Online Payment Service Comparison

Online/internet payment is an essential part of building an EC.

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What is an online payment service?

Payment (settlement) service via the Internet

Online payment service is a generic term for services that enable users to make payments online.

In the past, online payment services were mostly used for payments at mail-order websites, but with the spread of electronic money and barcode payment in the past few years, more and more brick-and-mortar stores are adopting online payment services.

"Payment collection and management" and "risk mitigation" play major roles

The role of online payment services is to

  1. credit check
  2. sales collection
  3. management of payment information and personal information

are the main roles of the company. In the early days, "credit check" and "sales collection" were the main roles of online payment services, but now that Internet security is important, "payment information and personal information management" has become an important role of online payment services.

Another important role of online payment services is "mitigation of transaction risks.

Regardless of whether it is a real store or an online store, the contract at the time of purchase and sale is made on a 1:1 basis between the buyer and the store, and direct transactions other than cash involve risks for both parties.

Therefore, online payment services can help to

  1. improved security on the part of the user
  2. improved credit credit
  3. centralized management of sales

By taking on these and other roles, the system not only enhances convenience, but also reduces the risks involved in direct sales and purchases to as close to zero as possible.

Although you may not come into contact with this service unless you operate an online store or store, we actually use payment services when we make electronic payments at convenience stores or stores, or when we make purchases on mail order sites.

What kinds of online payment services are available?

Online payment services can be divided into types at three main points.

Difference in where the payment is made

The first major difference is where the buyer makes payment. There are two major differences here.

  1. online to online
  2. real stores to online

Online payment services used to be mainly for "(1) online to online", but nowadays, "(2) real stores to online" has become a major application due to the spread of cashless payment such as credit cards in real stores.

There are also services that centralize all sales for both online and real stores online, simplifying the accounting flow by managing sales and funds online.

Differences in Payment Methods

The next major difference is the payment method used by users.

Online payment services primarily offer

  1. credit card
  2. convenience store payment
  3. cash on delivery
  4. bank transfer
  5. carrier payment
  6. deferred payment
  7. bar code payment

Since each online payment service is different in terms of which payment method it supports, which method it supports is also a point of differentiation for online payment services.

Differences in service delivery methods

There are also differences in service delivery methods.

The main differences are in the method by which the purchaser actually pays for the service

  1. dedicated POS type (payment at a payment terminal in a store)
  2. payment platform type (directs the user to a payment form on the platform side)
  3. API type (embedded in company's own cart, etc.)

The difference between the two is as follows.

The online payment service to be used is selected according to the operation style of the store or online store operator, not the user.

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