Digital Payments: Why Online Retailers Look Beyond Credit Cards

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How new digital payment methods are changing the e-commerce game

Buying things online has become the default way of shopping for most people these days. The amount of progress that e-commerce has made in the previous decade is remarkable. We remember when people didn't trust websites with their credit card info and online shopping was written off as a fad. Then Amazon came and changed the whole game. Now whenever we need to buy something, we usually look online first. Who wants to drive half an hour to the nearest mall when you can get it with just a few clicks?
However, the real revolution happening right now isn't driven by big stores like Amazon. It is driven by small retailers. The world of e-commerce is opening up for small businesses in a way that was never possible before. The biggest roadblock to accepting payments was drawing the attention of their target customers.
If you wanted to process a credit card, you needed to be registered with Visa or MasterCard.The registration process wasn't easy. It took a lot of money and required a lot of documentation which was out of reach for a small business.

New Payment Options Opened up E-Commerce

There were many problems with depending on credit cards. One was that it required the buyer to have credit cards. This is a big problem for retailers selling to countries outside the Western hemisphere, where having a credit card isn't the norm. Another problem was dealing with banks. Small retailers were often left wondering what to do after a chargeback or a customer dispute. New payment options have opened e-commerce to people who could never be a part of it ever before. How? Let's look at some of the exciting payment options we have available these days.

PayPal

PayPal has been around a long time and deserves credit for being the first technology to provide a viable alternative to credit cards. PayPal is very easy to use but there are many limitations too. The biggest and most obvious limitation is that you have to pay a fee to PayPal every time you use it. Another problem is poor customer service. Many companies had their funds put on hold and it took them a long time to get them back. PayPal also isn't available in all countries around the world.

Bitcoin

Bitcoin is definitely one of the most exciting things to happen in the world of ecommerce technology. Everything about it looks like science fiction. It is a digital currency made by a mysterious person – people still aren't sure who the inventor of Bitcoin is. It works on the blockchain (a technology which is being touted as the next big thing in e-governance and international trade) and allows free movement of money. The best part about Bitcoin is the anonymity.

Skrill

Skrill was another promising alternative to credit card payments. Sadly, it hasn't really lived up to expectations. The first problem is that you have to buy prepaid cards or transfer money to your Skrill account. Another problem is the low rating of Skrill by authorities. The company is slow when it comes to resolving complaints.

Square / Apple Pay

Square and Apple Pay are both NFC based wallets. NFC (near field communication) means that your device needs to be near a specified port for its wallet to be charged. These mobile wallets are becoming increasingly popular. India is focusing strongly on going cashless, which has resulted in the AliBaba backed Paytm company a juggernaut in just a few months.

Ripple

Ripple is notable because it is doing something very different. Instead of using the blockchain they are simply distributing the ledger so anyone can verify the payments if needed. Ripple has caught some traction and is one of the most popular digital currencies.

WAVES

The Waves Platform is one of the most exciting developments in the world of online payments. It works on the same technology as Bitcoin (the blockchain) but has none of the bad parts of Bitcoin. The whole system works through tokens generated on the blockchain. The real genius of the platform is that it brings together traditional payment platforms with the blockchain. You will easily be able to make payments by converting currency into tokens which can be converted back into currency by the receiver. The cost is extremely low and the ease of use is surprising. They also have a reputation system to ensure there are no scams.
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A lot of interesting things are happening in e-commerce and new payment platforms are empowering new businesses every day. With technologies like Waves, Bitcoin, and PayPal, the only thing limiting you now is your imagination.

Article Digital Payments: Why Online Retailers Look Beyond Credit Cards compiled by Original article here

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