Read About Online Business Payment Solutions and Payment Service Providers in China
Today, China is a significant market for international e-commerce companies. The country has some unique solutions for online payment; these include multi-channel payment systems and cash-based solutions. These systems are helping the country to increase its debit and credit card issuance. The main online payment service provider in China is Alipay.
Chief Online Payment Methods
The e-commerce market in China has been showing impressive signs of growth and development. However, Chinese online shoppers represent a small fraction of the whole internet population as compared to established e-commerce markets. Safety and timely payments are major concerns of foreign businesses. Online business payment solutions consist mainly of 3rd-party systems; the providers are not banks but companies and are referred to as PSPs or payment-service-providers. They direct transaction facts and figures from a trader’s consumer to banks for the purpose of authorisation. The PSPs provide a secure and easy way for businesses and consumers to send as well as receive online payments in China. Other payment solutions are credit and debit cards and locally issued cards have the imprint of China Union Pay. Nonetheless, China is more of a cash society using the popular COD or cash-on-delivery system. This is because historically, the Chinese have had very little trust in online transactions.
Trends in China Online Payments
Together with online shopping, online payment in China has been a fast-growing virtual market segment in the recent years. From 2014, Alibaba has been the biggest online shopping website and Alipay, the largest third-party payment platform online. The trust deficit in credit cards had been holding back Chinese e-commerce. However, this snag has been solved by Alipay by cooperating with banks which permit payments by debit cards. Alipay’s mechanism has helped improve the trust between buyers as well as sellers. This has contributed to the success of online payment industry. The recent trend that is influencing the online industry is the huge use of smartphones which many believe will expand further. Therefore, third-party payment firms have to be ready to face the challenge of taking the mobile route.
Selecting the Right PSP
Choosing your online payment service provider is important as there are many systems and services available. So, you should be able to determine which one is suitable for you. Firstly, find out which system has software that is compatible to the website you use. Check if the provider supports merchants in China. Find out the fees charged by the PSPs as every transaction is charged; some systems charge a fee for every month. Furthermore, check the transaction volume that your website can handle for a month. Depending on the volume, you might perhaps feel one provider better than the other. You should also know the payment mechanism the provider supports. Finally, their special features should also be studied.