Why do you need a Payment Gateway?
Below are 13 reasons why a business owner especially online business need a Payment Gateway.
1. To avoid a photoshop receipt fraud
One of the main factor of having a payment gateway is to avoid fraud such as receiving an edited photoshop receipt from customer. The only way to handle this issue is to check every receipt received, with the bank transaction. With payment gateway, every transactions has a transaction summary which contains the status of the transaction either approved or declined. This transaction summary is emailed from the dashboard to both merchant and customers as references, real time.
2. To receive payment 24/7
By having a Payment Gateway, your business can receive purchase and payment, 24 hours a day, 365 days a year. There is no such things as “We are closed, please come tomorrow”. Business is ongoing, even while you are sleeping.
3. Solves the issue of customers' database storage
Some business owner that keep their customer database in emails or sometimes in WhatsApp. Imagine if the phone is stolen and all the data is lost?
With payment gateway, the customer’s data is stored on the dashboard. This includes the name, email address, delivery address, transaction and purchase details. The data can be retrieved at any time, and can be exported out as a single spreadsheet.
Another plus point of having a secured and safe storage centre for customer data is that, you can repurpose the data easily for example, convert the data to mailing list for future campaign and promotions.
4. To give alternatives payment options for customers with no online banking account
Online banking such Maybank2u or CIMBCliks is definitely a trending among Malaysian minus the senior citizen. However, we cannot disregard this category of purchasers as they have the spending capacity as well. Sell your item online to them if they don’t even have any online banking?
Good news is, with Payment Gateway, payment can be made to purchases using their ATM card, using the Debit option. They can simply insert their atm card number and CVV number to proceed with payment to purchase.
5. To entertain customers who only want to purchase with their Credit Card
Some customers would rather purchase with their Credit Card than cash as they prefer collecting points from their credit cards. This points can later be exchanged or redeemed with rewards like items or services, cashback or even travel miles.
There is also a category of customers who are spontaneous or impulse buyers. They simply make purchases on a whim therefore Credit on Credit Card is the only way to materialise this impulse.
Even, on a market research perspective, 1 of 3 Malaysians nowadays own a Credit Card. Which means, out of 31.62 millions of the population (2017), 10.54 millions people have the ability to purchase with credit. A statistic from Bank Negara says that, the Credit Card transactions keep increasing yearly. The value of the transactions have increased from 79.8 billion (2010) to 125.6 billion (2017), which has doubled in 2018.
6. To solve issues on cost of shopping cart set up or unreliable website developer
Of course, for a startup business, costing is a big issue. The new company may initially think it can attract and gain new customers' trust with fancy online payment methods However this requires a lot of investment. And the start up company may delay or want to postpone their Payment Gateway subscription.
Some Payment Gateway offers Payment Form option, which is a simple form that includes your items to start selling. This Payment Form can be shared through WhatsApp, Facebook, Instagram, Twitter and so on. This Payment Form can be shared on blogs like WordPress, Wix or Blogspot. In a way, starting business with Payment Gateway, is now a cheaper option than starting a business with websites as it also maximises your social media influence.
7. To solve issue on managing drop ship business and commission
If you are a master drop shipper, managing your dropship agent commission can be a difficult process, using Payment Gateway can minimise your time on this and help you concentrate on your preferred area of business like marketing or business development.
Payment Gateway also has “Split Payment” facilities which distribute the sales money directly in real time. This “Split Payment” feature is to be set by you in terms of sharing the percentage.
8. To solve issue on recurring payment
Follow up a payments from customers is also another issue to deal with, as time and resources are lost initiating this. Moreover, a periodic request for weekly or monthly payment, can surely test one’s patience.
A Payment Gateway with a “Recurring” feature is the answer. You just need to setup the the recurring frequency and amount, and proceed for the first payment. The subsequent payment will be charge automatically by the Payment Gateway based on the agreed date of transaction.
9. To solve issue on instalment payment
Another issue for business owners is obtaining instalment payment facility. This is true in relation to high ticket items or expensive sales of purchase.
A Payment Gateway can solved this. No worries.
10. Where do Malaysian lives?
Malaysian live in the mobile world today. They eat, play, read, communicate and rant online even shop online.
In 2013, the turnover for e-commerce was RM380 million in Malaysia. An average of RM2,000 was spent online in a year by Malaysians. Surprisingly 91% of Malaysians connected online, shop.
E commerce is the biggest business today as it creates convenience with just the touch of a few keypads. So it is not surprising that online shopping is the way to go today.
11. To solve issue on accepting international buyers
Having a Payment Gateway, goes beyond borders, which makes selling to even Hollywood stars not impossible.
Online business is to get more customers compared to what a brick and mortar shop can do. Why limit the borders only to Malaysian if you can sell your items all over the world.
12. Issue on power branding
A startup business will initially struggle with branding. Some business owners choose to buy Facebook Likes or Instagram Followers to build their brand by reaching to a bigger market.
Basically, engaging Payment Gateway as a payment facilitator to cater to sales and transactions is one of the easiest ways to score marks for branding. This is because, to get a Payment Gateway, a business must be legitimate, registered with SSM and has been gone through background checks with banks and relevant authorities.
By accepting payment from Credit / Debit Card, you can include MasterCard and Visa logos on your website. By doing so, you are create the same standards as Lazada or 11 Street, the giant marketplace in Malaysia currently.
13. 100% Online
What is a business online, that is not 100% online, because when it comes to receiving payment for purchase, you says, “PM tepi?”