Monday, May 4, 2009

Building Payment Networks - Part 4

So now that you have your biller built (or bought) and you have licensed and integrated your accounting software to your biller, you need a plan.
This boils down to choosing the right payment method mix per payment system. In any successful hight-profit margin payment system targeted at a diverse demographic of kids, teens, moms and dads, you need a wholeistic approach to payment method selection to create the widest possible payment network reach. Basically, you need to cover the 3 main payment categories which are;

1. Online Payment Method (s) i.e. Credit Cards, Internet Bank Payment(s), PayPal;

2. Offline Payment Method(s) i.e. prepaid cards, e-voucher/e-pin code generators; and

3. Telco Payment Method (s) (mobile sms, IVR).

This should be replicated in each market / region via a consistent systematic approach. To do this you either a) integrate to a turnkey hosted payment network provider with a diverse portfolio of payment methods in your home market and / or internationally, or b) do it yourself.

Our next blog post in this series will describe in more detail how you can go about selecting partners per method.

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