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Online Payment System: Definition, Types & Why Every Business Needs One

Africa's Popular Digital Payment Options

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Accepting electronic payment is now a basic expectation of most customers whenever they interact with a business, whether physically or online. This is why setting up a reliable online payment system for your business should be a top priority. An online payment system is a financial service that provides businesses with the needed hardware and software for accepting various methods of online payment like cards, USSD, mobile money, digital wallet, and many more. 

If you’re unfamiliar with how online payment systems work, this article provides a quick overview of what you need to know.

 

How online payment systems work

Payment Processing: Online payment systems rely on a digital communication network that allows transaction data to be passed along from the payment terminal to the card network, the issuing bank and finally the acquiring bank. This process is initiated when a customer attempts to make a payment at a POS or on an online checkout page. The online payment system routes this customer’s payment information between the various financial parties and payment service providers completing the payment process within seconds. Once successful, the customer receives a success message while the merchant’s account is settled with the acquired fund. 

Security: An online payment system also incorporates advanced data protection and security technology to forestall fraudulent transactions and identity theft. From the moment a customer inserts their card in a card reader or inputs their financial information on a business checkout page, the online payment system used by the merchant adds a layer of encryption over the customer’s information before it routes the data to the involved parties. The online payment system also requests the customer’s bank to confirm the legitimacy of the transaction. After running a check, the bank will send an approval or a decline to the payment system to share with the customer.

 

Online Payment Apps for Businesses in Nigeria & Kenya

While there are numerous online payment apps for consumer transactions, there are fewer payment apps designed for businesses. Some of the internationally popular online payment apps include PayPal, Wise, and Stripe. Many of these apps however have problematic restrictions within the African market, which is why they are not the most recommended platforms to use. Thankfully there are many amazing online payment apps designed for the African Market. A good example is Tingg, an online payment app that allows businesses in Nigeria and Kenya to accept multiple methods of online payment. This online payment app has a variety of payment solutions to fit the needs of different types of businesses. 

For Physical Stores: Tingg online payment app allows physical businesses to receive digital payments in different forms without complex card readers or POS machines. The Tingg Instore online payment system allows businesses to use QR codes or USSD codes to receive payments. Customers have the option to pay with various methods of online payment that is most convenient for them.

For E-commerce Stores: Tingg Checkout payment gateway is easy to integrate into any online commerce platform or app. Making it easy for an eCommerce business to quickly set up its store and start receiving payments. With the Tingg gateway, online payment can be received in multiple currencies to the same account. Customers can also pick from different methods of online payment including card, direct bank debit, bank transfer, USSD, QR and mobile money.

For Virtual Businesses: Tingg online payment system also offers a payment solution for businesses that operate via online platforms like Facebook, Whatsapp or Instagram, and have neither an eCommerce store nor a physical location. This service is called Tinng Payment Link. This online payment system simply requires business owners to generate a payment link and share it with customers. The link sends customers to the Tingg payment platform to complete their transactions.

 

Tingg – Leading Online Payments System in Nigeria and Kenya

With flexible payment solutions for every kind of business, Tingg is making digital payments simpler and more reliable. Over 1000 merchants currently trust Tingg to handle their online payments. If you’re ready to join them, set up an account today at tingg.africa.

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