Does Your Business Really Need a Turnkey Payment Solution?

The world’s reliance on electronic devices continues to soar. And it’s no surprise that this trend extends into the area of business payment processing. This can be seen through an increase in the use of digital payment types such as mobile payments, online payments, and mPOS devices.

Every merchant requires an easy and efficient way to manage their business payments. Enter turnkey payment solutions.  A turnkey payment solution provides a comprehensive central platform for all business payment types, both incoming and outgoing.

Before going further into the advantages of a turnkey payment solution, let’s discuss the essentials of online payments, mobile payments, and mPOS devices.

Online payments

Countless online payments are performed each day. These electronic transactions take place through the Internet, as people increasingly crave the convenience and speed of buying and selling items online. According to a recent survey by Statista, the number of global online consumers is expected to reach two billion by 2019.

By using an online payment system, usually offered by payment service providers (PSPs), merchants can accept payments from customers’ credit/debit card accounts directly to their business bank account. Customers submit payment information electronically and the online payment is processed quickly and safely.

To accept payments online, merchants must comply with the PCI DSS regulations. But getting certification from the PCI DSS is a long, grueling and difficult process.  Many merchants choose to instead work with a PCI DSS certified payment service provider, like Direct Pay Online. PCI DSS certification ensures that best practices are employed when it comes to dealing with credit card information. This multiple layer security setup reassures customers that their data is in safe hands. Furthermore, these standards minimize the risks that face online merchants when processing credit card payments. For example, PCI DSS compliance helps prevent chargebacks, as discussed previously in this blog post.

Mobile payments

Mobile payments allow customers to pay for goods and services using mobile devices, either through a mobile wallet, mobile money or a dedicated mobile payment app of the merchant. In addition to allowing payments to be made from any location, a mobile payment solution permits the provision of payment services to a far wider demographic, including:

  • Customers with reduced online payment system access, such as those without the luxury of home Internet access.
  • Customers without bank account access. McKinsey and Company estimate that 80% of adults in Africa use informal financial services. Previously, these unbanked customers would rely on cash payments. With a mobile payment solution, merchants can receive payments from this group of consumers.
  • Customers performing cross-border payments. As described in this blog post, Africa’s booming travel industry necessitates an efficient solution for payment processing across borders. Mobile payments avoid both currency exchange and the need for a local bank account.

GSMA Intelligence predicts that the number of smartphones in Africa will have reached 720 million by 2020, showing an increase of 424 million since the end of 2015. This makes mobile payments an increasingly valuable tool for virtually any business.

Mobile point-of-sale (mPOS)

An mPOS device is a mobile device used as a point-of-sale. Using an mPOS device frees merchants from the physical restraints of a traditional stationary point-of-sale device, such as a cash register. It allows merchants to receive payments from customers at any location and time.

Any mobile device, such as a smartphone or tablet, can be transformed into an mPOS device with a mobile payment app such as Direct Pay Online’s mSwipe Plus.

An mPOS device has many benefits over a regular POS terminal. It accepts a wider range of payment methods. For example, it can be used with a card reader for on-the-spot credit card processing, or in combination with other mobile payment solutions, such as NFC-powered mobile wallets. This adds an unprecedented level of flexibility and efficiency to any business. An mPOS can also be updated quickly and inexpensively for EMV card payment processing.

Another major advantage is increased mobility. Businesses can now accept secure electronic payments wherever is most convenient. Payments can be processed directly from the store aisle, reducing checkout lines. Hotel guests can easily order spa treatments, drinks or room service from anywhere in the hotel without the need to go to or call the concierge. Payments can also be made off the business premises.  For example, tour guides can upsell additional tours or excursions to a group of passengers who are currently on an excursion by carrying the mPOS device with him and making the bookings and reservations on the spot.

As card data is stored remotely, using mPOS devices removes many security risks associated with traditional POS devices.

So, does your business really need a turnkey payment solution?

Mobile payments, online payments, and mPOS devices allow for greater flexibility in the way your business can accept payments from customers.  Each customer has a preferred payment type, and each payment type adds unique value to your business. Mobile payments enable the unbanked population to pay securely, online payments allow for easy home shopping, and mPOS devices allow businesses to accept payments in any location.

In addition to payments from customers, businesses also need to process incoming and outgoing B2B payments to and from other vendors. They also need a simple interface where they can manage and organize all of their B2B and B2C payments.

If all of the aforementioned payment types are to be implemented successfully, it is necessary for businesses to have a centralized way of managing every transaction. While it is possible to integrate separate payment and reporting solutions, this is often extremely difficult and complicated, leading to added expenses and wasted time. A turnkey payment solution, however, provides all of these benefits in a comprehensive package.

By using a PCI DSS certified turnkey payment solution, such as Direct Pay Online, merchants can manage a vast range of incoming and outgoing business payments with unparalleled ease and security.