Integrated Payment Adapter

Integrated Payment Adapter


Why Shopsystem and Payment Service Providers (PSPs) should implement an Integrated Payment System.

European Payment Councils (APM report 2019) shares that the personalization of payment methods for customers is one of the key aspects considered by Payment Service Providers (PSPs) and Merchants at present, given the competitive environment.

As PSPs enter the market with newer features and attractive offers it becomes quite challenging for Merchants to keep pace with newer technologies, and meet customers’ demands who are well informed about the advancement.  It’s a no brainer that a proactive approach to integrating different PSPs will have a competitive edge over the fence-sitters.

When consumers are faced with multiple eCommerce stores offering similar products, user experience becomes an increasingly important factor. A survey of around 4500 customers by Baymard revealed 6% of consumers abandoned the cart during checkout for not having preferred payment options1.

Impact of payment options on eCommerce - Ideatarmac

Though consumers value wide-range, secure, and intuitive payment methods, what matters most importantly for Merchants is an accelerated easy integration of various third-party payment methods.

So, let’s understand payment integration when it comes to Shopsystem and Payment Service Provider.

What is Payment integration when it comes to eCommerce?

It is simply a system or a plugin that communicates between PSPs and Shopsystem. The architecture is unique to every Shopsystem and payment platform. Different APIs or platforms will need separate PSP plugins for each Shopsystem.

Architecture of Shopsystem and payment platform - Ideatarmac

Although the technology sounds less complex when it comes to managing single PSP for Merchants or integration with only one Shopsystem for PSP. On the contrary, the market is swarmed with numerous PSPs and Shopsystems, managing these multiple integrations is challenging, time-consuming, and resource-demanding.

Challenges for Merchants and PSPs

Like any other technology, a plethora of challenges for both merchants and PSPs are.

For Merchants, the PSP plugin should be flexible and compatible with their existing software or the system. As the integration with multiple PSPs, ensuring that their software system is compatible with each PSP integrations, testing, and deployment consumes time and resources. Constant updating of the API or checkout updates are prone to errors. Sometimes overlapping of code leads to complexity. The future-readiness of the Shopsystem software also plays a key role for merchants. Probably they may have to move to a better Shopsystem if that’s not the case.

For Payment Service Providers, the payment plugin should be compatible with different Shopsystem as it runs on different technology stacks. Integration to each Shop system demands a separate plugin specific to each shop system. It should be very simple to integrate without merchants requiring extensive programming skills. It should also be able to sync with the transaction, CRM, future updates, and other software platforms used by the merchants. Such a possibility consumes time and resources for PSPs in the long run.

Common challenges for Merchants and PSPs

Common challenges for Merchants and Payment service providers (PSPs) - Ideatarmac

Other than the above challenges the three more common challenges for both PSPs and merchants come down to:

  • Resource investment:  The need for advanced technology creates a need for new skill development or a dedicated IT team. Especially for PSPs knowledge on diverse Shopsystem software or platforms becomes a priority.  With the continuous advancement in these technologies, a challenging amount of resource investment turns out to be quite challenging.
  • Time-Consuming: Resource investment logically leads to time consumption. The myriad of processes, errors, and compatibility checks turn out to be tedious.  Above all, each plug-in requires certification and appropriate compliance, which further delays the execution process.
  • Individual service providers: Managing several service providers can be overwhelming. Multiple contracts, setup, integrations mean you have to spend more time on paperwork and management. Understanding the requirement, customization, support from individual service providers turns out to be too demanding. It is very unlikely that all the service providers work at the same pace resulting in the staggering market launch.

The Integrated Solution: SDK Approach

Meeting customer demand should be the priority for PSPs and Merchants when it comes to business but not on worrying about the technical obstacles. It can be far easier to overlook the benefits for an integrated solution but thankfully a simpler integration can take care of these technical obstacles.

An integrated approach where a common piece of logic is developed as a modular code. This ensures reusability and minimizes the need for re-coding for each new integration between a PSP and a Shopsystem.

In the context of payment integration, this approach would mean building modules for specific features such as redirect or tokenization.

Payment Integrated Solution, SDK Approach - Ideatarmac

Now the most important question, why should PSPs or merchants switch to such an ‘integrated or SDK solution.

Four reasons SMEs and PSPs should switch to an integrated solution

  • One Technology: The universal plugin works as an interface to connect the PSP and Shopsystem platform. A standardized and unified solution for both API layer for PSP and SDK layer.  Any updates, addition, or customized features are done with minimum configuration changes for PSPs and Shopsystem.  Clear visibility of integration with one click with no scope for multiple plugins.
  • Increased productivity:  Minimal management and efficient workflow process that is the core advantage. Through reduced technology burden and operational cost, the integrated solution brings in increased productivity to your IT team.
  • Accelerated Time: With 70% faster integration it makes way for faster launch to the market and significant contribution to your business. A right solution in place for all the future integration at ease without divulging too much on developing codes.

Conclusion

Considering the fast pace change in eCommerce, embracing a simple technology will be advantageous not only now but over the long run too. A single SDK approach or an integrated approach provides the solution that works intuitively and seamlessly for your business.

We at Ideatarmac offer you our universal plugin that works as a technical interface to standardize and unify the whole logic of payment integration. We bring in an agile and flexible technology to tailor your needs which is 70% standardized and 30% customizable. Irrespective of your Industry our One Technology, One Solution, One Process may be suitable for you, without making a huge investment in skills or infrastructure change.

If this integrated solution works for your business please do get in touch with us!

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