If you run an online business that serves customers across different countries and regions, you need a payment system that can handle multiple currencies, regulations, and preferences. A global payment system standard can help you streamline your transactions, reduce costs, and increase customer satisfaction. But how can you adopt one for your business? Here are some tips to guide you.
Before you choose a global payment system standard, you need to understand your current and future payment needs. How many countries and currencies do you operate in or plan to expand to? What are the payment methods and preferences of your target customers? How complex are the tax and compliance rules in each market? How much volume and frequency do you expect for your transactions? These questions can help you define your payment goals and challenges.
There are many global payment system standards available, each with its own features, benefits, and drawbacks. Some of the most common ones are ISO 20022, SWIFT, SEPA, and PSD2. ISO 20022 is a universal standard that supports various payment formats and messages. SWIFT is a network that facilitates cross-border payments and communication. SEPA is a European standard that simplifies euro payments within the region. PSD2 is a regulation that enables open banking and third-party payment providers. You should research each option and compare them based on your needs.
Two additional things to think about are: a) Non-functional requirements; and b) Automation of Backoffice functions. Non-functional requirements Global payment system needs to be highly available(24x7), secure, and scalable (you'll need to account for seasonal surges in volume). As a result, Non-functional requirements should be captured along with functional requirements during initial stage. Automation of Backoffice functions The cost of operation will go up with increase in?volumes?if backoffice tasks like compliance reporting and reconciliation are not automated. As a result, I would advise assembling a committed group of specialists who will continuously monitor and implement non-functional and back office automation needs.
Adopting a global payment system standard can involve significant costs, both upfront and ongoing. You may need to invest in new software, hardware, or infrastructure to support the standard. You may also need to pay fees, commissions, or exchange rates for each transaction. Additionally, you may need to train your staff, update your policies, or hire external consultants to implement the standard. You should evaluate the costs and benefits of each option and choose the one that offers the best value for your business.
Before you fully adopt a global payment system standard, you should test it thoroughly to ensure that it works as expected and meets your requirements. You can use a sandbox environment, a pilot project, or a small subset of customers to test the system. You should monitor the performance, security, and reliability of the system and identify any issues or gaps. You should also collect feedback from your customers, staff, and partners and make any necessary adjustments.
Adopting a global payment system standard is not a one-time event, but an ongoing process. You should monitor the changes and developments in the payment industry and the markets you operate in. You should also keep track of the customer behavior and preferences and the feedback you receive. You should update your system accordingly and ensure that it complies with the latest rules and regulations. You should also review your system regularly and measure its impact on your business goals.