Month: December 2022

Banknotes from different nations, symbolizing local / alternative payment methods

Why Shooting For Alternative Payment Methods Is Half the Game

Christoph Laurer Leave a comment

Around 200 different payment methods exist around the globe – every single one has its fans. That’s not surprising: Our local payment culture influences which payment methods (or payment service providers) we prefer. Factors such as perceived payment trends, word-to-mouth, and genuine economic and regulatory conditions all shape our preference for one way of payment or the other.

For every company aiming for a new market, it’s crucial to understand the local payment customs inside out. And that’s just the preliminary: Integrating local payment methods and providers can be complex and costly on the technical side. This article will help companies without a payment software background navigate the playing field. How to set up a custom payment system that simplifies payment method integration?

The article details: 

  • The benefits and challenges of local payment methods 
  • Why a custom payment system makes alternative payment method integration easier
  • How to set up a global payment system with Finergizer, featuring an orchestration layer for local payment methods 

Let’s begin… 

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Fintech in the Time of Crisis

Natallia Martchouk Leave a comment

Tough Times for Fintech

Is fintech in crisis? trimplement co-founder Natallia Martchouk connects the dots.

After 2 years of Covid-19 pandemic, just when we thought that the hard times were nearly over, reality hit us in February 2022 with the war in the heart of Europe. We don’t yet know what the long-term consequences of the global economic situation will look like, but we already see the impact in different areas of our lives and businesses in the EU. Many countries take care of refugees from Ukraine, support the attacked country with weapons and ammunition, impose sanctions against the aggressor and bear the consequences of these sanctions suffering under the high dependency on Russian gas and oil. The population is struck with high inflation and rapidly increasing prices. Many small businesses struggle to keep their heads above water due to growing energy costs. Startups in different areas experience venture capital funding curbs and shrinking valuation. And fintech is affected by these negative developments, too. 

After the record year 2021, in 2022 the investments into fintech worldwide dropped from 226,5 billion USD to 107.8 billion USD. And it’s unlikely that the second half of the year will be as good as the first one. Most likely the deals that were closed in the first half of 2022 were negotiated at the end of 2021 / early beginning of 2022. That means, before the war in Europe and the recession started, under totally different circumstances.

A report by Andreessen Horowitz shows that fintech companies valuations have fallen from 25 times forward revenue in October 2021 to four times forward revenue in May 2022.

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A computer besides a wallet, symbolizing payment gateways, online payment and ewallets

E-Wallets or Payment Gateways – A Comparison

Christoph Laurer Leave a comment

When we compare e-wallets or payment gateways to payment with card or cash, we often evaluate the former as more convenient. That might be a bit of an overstatement, really. Holding your credit card in front of a card reader does not exactly sound like much work, does it?

No, what really makes modern digital payment methods so powerful is their feature-richness and flexibility. For example, you can simply conduct cross-border payments or transfer tiny amounts of money with digital payment methods. And even if you are bound to our own four walls (for some reason), you can pay for goods and commodities with just a few clicks. 

But payment does not equal payment. Behind the scenes of your checkout page, in the technical profundities of the software, it makes a huge difference whether the payment happens via an e-wallet balance or a digital bank or credit card transfer, facilitated by a payment gateway. 

Payment Gateways vs. E-Wallets? Not Quite!

However, make no mistake and don’t take “Payment gateways or e-wallets” literally. The two are not exact opposites: You need PGs to process a transaction no matter what. The real question is: How exactly does using e-wallets vs. regular payment providers influence the payment process, especially regarding user experience? 

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A person holding a credit card facing an online marketplace, symbolizing online payment and the payment gateways in charge of the transfer

How to Tell Payment Gateways from Payment Service Providers (And Which One to Choose)

Christoph Laurer Leave a comment

Digital platforms are the go-to spots for e-commerce – and terminals for countless payment transactions. 

Whatever platform a customer uses (be it Amazon, Etsy, a niche marketplace for specific goods like Chewy or a “meta-marketplace” like Check24), they will have to pay for their order at some point. That’s when Payment Service Providers and Payment Gateways make their appearance. It’s their job to detect fraud and validate the purchasing agreement. And ultimately, to debit accounts and move money.

But what exactly is a marketplace payment system and what is the difference between a Payment Gateway and a Payment Service Provider? This article will provide: 

  • A definition of Payment Gateways in contrast to Payment Service Providers
  • An overview of the parties involved in online marketplace transactions
  • Next steps for building your own Payment Gateway
  • Access to a Free White Paper About Payment Gateways

Let’s start. 

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