When it comes to online payments, security has always been a major concern for consumers and businesses alike. Customers were reluctant to pay for products and services online and businesses had to invest heavily in the infrastructure in order to take payments from customers.
But, in the past few years, digital payment technology has come on in leaps and bounds. Today, more people than ever are paying for goods and services online and businesses are discovering that setting up the systems to take payments in this way is cheaper and easier than ever before.
Online payments are the future
The new technology was much needed. Cybercriminals were becoming more sophisticated and taking advantage of outdated systems. As cases of identity theft and security hit the headlines, the FinTech stepped in and put new technologies, such as Blockchain, to help create new online payment services that were able to eliminate fraud and exclude the most persistent hacker.
As customers and businesses saw how safe and effective these services were, they started using them more – especially since these new services also made carrying out transactions quicker, more efficient and convenient.
Even payment cards have become more secure for online payments. Newer smart cards offer more security and functionality thanks to the improved chips and other technology.
This new level of security means that more customers are using online payments. Smart businesses are updating their systems and partnering with online only companies, such as KoalaPays, to leverage the benefits and win more clients.
The use of secure online payment technology is growing
The good news is, the technology is still getting better. New online banks and payment companies are now using encryption technology, duplicate authentication factors and SSL certification to protect transactions.
One of the latest advances in security technology is tokenisation, whereby you substitute a proxy set of identifying information for the actual payment card data. This means that merchants don’t have to handle private data at all. This also enables the use of more stringent ID checks, such as biometrics.
Up-and-coming demographics such as millennials are spearheading the shift to new online payment systems. Companies have started to target this generation as they see a potential to significantly grow their businesses.
Fewer people are making cash and POS payments due to the Covid-19 pandemic and this trend is expected to continue after the crisis ends. To tap into these new markets – businesses must partner with online payment services and offer secure payment options their customers expect to see.
There are other benefits for businesses too. For instance, chargebacks have become a real problem, affecting reputational value, as well as profits. But this is one area where the customer isn’t always right. Technology such as Chip & Pin and fingerprint recognition is now being used to lower fraud and reduce the rate of chargebacks.
Trade with confidence and win more business
The best way to protect your business and thrive when it comes to online payments is to use a payment provider that uses the most up to date technology in the fight against fraud. Here, at KoalaPays, our platform is fully PCI compliant and we’re always looking at ways to improve security for our customers. Our e-wallets are one example of that. These are now recognised as one of the safest (and most convenient) ways to pay in multiple currencies.
Choosing an online payment provider that has an understanding of the security risks out there and all of the contingencies in place to avoid fraud, should be a key focus. A good payment partner is also one that will take the time to understand your business model and then advise and implement the best security measures to reduce your risks.
But security is only one part of the bigger picture. New functionality is coming that will help companies run their businesses better. KoalaPays is already designing new services that will help our clients manage their entire accounting and finance systems more efficiently.
For firms that partner with the right payment solution provider, doing business with your customers online has never been safer or more profitable.