Payments Blog

The Future of Online Payments

Almost all startups begin with an idea. They often have a vision and want to execute that vision, to turn their dreams into reality. A lot of these startups, however, are so fixated on their idea and their dream that they don’t consider some of the other, finer things that contribute to a successful online business.

Since most consumers today display a tendency to purchase products and services online, startups should, first and foremost, optimize the online payments experience. It’s no longer a luxury to offer consumers the best possible checkout experience during their online transactions, but a necessity.

Initially, startups can offer their consumers two options: automated clearing house transactions or credit card transactions. The first, automated clearing house transactions, occur when a consumer transfers funds directly out of their bank account and into the merchant’s account, by using their routing number and account number. If merchants want to succeed in today’s digital world, however, they should make everything as convenient as possible for their consumers, which means choosing credit card transactions and accepting credit and debit cards on their online store.

But while most consumers today still use credit and debit cards, the world is changing. If they want to retain existing consumers and attract new ones, startups should adapt and continuously improve over time. One of the more exciting developments in this industry is alternative payments and all startups should consider accepting these payment methods on their online store if they want to be successful going forward.

Typically, consumers use their desktops for a lot of their digital transactions but even that’s changing. They are migrating towards mobile phones and these devices are quickly becoming trusted, capable vehicles for digital commerce. With mobile commerce becoming ubiquitous, consumers will begin using different alternative payment methods, like Apple Pay, Android Pay and others, which means merchants will need to be ready, to capitalize on the potential of these innovative payment methods.

Going forward, since no one knows which mobile wallet will come out on top, win the wallet war and become the most prevalent wallet in this space, merchants need to remain flexible and cater to their specific set of consumers.

Additionally, since they will be dealing with new and unrecognizable alternative payment methods, merchants will also need a way to protect their consumers, to ensure that their transactions are safe and secure. Cardinal Consumer Authentication (CCA), our rules-based authentication solution, can help merchants do that while, at the same time, making the transaction experience easy and frictionless.

One Connection to Cardinal will Drive Digital Commerce.

Posted by CardinalCommerce

Welcome to the CardinalCommerce blog. Cardinal is a global leader in authenticating digital transactions, with One Connection to drive digital commerce. Our goal for this blog is to provide a platform that will inform and educate our Customers and partners on consumer authentication, payments, mobile commerce, solution design and big data.

Topics: Startups, Online Payments, Credit, Debit

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