Advantages of Flexible Payment Technologies
Can you imagine a piece of clothes that perfectly fits you all your life, adjusting to all the changes happening to your body? Or clothes that grows with your kid? What could it be made of? Some advanced type of self-reproducing stretchable fiber or plastic, perhaps? In fact, science fiction writers and movie directors have already imagined it for us. Remember, for example, “Back to the future III” movie. Well, in the payment services world, such a thing is possible. Some modern payment technologies can, actually, adjust to the changes of your business model. The problem is that not all payment technologies are as flexible and customizable as they could be.
Payment Processing For Startups
Let us consider a startup business. (A startup is often compared to a child, by the way). Due to its lack of processing history, low processing volumes, or other factors, such a business is unable to bring large revenues to its processing and gateway partners.
For example, a startup company makes $15, 000 a month. Processing fees amount, roughly, to 2.5-3%. So, the revenue, earned by the company’s processing partner, amounts to several hundred dollars. This amount cannot serve as a sufficient incentive to provide customizable merchant services.
As a result, small-size and startup merchants have no other option but to stick to larger entities, such as wholesale ISO, payment service providers, and payment facilitators. These entities, usually, offer some standard service packages and basic functionality.
Stripe, Square, PayPal, WePay, and other leaders of PayFac services market are doing a great job. These companies enable newly emerging merchants to start accepting electronic payments almost as soon as they apply for merchant accounts. Applicants do not have to face the bureaucracy and paperwork associated with merchant underwriting and establishing of acquiring bank relationships. The “big brother” (i.e. the PayFac) takes care of these issues for them.
Initially, a basic solution, offered by a large payment facilitator or service provider, might be the best option for a startup business. However, as the business grows, new needs emerge, while existing needs become more sophisticated. The business is, literally, “growing out” of the payment technology it is using. Standardized cloud-based solutions, offered by large providers, are, basically, the same for every user. And they often leave no room for customization or adjustment.
Migrating to Payment Technologies That Can “Grow With You”
As the existing payment solution becomes “too tight”, the business starts to think about migrating to a new one. The process of migrating to a new payment platform calls for considerable efforts, takes time, and costs a lot. And you never know, how long the new solution will be able to respond to your business needs. An ideal option under the circumstances would be a payment technology that can “grow with you”. Or a solution that can be easily tailored to your new business model.
If we take a look at the present-day market, we can see that flexible payment technologies are already offered by some companies. UniPay Gateway solution is one of the most advanced examples of this trend. UniPay Gateway is available in the form of a hosted (cloud) version. This option might work best for small-size or startup businesses. At the same time, as your business develops, you can take the technology in-house as a licensed open-source payment gateway software product. Once you do this, you get unlimited potential for customization. You are able to tailor the product to any newly emerging business requirements. Moreover, you do not necessarily have to use your own development team. Highly-experienced UniPay Gateway development and tech support personnel is there to help you with any configuration, integration, and certification works, or other customized adjustments.
Feel free to contact our payment experts to learn more about robust UniPay Gateway technology, and to find out, how it can improve your specific business.