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Forging the Future of Payments – The Emerging Trends

Category: Growth Hacks

Forging the Future of Payments – The Emerging Trends
Mohab Growth Hacks 0

Forging the Future of Payments – The Emerging Trends

With the rapid pace at which the payment industry is gathering momentum, the global payment environment will go through a sea change in near future. There are many factors responsible for an ongoing shift in the payment industry.

We are going to discuss these trends in the light of the 5 major factors that are as follows:

  1. Increasing regulations and compliance post global recession of 2009
  2. Entry of new players in the market and increasing competition
  3. Economic growth in emerging markets and a resultant boom in payment flow across new regions
  4. Innovation and unprecedented growth in technology

Technological innovation is paving the way for increased accessibility, efficiency, velocity and reach, as far as payment transfers are concerned. It is responsible for a complete shift as to where, when and how payments are initiated and transferred.

Banks need to be cautious and monitor the situation carefully as to how developments are taking place in the payment industry and what opportunities and threats it is posing for the banks. In order to thrive, they need to be alert and ready to capitalize on the emerging possibilities.

  1. The impact of regulation

Increasing regulations is the biggest factor that is going to impact this industry in future. With an unprecedented growth in the volumes of cross-border payment transactions, the volume of these transfers has doubled from US$10 billion in 2012 to US$18billion in 2018.  Such a huge volume of international transactions warrants strict monitoring and control.

Banks need to keep an eye on the complexities involved with local and international regulatory framework. The other influencing factors are current practices, currencies and payment formats.

Changes in regulatory compliance can lead to enormous innovation, where it becomes necessary to reevaluate both internal and pan-industry practices.  It will open a whole new world of opportunities for banks and corporate sector.

To simplify and harmonize payment practices across Europe, EU has introduced the Single European Payments Area (SEPA). Fixing regulatory and compliance issues, SEPA has harmonized and standardized the payment market and eased local transfers. Such integration activities are likely to take place in other regions as well.

  1. Entry of new players

Many new players are likely to enter the payment industry and those can be online payments providers, virtual marketplaces and large technology and social media companies such as Google, WhatsApp, Amazon, and Apple, etc.  A thriving fin-tech ecosystem will boost the market.

The factors that are responsible for attracting new players in this market are the current secure payment propositions. The industry as a whole is gravitating towards new payment methods that are not constrained by banking regulations and offer convenient and innovative methods to the customers.

  1. Economic growth in emerging markets

Shifting economic landscape and changing global demographics across the planet will also shape how future payment flows will take place.

A soaring middle-class population and changing economic landscape is creating global opportunities in this industry. In the year 2000, the US and Western Europe together controlled 70% of global financial assets, but by 2020, it is estimated to fall to 45%. China, on the other hand, is flexing its economic muscles and it has seen a 600% growth in global financial assets since then.

  1. Rapid growth in technology

With the rapid pace of change in financial technology, many regions such as Latin America have experienced unprecedented growth in smartphone penetration. Nearly half of the adult population in this region doesn’t have a bank account. So, there is huge potential for payment processors and mobile banking.  Technology allows you to not only transfer the funds instantly but also to track it in real time.

Payment processors like PayTabs have a real advantage here because they have future-proof strategies in place that include customer-centric approach, convenience, flexibility and multi-currency support.

7 years ago
5 Tips to Protect Your Business When Dealing With Payments
Mohab Growth Hacks 0

5 Tips to Protect Your Business When Dealing With Payments

Most of the credit card frauds that took place earlier were related to “card-present” cases. These days with adequate security procedures like EMV (Europay, MasterCard and Visa) chips to make transactions secure, something sinister is happening.

A new type of card fraud is emerging with “card-not-present” type of transactions. In such type of card payments, you are not physically swiping the card, but are using it on online platforms to perform E-Commerce transactions.

In order to deal with such type of card or identity theft, users are requested to get back to their credit card provider or the issuing bank for the reversal of the fraudulent charges. In the normal E-Commerce environment, where a buyer and a seller are involved, merchant is held liable for any fraudulent charges and they are supposed to reverse these charges.

These days, a new type of e-Commerce environment is emerging, where different buyers and merchants come together on a single platform. In this case, the platform-merchant relationship decides as to who is to be held responsible for frauds.

Recently, a trend is emerging where a swindler masks as a merchant and then they manipulate the platform to commit fraud before disappearing from it. In such cases also, the platform is held responsible for the fraud.

Now we’ll discuss what a platform owner can do to protect itself and its buyers against such frauds. Here are 5 tips to prevent such incidents and minimize the losses due to fraudulent cases.

Educate yourself on credit card fraud
There is no fixed modus operandi for credit card and other types of payment frauds because they are constantly evolving. Criminals in cyberspace use innovative techniques and latest technology to commit such acts. So what is recommended today may not be relevant in the future.

Constantly update yourself and keep on exploring newest fraud tactics. Employ latest technology and find the best ways to deal with the current threats efficiently. There are different types of frauds prevalent in the online marketplace today and these include buyer identity fraud, merchant identity fraud and merchant credit risk. Scammers can mask themselves as legitimate buyers and sometimes merchants as well.

Implement simple protection
To start with, employ the proven tools and techniques to avert fraud. For example, user data should be validated first with database companies like Equifax, Lexis-Nexis and Experian. You can also perform a history and credit check about the user, so as to make sure that he is a legitimate buyer or seller.

Do some social data mining
Entering into advanced fraud protection measures, social data verification can supplement our efforts to protect customers from fraud. We can perform data-mining from platforms like Facebook and LinkedIn. We can pull these social insights to validate user identity through them. Scammers can create fake social media IDs, but it doesn’t take much to find if it is their regular ID or if it is designed in a hurry in order to commit a fraud.

Use your instincts
If something sounds too good to be true, stay away from it. If someone offers a deal that they are going to pay for the project in advance and it sounds too good to be true, there is high probability that it can be fraudulent.

Don’t do dilly dallying
Frauds are inconsistent and unpredictable in nature. Sometimes, frauds do not take place for a long time and suddenly you observe a surge in fraudulent activities. So, regularly monitor these activities with the help of latest tools even if no fraudulent activity is detected on your platform. Always stay alert as fraudulent activities can come as surprise and hamper normal business activities. They can also affect your profits and employee morale negatively.

7 years ago
How Shoppers Browse and Buy Products Online & Offline
Mohab Growth Hacks 0

How Shoppers Browse and Buy Products Online & Offline

Whether you are an online business or an offline one, understanding how your customer browses and shops can help you bring in more traffic and boost sales. Making the shopping experience enjoyable and easy is the first step to building your brand reputation and getting loyal shoppers who keep coming back to you. So, here are a few things to keep in mind when it comes to crafting strategies based on shopper behavior.

Power of location

An offline shopper will usually go for a store that is near her home or on the way back from her workplace. Stores present in a shopping mall are also attractive. So, while picking a location for your physical store, make sure that it is close to your target audience and easy to find. But when it comes to an online shopper, location matters in a different way. This is because the shopper can buy products from anywhere in the world but they do prefer e-stores that have clearly mentioned shipping details. Those online stores that mention the location of the site, shipping rates, and where they ship, reel in more customers.

Shoppers want easy shopping

You need to make shopping easy for your customers, whether you are online or offline. Shoppers usually expect online stores to have a sensible layout, easy product categorization, simple checkout option, multiple payment modes and a safe payment gateway like PayTabs. The option of EMIs, the ability to shop round the clock and not having to carry purchased items home are other attractions of online shopping. In a physical store however, you need to have clearly defined aisles with properly grouped products for shoppers to like the experience. Express lanes and having more cashiers during rush hours can help too.

Everyone likes to have knowledge  

Buying any product without sufficient knowledge is something no one wants. Hence, in a physical store, the sales staff must be well-versed about all kinds of products. This is especially true in case of appliances, phones, laptops, baby furniture and so on. For an online store, shoppers find it easy if the products are well-described so that they can make an informed choice. Offering videos, blogs or guides are also great ideas to warm up to shoppers with information.

Looks matter!

Yes, it does, and for both offline and online stores. While offline shoppers like a store that is neat organized and has a stylish ambiance, online shoppers choose retail websites that have a smart layout and looks professional. If you have a physical store, introducing a particular theme that resonates with your products or using the right lights and right layout can help. For instance, a store selling beach wear can feature a storefront image that reminds you of a sunny beach vacation. Or a store selling kids’ items can be painted in bright and peppy colors to attract little ones. If you are an e-store, make sure your website uses elegant colors, a crisp font, a simple design and neat graphics. The customer should in no way be confused. Stay away from loud hues, different kinds of fonts, and too much information crammed onto one webpage.

Prices are vital too  

Make sure that your pricing strategy complements the kind and quality of products you sell as well as your marketing plan. Also, the prices you quote must justify the convenience of your store, its location, the kind of product knowledge it offers and how it looks. And this holds true for both online and offline stores.

Finally, though most businesses are going online these days to reach out to a wider audience, there are many brands that boast of physical as well as virtual stores. And by keeping the above points in mind, you can attract shoppers to all your stores!

7 years ago
5 Answers to the Most Frequently Asked Questions about Payment Gateways
Mohab Growth Hacks 0

5 Answers to the Most Frequently Asked Questions about Payment Gateways

If you are a business with an online presence, you surely know how payment gateways can make it easy for you to receive payments from customers based anywhere in the world. This is a merchant service that acts as a virtual equivalent of a Point of Sale in a physical store. In simple words, without a payment gateway, your business wouldn’t run at all as this service allows the payment processing of debit and credit cards in the online world!

Luckily, with a payment gateway like PayTabs which is easy to integrate with your website or mobile app, you can expect fast and secure payments without any glitch. But that doesn’t mean you don’t have questions about payment gateways. So, here are 5 most asked questions with their answers:

1) How does a payment gateway function?

When your customer purchases a product online, a payment gateway like PayTabs contacts your store’s acquiring bank. This bank is the one that will receive payments. The acquiring bank in turn contacts the bank which has issued the customer’s credit card or debit card. If there is enough money on the customer’s card to pay for the purchased item, the issuing bank will allow the transaction. The payment gateway will then be able to gather the money from the issuing bank of the customer, and all of this will happen in seconds!

2) How much does a payment gateway charge?

The kind of fees you have to pay will vary from one payment gateway to another. This will usually cover your setup fees, monthly fees and qualified rate that is charged per transaction. Support and reporting fees might also be included. So, go with a reliable and affordable gateway like PayTabs and avoid hidden charges.

3) What is a merchant account and why do I need it?

If you wish to receive payments from customer’s debit or credit card for every purchase made, you definitely need a merchant account. It is a specialized bank account that carries the fund you receive from customers for a specific time period, before sending it to your traditional account. You need it because without a merchant account, you cannot process payments. A merchant account will work with the payment gateway to facilitate easy transactions, so that the gateway deposits all payments into this account.

4) How to choose a payment gateway?

Though there are many payment gateways available these days, not all can be trusted equally. But with PayTabs, you will get all that your business needs with ease. This gateway is highly secure, and lets you accept payments in 168 currencies. Plus, merchants can use it even if they don’t have websites. PayTabs also provide regular financial reports and lets you maintain all customers and transactions from a single dashboard. This can help immensely when it comes to keeping a tab on the progress of your business.

5) Is the payment gateway secure enough?

A payment gateway must be very secure since it stores and transfers a lot of customer details and online frauds and identity thefts are very common these days. So, choosing a gateway that complies with PCI DSS requirements is ideal. It should feature advanced tools like intrusion detection, firewalls, and secure credit card data storage to avoid the risk of frauds. PCI DSS is also known as Payment Card Industry Data Security Standard, and it ensures that all businesses store, process and accept card information in a very secure manner. So, choose a gateway like PayTabs, and rest assured that you have minimized the risk of frauds almost completely.

Now that you know what a payment gateway is essentially all about, choose the right one and make your business a huge success!

7 years ago
New Web Store? Your Checklist for Success in 2018
Mohab Growth Hacks 0

New Web Store? Your Checklist for Success in 2018

The world today is way more digitalized than ever before, and this has immensely impacted the way stores, showrooms and even small merchants are getting their business done! Everyone has an online presence and every business is trying to rope in as many potential customers possible through web stores or online stores. Naturally, the competition for attracting the target audience is high, and if you too have joined the bandwagon of online merchants recently, here are some cool tricks that can help you stand out!

Web design that attracts and engages

No matter how great the product or service you sell is, without a wonderful web design, your marketing campaign will fall flat on its face. Either you can learn to create a visually appealing web store yourself or you can hire a professional web designer. The investment will be worth it. Or, check out sites such as TonyTemplates or TemplateMonster to get hold of an attractive e-commerce template with the latest designs and layouts. Minimal text and high quality full-width images are the way to go.

Focus on “About Us”

Your “About Us” page is the biggest bait after your landing page to hook potential customers. Keep the design minimal and mention clearly how your brand was born, what you offer, and why it is important. Include testimonials and achievements to gain customer trust and also mention contact details like address, email, and social media pages.

Don’t ignore the power of online support

Your interaction with the customer is not just till the moment he or she makes the payment and gets the product delivered. It should go beyond that in the form of awesome online support or after-sales services that they might need before using the product. Pre-purchase support in the form of live chats on your website can boost the conversion by more than 10% as well. It will also encourage new buyers to trust your store. Make sure that the chat box or the phone line is clearly visible on your homepage.

Choose the perfect payment gateway  

Without a secure and fast payment gateway, your online business will do anything but prosper. So, go for a gateway like PayTabs which lets you sell your products globally and receive payments even within 24 hours! It has a very robust 2-layer fraud protection system, and accepts 168 currencies too. You can integrate PayTabs very easily into your system and benefit from features like online invoicing, mobile apps, and convenient payment processing. Customer details and purchase history are well-protected, and PayTabs also generates financial reports that can help you monitor cash flow. This payment gateway is ideal for every type of business, it can make your business cycle easier to handle and it will keep a track on recurring customers too.

Make your website and blog SEO-optimized

Ensure that both your website and blog (everyone has one these days) follow Search Engine Optimization or SEO. This means, that the content, product titles and descriptions must contain keywords that will help you rank higher on organic search results. Or in other words, using the right keywords will increase your visibility to the online audience. Before incorporating the keywords which you think will work, type them into a search engine like Google and see who your business competitors are. If they are big ones, change your keyword to something that is not so competitive. For your blog, use SEO tools and Google Analytics to track page views and see which posts do better.

Other tips

Advertise creatively on social media, track analytics of your site, make your site is mobile-friendly, offer free shipping and assured refunds, use email marketing, and network with industry bloggers, traditional reporters and social media influencers to create a buzz about your product. Don’t forget to keep an eye on your competition too.

7 years ago