Building a new payments solution is a challenging but critical process. This is what we detail in our latest article series.
The benefits of building a new payments solution? An improved customer experience, lower fees and greater control over the entire payment process.
But when is the right time for businesses to upgrade their network of third-party applications for a custom-built development? Three of the articles in the series help us provide an answer.
Your Patchwork of Payment Gateways Becomes Unmanageable
The inefficiencies of third-party off-the-shelf gateways are a prime reason companies should build their own payment solution. But what makes them such a problem to manage?
A typical enterprise payment solution is a convoluted network of different third-party apps. It’s managing the multitude of vendors that can be so problematic. For one, the day-to-day management of these apps can take considerable time. Administrators must also negotiate contracts with each individual vendor and ensure that the payment system as a whole remains operable whenever an app is updated.
The risks associated with having so many third-party connections must also be managed. Firms need to standardize data structures to increase the transparency of transactions and make reporting easier. What’s more, the threat of downtime and a resulting system-wide shutdown is a constant presence. Each component of a third-party network will suffer downtime at some point, which means teams must constantly monitor uptime and have a solution when applications fail.
If dealing with these inefficiencies becomes too much or an additional third-party integration is required, the solution is a payment solution of your own.
Cross-Border Expansion Demands Additional Payment Solutions
International expansion comes with a raft of challenges, none more important than finding an effective online payment solution. Issues arise when businesses integrate a new payment gateway into existing infrastructure, especially if that infrastructure is already a little bloated. High fees and compliance issues are commonplace, among other cross-border payment challenges. A custom solution provides a way to bypass them and create a payment gateway truly fit for purpose.
Traditional cross-border payment infrastructures are riddles with fees, most of which come from intermediary banks. Authorization rates — an additional fee —are charged at higher rates for cross-border transactions, too. These are hard to avoid when integrating an off-the-shelf solution. But a custom solution can avoid intermediary banks and processes transactions in local currencies, which command a lower fee.
Regulatory issues are similarly rife in cross-border payments, particularly for businesses operating under GDPR in the EU. Strict rules govern customer data, and access must be allowed should customers demand it. These will need to be addressed whether businesses build their own solutions or integrate an off-the-shelf gateway. But it’s better for businesses to understand the issues facing their markets and create a solution they know will work.
When off-the-shelf solutions fail to meet the complexity of cross-border payments, it’s time for a custom solution.
Cryptocurrencies Become Too Hard to Ignore
The cryptocurrency space is in a constant state of evolution. Many businesses find themselves unable to sit on the sidelines any longer. Accepting crypto payments can be as simple as integrating an additional payment gateway. But as we’ve already seen, that’s not necessarily the best strategy. In either case, businesses must understand the cryptocurrency landscape to succeed.
Businesses will require a crypto wallet, whether they build their own or use an off-the-shelf wallet. It acts the same as a bank account, allowing businesses to send and receive payments and hold multiple currencies.
From there, plug-ins for major e-commerce platforms like Shopify and off-the-shelf gateways like BitPay are some of the easiest ways to accept cryptocurrency payments.
Still, the very premise of cryptocurrency is self-reliance. A custom crypto payment solution will reduce fees significantly while putting businesses in control over valuable assets. Partnering with experts is essential, however, given the newness of the technology and the inherent risk of an unregulated currency.
Building an effective payment solution can be complicated whether businesses integrate an off-the-shelf gateway or build their own. But only a custom development project offers the control, flexibility and scalability that enterprises need.
If these three signs seem familiar, maybe it’s time to take back control.
Images: Martin Sanchez