For an online platform that processes any type of payment to be successful in the modern digital era, one of the most important factors is the speed at which it processes those transactions, but also how safe, convenient, and low-cost those transactions are for users.
With that said, let’s dive straight in and learn more about why speed is fundamental to the success of an online payment platform, and give a few examples of which types of industries and payment brands operating in those sectors are typically known for their above-average transaction processing times.
Why is transaction processing speed fundamentally important to the success of an online business?
Most people these days spend more time buying things across the internet on their favourite websites than out in the real world.
Even when people purchase things such as tickets for trains, planes, buses, cinemas, theatres, concerts, and sporting events, they do so online using a Wi-Fi/internet-connected PC or mobile device instead of getting them in person from a land-based store.
People can also now pay online for meals at the restaurant, drinks at the bar, fuel at the garage, taxis, Uber rides, and so on, and one of the most crucial factors that can significantly impact the user experience is how quickly those transactions are processed.
Similarly, when visiting websites to make purchases, whether that means depositing funds into an online gaming account, renewing a subscription, purchasing items from an eCommerce site, paying for services, transferring money to a friend or relatives, or transferring money from one of your online payment methods to another, speed is the one thing that people rely on when using an online payment method.
Faster transactions improve customer satisfaction, enhance a platform’s reputation for being reliable, and reduce things like cart abandonment at the virtual checkout.
People are more likely to use online payment solutions and websites that are known for being fast at handling payments/transactions, and tend to avoid ones that are known for being notoriously slow.
Take online casino players, for example, who will avoid signing up to and playing on websites that take forever to pay out players’ rightful winnings, and will stick to playing on fast payout casinos that process transactions promptly.
The highly competitive nature of this industry (and the digital payment processing sector), combined with the demand for quicker transaction processing times by players, has made companies up their games and improve their speeds, meaning deposits on sites like this are now near-instant, and withdrawals, even large withdrawals, are known for being processed in as little time as possible.
For example, depending on the payment method used, as well as the amount of cash a player is trying to withdraw and the time of the day and day of the week it is, even the slowest payments these days using modern online payment gateways tend to be processed in under a few hours. In some cases, as little as a few minutes.
Advantages of fast transaction processing times
For businesses that accept online payments on their websites or via their apps, fast transaction processing times bring many benefits. It’s the key to having a competitive advantage and staying one step ahead of their rivals.
Some of the key benefits are the following:
- Enhanced user experience and improved customer satisfaction
- Increased conversion (more sign-ups/sales/transactions) and increased retention (more likely to return in the future)
- Reduced cart abandonment
- Improved operational efficiency and reduced costs/administrative burdens (eliminates wasted time spent on manual reconciliation and customer support efforts dealing with delayed payments)
- Competitive advantage over rival companies by meeting customer expectations for swift payments
- Fast payments increase security
- Fast payments also build trust in a brand and give customers more confidence when they can count on fast and reliable transactions
These days, people can choose from various online payment methods to purchase items, services, subscriptions, content, products, and so on, when they get to the virtual cashier/banking section on any sites that they decide to purchase from.
However, not all websites accept the same online payment methods, which is why so many people today actually have several online payment methods that they use regularly in case their preferred payment method isn’t accepted.
Most sites tend to accept at least three to five different ways to facilitate payments on their platforms, which typically include things like mobile wallets, digital wallets (aka web wallets, electronic wallets or eWallets), bank transfers, prepaid voucher/gift cards, and even cryptocurrencies.
Some of the world’s most secure online payment gateways that are well-known for processing lightning-fast transactions are Payline, Google Pay, Apple Pay, Visa, Mastercard, Skrill, PayPal, Neteller, Paysafecard, AstroPay, and direct/instant bank transfer options, such as Trustly, Interac, and POLI.
Other fast payment gateways that you may also be familiar with by now are Amazon Pay, Adyen, Stripe, Square, Jeton, Revolut, Maestro, American Express, Diner’s Club, Neosurf, Payz (formerly ecoPayz), MuchBetter, and cryptocurrencies, such as Bitcoin, Tether, Ethereum, and Litecoin, to name a few.
Final thoughts
To sum up, rapid payments are about more than just convenience for customers. Although it remains a fundamental factor in boosting customer satisfaction, it’s also crucial for helping online businesses to streamline their operations and become more efficient in their day-to-day operations, which leads to a more successful business.
By prioritizing both the speed of transactions and how securely protected each transaction is, business owners operating in the digital realm can create a far more positive experience for their customers. It helps them to significantly improve their bottom line and gain that all-important edge over their rivals.
