Category: QnA Blogs

Payment processing is an essential part of any business in today’s digital age. In India, the trend toward digital payments has been growing steadily over the past few years. With the emergence of new technologies and the government’s push towards a cashless economy, the payment processing industry in India is witnessing rapid growth and innovation. In this blog, we will explore the strongest current trend in payment processing in India.

Unified Payments Interface (UPI)

The Unified Payments Interface (UPI) is currently the strongest trend in payment processing in India. Launched in 2016 by the National Payments Corporation of India (NPCI), UPI is a real-time payment system that enables instant fund transfers between bank accounts using a mobile device. It has revolutionized the way people in India make payments and has become a popular choice for merchants, businesses, and individuals alike.

UPI has been widely adopted in India, with over 2.5 billion transactions worth over INR 5 trillion processed in January 2022 alone. The number of transactions has been growing steadily, with a month-on-month growth rate of over 10%. UPI has become the preferred mode of payment for many Indians due to its ease of use, convenience, and security features.

How UPI works

UPI works by creating a virtual address for each user, known as a Virtual Payment Address (VPA). The VPA is a unique identifier that is linked to the user’s bank account. To make a payment using UPI, the user simply needs to enter the recipient’s VPA and the amount to be transferred. The payment is then authenticated using a two-factor authentication process, such as a PIN or fingerprint scan.

UPI also allows users to link multiple bank accounts to a single VPA, making it easier to manage finances across different accounts. This feature has made UPI a popular choice for small businesses, freelancers, and individuals who have multiple sources of income.

Benefits of UPI

UPI offers several benefits to users, including:

Convenience:

UPI allows users to make payments anytime, anywhere, without the need for cash or a physical card.

Security:

UPI uses multiple layers of security to protect user information and prevent fraud. It also allows users to set transaction limits and block unauthorized transactions.

Cost-effective:

UPI transactions are typically cheaper than traditional payment methods, such as credit cards and debit cards.

Interoperability:

UPI is interoperable across different banks and payment systems, making it easier for users to transfer funds between different accounts.

Instant:

UPI transactions are processed in real-time, making it possible to receive funds instantly.

UPI’s impact on the payment processing industry

UPI has had a significant impact on the payment processing industry in India. It has disrupted traditional payment methods, such as credit cards and debit cards, and has become the preferred mode of payment for many users. UPI has also made it easier for small businesses and freelancers to accept payments, as it does not require a merchant account or a POS terminal.

The success of UPI has also led to the emergence of several UPI-based payment apps, such as Google Pay, PhonePe, and Paytm. These apps have become popular among users and have contributed to the growth of the digital payments ecosystem in India.

Challenges facing UPI

While UPI has been successful in India, it still faces several challenges. One of the biggest challenges is the lack of awareness among users about the benefits of UPI and how to use it. Many users still prefer cash or traditional payment methods and are hesitant to switch to digital payments.

Another challenge facing UPI is the limited acceptance of UPI payments by merchants. While UPI has become popular among individuals, many merchants still prefer traditional payment methods such as cash, credit cards, and debit cards. This is partly due to the lack of infrastructure and technical expertise required to accept UPI payments. Some small businesses may also be hesitant to adopt UPI due to concerns about security and fraud.

To address these challenges, the government and the NPCI are working to promote awareness of UPI and its benefits among users and merchants. They are also working to improve the infrastructure required to accept UPI payments, such as the availability of POS terminals and the integration of UPI with e-commerce platforms.

In addition, the NPCI has been introducing new features to UPI to make it more user-friendly and secure. For example, the NPCI recently introduced the UPI AutoPay feature, which allows users to set up recurring payments for bills and subscriptions. The NPCI has also introduced the UPI 2.0 version, which includes features such as invoice sharing, overdraft facility, and QR code-based payments.

Conclusion

The Unified Payments Interface (UPI) is currently the strongest trend in payment processing in India. Its ease of use, convenience, and security features have made it a popular choice among users, merchants, and businesses. UPI has disrupted traditional payment methods and has become an integral part of India’s digital payments ecosystem. However, it still faces challenges, such as the limited acceptance of UPI payments by merchants and the lack of awareness among users about its benefits. The government and the NPCI are working to address these challenges and promote the adoption of UPI in India. As the digital payments industry in India continues to grow, UPI is expected to remain a dominant player in the payment processing landscape.

In recent years, the use of online payment methods has increased dramatically, with more and more people choosing to use them over traditional payment methods such as cash or checks. The reasons for this trend are numerous, but some of the key advantages of using online payments include convenience, security, and speed.

One of the most significant benefits of online payments is the convenience they offer. With online payments, you can make transactions from anywhere, at any time, as long as you have an internet connection. This means that you can pay bills, transfer money, or make purchases without ever leaving your home or office. Moreover, many online payment systems offer mobile apps that allow you to make payments on the go, making it even easier to manage your finances.

Another advantage of online payments is the level of security they provide. Online payment systems use advanced encryption and security measures to protect your personal and financial information from hackers and other cyber threats. They also offer fraud protection and dispute resolution services, so you can be confident that your transactions are safe and secure.
In addition to security, online payments are often faster and more efficient than traditional payment methods. For example, with online payments, you can set up recurring payments for bills, which means you don’t have to worry about missing a payment or incurring late fees. You can also make payments instantly, which is particularly useful for urgent or time-sensitive transactions.
Online payments also offer a level of flexibility that traditional payment methods cannot match. With online payments, you can choose from a variety of payment methods, including credit and debit cards, electronic checks, and digital wallets. You can also link multiple accounts and cards to your online payment system, which allows you to manage your finances more efficiently and easily.

Another key advantage of online payments is that they are often more cost-effective than traditional payment methods. For example, many online payment systems offer lower transaction fees than banks and other financial institutions. They also often offer rewards programs, cashback offers, and other incentives for using their services.

Online payments are also environmentally friendly, as they reduce the need for paper checks and other physical payment methods. This means that online payments can help reduce the carbon footprint of businesses and individuals, making them a more sustainable option for the future.

Overall, the advantages of online payments are clear. They offer convenience, security, speed, flexibility, cost-effectiveness, and environmental benefits that traditional payment methods cannot match. Whether you’re an individual looking to manage your finances more efficiently or a business looking to streamline your payment processes, online payments are a smart and practical solution that can help you save time, money, and effort. So why not make the switch to online payments today and start enjoying the many benefits they have to offer?

How To Collect Payments Remotely?

E-commerce has become essential for reaching new markets. Online sales increased by 15.1% and represent 14.1% of retail trade (for product sales). Accepting remote payments for goods or services makes it possible to reach a wider audience and guarantee an optimized customer experience.

To buy in a few clicks, from the comfort of your home, remote payment methods are becoming more popular. Several options make it easy to accept payments online, regardless of the size of your business.

Why Offer Remote Payment To Your Customers?

Consumers are used to being instantly connected to information, entertainment, social media, and the items they want to buy. They expect their needs to be immediately met through technology. Their level of demand for online payments has increased and they favor companies that accept this payment convenience.

Remote payment offers several advantages, for you and your customers:

• Save time for your customers: they can make payments wherever they are, without having to go to a physical store and wait in a queue to pay at the checkout.
• Simplifies the payment experience: it is easier for customers to fill out a payment form online than to connect to their online bank to make a deposit or a transfer.
• Better financial control: it is easier for the company to follow the orders it has generated, those that remain to be collected, and those that have already been paid.

The remote payment experience is an additional point of contact and communication opportunity with the customer. By diversifying your sales channels you maximize your chances of developing your turnover. You also allow consumers far from your catchment area to access your products.

COLLECT REMOTELY WITH A PAYMENT SOLUTION BY LINK

This solution is becoming more and more democratized because it allows unique payment links to accept payments in a secure environment and without a merchant site. This solution is particularly suitable for all merchants who do not have the skills, the time, or the means to devote themselves to online activity.

A payment link is a unique URL address, inserted in a message (e-mail or SMS) which, on click, directs customers to a secure web payment page on which the customer can enter their payment information and validate their transaction.

Benefits of using payment links:

• It makes it easy to accept online payments without having to set up and maintain a website.
• The payment page is customizable and configurable with a few clicks.

Let’s take the example of a personal services agency that has to invoice the services it has just provided. Instead of issuing an invoice for deferred payment by check or bank transfer (which can cause collection problems), it sends an e-mail or text message containing a payment link. Thus, the customer makes his payment immediately by entering his bank card information in a secure environment.

Here’s how remote payment with a link works:

• The seller confirms the order/service and asks for the customer’s mobile phone number or email address.
• A unique and tamper-proof payment link is sent to the customer by SMS or e-mail.
• The customer receives the e-mail or SMS, clicks on the link, and accesses a payment page inviting him to enter his bank card information as he would on an e-commerce site.
• Payment is then processed quickly, easily, and securely.
• The customer receives a payment notification by sms or a validation e-mail

COLLECT REMOTELY WITH A WEBSITE

For a service company, a self-employed person, or a merchant who sells products online, a common way to accept payments remotely is to set up a payment page on their website.

The customer goes to the website and enters the information relating to his payment card as well as his contact details.

A website with an online payment system offers complete flexibility to customers as they can make payments anywhere, directly from their computer or mobile phone, at any time.

To find out more on this subject, we invite you to consult our guide on How to create a merchant site for your business?

COLLECT REMOTELY WITH YOUR TYPE

We use the electronic payment terminal (TPE) of our business to make payments by bank card remotely.

A remote sale collection (VAD) with its TPE, how does it work?

• Beforehand, check the compatibility of your equipment with your TPE maintainer by contacting the assistance number indicated on your terminal.
• Sign a secure remote payment acceptance contract (known as a VADS electronic payment contract ), with your bank, which will then provide you with a direct debit card or merchant card.
• Set up your EPT to accept remote payments.
• Dealing with the client takes place over the phone. The latter communicates his bank card number and the merchant executes the payment from his TPE.

Remote payment by telephone is based on trust. Unlike the usual online payment, bank details are provided by the customer to the seller. This is responsible for making the payment.

Important points to remember:

• Check that the distance selling software (VAD) is installed on your payment terminal.
• The customer, remotely, must have his bank card to be able to list the different numbers on his bank card.

Remote payment with an electronic payment terminal is a less and less used payment method. In favor of a pay-by-link solution, which is an excellent payment option that is secure, easy to configure, and does not require any additional hardware.

When you want to buy something, you can now use the internet to pay for it. However, your bank card is refused at some point, and we are unsure of the source of the problem. There must be a reason why your bank refuses the internet transaction. Our team provides you with all the information you need.

Credit card remote purchase functionality is being disabled.

Bank cards, in general, have the advantage of being able to settle all online transactions. Banks use a security system to protect the use of their credit as a precaution. This is the remote purchasing feature. This function is disabled for the following reasons:

• Avoid deception.
• Stop credit cards from falling into the wrong hands.
• Increase the security of online banking payments.

If the agency has refused to use its credit card, access should be restored by requesting it. This process is completely free and is carried out right away to resolve this issue at the time of purchase.

On the other hand, when a customer orders a new card from his bank, this service may be discontinued. Aside from that, there are limits on his credit card to ensure better account management. That is, it is blocked once a certain amount is reached. It is then necessary to provide a fee to raise these ceilings.

Furthermore, if the establishment has refused this approach, a customer may have exceeded the withdrawal limits, which explains why his credit card has been blocked. When you recover your credit card, you must be aware of this limit.

This measure was implemented because online payment poses numerous risks. As a result, it is critical to adhere to the authorized limit before proceeding with the transactions.

Insufficient funds in his bank account

When a bank payment is blocked during an online purchase, it can cause several issues, such as exceeding the authorized limit. However, there are two other options:

• His account balance is negative.
• We’ve reached our authorized overdraft limit.
• We accidentally entered the secret code.

Before purchasing items from merchant sites, you should check your bank account to ensure that the requested amount is available. In the event of a financial emergency, it is best to:

• Make a transfer from a savings account to a checking account.
• Then proceed to credit card payment.
• Alternatively, use another payment method to make purchases.

To avoid such an inconvenience, it is always best to check your balance before ordering items from a merchant site or using another payment method.

Opposition to your credit card in the event of theft or loss

The bank’s refusal to accept an internet payment can also be explained by his credit card’s opposition, the reasons for which are related to its loss or theft. When you refuse your credit card, likely, you will no longer be able to pay the amount requested during a purchase, aside from the limit that you have exceeded.

As a result, even if he later finds his lost card, it is no longer usable once the opposition is made. For the procedure:

• You must dispose of the CB in the garbage.
• Request the bank.
• Wait 15 days before applying for a new credit card.
• Pay for your purchase using another method.

Error when entering your CB number

If you are unable to pay for your purchases on a merchant website, you may have entered incorrect bank account numbers. The operation would then have to be repeated for the internet payment to be validated.

It is still critical to adhere to the procedure:

• Access your Customer Area.
• Fill the basket with items.
• Validate all of the terms of sale.
• Carefully retype the numbers.
• Validate the input and wait for a response.

In general, you must enter the 16 digits visible on the front of your credit card. It is only left to communicate the expiry date, which is four digits. This expiry date is required for the procedure to be validated. Other information, however, is also useful.

Finally, on the back of the credit card, there is a 3-digit pictogram. It needs to be entered into the merchant’s website.

After entering all of this information, you will be able to pay with your bank card over the internet and without restriction.

A problem also arises if the CB or credit has passed its expiration date. It’s usually near the bottom, just above his first and last name. If it then expires, payment for its purchases will be automatically refused. To confront this, it is suggested that you:

• Go to the bank.
• Bring your identification and account number.
• Request that a new credit card is issued.
• To activate your credit card, make a withdrawal from the distributor or a merchant.

If his credit card is still refused, it is almost certainly because he forgot to make a withdrawal. All you have to do now is restart the online payment.

A Wrong PIN

Your credit card’s confidential code is required for online payment. It will be refused and deactivated after three attempts. This means that if a code error occurs after three attempts, it can no longer be used and is blocked immediately. Hence the problem with accessing your account.

This code is a security measure to prevent fraud and other access problems. The only way to recover your credit card is to get another one from the bank. But to avoid such an error the next time, it is advisable to contact his bank so that he can re-edit the secret code.

It should be noted that if you also have an authorization card, internet transactions may fail. If the payment ceiling is exceeded, this is also the case.

His online payment was refused voluntarily by the bank.

When it comes to online purchases, this happens all the time. The refusal of payment via the Internet is due to the risks of fraud or hacking, or an exceeded ceiling. If the online establishment has refused the payments, it will be necessary to request access authorization.

To strengthen security and avoid this issue, Google has implemented a credit card protection system known as 2-factor authentication. This system is also used for internet banking payments.

Google’s 2-factor authentication requires you to: 

• Secure access to bank accounts.
• For transactions over 30 euros and risky payments, validate your identity in two steps.
• Protect yourself from the threat of hacking.

When you use the same password for multiple online stores, double authentication is required.

When you want to buy something, you can now use the internet to pay for it. However, your bank card is refused at some point, and we are unsure of the source of the problem. There must be a reason why your bank refuses the internet transaction. Our team provides you with all the information you need.

Credit card remote purchase functionality is being disabled.

Bank cards, in general, have the advantage of being able to settle all online transactions. Banks use a security system to protect the use of their credit as a precaution. This is the remote purchasing feature. This function is disabled for the following reasons:

• Avoid deception.

• Stop credit cards from falling into the wrong hands.

• Increase the security of online banking payments.

If the agency has refused to use its credit card, access should be restored by requesting it. This process is completely free and is carried out right away to resolve this issue at the time of purchase.

On the other hand, when a customer orders a new card from his bank, this service may be discontinued. Aside from that, there are limits on his credit card to ensure better account management. That is, it is blocked once a certain amount is reached. It is then necessary to provide a fee to raise these ceilings.

Furthermore, if the establishment has refused this approach, a customer may have exceeded the withdrawal limits, which explains why his credit card has been blocked. When you recover your credit card, you must be aware of this limit.

This measure was implemented because online payment poses numerous risks. As a result, it is critical to adhere to the authorized limit before proceeding with the transactions.

Opening an online business requires the establishment of a payment system. To help you choose a convincing online payment solution, here are 5 criteria to observe. Choosing an unsuitable online payment solution is the main reason why Internet users are reluctant to pay online and abandon their shopping carts.

1. An online payment solution must be secure

The first criterion for choosing an online payment solution is security. Internet users need a reassuring online payment system to validate their purchases. Banking information is indeed critical data. Customers must therefore be guaranteed that their data will not be compromised after purchase. It is therefore essential to secure the connection between the buyer and the online store.

2. An online payment solution must be simple

Cart abandonment is mostly caused by the complexity of the online payment terminal that you will set up. Indeed, 26% of buyers abandon their purchase because of too complex validation of the transaction. The transactions must be done without fuss. Simplicity is therefore an essential criterion for choosing an online payment solution.

3. An online payment solution must be versatile

Many e-commerce sites only accept one online payment system. Usually credit cards. Some buyers, especially professionals, pay for their purchases or service contracts by SEPA direct debit.

Multiplying the number of payment methods that can be used for your transactions will also increase your chances of closing sales. But also to retain your customers.

Choosing a versatile online payment solution also involves seeing the different ways you can use it.  In addition to your e-commerce site, you multiply the sales channels.

4. An online payment solution must include additional tools

For a seller, transaction management is a real headache. To make your life easier, having additional tools to the online payment system is a real plus.

5. An online payment solution must have available and responsive customer service

One of the main shortcomings of payment systems is the passivity of their customer support. A good online payment solution must have responsive customer service.

Why is good customer service an important criterion for choosing an online payment solution? Available customer service will guarantee you a fast and efficient intervention in case of concern. In short, a guarantee of security and confidence. The responsiveness of the customer support of the online payment solution that you will use will also prevent you from losing customers thanks to the rapid resolution of the various blockages that you may encounter. Both technically and concerning the overall use of the online payment system.

All entrepreneurs are affected by remote payments.

Depending on the nature of your business, this type of payment may be an absolute necessity or just an opportunity to make more sales.

But do you know all the ways to collect payments remotely? By e-mail, by SMS, by telephone…?

We will start our overview of remote payment methods in a moment, but a small clarification beforehand:

We will not deal with payment solutions that require creating an e-commerce site, but only solutions that can be implemented very quickly by a self-employed person, a self-employed person, a merchant, or a VSE.

Easy remote payment with payment links

Do you know the payment links? Yes? Nope?

It is, however, the easiest method of getting paid remotely

Email or SMS is used to send a link from an application

After clicking the form link, the customer lands on a payment page, where he enters his bank card information

The customer receives a confirmation SMS or e-mail.

No need to enter the customer’s details beforehand, because payment links are a means of payment like any other and are not comparable to an invoice: instead of paying by check or with a payment terminal, the customer pays online with payment links.

Payment over the phone or by mail with the virtual terminal

It’s like having a payment terminal ready to accept card payments, except that it’s virtual. And your customer is tens or thousands of kilometers away.

How does it work?

The customer places an order over the phone or sends his order by physical mail or e-mail with his credit card details.

You enter the customer’s card data yourself into your virtual terminal

The customer receives a confirmation SMS or e-mail.

This remote payment method requires a bond of trust between the customer and the merchant. Indeed, contrary to the usual online payments, it is the merchant and not the customer who fills in this bank card data.

The remote payment modules of invoicing software

Do you still do your invoices by hand with Word and Excel?

It might be time to switch to online invoicing.

This will allow you to edit clean, standard invoices in several languages and correctly numbered, but also to accept payments by credit card and PayPal.

This will avoid checks and reduce the risk of non-payment with occasional customers. Large customers will still be able to pay you by bank transfer.

Most online invoicing software offers this service, but the number of online payment platforms varies:

You send your invoice by e-mail.

The customer clicks if he wishes on an online payment button.

He is redirected to a credit card payment page.

He receives a confirmation email and your invoicing software automatically marks the invoice as paid

Invoicing software is even capable of making reminders as long as payment has not been made!

Merchants who usually sell in B2C or newbie entrepreneurs who have not yet made the switch to online invoicing will prefer payment links.

Which remote payment method to choose?

To summarize :

Payment links are suitable for many situations in addition to a paper invoice, whether the customers are individuals or professionals.

Examples:

• A shop, which wants to start selling online very quickly because of the pandemic situation.
• A craftsman who prefers to be paid online rather than by check.
• A self-employed person who does not want to give his bank details to an occasional customer and is looking for an alternative to bank transfers.

The payment modules of online invoicing software can be used both with individuals and occasional business customers, instead of transfers. Advantages: automatic reminder in the event of non-payment, automatic validation of the payment. Disadvantages: more expensive than a transfer.

The virtual terminal will be used only in the context of an online sales activity to individuals.