Merchant payment services are payment systems that are very easy to set up and international in scope, but originally mainly designed by C to C transactions. The electronic payment market presents great business opportunities on a global level so that several multinational companies have positioned themselves in this niche. The use of the merchant services sales agent now comes essential here.
The Most Famous Virtual Wallet Is “Paypal”.
This system is inspired by the principle of virtual cards: it couples a conventional means of payment, such as a credit card, to an identifier to which is associated a password. Once registered for example by providing a credit card number, or by signing a mandate to establish a SEPA direct debit, the customer can make money transfers to any other person who also has a “PayPal” account by providing the username (in the case of PayPal, an e-mail address) and the password. It is possible to pay, but also to receive money.
Advantages and Drawbacks
It has the same advantages and the same drawbacks as the means of payment to which it is generally coupled, the credit card. It should be noted above all that PayPal is a means of financial transfer of international scope, simple (it is easy to register and use it, with just a login and a password), accepted by a very large number of merchants and to which more than 200 million people have subscribed.
In addition, there are no installation fees, monthly subscription fees, installation fees for technical gateways, etc. On the other hand, the system is not incomparably less secure than payment by pre-filled transfer, validated by a unique code generated: It is only based on a “login + password” coupling, which malicious people can try to collect from users by phishing in particular, by pretending to be the PayPal assistance service.
Indeed, in certain regions of the world, the opening of a virtual account is not as controlled as the attribution of a credit card, in particular at the level of the identity of the holder. So this method of payment should be used with caution when it comes to paying money to an unknown individual or to a non-established company. To compensate for this significant weakness in the authentication of the two parties, PayPal includes in the commission fees collected (3.4% in This country currently, plus 0.35 dollars and a possible exchange margin of 2.5%) a insurance that covers transactions up to a certain amount (currently 500 dollars). With the “double authentication” option, it is now possible to reduce this risk, but still few uses have enabled it.
While PayPal is the online virtual wallet present in the most countries in the world, the largest in terms of number of users is Alipay (China). Amazon Pay, Google Pay and Apple Pay operate on the same principle. Note that micro-payments (even from 0.01 dollars) are generally well provided by these systems.
Finally, a word on the “Western Union” system
It is a system of transfers of funds, from one person to another, based on a very large number of agencies around the world. It is well suited, for example, for paying money to relatives living abroad, especially in countries where access to banking services is not widespread.