What is a payment enabler?
Merchants can now accept payments online through many platforms and marketplaces that have services for enterprises of all sizes. In order to differentiate their products and retain customers, these platforms have integrated payment capabilities into their products, while the merchant no longer needs to establish direct relationships with acquiring banks or payment gateways.
The in-house payment process
Payment enabler solutions fall into two categories. The first type involves partnering with an acquiring bank (or acquiring bank and payment enabler vendor) and developing systems for processing, onboarding, risk, among others. In order to give multiple choices for credit card payment to sub-merchants, you’ll need to take multiple country-based approaches.
Second, a modern, technology-driven payment enabler solution is offered by certain commerce providers. With these, you own the payment experience and are responsible for developing the experience for your sub-merchant.
Bringing payments in-house can be accomplished by asking the following questions:
- What timetable do I plan to follow, and how much am I prepared to invest in transactions in comparison to my primary product or service? How much of my operations teams’, developers’ and legal team’s time do I expect to devote to this project? Am I prepared to form new workgroups to handle funds and payout systems, as well as compliance systems and merchant onboarding?
- Does my ideal payment solution include online card payments, in-person point of sale payments, international payment options, or non-credit card payment options like ACH or Apple Pay? Can I also offer my customers financial solutions, such as lending, fraud prevention, and credit cards?
- What is the location of my company? In what industries do I plan to provide funds as well as various financial services? To what places and extents in general do I envision expansion?
- Do I want to enhance consumer interactions or build stronger client associations by bringing payments in-house, launch new revenue streams and enhance my company’s valuation, or allow quicker growth into new markets and regions?
Every acquiring bank follows its own set of regulations for authorised payment enablers, resulting in an intricate system of necessities that card networks and banks must follow. Consider a licensed payment enabler to be an institution that manages merchants’ connections with sub-merchant onboarding, card networks and payment services. Payments to sub-merchants are handled straight away by the payment enabler.