MODERN PAYMENT SOLUTION TO EMPOWER YOUR BUSINESS

What is a modern payment solution?

The term “Fintech” has already been very familiar with the market as a fusion of finance and technology, which can be considered as an enormous evolution in modern society as it encompasses a wide array of technological advancements and solutions aimed at improving and automating most processes in the market. On this path, new payment solutions have been developed with cutting-edge technologies, they are innovative tools and platforms that are designed to facilitate financial transactions securely and efficiently. These payment solutions have been aiding in personal financial management, business operation, and fund management for financial institutions with carefully built platforms and systems. This evolution has not only redefined the way we make transactions but also reshaped the entire landscape of financial interaction, offering a new level of accessibility and convenience in conducting financial transactions even globally.

Illustration for payment solution’s evolution, with group of business people walking toward improvement
Person using their mobile phone to manage and perform their financial activities

The evolution of payment solution

Beginning with the most basic type of transaction – the rudimentary barter system, which is performed by exchanging goods and services that are considered to have equal values. Then the concept of currency was introduced, paving its way to become a structured and standard trading method. As society progresses, payment solutions keep evolving with coins and bank notes as representation for values. Continuing the growth, bank checks were introduced in the 17th century, to assist in transactions without the needs of bank notes in the present, which was an advanced payment solution at the time since its convenient and safeness, especially for large transactions.

However, the digital age is the time when the real revolution happened. With the rise of credit and debit cards alongside bank checks, it had become a new way of purchasing without physical currency in sight at the time. These cards can help with immediate transactions, reducing the needs of cash, checks and even the requirement of the card owner to be present at the sales point later on with online card payment. Continuing with the momentum of online card transactions, mobile payment applications like PayPal, Venmo raised and laid the first bricks of mobile payment platforms, providing its users real-time payment by just a few touches on their phone. This new method also boosts the development of contactless payment methods with the ability to perform quick, simple and secure payment by tapping the user’s card or phone on any POS device or even just by scanning a QR code to complete the transaction.

Unsurprisingly, the rise of technology in these digitized days hasn’t stopped, leading us to a new type of currency – decentralized digital currency, which offers unparalleled secure and transparent transactions, challenging the traditional form of money.

There are various types of payment solutions

Payment solutions in the realm of fintech encompass various methods and technologies designed to facilitate transactions with their own set of advantages, all of which serves the only one purpose – to make the users’ life easier.

Mobile Payment Apps

These applications, exemplified by services like PayPal, GrabPay, GoPay, AliPay, MoMo, empower businesses by providing a versatile means of transaction handling through smartphones. They streamline payment processes, offering a convenient and adaptable way to engage customers and process payments anywhere, enhancing business agility and customer satisfaction.

Contactless Payments

Using NFC or RFID technology, contactless payment solutions redefine transactional experiences in retail and business settings. They facilitate quick and secure transactions, reducing queue times, and enhancing operational efficiency for businesses, while addressing consumer demand for safer payment options.

Cryptocurrency & Blockchain-Based Payments

Cryptocurrencies like Bitcoin and Ethereum, operating on blockchain technology, present opportunities for businesses seeking secure, decentralized payment methods. These solutions offer potential advantages in cross-border transactions, heightened security, and reduced transactional complexities, fostering trust and global accessibility

Online Banking & E-wallets

Platforms provide businesses with digital spaces for financial transactions, offering comprehensive services for fund management, bill payments, and online purchases. These solutions streamline financial management, enabling businesses to optimize operations and enhance cash flow management.

Customer paying at the POS with their mobile payment application

POS (Point of Sale) Systems

Point of Sale solutions enable businesses to accept various payment forms, including card transactions and digital wallets, streamlining the checkout process. These systems not only enhance customer experiences by offering diverse payment options but also provide businesses with efficient and secure transaction handling capabilities, improving revenue collection and sales tracking.

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P2P (Peer-to-Peer) Payment Platforms:

Platforms like Venmo and WeChat Pay facilitate direct fund transfers between businesses and individuals. These solutions offer efficient and secure means for businesses to manage payments, settle invoices, and conduct financial transactions with clients or partners, simplifying financial engagements.

Biometric Payment Solutions

Biometric methods, employing fingerprints or facial recognition, offer heightened security for transaction authorization. Businesses can leverage these solutions to ensure secure transactions and protect sensitive financial data, providing an added layer of authentication for transactions and access control.

Wearable Payment Devices

Devices integrating payment features, such as smartwatches or smartbands, offer businesses an innovative way to engage customers. These wearables provide a modern and convenient payment experience, potentially enhancing customer loyalty and brand engagement while offering a futuristic and tech-savvy image for businesses embracing such technologies.

Not only personal finance benefits from these methods, the innovation also creates positive effects on the development of our society with its ability to perform secured and fast transactions, encourages spending, contributing to a more fluid flow of money within the economy. During the Covid-19 pandemic, contactless payment solutions gained popularity from their hygienic nature, this has developed a habit of paying without cash or card among global consumers as well as retail establishments. These payment solutions are also an empowering tool for small businesses by widening their customer base and experience with POS systems, e-wallet and other online payment gateways, enabling them to compete in the digitized marketplace. Government services also benefit from these new forms of payment solutions as it reduces inefficiencies, minimizes leakages and ensures more equitable distribution of resources when almost everything can be done directly with citizens’ accounts.

Modern payment solutions are the aid of day-to-day errands and a step up for society

Bearing the convenience of technology, modern payment solutions have helped making payments become more streamline with convenient platforms, mobile apps or even with wearable devices, this eliminates the need of carrying physical cash, cards and taking any risks of losing money by any incident. Even when sitting at home, or traveling to another country, these payment methods facilitate quick and easy access to the user’s account for instant payment and splitting bills automatically if needed in a well built system applying robust security measures, reducing the hassle of having to find an ATM that is connected with the user’s bank or even being at the bank. Many payment applications and platforms also provide features for expenses tracking and categorizing transactions for periodic reports, giving its users better insights into their spending and help them effectively work on their budget managing and planning.

Image of a develop city with buildings and high technology effects

Not only personal finance benefits from these methods, the innovation also creates positive effects on the development of our society with its ability to perform secured and fast transactions, encourages spending, contributing to a more fluid flow of money within the economy. During the Covid-19 pandemic, contactless payment solutions gained popularity from their hygienic nature, this has developed a habit of paying without cash or card among global consumers as well as retail establishments. These payment solutions are also an empowering tool for small businesses by widening their customer base and experience with POS systems, e-wallet and other online payment gateways, enabling them to compete in the digitized marketplace. Government services also benefit from these new forms of payment solutions as it reduces inefficiencies, minimizes leakages and ensures more equitable distribution of resources when almost everything can be done directly with citizens’ accounts.

The best payment solution

We know everyone is asking “what is the best payment solution for my business?”, instead of just stating biggest names in the market, it’s better to look for these aspects that make up a good payment solution:

  • Encryption and security protocols: the solution should utilize secure transmission and storage methods, including SSL/TLS encryption, to secure sensitive data, including personal information and transactions.
  • Authentication measures: an added layer of security is provided by two-factor authentication (MFA) or biometric authentication (fingerprints, facial recognition), which prevents unauthorized access and ensures that only authorized users can initiate transactions.
  • Compliance with industry standards: for a solution to be secure and protect against fraud and data breaches, it must adhere to industry regulations and standards (such as PCI DSS).
  • Tokenization: by replacing sensitive information with a unique identifier (token) during transactions, tokenization reduces the risk of exposing actual payment information to hackers.
Person working on their laptop looking for the best and safest payment solution
  • Fraud detection and prevention: the use of powerful fraud detection mechanisms and AI-powered analytics reduces the risk of fraudulent transactions by identifying suspicious activity in real-time and preventing it.
  • Regular updates and maintenance: a continuous update program, patches, and maintenance are crucial to maintaining the system’s resilience against security threats and exploits.
  • Transaction monitoring and alerts: By tracking transactions for unusual patterns or behaviors, real-time monitoring tools can detect potential threats promptly. Users can also be provided with transaction alerts to ensure transparency and to identify unauthorized activity immediately.
  • User education and support: educating users about the system’s using process and providing reliable support channels are the two mandatory points for a good payment solution, which help its users mitigate risks related to user errors or any potential security issues.
  • Strong partnerships and secure infrastructure: it is important for a payment solution to collaborate with trusted financial institutions, payment processors, and technology providers to ensure a secure infrastructure that adheres to high security standards and best practices.
  • Accessibility and ease of use: security should be prioritized, but good payment solutions should also prioritize user convenience and accessibility without compromising security.

Consider the pros and cons of digitized payment solutions

There’s nothing in the world that is all good without any (even tiny) set backs. Modern payment solutions might seem superior, it still comes with pros and cons considering its users.

Pros

Other than all positive aspects mentioned above, the modern payment solutions also come with these advantages for both consumers and businesses:

  • Streamlined financial management:  modern payment systems include integrated tools for managing finances, generating reports, and tracking expenses. This provides individuals and businesses with greater control over their spending and finances.
  • Scalability: with the help of these solutions, businesses are able to effectively scale their operations as they grow, since it provides flexibility in handling increased transaction volumes without substantial infrastructure changes.
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  • Easier reconciliation: for businesses, digital transactions make reconciliation and accounting processes more straightforward by detailed digital records, which helps reduce discrepancies and make auditing easier.
  • Real-time tracking: In addition to enhancing transparency, real-time transaction tracking enables users to see their finances immediately to make fast decisions.
  • Integration with other services: users and businesses benefit from seamless integration of payment solutions with services such as budgeting, accounting, and e-commerce.
  • Reduced risks of human errors: transactions involving digital payments are less likely to encounter human errors, like calculation errors or miscounts.
  • Environmental impacts: digital payments reduce paper waste and carbon emissions associated with cash production and transportation by reducing the use of paper currency and physical checks.
  • Security concerns: Even with advanced security measures, digital transactions can be hacked, phished, and have their data breached.
  • Dependency on technology: It is possible to suffer a system outage, a technical glitch, or a network failure that disrupts access to funds and transactions.
  • Fraud risks: New forms of fraud can emerge as a result of the growth of digital transactions, necessitating ongoing vigilance and updated security measures.
  • Exclusion of certain populations: Digital payment solutions advance financial inclusion, but some individuals may not have access to technology or reliable connectivity, especially in remote areas.
  • Privacy concerns: During digital transactions, a trail of data is left behind, raising concerns over personal privacy and potential misuse of financial data.
  • Transaction fees: The cost of some payment solutions, especially those for cross-border or high-value transactions, can impact users and businesses.
  • Lack of universal acceptance: In some situations or regions, some digital payment methods may not be accepted by all merchants or businesses.
Illustration of a hacker Hacker activity concept - Free Vectorsneaking into transaction’s confidential data

What can IMT Solutions do for your business?

As the leader of the IT services and solutions provider market, IMT Solutions has been trusted by global enterprises, financial institutions and government projects for over 15 years by our award-winning team of experts. Our fintech services include data gathering, analysis, design, implementation, testing and maintaining systems as a one-stop-shop for the safest fintech system operating under your business. We understand your needs, your pains and we have the ability to not only soothe it but also upgrade your business for a better part of the market. With IMT, your business can have its own payment solution without the headaches.