In-house or third party online payment solution? Find out here

In-house or third party online payment solution? Find out here

The modern consumer is shifting towards shopping options that allow convenience. This is in terms of availability, affordability and most importantly, ease of paying. Based on the changing demands, entrepreneurs have no option but allow the customers what they expect. Online shopping has gained widespread adoption globally. If you are targeting business expansion, it is inevitable that you have to offer online shopping. This requires an online platform where your customers will shop, a fast and secure delivery strategy, and most importantly a secure payment platform. 

When it comes to the payment platform, business people can consider third party solutions or an in house payment solution. Either of the two comes with pros and cons. You will want to consider the right solution that meets your expectations and delivers convenience to the customers. In this post, we evaluate the advantages and disadvantages associated with developing an in-house online payment solution and integration to a third-party payment solution.   

In-House online payment solution

As the name suggests, this is a payment solution developed by the business owner and it is exclusive to the particular business and their customers. Here are some of the advantages and disadvantages associated with in-house online payment solutions. 

The advantages of online payments solution

1. Allows business owner control: 

With an in-house solution, the business owner has controls on the system. Therefore, the solution is tailored to meet the functionalities that the business wants the system to have. When building the online payments form, you can easily customize the solution to reflect your kind of business, and the goods or the services that you sell. 

1. Readily Accessible payments

The in-house payment solution does not involve a third party collecting your payments. Therefore, you can be able to access the payments conveniently, as at and when you want. The third-party powered solution requires you wait for the payments to be channeled to your account at certain days of the week or month. 

1. In-house support team

In the case of technical glitch, you have the support team to address the issue as soon as possible. Therefore, you will minimize the downtime since you have dedicated resources looking at the system performance throughout. 

Disadvantages of an in-house payments solution

1. It is expensive to develop

You are expected to hire expensive programmers to develop a custom solution. The development process involves carrying out back-to-back research, which eats on the business profitability. 

1. Not suitable for small-scale businesses

Based on the amount of money needed to develop an in-house solution, it is often suitable for established businesses. Therefore, small-scale entrepreneurs might not want to go for this option. 

1. Time-consuming

Consider that you have to put in working hours rather than concentrate on customer service. Therefore, this is not a very suitable solution, if you do not have dedicated programmers. 

Advantages of Third-Party payment solutions

1. Simplicity

With a third-party payment solution, you simply have to integrate your web platform to the existing payment solution. The providers of third-party payment solutions have the API ready, and so you just need to apply and pay to be allowed to receive payments through the platforms.

1. Secure

These already trusted platforms have been used for a long time. Therefore, you will find that customers consider them more secure as opposed to in-house solutions. 

1. Dedicated support

The providers of a third party payments solution will provide their client has dedicated support when needed. However, in some cases based on demand, you may be forced to wait

1. Low upfront and operating costs

You will not be required to carry out a major development; therefore, there is cost control. Most third-party solutions will be able to set up custom forms to suit your customer’s preferences. This saves you on the cost of online app design and development. 

Disadvantages of third-party payment solutions 

1. Delayed payments

Some providers of third-party payment solutions restrict the amount of time required for the user to withdraw the money. 

1. Finding the right partner is difficult

Finding the right partner takes time and efforts. This is because some online payment solution providers will not be willing to change the current forms to reflect exactly what the buyer needs. 

Are you planning to roll out an online payments solution? Take into consideration the above pros and cons of third party and in-house online payments solution when deciding one that is best for your business.