CREATION AND LAUNCH OF AN ONLINE PAYMENT SYSTEM

Electronic currency: popularity and effective tool

Globally, there has been a gradual narrowing of the use of cash with a shift to online payment systems and online payment. Electronic currency is gaining popularity and becoming an effective tool in the financial infrastructure of economic leaders.

Every year, the number of countries that are reducing cash turnover increases. One of the means of such a policy is the development, implementation of an electronic payment system and settlement with plastic cards (state and international).

According to the resource Delo.UA, from January to September 2017-year in Ukraine occurred more than 2 billion. transactions with plastic cards, their total volume amounted to almost 1,460 billion. UAH. Compared to last year, the numbers increased from 22% to 29%. The part of non-cash settlements amounted to 39.3%.

RBC Ukraine presents such statistics on the distribution of electronic transactions in Ukraine for the 1st quarter of 2018.

Why you need a payment system

Payment system (hereinafter – PS) – a payment object, its members and a set of relations that arise between them in the course of monetary transactions. The main function of any payment system is the transfer and circulation of funds.

If we talk about the electronic payment system, it is a website or a program structure, with which you can work only having an account and an identification number within the system.

After registration, the user receives an individual electronic wallet, through which it is possible to conduct various financial transactions: deposits, transfers or withdrawals.

Leaders of the global payment systems market:

• PayPal;
• AdvCash;
• ePayments;
• Payoneer;
• Perfect Money;
• Yandex.Money;
• CyberPlat;
• WebMoney;
• E-port.

A payment system is a series of technical procedures through which users can carry out operations of transferring monetary resources between physical entities or legal organizations.

Opportunities provided by the Payment system

1. Payment for goods/services through non-cash (plastic card) or electronic money.
2. Simplifying and shortening the online shopping process: the online payment system allows you to order goods or receive payment in a couple of clicks.
3. Increase conversion rates of stores with online payment options by increasing their search engine ranking.

A proprietary payment system for an entrepreneur is:

1. No commissions, independence and security for the business.
2. Organized acceptance of payments using all means of payment.
3. Working with all types of transactions.
4. Quick notifications of new deals creation and status changes.
5. Ability to import names of deals, synchronize them with your own database.
6. Access to the use of defense mechanisms.

How it works: payment system mechanism

User’s view of the payment process with online payment system

1. Selecting the desired product item and making a request.
2. Determination with the type of payment – via e-currency or via card.
3. Go to an encrypted payment address for payment while the electronic system verifies this information and makes the payment.
4. Enter details and actually pay for the goods.

An online store’s perspective on the mechanism of crediting money using online payment services

1. After payment using any payment service, the transaction enters the automated accounting system.
2. A store employee sees the new item and contacts the customer through the account to clarify details.
3. Money arrives to the service account within a day (maximum two).

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Making a payment system: steps

1. Audit
   Needed to understand the importance and necessity of SP for your business at this time.
2. Drawing up TOR
   Assumes that the company receives all the initial data and wishes.
3. PS implementation in the company
   Development and testing of the payment system. The stage of business transition into digitization.
4. Staff training
   The final stage is to train the team on the new system and its functionality.

Functionality of the payment service from KOLORO company

Developing a payment system involves creating:

1. Multifunctional personal account
2. Payment Button Builder: customize the design of payment forms.
3. Payment management systems: confirm or cancel funds, process refunds.
4. Account management systems: email or sms notifications.
5. Sales management systems: analyzing the dynamics of site development.
6. Reporting: preparation of data registers by date, amount and payment status.
7. Access rights management systems: setting up functional roles of employees in the system.

Options of ready-made payment system solutions

Any internet businessman has undoubtedly faced the difficulty: “Which payment payment system to choose?”. To answer this question, let us introduce the main payment mechanisms for the modern market.

1. Payment terminals are old generation PSs, which are a device for accepting plastic cards. Statistically, this method is preferred by older people.
2. Electronic money, i.e. means of payment presented in circulation in digital form. Today, it is the most popular payment method. Its advantages are simple connection, free e-wallet, and fund transfer options.
3. Bank transfers. Payment for online purchases through a bank is becoming increasingly rare, as this type of payment takes time to process the account, queue at the branch and so on. There is a compelling advantage to payment security, though.
4. Plastic cards. The demand for this SAR is quite high. Although linking cards to a website is more complicated than linking digital currency. In addition, there is a high proportion of fraudulent schemes, which increases the risks for the client.
5. Payment system aggregators. Making an application and signing an agreement on the integration of PS with the site takes time, so online store owners resort to the services of aggregator programs – intermediaries between the online store and payment acceptance services. The businessman makes a one-time arrangement with the representatives and gets access to several billing options. The commission for this type of payment is no more than 5% of the amount.

So, it is possible to add a calculation system to the site in two ways:

• set up online payment individually for each payment service;
• set up a payment system with the aggregator.

It should be noted that the first option is more rational when the aggregator’s commission is too high, for example, in case of high commodity turnover.

Importance of an optimal and reliable payment system

Setting up a payment system is a process that requires attention, especially when it comes to connection security.

Before doing so, the customer must:

• sign the necessary documentation with the company that will handle the connection;
• to provide the security service with a number of supporting documents on the legality of the enterprise.

From the developer’s side, connecting the payment system is not a complicated process and takes about a few days.

To develop a payment system you need to pay attention to the issue of payment security. Recall that information protection in electronic payment systems must be ensured by the PCI DSS encryption certificate and the 3D-Secure protocol. Therefore, it is important to pay attention to what protection technologies the chosen payment system uses.

Advantages of a good payment system

• Working smoothly.
• Favorable tariffs for different groups of customers.
• Flexible charging of commission.
• Prolonged presence in the financial market.
• Effective customer support system.
• An elaborate legal framework.
• Easy to integrate with any resource.
• User-friendly user interface.
• No hidden fees.
• Variability in accepting online payments.
• High degree of security and operational reliability.
• Governance procedures should be accountable and transparent.

What will a client get by ordering payment system development in KOLORO?

1. Ability to track the sales dynamics of the service.
2. Transaction and customization control, monitoring reporting 24/7.
3. Full customization: change the style of payment forms according to the design of your website.
4. Safety Guarantee. We develop defense mechanisms that fully secure online payments. meet the requirements of Internet payment security. We use Verified by Visa, Mastercard SecureCode and two-step authentication.

Our agency knows how to create and run an effective payment system. Need to secure and optimize your business? Contact KOLORO and we will start working on your project today!