December 6

How e-commerce payment processing solutions help businesses achieve financial objectives

Businesses are adopting new technologies for processes. This covers operations, ordering, sourcing, customer management, and payment processing. 

Payment processing solutions have enabled businesses to conduct business transactions both online and offline. E-commerce payment processing is the usage of software to process, monitor, evaluate, and handle incoming and outgoing payments for a business. 

E-commerce payment processing solutions are likely to bind and close gaps with stakeholders for cash flow management. Payment processing solutions offer secure transmission of transaction information between customers, merchants, and service providers, which captures authorisation, settlement of funds, and processing of monetary funds for a business.

The components of e-commerce payment processing solutions 

The main players of an e-commerce payment processing solution are the payment processor, payment gateway, and merchant account. 

Some e-commerce payment processors are: 

  • Credit and debit cards
  • Digital wallets
  • Bank transfers
  • QR codes 
  • Cash on delivery (COD) 
  • Mobile payments
  • Prepaid cards

Online payments tend to be processed when customers swipe their debit or credit cards, because of synchronisation with your contact number, email address, website, or mobile app credentials. Once the transaction enters the system, the details are sent to the processor through the gateway for payment along with details. 

The processor sends a notification to the bank to ensure the account has sufficient funds to pass the transaction. Once authorised, the customer receives an order confirmation, usually as an email receipt. The funds to make the purchase are then deducted from their credit or debit account and transmitted to the merchant’s account.

What are some financial objectives placed by businesses? 

Every business establishes an objective that they work towards which creates a sense of direction and curates a purpose for operations. 

Business objectives generally revolve around finance, stability, growth, and stakeholders. Many businesses establish financial objectives that go in line with stability, growth, and exposure. 

There are six main types of financial objectives: 

  1. Revenue objectives: This is the most common type of financial objective set, where businesses focus on gaining market share, sales revenue maximisation, and revenue growth. 
  2. Cost objectives: This is an objective that aims to reduce or optimise costs without any harmful consequences on quality and quantity.
  3. Profit objectives: This is a common objective placed, where firms aim to generate high profits and returns for risks taken by the firm. 
  4. Cash flow objectives: This is when priority is given to stimulating cash flow and sustaining cash solvency to run operations smoothly. 
  5. Investment objectives: These objectives are aimed at increasing the returns on investment for risk-taking measures and investments made to aid processes. 
  6. Capital structure objectives: These objectives aim to reconstruct and restructure debts according to the growth of the organisation. 

How does an e-commerce payment processing solution help businesses achieve financial objectives?

  • Offers convenience and quickens transaction speed: This way, businesses can get funds to their direct bank accounts, which increases solvency and improves cash flow management 
  • Allows more income bases: When integrating e-commerce payment processing solutions, a business is open to globalisation and localisation, which increases the base of consumers and allows businesses to reach targets for sales revenue and profit maximisation effortlessly
  • Reduces overheads of the income process: Establishing an online payment framework allows the set-up of online payment gateways which incur a minimal initial investment cost and lower transaction processing costs
  • Gives a variety of payment choices and flexibility: Payment processing solutions are flexible and offer a variety of payment methods; this improves the income stream for an organisation and allows businesses to streamline their processes to fit the needs of their consumers
  • Ensures a better customer experience: Customers can fulfil their needs from the comfort of their homes; this will allow firms to build loyal bases of consumers, which results in an assured and steady stream of cash inflow, which fulfils growth and stability objectives 

What are some essential features of e-commerce payment processing solutions? 

An e-commerce payment system should ensure a refined mix between the achievement of financial objectives and customer satisfaction. 

A payment processing system should:

  • Be safe and secure for online payment processing 
  • Comply with e-commerce platform requirements
  • Fulfil Payment Card Industry (PCI) data security standards
  • Handle several payment gateways and methods
  • Facilitate easy set-up without a bulky investment 
  • Have a simple user interface for internal and external stakeholders 
  • Compile reports and offer analytics 
  • Offer transparent and visibility in processes 

Achieve all set financial targets and objectives with an e-commerce payment processing solution 

The achievement of financial targets lets businesses know that they are undertaking the right processes. If you have an interest in implementing e-commerce payment processing solutions, get the help of a professional from WITMEG, to ensure a seamless and profitable experience in managing your business processes.