In short, online payment is any procedure that uses a financial communication platform to carry out a digital monetary transaction between the consumer and the store – with a credit card, billet, or more modern transfers, such as Pix. Online payment is relatively recent for a process we are so used to using. It became popular with e-commerce as a simple and safe shopping alternative and has expanded in the last decade to offer even more sophisticated and complete monetary transaction solutions.
Currently, it is possible to use these platforms in different ways in consumer relations. In addition to the purchase, recurring subscriptions can be managed in an automated way in this system. Another sector that uses these platforms a lot is fintech for moving funds. It is good to define the scope of our discussion for online payment online, mainly in the operation of digital stores. Card machines in physical stores can be considered online payments, as the device is connected to the Internet and performs the entire transaction digitally.
For our focus on your area of expertise, we will talk mainly about virtual communication platforms that make this connection between consumers, stores, and financial institutions. visit us and learn more.
What Are The Types Of Online Payment?
To better understand the online or virtual payment processing possibilities, we can break down this process into three points that offer different alternatives: operation channels, payment methods, and billing models. See below for a distinction between these terms.
Online Payment Methods
These payment types usually offer the same transaction conditions already consolidated in the country. See the most common ways to make a sale by paying online.
Debit and credit cards are very popular in Brazil because they are simple to use and have a layer of security for the consumer — which involves the bank’s control over the transactions carried out. This is a payment method; however, that has a high number of fraud attempts, especially chargeback we’ll talk more about that soon. It is convenient for the customer but requires the retailer’s intelligence, monitoring, and predictability.
Boleto is also widely used for online purchases, as it is a simple and fast bank transfer. The store provides a bar code that contains data from the financial institution’s account and the amount to be transferred. This was already a popular payment method during crowded branches, but it has become even more comfortable now that we can scan this code and pay the amount using only our cell phones.
Cryptocurrencies are completely digital and decentralized currencies that use blockchain technology to provide security for the movement of values. As it is a very different model from the others, it is generally not covered by current gateways. If e-commerce intends to offer this type of transaction, responsible professionals must study a lot about the technology and its portfolio management method.