The push towards digitalization is real for both private and
public sectors across the globe now. From creeping adoption into people’s daily
lives, technology and digital services are being harnessed to move the
productivity meter in a great many sectors, including when it comes to
financial services.
From enabling money remittance services for governmental
platforms, to allowing mobile payments for websites and e-commerce apps,
financial service providers have had to look again at how they can help speed
up the digital transformation efforts of numerous businesses, worldwide.
In the Asia Pacific region, the events of the past two years
have thrown a spotlight on the woeful digital transformation journeys of
organizations in the world’s fastest growing region, and that is not limited to
developing markets like Vietnam, Indonesia, and the Philippines that were
emerging rapidly in the days before the pandemic. Even organizations in
developed territories like Singapore, Australia, Hong Kong, and Malaysia were caught
unaware by the nearly overnight need to be digital-first – whether that be
embracing online productivity methods like cloud computing services or enabling
alternative revenue-generating channels by providing digital payment options.
The COVID-19 crisis once again highlighted fears around the
usage of cash, which had already been seeing dwindling use in recent years as
many markets looked towards digital cures to power payments acceptance in
brick-and-mortar retail, to allow for convenient bills payment, and in
empowering online sales channels.
New payment technologies such as mobile payments, e-wallets,
and contactless cards have been simplified over the years, and they are
smoothening both business-to-business and business-to-customer experiences with
their range and flexibility of capabilities.
These strengths are putting organizations under pressure to
accept these payment innovations that go beyond traditional banking models. And
as the online payment processing market continues to develop, users are
demanding for additional payment features and options that will lead growth in
multiple directions.
For one, users will be demanding online transaction means
that will be increasingly exposed to risk of fraud, widening the risk
management strategy of the company to whole new horizons, such as chargebacks
for fraudulent transactions. Too many chargebacks could effectively cripple a
merchant, and without the chip-based physical card authentication of credit
cards, newer technologies such as biometrics and multifactor authentication
need to be used to validate the identity of online purchasers and authorize
their transactions.
Another critical function being demanded of new-age payments
is the ability to facilitate cross-border transactions. Traditionally, national
banking structures would rather avoid the complexities of enabling cross-border
payments, but with digital platforms and services making the internet
essentially borderless, consumers are coming to want goods and services from
other countries that they may not be able to access in their own.
Hence, transnational payment systems are on the rise,
trusted systems that are not bound to any single country, instead licensed by
accredited bodies such as the Payment Card Industry Data Security Standards (PCI
DSS) certification that governs credit card transactions, both online and off.
By partnering with governments and local payment service providers, these new
payment systems can maintain a secure network with strong access control
measures, manage security and credit risk, and protect users’ identities as
well.
Enabling cross-border transactions means being able to
accept and process a variety of payment methods and currencies. E-wallet
payment processing, mobile payment processing, and of course acceptance of
international credit and debit cards help online merchants compete in global
markets by allowing their customers to pay in their native currencies and
method of choice.
Having the right payment service provider in place, with the
necessary infrastructure and technical integration capacities such as
applications programming interfaces (APIs) and payment gateways already on
board, can go a long way towards serving the customer the digital capabilities
they have to expect, including a variety of features, integrated systems that
connect with other services, as well as a fast and reliable online payment
process that seems virtually seamless.
Convenient, seamless, and secure payment options are what
these three service providers below have in common. Let’s take a look at what
sets them apart:
KIPLEPAY BY GREEN PACKET
Founded back in 2000, right in the heart of California’s
Silicon Valley, Malaysia-based Green Packet Berhad (Green Packet), an
international technology solutions company has been designing, and producing
wireless devices, user-centered applications, and value-based services that
complement the telecommunications and digital payments ecosystems.
With an industry know-how that has powered integrated
solutions for over 100 clients in more than 70 countries, Green Packet offers
bespoke digital financial technology solutions through its subsidiary, Kiplepay
Sdn Bhd (Kiplepay). Fintech outfit Kiplepay provides solutions such as
e-payment ecosystems and e-wallet services through Kiple products that will
help established businesses and organisations, as well as meet the needs of
underserved sectors and government-linked projects and bodies.
As a disruptive fintech player, Kiplepay has been a driving
force for financial inclusion in Southeast Asia. Its kipleUNI program, in
partnership with local Malaysian universities, provides a cashless means of
payment on university campuses. Their kipleBiz arm extends Kiplepay’s ability
business to connect businesses with end-to-end e-payment solutions. Kiplepay
has also worked with Malaysian state governments to distribute funds to
disadvantaged communities in poor areas.
Not only does Kiplepay enable cashless transactions with its
suite of wallet-as-a-service (WAAS) for different sectors, but its ecosystem of
e-wallet, payment gateway, and payment services portal have been harnessed to
empower national and state government digitization goals and welfare
initiatives, including for universities, small-medium enterprises, low-income
groups, and underserved communities.
STRIPE
Stripe sets its stall out as an API environment designed for
developers, and therefore those looking for pre-built solutions may wish to
look elsewhere. However, if an organization possesses the necessary tech chops,
the company’s offering is powerful and can be adapted to individual use
constrained only by the developers using it.
Complete tokenization places a layer of security between the
merchant and payee, and allows easy repeat payments, as references are only
ever back to the token(s), rather than to the original payment details.
This leads the way to using Stripe to manage
subscription-based payments, such as membership or licensing. This is achieved
by subscribing a customer to a predefined plan in the Stripe API – repeat
payments are then a matter of iteration through a standard presentation of identifying
keys and transactional data.
The company also offers Stripe Connect, a full-stack
solution for using Stripe’s capabilities on behalf of others. This includes
collecting fees for providing such a service, managing all the different types
of Stripe accounts and supporting different pay-out schedules and methods.
Security is paramount in the Stripe environment, with a
machine-learning engine that carries out risk evaluations of all payments.
There’s the standard blacklist of unwanted cards and emails, plus a constant
review process examining unusual payments. Action on flags can be configured
through a user dashboard, and automated.
PAYPAL
With well over 340 million active users worldwide, PayPal is
one of the most recognizable brands offering payment and money remittance
services anywhere in the world. With a base of operations that spans the globe,
PayPal offers comprehensive payment options for individuals such as
freelancers, for online merchants and platforms, as well as for SMEs and larger
enterprises.
PayPal’s business services are available for organizations
of all sizes, with both B2C and B2B payment options. For e-commerce purchases,
customers can checkout using a unified PayPal solution that enables the
customer to access a variety of payment methods from the merchant’s website, on
mobile or on the web, or via the merchant’s dedicated app.
The experienced provider also supplies other options, such
as accepting both card and contactless payments using QR codes, with a unique
QR code generated for each transaction allowing for a speedy and contact-free
transaction.
Debit or credit card payments can now be processed via
PayPal’s Virtual Terminal too, which doesn’t require any specialized equipment,
coding or software to accept credit and debit card payments by phone. This
option saves on costs by requiring virtually no investment, and requires only
an internet connection.
ZIP
Since arriving in 2017, Zip has taken the payments landscape
in Australia and New Zealand to new heights. Zip pioneered the interest-free
loans that have become part of the ‘buy now, pay later’ phenomenon that has
become the in-demand staggered payment option of late.
Zip offers flexible repayments and a six-week repayment
period for its online merchants in categories ranging from clothing and
lifestyle products to electronics and travel. While there are no interest
charges like many BNPL options, it is vital to understand the service’s late
fee schedule. For instance, in New Zealand, the purchaser will be charged NZ$8
per purchase on the day the repayment is missed, followed by NZ$8 every
subsequent week that the repayment remains outstanding.
Late fees are capped at NZ$40, which is a substantial sum
but still reasonable for many. Payments are automatically deducted from the
preferred debit or credit card. If other payments have been made, the repayment
schedule will automatically adjust, providing flexibility and ease of use.
Zip is a convenient option for those who are not financially
savvy or for the growing number of young users who are averse to credit cards
or store credit. It provides an easy way to shop primarily online without the
risk of long-term credit card debt.
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