To all shopaholics: Who carries cash in their wallet anymore nowadays? It’s been all about bringing cards, tapping phones, and scanning QR codes for payment, especially after months of staying at home due to the global pandemic.
With the rise of e-commerce and the fast shift to touchless transactions, consumers were easily nudged into the direction of electronic payment. In 2020, a ton of payment processing software stepped up to give shoppers more options to pay with less hassle.
What is a Payment Processing Software?
Payment processing software allows businesses to process customer payment in person or online. Typically, these are integrated with online wallets or other forms of digital payment. Businesses apply payment processing software to their storefronts or websites to facilitate faster and easier check out for its buyers.
Using a payment processing software carries a number of benefits for businesses, such as enhanced security from data encryption, faster check out from stored information, and added capabilities for multi-currency or multi-language functionality.
We rounded up the top three providers that offered the best and most reliable solutions going into the new-year.
The top payment processing software in 2021
From one of the biggest e-commerce players is a simple yet reliable payment software: Amazon Pay. Checking out is made ten times easier because of the saved information from the consumer’s Amazon account, which likewise brings a familiar buying experience.
A huge factor in trying out digital payment is making sure that buyers are comfortable with your software. The advantage with using Amazon Pay is that businesses can leverage the existing trust that customers have for Amazon and turn that into a seamless shopping experience. Reduced cart abandonment and increased customer reach are also some of the benefits that Amazon Pay delivers.
Unlike Amazon Pay, Venmo focuses its service on peer-to-peer payment platform. It’s accessible by a mobile app that allows friends to send and receive e-money instantly with no fees. Customers can easily link Venmo to their debit card and it’s good to go.
Some retailers accept Venmo for in-store and online purchases, while other businesses use the software for payment to freelance services. The company also injected in a few social platform features which makes transactions visible to the public – sort of similar to sharing posts on Facebook.
Stripe is a processing platform that transfers money from a customer’s account straight to the company’s business account. It supports credit card payments, recurring payments, and even subscription billing. Unlike Venmo which is a digital wallet, Stripe instead saves your card and payout information to communicate directly with your bank without storing money.
Because of how easy its setup is, Stripe is better suited for bigger businesses who want to accept digital payment. It has invoicing features and fraud prevention to keep its platform safer when dealing with many customer payments at once.
The future of digital payment
All businesses that want to offer their customers payment options other than cash may be using at least one type of payment software. In fact, you may also be familiar with these websites or applications from your last retail purchase. The future of commerce looks like it’s heading towards innovation that appeals to a consumer’s attraction to convenience. If that were the case, then it’s a win-win for both businesses and shoppers alike.