateways come with optimized checkout processes and a high uptime to ensure your business is always ready for transactions. 

2. Security and trust

One of the primary concerns of online shoppers is the security offered by payment gateways. And the concern is justified. 

Payment gateway breaches and fraud are common. 

A report by Stripe mentions that 71% of businesses have reported that they have been targeted by payment fraud at least once. 

An average payment gateway breach can cost USD 9.44 million - businesses don’t just need to secure themselves, but also ensure they give consumers a safe platform to make transactions. 

3. Global accessibility 

When selling globally, businesses need to adapt to consumer payment preferences rapidly. This is where the importance of a payment gateway that comes with currency support and multi-language capabilities becomes important. 

At the same time, it is also important for businesses to adapt to device preferences over which consumers engage with them, giving them a way to checkout faster without the back and forth between pages. 

Right from the currency, preferred payment modes, devices and more, a good payment gateway enables businesses to adapt to local preferences quickly. 

Best practices to follow to ensure higher conversions 

If your business has been experiencing lower conversion rates, here’s what you can do to improve the number: 

1. Streamline the checkout process

Since the checkout process is a crucial step toward conversion, it’s important to keep it simple and remove any friction that can lead to customer frustration. Here are a few steps to remember: 

  • Keep the checkout process to a single page. Scrolling from page to page can distract a customer, causing a loss in sales. Further, it will also factor in if there are any internet issues. 
  • Offer alternative payment methods so that your customers have one or two preferred payment methods included. This will also attract customers who don't have access to or don't prefer the traditional payment methods.
  • Implement a one-click payment system that’s convenient and encourages on-the-go shopping. In this system, the sensitive data is secured with PCI and tokenized on the website.
  • Filling out unnecessary details like birthdays and anniversaries is time-consuming and often turns off buyers who are in a hurry. Instead, gather only the necessary data that are compulsory to complete the payment.
  • One of the biggest inconveniences for buyers is when they have to sign up and provide login details before they can checkout. Look for a payment gateway that offers QR code payment or displays the bank account details where you can asynchronously process the payment without having to log in. 

2. Offer diverse payment modes 

Choose payment gateways that allow users to choose from diverse payment modes. 

For example, with PayBy, you can enable cashless transactions and online payments via various international and domestic credit cards, debit cards, and over 1.5 billion wallets.

It easily integrates with your existing website, so you can host the payment page and customize it according to your needs. 

And did we say that payment pages powered by PayBy are optimized for mobile phones, too?

3. Ensure speed and reliability

One of the biggest turnoffs for consumers is a slow and unreliable transaction process. Irrespective of the products/ services in the equation, this can result in the consumer losing trust in your business. 

A good payment gateway enables you to offer speed and reliability to your consumers. They are also licensed to enable transactions by legal authorities, giving you and the consumer, further peace of mind. 

For instance, Payby is licensed by The Central Bank of the UAE. It has been given the highest levels of financial service approvals to conduct Stored Value Facility (SVF) and Retail Payment Services (RPS) operations. 

4. Ensure mobile responsiveness 

Data says that at least 79% of mobile users have made a purchase at least once using their mobile phones. 

So, ensure your payment gateway has mobile responsiveness for consumers who prefer to shop using their handheld devices. 

A good payment gateway offers an optimized mobile pay page along with secure mobile payment modes. 

5. A/B testing and analytics

Continuously A/B test different elements, designs, and functionalities of payment gateways to determine the best configuration that gives you maximum conversion. 

You can A/B test the payment gateway among a subset of customers to understand the preference for local payment methods. 

Track and analyze the data to understand how it’s impacting conversion and the average order value. 

Are you ready to improve your conversion rates?

While there are many options in the market that can help you set up a payment gateway, Payby is one of the leading solutions in the UAE and is trusted by leading brands across industries. 

PayBy’s solution caters to a vast array of industries, including fitness and wellness, insurance, travel and tourism, social products and services, restaurants and cafes, hospitals and healthcare, information technology and services, gaming betting and casinos, and more - alongwith the ability to scale with the size of your business.  

Its easy integration feature works seamlessly with your existing technology – be it your website or app. 

Payby comes with several other powerful features that go beyond improving your conversion rates, and boosting the experience you deliver to consumers. This includes the ability to generate digital receipts, invoices, payment links and more. 

Want to know more about how Payby payment gateways can improve your conversion rate? 

Get started with Payby today

Gautham Gopakumaran
|
5 min read
February 19, 2024
|
Payment Gateway, Checkout

How do Payment Gateways Impact the User Experience

Learn why payment gateways have an impact on the overall user experience and how you can ensure a positive one to increase transaction rates.

As businesses grow, they need to integrate a secure payment processing system. While some companies may still prefer to invoice customers to reduce card transaction fees, a report mentions that “£23.4 billion worth of late invoices are owed to firms across Britain.”

Late invoices can significantly impact the cash flow of the business. Accepting multiple payment methods not only improves the situation for business but also offers a positive customer experience.

A payment process that is quick, easy, and tailored to the local business environment enhances overall customer experience and loyalty. 

Recap: What is a payment gateway?

Payment through a payment gateway is one of the many options that brands can integrate into their online stores for easy payment processing.

Payment gateways are a key component in electronic payment processing systems and work as the front-end technology that captures the customer payment information.

It then sends it to the merchant-acquiring bank, where the transaction is processed. A payment gateway is one of the popular modes of online payment today that is used across industries. 

How do payment gateways impact customer experience? 

Making a payment and checking out is the last mile in a buyer’s journey, and the transaction experience with the payment gateway can deeply impact the customer experience.

Here are some instances of how payment gateway impacts the customer experience: 

1. Ease of use

Customers continuously seek convenience and ease of use, and a seamless online transaction experience can impact the overall customer experience positively. 

For example, a user-friendly payment gateway interface makes it easy for customers to make a quick payment and checkout from the online store. 

On the other hand, a cumbersome interface can be a big turnoff for an impatient customer. 

2. Reduce friction

The payment gateway also helps to reduce the friction between the customer and the business by facilitating a hassle-free shopping experience.

Be it credit cards, debit cards, or digital wallets — payment getaways can offer a seamless transaction, boost sales, and reduce cart abandonment rates, especially for e-commerce stores. 

How to set up a payment gateway for positive customer experiences? 

If you’re introducing payment gateways for your website, here are some tips to help you achieve a positive customer experience: 

1. User-friendly interface and checkout experience

The checkout process is the most crucial step in a buyer’s journey, and this should be made as seamless as possible.

That’s why a user-friendly payment gateway interface is important to impart customer satisfaction.

A poorly designed payment gateway interface can frustrate a customer, resulting in cart abandonment. 

2. Mobile responsiveness and accessibility

Customers today prefer to shop on the go. With easy access to smartphones, brands need to make the shopping experience convenient for on-the-go shoppers.

Thus, they need to ensure that the payment gateways work smoothly across various devices, including smartphones.

Remember, the ability to facilitate mobile payment is no longer a luxury but a must for brands to stay ahead of the competition. 

3. Security for trust

Payment gateways with robust security features, including encryption and fraud prevention measures, play a big role in gaining customers' trust.

Customers need to feel safe with their banking information, so brands that want to build a positive user experience must pay attention to safeguarding their payment gateways.

Creating trust is not just meant to keep the customer payment information safe but also to build customer loyalty, which translates to repeat sales.

4. Personalization

Tailoring the payment gateways based on customer profiles creates a more relevant transaction experience for the customer.

In an era when customers expect everything to be personalized, a tailored payment gateway for the customer will definitely help you earn some brownie points. 

5. Transaction speed

Customers today prefer a fast and smooth transaction experience. Payment gateways that offer swift and smooth transaction experiences are surely going to earn some praise from customers.

Remember, a fast transaction speed not only satisfies the impatient customer but also helps improve the overall brand perception.

Payment gateway best practices

If you want your customers to have a great user experience while using your payment gateway, here are some tips for you: 

Keep customer convenience in mind

Make it simple and easy for your customers. For example, if you’re in a subscription business, offer recurring payment options that help them renew their subscriptions easily. 

You may also consider integrating various payment methods like payment through credit cards, debit cards, UPI, net banking, COD, cheque, etc., for your website so that customers can choose the best-suited option for payment. 

Minimize risks

Ensure your payment gateways are capable of encrypting sensitive customer payment information like account numbers. It should also offer various verification procedures and secure card information.

Always use SSL-certified payment gateways along with a secure logo.

Clear communication

Always maintain clear and transparent communication with customers. Keep them updated about any failed transactions, payment status, and due payments so that customers feel assured. 

Maintaining clear communication helps to build trust, which improves sales. 

How to choose a payment gateway for a better user experience

There are several options to consider while picking a payment gateway. Here are some pointers for you to consider: 

Know the preferences of your customers

To positively impact the user experience, it's important to know what payment gateway your customers are already using.

If you choose payment gateways your customers are already familiar with, then you'll see better adoption, and you'll run into lower risks.

Check for integrations

Check for the API integrations of the payment gateway and if it will work with your existing technology. 

Choosing a solution that doesn't integrate with your technology will be of no use and will slow down the entire process.

Look for robust security

Security and fraud prevention are of utmost importance, so you need to be vigilant with the security system of the payment gateway. 

Look for PCI-compliant companies that uphold security provisions for electronic transactions. 

With PCI compliance, you can be assured that your customer's payment information will be protected and secured from theft. 

Consider the fees

Compare the costs of the payment gateways and how they will affect the security cost.

For example, if the payment gateway has a low fee but you have to invest in its security and fraud detection, the overall cost can increase. 

Check their market worth

Invest in a payment gateway that is trusted by customers.

Avoid payment gateways that don't have a strong security history to prevent customers from abandoning their carts or, even worse, cases of fraudulence. 

Choose payment gateways that have a respectable clientele list. 

Opt for flexibility

Flexibility is one of the key attributes to look for when choosing your payment gateway. 

Remember, each customer is different and has different preferences, so offer them a solution where they can quickly switch between credit cards, debit cards, UPI, Android, and Apple Pay, etc., and have a smooth transaction experience. 

Picking the right payment gateway for your business

Now that you’re ready to set up your first payment gateway, try PayBy — it seamlessly integrates with your existing system, and you can set it up easily. Licensed by The Central Bank of UAE, PayBy is trusted by some of the leading brands in UAE. 

PayBy can manage all end-to-end transactions via domestic and international credit cards and integrates with your website and apps easily. 

Get started today

Gautham Gopakumaran
|
5 min read
February 5, 2024
|
Payment Gateway

The Evolution of Online Payments

From Barter to Cashless
Explore the transformative journey from ancient barter to modern cashless transactions. Uncover the history of payment methods and the UAE's pivotal role in the digital payment revolution.

Like it or not, money is a crucial part of our life. It allows us to buy things that let us live a comfortable and decent life. However, money has been in existence in some form or another for just about 5000 years. 

Before that time, there was a barter system that ancient people used to trade. Slowly, as humankind evolved, money evolved, too. 

From printing the first currency note to cashless transactions and bitcoins, needless to say, technological advancements have revolutionized payment methods. 

We’re here to take a step back and deep dive into understanding the evolution of online payments.

The Barter System: Trade in Ancient Times

Long before money was invented, ancient people used a barter system to exchange goods and services. This oldest form of commerce, which was practiced for centuries, involved two individuals negotiating their goods or services before they exchanged them in the form of trade. 

For example, a farmer may exchange his crops for a cow or salt. The quantity of rice to exchange used to depend on the perceived value of salt or cattle. 

It is believed that the first barter system was introduced by the Mesopotamians all the way back to 6000 BC. Later, it was adopted by the Phoenicians, who used it to barter goods with others across the oceans. 

With the rise of the Babylonians came a further improved bartering system when goods were exchanged for food, tea, weapons, and spices. 

Salt was another common and expensive merchandise that was exchanged. In fact, the Roman soldiers were paid their salaries with salt. 

In the Middle Ages, Europeans who traveled around the world started to barter crafts and furs in exchange for silk and perfume. 

Musket balls, deer skins, and wheat were some of the common barter items used by the colonial Americans. 

However, the barter system had its own limitations, too. 

The most common problem with the barter system was its inefficiency. 

For example, if a farmer wanted to exchange his rice for timber, he had to find someone who would have timber and wanted to exchange it for rice. The other problem was ensuring a fair exchange because the perceived value of goods and services varied.

The Introduction of Currency: Simplifying Trade

As we discussed, primitive societies used the barter system to exchange goods and services. Some ancient tribes also bartered goods in exchange for shells. However, the barter system had its own pitfalls, which slowly led to the invention of metal coins. 

The development of metal coins is estimated to date back to 700 to 500 BCE. Since the coins were standardized, trading became easy. The invention of gold and silver coins also made trade easy and convenient between countries. A country that had a surplus of any item could easily sell it to another country in exchange for coins.

The transition to paper notes happened in 1260 CE when the Yuan Dynasty of China switched to paper currency from coins. However, some parts of Europe continued to use metal coins until the 16th century. 

Introduction of banks

Later, once the banks became functional, they started to replace the coins using paper notes. People could take these notes to the bank to exchange for gold, silver, or coins. The paper money made it easy for everyone to buy goods and services.  

The shift to paper money simplified international trade. It enabled the movement of goods from one country to another, migration, and settlement, and created socioeconomic distinctions. 

The Advent of Electronic Payments

Although one may assume that electronic payment methods like credit and debit cards are modern payment methods, the earliest history of credit cards dates back to 5000 years ago in ancient Mesopotamia. Inscriptions bearing mutual agreements on clay tablets were used when people wanted to buy at the moment and pay later. 

Fast forward to modern times, and those ancient clay tablets paved the way for store cards when merchants issued cards to farmers as a receipt of loans. The farmers who didn't have money to pay upfront used to pay later once crops were harvested. 

In 1950, the Diner's Club became the most popular and widely accepted form of credit card when its founder left his wallet at home while out dining. Diner's Club users would charge their meals to the card, and the restaurant would send the bill directly to the Diner's Club. The cardholders had to pay the bill to the Diner's Club at the end of the month. 

In 1958, American Express, originally a freight company, came up with its first credit card that allowed its customers to pay bills via the credit card. 

In 1966, the first interbank card was released when a group of California-based banks came together into a partnership. This card eventually evolved into the present-day MasterCard in 1979.

Credit cards got a new dimension with the advancement of technology. In the 1960s, an IBM engineer affixed magnetic tape on the back of the card so that the user got the updates when their cards were swiped at a point-of-sale. 

The popularity of credit cards saw some marked differences in buyer behavior. Different research studies have proved that credit cards increase the pleasure of buying, and users are willing to pay higher prices when given a chance to pay through credit cards. 

One hypothesis suggests that since credit cards reduce the "pain" of payment, they remove the holds on expenditure. A neural mechanism study associated with credit card purchases showed that a strong activation at the striatum occurs on the onset of credit card cue. 

The Digital Revolution: Birth of Online Payments

Online payment is an irreplaceable part of our modern lifestyle. The origin of online payment can be traced back to 1871 when Western Union introduced online money transfer in the US.

For the first time, people could pay for goods without being physically present for the transaction. However, the online payment mode saw rapid growth only after 1960 when the US Advanced Research Projects Agency Network laid the foundation of the modern-day internet.

Since then, the online payment landscape has rapidly evolved. 

Key Milestones

In 1994, the Stanford Federal Credit Union became the first financial institution in North America to launch its online banking service for its customers. 

As the banking industry saw the digital transformation, more financial corporations started embracing this journey. 

In the late 90s, PayPal entered the market and became the first global payment service provider.

Starting from the early 2000s, different companies across Asia started adopting the online payment mode. 

The UAE's banking sector has been at the forefront of digital transformation. Banks like Emirates NBD and Abu Dhabi Commercial Bank have pioneered online banking services, significantly enhancing customer convenience and transaction efficiency in the region.

Alibaba was established in 1999 as the first ecommerce platform in China. 

The next in line was the rise of digital wallets, which came into existence in 2011 when Google Wallet was launched ( Now known as Google Pay).

Today, most digital wallets are powered by cloud technology that offers inbuilt security and on-demand scalability and comes with intense processing features.

As the global landscape shifted towards electronic and online payments, the UAE too made significant strides in embracing digital technology. The introduction of real-time payment systems in the UAE, as part of a broader Middle Eastern strategy, signifies a pivotal move towards digital adoption. 

Notably, initiatives like the GCC RTGS (Real Time Gross Settlement System) and the Arab Regional Payment System (BUNA) have been instrumental in standardizing and enhancing payment efficiency across the Gulf and Arab regions. 

These efforts reflect the UAE's commitment to modernizing its payment infrastructure, aligning with global trends while catering to regional needs.

The Rise of Mobile Payments and E-Wallets

As online payments and digital wallets gained prominence, we saw a sharp rise in mobile payments and e-wallets. As smartphones became affordable and accessible to all, mobile payments saw rapid adoption among the population. 

With e-wallets, carrying cash becomes unnecessary as your money is safely stored on your smartphone. Moreover, with mobile payment, you don't need to look around for ATMs to withdraw money— you can make a payment as long as you have a smartphone and internet connectivity. 

Consumer behavior also witnessed a stark difference with the change in technology. Businesses started to offer payment in digital mode to improve the customer experience, while the convenience of digital wallets paved the way for more online stores, the COVID-19 pandemic forced businesses to further adopt cashless and touchless payment modes. 

Consumers today prefer to shop from the convenience of their homes with just a few clicks. As predictions say, 21.2% of total retail sales will happen online by 2024. 

Reflecting global trends, the UAE has seen a surge in mobile payments and e-wallet adoption. Driven by a tech-savvy population and initiatives like Dubai's Smart City project, mobile payments have become a staple in the region's bustling commerce.

The Emergence of Cryptocurrencies and Blockchain

While digital wallets and online payment have now stayed for many years and continue to offer a safe and convenient mode of transaction, the development of new technology is making way for new payment options. Bitcoins and cryptocurrency are emerging as powerful financial currencies that merchants can transfer between one another without the involvement of banks. Such a decentralized transaction mode has both its pros and cons. Some of these include:

Advantage of cryptocurrency 

Since no banks or intermediaries are involved, it eliminates the possibility of a single point of failure.

Decentralized transactions are secured by public and private keys, along with different incentive systems.

Cryptocurrency transfer is faster than traditional systems as no intermediaries are involved.

Cryptocurrency investment can earn you profit as the market grows. It’s valued at USD 680 billion as of November 2023. 

Disadvantage of cryptocurrency

Though cryptocurrency claims to be an anonymous form of transaction, certain agencies like the FBI can follow the digital trail.

Cryptocurrency is often used for malpractices. For example, hackers prefer cryptocurrency for ransomware. 

Although its transaction is decentralized, in reality, the ownership is highly concentrated. There are roughly 100 addresses that circulate 15% of the total value of Bitcoin. 

The Future of Payments: Towards a Cashless Society

If we look back to the history of the evolution of online payments, it’s only logical to predict that we’re slowly heading toward a cashless society. Although it might take some time to become completely cashless, it’s a fact that we’re slowly progressing toward becoming a cashless society. As technologies like AI, biometrics, and contactless transactions evolve along with the changing customer behavior, a cashless society is what looks the most logical next step. 

While we still can't predict where we will be in 2030 or 2060 in terms of cash, near-term projection sees a continuous decline in cash transactions. Cash projection in North America is only 8.7% by 2024. 

So, coming to the most pertaining question, if we are going to be a cashless society — the answer is a yes and a no. While many countries are heading fast towards embracing a cashless society, some countries will still be using cash transactions at least for the next few years. 

Conclusion

From barter systems to modern-day bitcoins, payment methods have been evolving steadily with the evolution of mankind. As new technology has come into existence, it has added new payment methods to the system, which has greatly influenced buyer behavior. 

The buyer who once couldn’t think of going out of the house without carrying their wallet can now comfortably go out with their smartphone, do shopping, and pay bills for their dinner. 

While we are steadily heading towards a cashless society, only time and technology will define what's in store for the future of payment and if we will ever become a completely cashless society.

Gautham Gopakumaran
|
5 min read
January 29, 2024
|
Cashless Payments

Cybersecurity in Digital Payments

Staying Ahead of Threats
Learn about the importance of cybersecurity in digital payments and the best practices to follow for reducing threats.

According to JP Morgan, 30% of companies have reported an increase in digital payment frauds. 

With the internet, businesses have revolutionized the way they collect customer payments. But not far behind are hackers/ miscreants who have made the internet an unsafe place, with increasing fraud and security breaches. 

In this post, we look into why cybersecurity is important for businesses setting up online payments and the best practices we recommend following. 

Why is cybersecurity important for online payments? 

Whether you’re a business or a consumer, keeping your data secure is crucial. But here’s why cybersecurity measures in online payments are even more important: 

1. To protect sensitive information

A typical financial services employee has access to 11 million files. Unfortunately, online transactions are susceptible to hackers. They are highly motivated by money to acquire data, especially personal banking information. Vulnerable systems are at high risk, which can lead to disastrous consequences for businesses and individuals. To protect sensitive data, cybersecurity in digital payments become crucial. 

2. To prevent fraud 

Money laundering, identity theft, and fraud are common concerns in online transactions. With machine learning and fraud detection mechanisms, cybersecurity programs can analyse transaction patterns for suspicious activity. This helps prevent theft/fraud in real-time.

3. To prevent hefty fines and legal repercussions

With online transactions, customers trust businesses to keep their data (card/bank details) safe. All merchants need to comply with payment industry requirements, such as PCI DSS, to ensure customer protection. If your business operates in the European Union, you have to comply with PSD2 Strong Customer Authentication (SCA). Multi-factor authentication helps reduce theft or fraud. As a business, if you fail to comply with these legal requirements, it could put you at risk of:

  • Compensating victims for damages, if necessary 
  • Expenses related to litigation
  • Hefty fines by governing authorities 

4. Reduce chargebacks 

Most chargebacks occur when a cardholder disputes a charge/ transaction on their account. They may not recognize the charge and believe it to be fraudulent, hence demand a refund from their bank. This is especially common in online transactions. 

Secure payment gateways can help reduce fraudulent chargebacks by verifying the identity of the cardholder, saving you from financial losses and chargeback fees. 

5. Positioning as a global business

There is the lack of uniformity in cross-border regulations. Different countries have different legal frameworks and security standards or regulations; that need to be catered to. By implementing secure payment gateways, compliant with multiple countries, businesses can have a worldwide target audience.

6. Protect your reputation

When Uber was hit by a data breach in 2016, the customer perception dropped by 141%. Data breaches lead to customer distrust and negative publicity. Brand reputation reigns supreme for all business. Enterprise organizations sometimes spend millions of dollars to build their brand image. If one single data breach could put all that effort down the drain, you begin to see the importance of cybersecurity for all payment infrastructure. 

What are the best practices for securing online transactions?

Here are some of the best practices we recommend to brands setting up cashless payment modes: 

1. Understand your PCI compliance requirements

In 2004, four major credit-card providers — American Express, Visa, MasterCard, and Discover, created The PCI Security Standards Council. Today, the PCI-DSS standard is a set of policies that govern how sensitive cardholder information should be handled

In the simplest of terms, no business must be able to see or access the customers’ card data. For this certain things need to be in place including: 

  • Data encryption during transmission
  • Restrictions on access to information 
  • Robust firewalls and updated software and spyware. 
  • Prevent default credentials and allow customers to change credentials easily. 

2. Data encryption with SSL and TLS protocols

Any online transaction requires the customer to share credit/debit card numbers, expiration dates, and CVV. Without proper data encryption, this data could easily be hacked. 

Data encryption protocols including TLS (Transport Layer Security) and SSL (Secure Sockets Layer) can be used to encrypt data. TLS is a cryptographic security protocol that emerged from SSL, but can be considered as an upgrade for data privacy, security and authentication. 

All SSL-certified websites have “https://” or a padlock icon which denotes a secure e-payment system. With the TLS encryption in place, the sensitive information is only transferred to the intended recipient. By authenticating the server, it prevents attackers from getting access to the data. 

3. Implement 3D Secure 2

3D Secure 2 (3DS2) is used to authenticate online transactions by verifying a customer’s identity. It serves as an additional layer of authentication to make sure that a legitimate cardholder is conducting a transaction.

Here, the cardholder needs a one-time password, or fingerprint or facial recognition. This helps to prevent fraud and unauthorized transactions.

While it creates extra steps during the checkout process, for the first time — subsequent transactions at the same merchant do not require extra authentication (if approved by the card holder) 

Additionally, 3DS2 prevents false declines by providing detailed data about the transaction. This helps both businesses and customers, preventing costly mistakes.

4. Deploy multi- or two-factor authentication

Multi-factor authentication (MFA) and two-factor authentication (2FA) are customer-facing authentication processes to verify the identity of users before processing payments. This is divided into two levels of authentication: 

  1. What the user knows - Net banking or card details 
  2. What the user has - OTP, PIN or CVV. 

Multi Factor Authentication requires three or more different authentication factors in order to authorize a payment. Apart from the two, the third authentication step could be something they are (biometric data). For example in a password, a one-time code generated by an app and a fingerprint scan. 

The more factors used makes it much harder for any miscreant to access an account, even with access to the user's password.

5. Ask for Card Verification Value (CVV) 

Card Verification Value (CVV) is a three/four digit code on the back of credit cards. It helps verify the identity of a card holder during online transactions. 

In a data breach, the CVV is unlikely to be stolen since it is not embossed or stored on the magnetic stripe or chip of the card. 

6. Incorporate payment tokenization

Tokenization replaces the 16-digit card number with a digital identifier known as a ‘token’. It helps to protect the original data, while letting payment gateways initiate secure payment.

Payment tokenization helps in: 

  • Protecting sensitive payment information from being intercepted or stolen during a data breach. 
  • Helps businesses comply with regulations and legal standards, like PCI DSS and the General Data Protection Regulation (GDPR). 
  • Customers don’t need to repeatedly enter payment information for recurring payments or subscriptions, which improves the customer experience and lowers abandonment rates. 

7. Maintain security of the website 

To ensure customer safety, businesses need to keep the website, content management system (CMS), and online payments secure. Here’s how: 

  • Regularly update your website, CMS software and plugins or extensions, to patch security vulnerabilities
  • Only accept strong passwords from the customers with certain pre qualifications like capital letters, special characters, numbers etc. 
  • Use a firewall to prevent unauthorized access and to block any suspicious traffic. Deploy monitoring and fraud detection tools to detect and respond to suspicious activity on your website. 

8. Train your employees

Take appropriate steps to train employees about potential threats and steps for action. Set up sessions on data protection guidelines, multiple security measures and protocols, phishing and more. Make sure your employees understand the importance of online payment security through audits; and encourage immediate reporting of any suspicious activities.

9. Inform your customers

Make an effort to promote the data protection procedures to your customers. It is not only about providing features, but ensuring that your customers know and implement on their end; to truly make the whole process secure. 

Conclusion 

Cybersecurity is a growing concern for all businesses. Hence it is important to choose an end-to-end payment solution built with features and compliances built for high security.

PayBy digital payment solutions come with robust fraud detection and prevention mechanisms integrated into the systems. The solutions leverage AI-based fraud monitoring, 3D secure authentication and transaction risk analysis to ensure your approval rates are not impacted by cyber threats. 

Want to know more? Book a demo of PayBy today.

Gautham Gopakumaran
|
5 min read
January 15, 2024
|
Cashless Payments, Cybersecurity

Digital Wallets Explained

Convenience at Your Fingertips
Learn all about what digital wallets are, the benefits of digital wallets for businesses and their role in the future of cashless transactions.

Today, we live in an increasingly cashless world. With the rise of e-commerce and mobile payments, consumers now expect the ability to pay from anywhere, at any time. No longer do we need to carry wads of cash or even plastic cards. Now we can pay with just a tap or click of our mobile phones. 

This seamless, digital payment experience is made possible by digital wallets. 

Did you know in 2022, UAE digital wallet market was valued at USD 3638.21 million, and is anticipated to grow with CAGR 12.12% for next 5 years.

Source

Digital wallets represent the future of payments and in this post, we look into why e-commerce is not the only industry that needs to be prepared for this change. 

What are Digital Wallets?

A digital wallet is a software application or digital service that allows users to store payment information and/or money digitally for transactions. Rather than using physical wallets to carry cash and cards, digital wallets allow users to pay via their mobile device or the web.

Some popular examples of digital wallets in the UAE include:

  • PayBy 
  • Payit
  • e& money by Etisalat
  • Apple Pay
  • Google Pay
  • Samsung Pay
  • PayPal
  • Careem Pay
  • AliPay+
  • CashPay

These digital wallet apps and services securely store money, payment methods like debit/credit cards, bank accounts, and gift cards. Users can easily access their stored payment methods to checkout online or tap-to-pay at contactless terminals in stores. 

Leading digital wallets utilize tokenization for added security, generating digital tokens to represent your actual payment details.

What are the benefits of digital wallets for businesses? 

Digital wallets offer several key benefits for merchants and businesses. By accepting digital wallet payments, companies can increase sales, reduce fees, and gain customer insights.

Increased Sales

The ease and convenience of paying via digital wallet encourages customers to make more purchases. Studies show that when businesses accept mobile wallet payments, average transaction values and purchase frequency increases. Customers are more likely to make impulse buys and repeat purchases when checkout is quick and seamless.

Lower Transaction Fees 

Processing digital wallet transactions is less expensive compared to traditional payment methods. Credit card processing fees average 2-3%, while digital wallet fees are around 1%. For small transaction amounts, digital wallets can be nearly fee-free. These savings quickly add up for merchants with high volume.

Improved Customer Analytics

Digital wallets provide richer customer data than credit cards or cash. They allow businesses to track accurate transaction histories and purchasing habits. Companies can use these insights to better understand customers, personalize offers, and boost engagement through loyalty programs. The enhanced analytics lead to stronger customer relationships.

What are the benefits of digital wallets for customers? 

Digital wallets provide several key benefits for customers looking to make purchases and payments on the go. Compared to cash or physical credit cards, digital wallets enhance convenience, security, rewards programs, and accessibility.

Convenience

Digital wallets allow customers to check out faster, both online and in stores. Instead of fumbling for the cards in your wallet, you can pay with your smartphone in just a few taps. Digital wallets also store payment information, shipping addresses, and more to expedite the checkout process. Customers can breeze through checkout without needing to input tons of information.

Many digital wallets also support contactless payments through NFC technology. You can hold your phone near a payment terminal to pay almost instantly. This is much faster than chip/swipe payments or handling cash.

Security 

Digital wallets utilize encryption, tokenization, and other security measures to protect your data. This makes them generally more secure than physical payment methods. If your phone is lost or stolen, you can remotely disable the digital wallet to prevent unauthorized access.

Many digital wallets also support biometric login with fingerprints or facial recognition. This prevents thieves from accessing your wallet even if they steal your phone.

Rewards

Digital wallets often integrate with merchant loyalty programs and credit card rewards. Customers can store their memberships and earn points, miles, and cash back through the wallet. Rewards are applied instantly when you pay with a digital wallet.

Accessibility

Digital wallets centralize all your payment methods in one place. Customers can easily switch between credit cards, gift cards, coupons, and debit cards as needed. Everything is available right from your smartphone for maximum convenience and flexibility.

The Future of Digital Wallets

The future looks bright for digital wallets as more people embrace contactless payments and new integrations expand functionality.

Increasing Adoption of Contactless Payments

Contactless payments are on the rise globally. Digital wallets like Apple Pay, Google Pay, and Samsung Pay have helped accelerate consumer adoption of tap-to-pay. The COVID-19 pandemic further demonstrated the appeal of touchless transactions for safety and convenience. Surveys show a majority of consumers will keep using contactless even after the pandemic, indicating it is here to stay.

Integration with IoT Devices

As the Internet of Things expands, digital wallets may integrate with connected devices like cars, appliances, and smart home systems. For example, your digital wallet could automatically pay tolls while driving or manage payments for an autonomous vehicle. Appliances could automatically reorder and pay for consumables like detergent. And smart home hubs could draw from your digital wallet to pay for services like energy use.

Cryptocurrency Support

Some digital wallets already enable storing and spending cryptocurrency like Bitcoin. As cryptocurrency gains mainstream adoption, support within digital wallets is likely to grow. This will make it easier for average consumers to use cryptocurrency for everyday transactions. And integration with digital wallets provides a more familiar user experience compared to standalone crypto wallets.

Wrapping up!

Digital wallets have completely changed the game when it comes to convenience and ease of making payments. With a digital wallet linked to your debit or credit card, you can make quick and easy payments anywhere with just a tap or scan of your phone. There's no more fumbling for cash or cards. 

The benefits of digital wallets are numerous - they save time, provide security, allow you to track spending, and work across platforms and devices. As more retailers and services adopt digital wallet payments, consumers will find paying for anything from a coffee to a cab ride is just a couple of taps away.

The future is all about streamlined, integrated digital experiences, and digital wallets fit right into that vision. Payments are frictionless yet secure. Transactions become embedded into platforms and apps rather than separate experiences. As money becomes more digital, digital wallets will continue leading the way.

For those looking for the ultimate payment convenience coupled with next-generation financial tools like digital wallets, PayBy is the solution you’re looking for. 

PayBy delivers the future of payments today. Consumers get the convenience they demand while businesses get the advanced tools they need - it's a win-win for all. 

Want to know more? Book a demo of PayBy today.

Gautham Gopakumaran
|
5 min read
January 8, 2024
|
Digital Wallets, Cashless Payments

Top 9 Benefits of Switching to Digital Receipts in 2024

Discover the top 9 benefits of switching to digital receipts in 2024, from saving money and promoting sustainability to enhancing customer satisfaction and retention.

Receipts are important for business and customers, since they act as proof of financial transactions. 

The bad news: They have a nasty habit of getting lost or damaged, when you need them; or turning up in an old jeans pocket when you least expect it. 

The good news: Digital Receipts!

Irrespective of the business size or type, digital receipts are transforming retail marketing, and it’s time for your business to jump on the bandwagon. 

In this post, we’ll tell you why. 

What are the benefits of using digital receipts? 

You may already have a record of all the transactions on your point of sale or bookkeeping system. But here’s why we still recommend setting up digital receipts: 

1. Saves money 

There are more than 300 billion receipts printed each year. Apart from the environmental damage, businesses need to shell out thousands of dollars on thermal paper, ink cartridges, printers, and more. 

Digital receipts are far less expensive and reduce overhead operating costs. All you need is a Payment Service Provider like PayBy to automate creating and sharing them. 

2. Promotes sustainability 

Since the figures are burned and not printed on the surface, paper receipts cannot be recycled. Moreover, the production and disposal of receipt paper emits the carbon equivalent of over 471,000 cars on the road.

In the early 2000s, before retail mobile apps and email marketing, only the Apple Store and a few startups pushed digital receipts as part of the growing sustainability movement. Today, the  benefits of eco-friendly receipts are widely understood. 

For example - A report by Green America showed how a single Walgreens-sized company could save over 55,000 trees, 58.8 million gallons of water, and 17.6 million pounds of CO2 emissions annually by ditching paper receipts. 

3. Enhances customer satisfaction

Digital receipts also create an opportunity to follow up with customers and collect feedback on their experiences and purchases. 

Knowing their purchase details (like product, offers available, etc.,) and the support salesperson can be instrumental while analyzing customer feedback. It helps you see how your business is doing in real-time; improving overall strategy and enhancing customer experience.

4. Facilitates hassle-free tax season

Paper receipts need to be hunted for, sorted and then organized during the tax season. This is both time consuming and prone to human errors while recording spends and expenses. 

Digital receipts can be stored on the cloud, which is easily accessible during tax season. There is no risk of losing or throwing digital receipts away, so you won’t have to deal with books that don’t balance at the end of each month. 

When you use a payments solution like PayBy, you can record all digital receipts by integrating it with the bookkeeping software or tax filing systems. 

5. Eases post-purchase interaction 

Customers prefer digital receipts because, unlike thermal paper receipts, they don’t fade or get lost. This helps in post purchase interactions like return, exchange, warranty or alteration. 

For a business, digital receipts can act as proof to check the validity of requests being made and to tally transaction records. 

6. Boosts customer engagement 

Business owners should focus on consumer relationships that extend beyond transactional communications. With digital receipts, you get access to your customers’ contact information to create email and SMS lists. This can be useful for product launches, special offers, or educational content about the product/service. 

You can also embed links to the website, social media handles and loyalty programs to create avenues to establish stronger relationships with your customers. 

7. Creates upsell and cross-sell opportunities 

76% of customers get frustrated without a personalized experience with a brand. With digital receipts, you have access to the data at the transaction level. This can help you recommend complimentary or similar products/ services to the purchase; and add discounts/offers to sweeten the deal. 

With tailored content, you can drive higher repeat purchases and boost the overall CLTV, leading to greater business profits. 

8. Improves customer retention

With customer acquisition costs increasing by the day, marketing efforts need to encompass customer retention. The data gathered through digital receipts can be used to identify top customers and their purchase behavior - including preferred products, purchase power, purchase frequency and more. 

This can further help you segment and tailor the communication with customers, improving the retention rate. 

9. Protects your employees and customers

Approximately 93% of paper receipts are coated with Bisphenol-A (BPA) or Bisphenol-S (BPS). They could lead to fetal development issues, type 2 diabetes, thyroid conditions, reproductive impairment, and other health concerns.

Unfortunately, employees who manage the point of sale have regular contact with receipts and have over 30% more BPA or BPS found in their bodies; putting them at risk. A shift to no-contact digital receipts protects both employees and frequent shoppers. 

Conclusion 

The benefits of digital receipts are countless, and is a reminder that we need to continue replacing outdated, wasteful processes, with innovative solutions. 

Forward-thinking businesses must move towards paperless options - no matter what the industry. 

With comprehensive payment solutions like PayBy, it is also easy for businesses to get started with digital receipts. From the online payment gateway to the point of sale systems and scan-to-pay QR codes, PayBy enables you to automate sending branded digital receipts to customers via email and SMS without switching tools. 

Ready to track and record transactions more efficiently? Learn more about Digital Receipts or book a demo today.

Gautham Gopakumaran
|
5 min read
December 26, 2023
|
Digital Receipts

7 Reasons you Should Introduce Cashless Payment Systems

Learn why your business should embrace cashless payments and how to get started to enhance customer experience.

Cash is no longer king. 

30 years ago, a world without cash was not possible. But, over the years, businesses have realized that dependency on cash can be tricky and risky. 

From not being able to record every transaction to theft/fraud or even providing change to the customer, businesses need better solutions.  Whether you are a small, mid or enterprise based business, cashless payment systems are the future to improve business efficiency. 

In this post, we look into the leading reasons why businesses of scale can be seen adopting cashless payment systems. 

What are Cashless Payment Systems? 

Payment transactions that occur without physical exchange of money are referred to as cashless payments. 

They can be conducted online and in-stores via a point of sale (POS). Both, the payer and the receiver, use digital mediums to exchange money. This includes payments via direct bank transfers, credit/ debit cards, digital wallets, online payment portals and similar transaction modes. 

Why should businesses switch to cashless payment systems?

Cashless payments have widened the opportunities for businesses to enhance the customer experience offered and take control of their finances. Here are some of the leading reasons why businesses have been quick to embrace this change: 

1. Helps increase sales and revenue

‘Swipe, Tap or Scan’ has become extremely common as we move towards a cashless society. Customers prefer to carry their phone or credit/debit cards rather than the cumbersome wallet filled with cash.

Businesses that only accept cash, inadvertently limit sales. Numerous and frictionless payment methods allow people to spend easily. When paying digitalls, customers tend to spend more, leading to higher revenue. 

2. Helps increases convenience and saves time

Cashless payment systems save time. They can be 6x faster when compared to cash transactions, reducing the average transaction time from 90 seconds, to just 15 seconds. 

Shorter lines encourage people to buy that extra drink or shirt, resulting in a positive customer experience and retention. When Atlanta’s Mercedes-Benz Stadium went cashfree, there was a combined 16% increase in food and beverage spending at Atlanta Falcons and Atlanta United games. 

This leads to improved revenue and higher customer lifetime value amongst customers. 

For business owners, in-store cashless payments allow tracking of incoming and outgoing funds. This saves time and comes handy while filing returns.

3. Helps analyze data and generate insights

With cashless payment systems, you can gain insights into your business, to make informed decisions about evolving needs and preferences. 

All transactions can be used to segment your customers, based on payment volume or payment type in specific periods. 

Data helps understand your customers preference and behavior patterns. This knowledge leads to targeted product launches, offers and overall customer satisfaction. 

4. Helps with increased security during transactions

Cybersecurity in cashless payments, has taken off one more worry off the consumer and retailer. Cashless payment solutions help eliminate the risk of theft or fraud. Here’s how: 

  • Digital transactions are secured with varying levels of encryption and data authentication
  • With most payment modes, enabling two-factor authentication (TFA) adds an extra layer of security 
  • Customers can activate geo-blocking features that restrict transactions in certain countries to prevent fraud
  • All data collected from digital transactions is protected against use by third parties. No personal information can be disclosed without permission
  • All digital transaction methods provide SMS and email notifications; and statements for users to track their funds 

5. Helps to lower operating expenses


Cash management is neither easy nor cheap. 

Storing, transporting and depositing cash funds is a task by itself. Moreover, you need additional training for employees to manage cash payments — and you cannot discount the scope of human error. Building additional security to keep your funds safe like lockers, cameras, sometimes even armored trucks (when transporting huge amounts of money) is an expensive affair.

SMBs can cut unnecessary expenses with digital payment solutions. Bill Walsh, VP of Tampa Bay Rays, said “We’ve seen some pretty substantial operational savings from not having to manage a large footprint of cash in the building. The team saved $150,000 in operating and manpower costs.” 

6. Helps to enhance accounting accuracy and efficiency

Digital payments can increase transparency and streamline management. Digital transactions make accounting accurate and faster; as compared to manual efforts. 

For retailers, there is a clear paper trail, and no risk of vendors/employees under-reporting sales. Payments made by customers or to vendors can be easily tracked without sifting through physical records.

Cashless payment systems can reduce the time spent on accounting and reconciling at the end of the sales day, which allows you to focus on other aspects of the business. 

7. Improved customer experience for customers

Based on the study by Visa, cashless payments, mainly via e-wallets (52%) and contactless card payments (44%), are growing rapidly. Customers prefer new payment methods such as Buy Now Pay Later (BNPL) solutions (63%). 

This is particularly evident in categories such as bill payments, supermarkets, retail shopping, purchases at convenience stores, and restaurants. 

Plus digital payment adoption offers benefits to consumers. These can be in the form of cashback, points, or vouchers. On the other hand, cash payments offer no such additional value, hence customers prefer making purchases via digital means. 

By enabling cashless payment systems, you improve the customer experience and the value gained from your business. This encourages shoppers to buy and stay with your brand rather than the competition. 

Conclusion 

The benefits of cashless transactions cannot be ignored. It has changed the way people conduct business around the world. From malls to restaurants and eCommerce stores, most businesses have opted for the smarter and efficient method of digital payment systems. 

The plus point is that it is not difficult to establish cashless payment solutions. 

With comprehensive payment solutions like PayBy, it is also easy for businesses to get started with cashless payment systems. From the smart point of sale systems and scan-to-pay QR codes or online gateways; all solutions are designed for businesses of different sizes with different needs, to grow and succeed. 

Book a demo today to know more.

Gautham Gopakumaran
|
5 min read
December 18, 2023
|
Cashless Payments