Do you know why it is essential to have credit card processing in Singapore to elevate your business?
Well, today, most customers prefer credit cards to make online payments. It's no secret that e-commerce is expanding worldwide, primarily since the epidemic has driven more people online than ever before.
In 2022, it is anticipated that worldwide e-commerce revenues will amount to US$5.5 trillion. With a proportion of 23.6% of all worldwide retail sales, up from 20.3% this year, it is anticipated to surpass US$7.3 trillion.
E-commerce sales are anticipated to nearly quadruple to US$2 trillion in the Asia-Pacific region alone, according to Euromonitor. E-commerce sales in Southeast Asia are expected to increase by 18% to US$38.2 billion. The e-commerce market in Singapore is predicted to reach $9 billion in 2022 and $14 billion in 2027.
Well, in today's digital era having credit card processing is essential for any business because it help them to increase the sales.
Let's explore credit card processing in detail.
With the help of the government's stimulus package and a faster statewide vaccination rollout, Singapore's economy shrank by 5.4% in 2020 and recovered in 2021, with GDP growing by 7.2%.
As a result, according to projections from GlobalData, Singapore's credit and charge card payment market would expand at a compound annual growth rate of 6.5% between 2021 and 2025 to reach $59.8 billion in 2025.
Singapore has a strong card acceptance network. Most Singaporeans prefer credit card payments and charge card payments because most banks offer flexible payment options in instalments, rewards points, discounts on purchases, and other benefits associated with the cards.
All the banks in Singapore offer instalment facilities, which enable credit card holders to convert large purchases into monthly instalments to help them manage their expenses.
The whole credit card processing operation happens within seconds. But do you know what happens behind the scene? It takes several steps to complete a single payment. Let's check one by one -
At first, the customer has to enter their card details to make the payments. The customer should enter their card number, CVV, and cardholder name.
A processor fetches the customer's card details as soon as they click the submit button. Through the card network, the processor communicates with the customer's bank.
The customer cardholder's bank determines whether or not the customer has enough funds. It also checks whether the transaction is fraudulent or not. Sometimes the payment gets declined. Generally, there are three common reasons for this -
When a cardholder's application is approved, the bank notifies the payment processor, who then relays the information back to your terminal and tells you of the outcome.
Following approval, transactions are batch-processed for settlement at the end of the business day. Following the settlement, the transaction is recorded against the customer's account, and the funds are put into the merchant's bank account.
Merchant accounts and payment gateway are two fundamental entities that are essential to complete an online payment. It is a misconception that merchants need a merchant account or a payment gateway. But, in general, all three key entities, i.e., credit card processing, payment gateway, and merchant account, are required to complete a single payment process.
A payment gateway is a technology that is essential to accept online payments. A link connects a customer's bank account and your merchant account, enabling funds to be transferred after a transaction is cleared.
Contrarily, a merchant account serves as a holding account where those funds are deposited before they are made to the bank account. It serves as a location to gather data on payment-related transactions, to put it simply.
Suppose you are running a forex business in Singapore; you must have a forex merchant account, a forex payment gateway, and a forex credit card processing. As forex is a high-risk business, so it is essential to go with a forex-specialized service provider. If you are running any other type of business, you have to choose the complete payment solutions specializing in that particular type of business.
A merchant account is essential for businesses that accept credit card payments because merchants receive the funds in their merchant accounts. After payment verification, the fund moves to the bank account.
So, having a merchant account and payment gateway for your online businesses is essential.
There is no denying the influence a reputable credit card processor can have on your business. For your online business, it's essential to partner with a reliable organization that can handle everything from taking a variety of preferred payment choices to ensuring quick checkout for clients.
By providing a variety of payment choices with PayCly, companies may attract customers, given the rising popularity of alternative payment methods.
PayCly is one of the leading payment service providers whose services are available worldwide. It is compatible with all types of businesses and offers you the best possible services.
Benefits of using the PayCly as Your Credit Card Processing Singapore
Suitable credit card processing is essential for any online business because it is one of the most critical steps in every consumer's purchasing journey. Before making any decision, you must know that only credit card processing is not enough. You also need a merchant account and payment gateway.
If you are still looking for complete solutions and need help, then you can go with our preferred payment solution, PayCly. With PayCly, you can get complete solutions for your online businesses.
Contact the PayCLy expert team and finalize your deals.