Payment Processing

Payment Processing News Blog

• International Payments Get Easier

  The International Payments Framework is an organization with the mission to improve cross-border payments. The organization seeks to simplify global standards for international credit transfers. The organization provides rules, standards, operating procedures, models and guidelines. Members of the organization including banks, domestic and regional payment systems, agree to abide by the rules through the acceptance of service agreements. The standardization is important to accommodate the growing needs of international customers who are looking for cost-effective payment services that are simple to implement. Standard formats make executiving payments internationally easier and predictable. . Payment reference and remittance informational delivery are standardized. Standardized operational formats means integration of international payment processing protocols into accounting systems can be greatly simplified. : International transactions processing fees will be lowered due to the efficiencies created by standardized rules. - 9 days ago

• Virtual Gifting Creates Real Profits for Digital Merchants

  Seems crazy that people will actually pay real money to send a “virtual gift”. After all, the gift is just a bunch of pixels that have no real value. But, if the social networks are any indication, virtual gifts are creating big business opportunites. Take Facebook During the first year virtual gifts were offered for purchase on Facebook, $15 million was spent buying them. That was 10% of the $150 million that Facebook generated in sales in 2007. According to Viximo Facebook will sell 60 million dollars in virtual gifts in 2009. And, $400 million will be spent on virtual goods in the US. Globally $5.5 billion will be spent buying virtual goods As the economy continues to tank, the advertsing revenue generating model for social networks no longer works. Social networks are jumping on the virutal goods bandwagon as a way to make money. Like real gifts, virtual gifts lubricate social network interactions. Virtual gifts express feelings and communicate sentiments such as “I like you” or “I appreciate you” or “I’m thinking of you” The gifts show caring for and consideration of others. In addition to demonstrating affection for an individual, virtual gifts can be viewed by the entire social network to which the individual belongs. The gifts are a public gesture that adds to the status of both the person who receives the virtual gift and the one who buys it. Virtual gifts are low-ticket impulse items. Most virtual gifts sell for a buck or two. They are well suited for purchase via mobile phone. Social networks can pass the cost of the mobile billing on to the consumer. Or the social network can absorb the fees. In either case, the cost is low enough and the social rewards are high enough that the purchase of a virtual gift is a “no brainer” for consumers. And a proven profit generator for digital merchants selling virtual goods. - 2 weeks ago

• Payment Processing for Digital Goods

  As the demand for digital goods soars, payment processors need new ways to process microtranactions. Mobile payments are certainily a good fit for small ticket transactions. In fact, the lower the transaction value, the better. Right now mobile carriers still demand high fees for allowing consumers to pay for digital goods by mobile phone. Merchants can pass the fees on to the buyers so it costs the merchant nothing to offer mobile as a payment. That’s a good solution if a virtual good sells for $1. Buyers might not mind paying $2 for a $1 item, with $1 going to the merchant and $1 going to the mobile carrier. But, they probably will balk at paying $10 for a $5 item. The key to making money with micropayments is to price very low and make your money on volume. The sweet spot for mobile payment processing is to charge 50 cents up to a maximum of a couple of bucks for virtual goods.. If you are a digital content merchant, don’t ignore mobile payments, particularly if you are selling in Europe and Asia. According to Jupiert Research Asia and Europepresent over 60% of the $300 billion spent yearly by 2013 for purchases made by mobile phone - 2 weeks ago