Payment gateway companies in Hong Kong and Singapore

With the development of modern business transaction services and the increase in transaction volume, business has become more complex and diverse. With the righ...

Feb 24,2022 | Jacqueline

With the development of modern business transaction services and the increase in transaction volume, business has become more complex and diverse. With the right partner, setting up a payment gateway is a lot easier than you might think. Payment channels are the most basic support for enterprises, and the rapid and healthy development of enterprises requires complete support. The payment gateway system can enrich capital transfer channels, undertake more complex loan deduction business, and improve the timeliness and success rate of loan deduction. As a payment gateway, Oceanpayment has always provided domestic and foreign merchants with product and operational support services to ensure the safety of merchants' capital transactions.

What is a payment gateway?

Payment gateway refers to the interface between the banking financial network system and the Internet network. It is a server device that processes merchant payment information and customer payment instructions, and converts data transmitted over the Internet into internal data designated by financial institutions or third parties.

Under the payment gateway company model, the online payment platform is just the link between the bank's internal financial network and the public internet. The main function of the online payment platform is to package, encrypt and decrypt the data between the bank's internal financial network and the public Internet, and complete the data transmission between the two. The main feature of this model is that the online banking interface of banking institutions jumps out during the payment process, and these online payment institutions themselves do not engage in e-commerce activities. Payment gateways are intermediaries between the Internet and traditional banking networks.

When electronic payment is not yet popular, merchants complete the payment process by connecting to the system interface provided by the bank. As the payments industry continues to grow, companies are no longer content to support just one or two banks. At this time, the merchant's payment system needs to support multiple banks at the same time, and deal with derivative issues such as reconciliation and settlement.

Therefore, third-party payment gateway institutions came into being. They develop and operate a system that connects multiple banking systems and then provides payment gateway systems to merchants through a unified interface. Therefore, at this stage, the system of the third-party payment institution is the payment gateway.

Hong Kong/Singapore payment gateway.

Singapore, with a population of 5.8 million, is the world's leading financial centre and major trading centre. According to the World Economic Forum, Singapore is the most "technical" country in the world. In the decades after independence, Singapore has grown rapidly from a low-income country with high unemployment, poor infrastructure, and housing shortages to a high-income, competitive economy.

The government of Singapore announced the opening of the interbank payment gateway to non-banking companies and the integration of their e-wallets into the national e-payment ecosystem. This encourages competition and operability between e-wallets and bank accounts. In November 2017, Singapore-based DBS Bank launched the world's largest API developer platform, which retailers use to improve customer experience. For example, McDonald's leverages DBS Bank's Payments API to enable cashless and faster payments for consumers. The popularity of mobile payment services in Hong Kong lags behind other markets, especially mainland China. Payment gateways play a key role in online payment operations. Payment gateways provide e-commerce applications that allow merchants to use software to accept online payments. The payment gateway connects to the merchant account and converts the charging information into electronic data. In the real world, a payment gateway is the equivalent of a credit card machine in a brick and mortar store. According to the expectations of banks and other financial institutions, consumers' payment behavior will change after innovative payment gateways such as Applepay are actively promoted in Hong Kong. Products developed by some wireless network operators, such as Hong Kong Telecom and Digital Communications, have also joined the mobile payment battleground. The Hong Kong market is expected to mature gradually, bringing business opportunities for more advanced mobile payment products.