It was until very recently, that handling payments was exclusively handled by financial institutions such as banks. Today, that no longer remains the case. Payment management is one of the areas which the proliferation of technology has had the greatest impact on. The Unified Payments Interface (UPI) created by the National Payments Corporation of India has enabled even road-side hawkerslargest to the smallest of businesses to use digital platforms to receive payments from their customers. With the digital payments market expected to grow at approximately 10% CAGR over the coming 6 years, businesses are bound to increasingly adopt such e-transacting platforms. However, what should be the must-have features for a modern payment platform? The following list would shed some light on the same:
- Self-Servicing Capability
The payments platform should allow users the ability to self-service, be it for merchants for terminal certification and network participation for host certification. This is important to facilitate speed and flexibility of use of the platform, something that is naturally expected out of a digital platform.
- Real-Time Transactions Clearing
The platform should have the functionality to be able to allow and process single-message transactions as against the necessity of the transactions to be dual-message in nature in legacy systems.
- Any-Time Transactions
Following from the previous point, along with real-time transactions processing, the platform should enable users to send and receive money at any point of time during the day. This is important to overcome timing restrictions on certain banking transaction modes such as NEFT.
- Compliance with ISO 20022 Standard
When it comes to transactions conducted over an online platform, there is every possibility of occurrence of a fraud. Therefore, digital payment platforms should ensure compliance with ISO 20022 standard, which requires them to maintain a metadata repository which would contain descriptions of financial transactions along with the corresponding messages between financial institutions as well their settlement information.
- Artificial Intelligence/Machine Learning Capabilities
The incorporation of AI/ML features within the payment software would impart it intelligence. Not only this would allow the software management team to derive insights regarding customer spending datapattern, but it could also make the platform responsive and therefore personalizable.
- Impervious Security Features
A payment system would have its mode of operation over servers on the cloud, and hence is prone to cyber-attacks. To prevent this, it is essential that it makes use of the most secure of technologies such as Blockchain to ensure fool-proof security of transactions.
Having the above six capabilities are a must for any modern payment platform to be able to earn the trust of users – a factor that is the primary driver of market success when it comes to the financial industry.