Digital payment platforms refer to those networks, companies, and services that offer online and offline money processing. These services usually come bundled with merchant accounts. What are digital payment platforms? These are the networks that a company uses to process payments. There are four types of digital payment platforms: web-based, internet-based, iPhone/Smartphone based and physical (physical) credit card machines. Let’s take a closer look at each of them:
Web-based digital payment platforms are the ones you see when you search for merchant accounts or payment processors online. They include PayPal, WorldPay, Neteller, WorldPay etc. Each one of these comes pre-branded with a merchant account provider, which makes it easier for a website user to sign up and start making transactions. When a buyer pays for something on one of these websites, the transaction gets transferred to the merchant account from which the money is transferred. This is done via an electronic transfer of digital currency through a payment gateway established by the purchaser.
On the other hand, an internet based digital wallets like PayPal makes online payments very easy for website users. Once a user makes a purchase over the internet, the payment gets converted into the buyer’s currency through a payment gateway established by the seller. A digital check is sent through an email system. The payment gateway then calculates how much the payment should be made to the seller and passes it to the seller’s virtual bank where it is stored until the payment is complete.
On the iPhone and Smartphones, there is a virtual credit card terminal. It looks just like a normal ATM. Just like a typical ATM, it accepts both credit card and debit card for payment. The difference is that it processes the transaction immediately – it doesn’t have to go through the payment gateways as does the physical card terminal. What are digital payment platforms?
As we said earlier, digital payment platforms refer to those payment gateways that allow online merchants to process credit and debit cards as payments for their products and services. It is a virtual terminal that allows you to enter a user’s credit card number or debit card number and automatically processes it as a payment for goods and services sold. Digital platforms have come a long way from being nothing more than a payment processor for offline businesses. These digital payment platforms have made online business owners very easy. They have brought the world closer together and provided the online market with one efficient payment solution.
How do digital payment platforms work? There are several things that go into it. First, the online merchant creates an account. Then, they deposit the appropriate amount of funds into the account using digital money such as PayPal. When the transaction is made, the online merchant will deduct from the account with the appropriate amount of fees depending on the chosen payment platform. Finally, when the transaction is complete, the online merchant sends a confirmation email to the user’s computer.
What are digital payment platforms used for? Digital payment platforms are often used by online merchants to process online payments for goods and services sold online. A wide variety of payment gateways are available for both buyers and sellers to choose from. There are no limitations on how the online merchant can process payment transactions.
What are digital payment platforms? Payment platforms provide a reliable, convenient, fully automated and safe way for online merchants to accept all major worldwide currency. Payment platforms also offer the ability to process electronic checks, gift cards, e-checks, and even cash by phone.