In the past, online transactions would use online banking functions, but this method has the added disadvantage that it is difficult to ensure the smooth completion of transactions, both merchants and buyers, there may be the situation of not receiving the payment, goods, so online transaction fraud is endless. At this time, the advantages of third party payment platform come into full play, effectively compensating for the shortcomings of banks. However, many users do not understand why they still need this kind of payment platform when there are banking and financial institutions.
There are too many different bank brands in the market, and as a banking institution, it is obviously very costly to develop a product to connect with other banks. The third party payment platform can realize the interface with other banks and effectively reduce the connection cost between banks. This kind of platform, which focuses on the development of online business collection and payment functions, naturally has the value of existence and is even recognized by many financial institutions.
Different customers may have different needs for payment calculations, and banks need to spend huge development costs to satisfy corporate customers, which is not worth the cost. In contrast, enterprises choose third-party payment platforms not only to reduce costs, but also to realize personalized customization services.
In the field of e-commerce, the third-party payment platform can play an intermediary flow of funds to solve the credit problem of online transactions. After the buyer pays, the funds will be temporarily stored on the payment platform, until the buyer receives the goods and checks that there are no problems, and then confirms the receipt, the money is automatically transferred to the seller's account.
Compared to online banking payment methods, third-party payment platforms can further simplify the process while safeguarding the security of personal information. Through facial recognition, fingerprint recognition, SMS verification, etc., the security of the transaction is greatly enhanced, making the payment experience more perfect.
Key Learnings. A seller, a buyer, and an additional party unrelated to the other parties are frequently involved in a third-party transaction. In daily life, third-party transactions can be seen everywhere, such as with insurance agents, mortgage brokers, and internet payment processors.
On the other hand, third-party payments are those that are made on behalf of customers, users, or business partners. Third-party payments are referred to as product payments, while first-party payments are operational or monetary payments.
A bank-to-bank payment service called Zelle links US-based banks together to enable quick money transactions. Even if the recipient uses a different bank, you can send money swiftly and securely using this service, which is free.
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- Feb 17,2023
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