Wallet as Payment Option For a B2B site (Magento)
- How you are going to get paid for the products and services that you are giving to your customers is of immense importance.
- It’s crucial that you provide varied payment options.
- When selecting the payment methods it is important to consider type of customer, type of business, type of region, cost of transaction, online fraud.
What are the different payment Options.
- Credit/Debit card
- Cash/Check/Money Order
- Payment Gateways (PayPal, Stripe, Authorize.net, Adyen etc.)
- Bank Transfer
Business Payment challenges in B2B site:
- Most of the payment processes are time consuming and they display hidden charges at the last stage of payment process.
- Most of the payment gateway accommodates a payment network on physical card, which are having numerical data, it can be difficult for a customer to memorize and cart abandonment occurs.
- One of the biggest challenges in B2B site is processing an invoice cost approximately $14 today. For companies that process hundreds of thousands of invoices, this represents a significant expenditure.
- Most of the customers are searching for a payment option with secure transactions, so owner should go for that payment method which will protect their customer’s details.
- Refund process is a major problem that a store owner faces. So the payment method which will provide an easy refund process is needed.
- Credit card transactions clear much faster than most other payment solutions. But, card-based transactions carry additional fees ranging from 0.5% to 5.0% of the transaction amount plus $0.20 to $0.30 per transaction. So it may lead to higher expenditure in B2B business.
- Some of the credit cards does not allow international funds.
Features of E-Wallet
- In eCommerce, wallet can be used for online transfer and online payments.
- Wallet is more secure as information will be encrypted by code, which will be private. Also wallet increases the security of transactions since the wallet does not pass payment card details in every transactions.
- Wallet can be loaded through credit card, debit card , wired bank transfer and cash, so it will be helpful for the customers.
Customer can transfer amount from one wallet to another wallet.
- It’s very important for B2B that wallet system have feature of credit limit.
- All payment transactions by a wallet will be logged. Whenever a transaction takes place the wallet amount is adjusted.
- Use of Wallet eliminate the risks associated with cash handling.
- Customer can have balance inquiry and statement of account report.
- Admin can also add cash in customer’s wallet as a refund or cashback.
- Email notifications are sent for each transaction. Customers and Owners both can see the details of the transaction.
- Customer can see Used and Remaining wallet amount.
- Admin can set maximum and minimum value for the wallet.
- Also the customer can receive monthly statement via mail.
- Admin can set cash back rules in terms of cart as well as product.
- Admin can set the maximum value that can be added into a wallet.
- Admin can directly refund the money by creating a credit memo if payment is done via the wallet.
What are the shortcomings / Challenges in wallet and how we can improve
- When dealing with B2B scenario, selling product on CREDIT is a common practice.
- E-wallet can help to manage the payment through Credit
- ADMIN can assign credit points to the customer.
- Customer can make the purchase through this credit points.
- ADMIN will also set Credit Limit for each customer.
- If the purchased amount of a customer exceeds the credit limit then, the customer will have to recharge the wallet before proceeding for any purchase via credit.
- This will put a constraint on buying through credit.
- Another issue in wallet is of ‘Insufficient Fund’.
- This can be handled through ‘Auto Recharge’ option for Customer.
Some Wallet Stats and Resources
- According to the research published by Zion Market Research, the Global
M-Wallet Market was valued at approx USD 594.00 Billion in 2016 and is expected to reach approximately USD 3,142.17 billion by 2022.
- Few Modules are available for Magento 1 and Magento 2.