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What Are Online Payment Systems and How Do They Work

What Are Online Payment Systems and How Do They Work

Centi helps you to make sense of the online payment systems jungle and explains some of the principles involved.

Online payment systems

An online payment system typically involves an API (Application Programming Interface). The main function of an API is to allow for integration between platforms and software where codes are used to allow two applications to communicate with each other using shared functionality.

Digital banking work on this principle and the API ensures shared data is encrypted, making it a secure online payment system. However, when using a bank or credit card, you are requested to punch in the details of your credit card, enter your pin, and wait for the transaction to be routed to your bank for authorization. This can be costly, time-consuming, inconvenient, or virtually impossible if micropayments are too small to meet the minimum purchase requirements.

To remedy this inconvenience involving micropayments, different types of payment solutions have been introduced by many companies to improve the consumer experience and at the same time increase business revenue and customer loyalty.

Online payment solutions

Centi might be the new kid on the block but boy, this new kid certainly has come out with all guns blazing. Driven by an innovative and highly efficient team, Centi is tackling the e-commerce market with a clear understanding of digital money streaming and has generated several micropayment solutions that are geared to the benefit of both consumers and businesses alike.

Digital payment solutions give consumers the advantage of making direct online payments to a business or company anywhere in the digital business world but can also be done locally, in person at the retail level. This is especially convenient where micropayments are concerned as these types of payment solutions do not rely on third-party authorization and are instantly approved.

Centi has a variety of digital payment solutions that can be viewed as streaming money through their secure API that drives the Centi app. The Centi app works in the same manner as cash payments without the need for third-party authorization like credit card purchases. This puts you in direct control of your own money, be it digital or hard cash, there is no difference. I guess you’re wondering how it all works.

Digital micropayments have been a sticking point for companies offering digital payment solutions, mostly due to the cost involved and the immediate recognition of payment. Now, imagine being able to stream money for micropayments in the course of your activity, be it sourcing online goods, services, or information. Perhaps you attend a concert or festival and need to pay with cash or coupons. Standing in queues and working out your finances is no fun but being able to pay for your food, drinks, or whatever else using Centi’s payment solution gives you peace of mind and frees up time to enjoy yourself.

Small business payment solutions

Small businesses know the importance of having a fully functional payment structure to cater to the variety of available payment options in the marketplace. The old saying “Cash is king” is just that – old, and is declining at a very fast pace. Digital payments have become the preferred safe payment option for most consumers for obvious reasons.

The general go-to options for online payments are using a Visa/Mastercard, PayPal, and others yet although these sorts of payment options provide a costly service to consumers and businesses, they are not very business-friendly.

Competitors in the marketplace will typically charge upward of 15% on transactions the size of 1 CHF or equivalent while Centi provides an improved service at minimal cost and is still highly cost-efficient down to micropayments as little as a few cents.

The technology behind Centi micropayments

Scanning QR codes make for safe contactless (hygienic) and immediate digital payments by simply using your mobile device to scan the code and activate the payment within seconds. The fuss-free technology behind QR codes incorporated with the transparency of blockchain technology allows Centi app users to make micropayments within seconds, even faster and a lot safer than dealing with hard cash.

E-commerce technology is developing at a fast pace and blockchain technology appears to be the yardstick for future developments which is largely due to the secure nature of financial transactions. Both businesses and consumers benefit greatly from using blockchain and related technologies incorporated into Centi’s low-cost, highly efficient payment platform.

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