Running a business isn’t easy. There are many pain points to contend with, from Brexit admin, rocketing inflation, restricted supplies and human resources, to consumers being more wary of the pound in their pocket. With this backdrop, no wonder businesses are seeking to cut costs through their online payments solution and the use of the API, the Application Programming Interface. An online payments solution is for any size business, from business payment solutions for SMEs, to enterprise payment solutions which are often a managed solution. Find out all about the payment processing solution here.
In this blog, we’ll explore:
- What does it cost to not have a good payment processing solution?
- What is an API?
- What are the benefits of business payment solutions and enterprise payment solutions using an API?
- What are the advantages of a turn-key plug and play payment processing solution delivered as a managed solution?
What does it cost to not have a good payment processing solution?
In our market research, we discovered the misery that is caused by not having a payment processing solution. The disheartening stats were:
- more than one fifth of payments are late, putting a strain on cash flow;
- three in ten business leaders said delayed payments impacted their bottom line; and
- 13% of business owners said time was diverted from running their business to deal with payments, causing project delays.
If these problems could be alleviated by using an API powered managed solution, be it a standard one size fits all payment processing solution, any manner of business payment solutions available, an online payment solution or enterprise payment solutions for larger corporates, why delay and continue to stifle your business growth?
What is an API?
API – Application Programming Interface – it’s what technology uses to enable different software applications to communicate. When different software applications can talk across an API, it means they can share data and communicate – an API is like travel plug adaptor for tech.
Once applications can talk to each other across the API, it means consumers and businesses receive joined up services: cab sharing app, adjusting the thermostat from your smartphone, or sending a payment, which will use an API in a payment processing solution or an online payments solution.
What are the benefits of business payment solutions and enterprise payment solutions using an API?
There are many benefits to an online payments solution using an API, and if you’re looking at business payment solutions that don’t use an API, you shouldn’t give them a moment’s consideration.
Using an API provides the gold standard in efficiency, innovation and security for a managed solution and generally the payment processing solution.
Using API business payment solutions will give you the following benefits:
- Efficiency – using an API makes it simpler and quicker for development teams, and for organisations who don’t have lots of tech people to decipher and build to lots of code, than if an API is not used – this translates to saving time and money and a measurable effect on your costs base;
- Automation – the API is far more autonomous, and runs on tech to a much greater extent than human intervention. If less human intervention is invovled when an API is used, it means there’s less chance for human error to occur, and less time spent doing the tech. Using an API means work streams are progressed more quickly, more data and content can be added automatically with this being published and made available to API connections, and this enables payment processing solutions to deliver end results to both biller and paying customer with much less effort; and
- Increased value add – programmes can be delivered seamlessly across an API to users, meaning the user has a joined up experience using many data sets, which are communicating across an API to provide a holistic service to the user; this can be transposed to business payment solutions and an online payment solution too, and enterprise payment solutions can benefit especially, given the much larger volumes of payments needing to be processed through the payment processing solution for an enterprise.
What extent of tech build is there to use an API in an online payments solution, business payment solutions or enterprise payment solution?
Whether you’re an established corporate looking for an enterprise payment solution, a business looking for value add business payment solutions, or a SME concentrating on a bookeeping online payment solution, it’s imperative you take care in choosing the payment processing solution that’s right for you, as not all payment processing solutions are equal; whilst some may come as a managed solution, most do not.
The API driven payment processing solution will give the benefits listed above under ‘What are the benefits of business payment solutions and enterprise payment solutions using an API’, but you will need some developers who know how to integrate to an API, and build customer journeys and design and build screens unless you opt for a fully hosted and managed solution. This API build will incur time and money, and will mean you can’t start saving by using the payment processing solution until you’ve done this, and this is the case whether you use an enterprise payment solution, business payment solutions or an online payment solution.
However, the cost of an enterprise payment solution, business payment solutions or an online payment solution that aren’t offered as a turn-key managed solution is no cheaper (they’re often offered by tech first companies and are, in fact, more expensive) than a fully hosted and managed solution, so unless you want to spend the time and money doing the API and customer journey tech build, there’s no need.
What are the advantages of a turn-key plug and play payment processing solution delivered as a managed solution?
Fewer FinTechs will provide a payment processing solution as a managed solution, but you’ll probably find they’re better value. For very little API build and integration, your business can then start saving on payment costs from day 1. There will be a small amount of build to integrate to the managed solution provider’s API, once this is done, the business will have a fully up and running and saving payment processing solution, be it business payment solutions, an online payments solution or, for larger corporates, enterprise payment solutions.
With an API managed solution, the payment processing solution is fully hosted and managed by the payment processing solution provider. This means, the payment processing solution provider handles the following:
- the sending of secure payment request messages to customers – in the businesses own branding;
- the hosting of messages and responses from customers for record keeping and ongoing managed solution purposes;
- the checking, storing and management of personal data such as account numbers, sort codes, references, payment amounts etc; and
- the management of any ongoing repeated payment arrangement and the ensuring payments and requests for payments, in a Variable Recurring Payment agreement for example, are honoured and not exceeded in any way.
With a managed solution, all of this is dealt with by the payment processing solution provider, so the business can concentrate on its business and not API monitoring and managing the business payment solutions selected.
Payments and messaging comprising the managed solution is delivered in the businesses own branding with its own logos – a manged solution is a white label service, so the businesses customers will recognise payment requests coming through enterprise payment solutions, business payment solutions or an online payment solution straight away consequently being comfortable paying.
Once a customer pays, the payment processing solution provider notifies the business they’ve been paid and, providing the payment processing solution provider is delivering a managed solution, will securely store the data.
If you don’t have an API driven payment processing solution, it’s an easy win. Find out about Ordo’s plug and play turn key API managed solution, and ask us about our multiple enterprise payment solutions available for immediate deployment.