Understanding Payment Processing For Ecommerce

Payments have evolved from paper and plastic to APIs and orchestration - giving rise to a new breed of players that simplify the complexity and connect the dots behind the scenes. Here's how we got here. 𝟭. 𝗜𝗻 𝘁𝗵𝗲 𝗽𝗿𝗲-𝟭𝟵𝟵𝟬𝘀 𝗲𝗿𝗮, banks owned the entire payments value chain -acquiring, processing, settlement. Merchant onboarding was complex, and domestic clearing systems ruled. 𝟮. 𝗧𝗵𝗲 𝗿𝗶𝘀𝗲 𝗼𝗳 𝗲-𝗰𝗼𝗺𝗺𝗲𝗿𝗰𝗲 in the late 1990s changed everything. Players like PayPal and Authorize made online payments possible, while banks began exiting the acquiring space or partnering with processors to keep up with demand. 𝟯. 𝗕𝗲𝘁𝘄𝗲𝗲𝗻 𝟮𝟬𝟬𝟬 𝗮𝗻𝗱 𝟮𝟬𝟭𝟬, specialized gateways and regional wallets began to scale, offering merchants greater flexibility and control. The launch of SEPA in Europe marked a push toward payment harmonization, while non-bank players started building infrastructure that bypassed traditional acquiring models altogether. 𝟰. 𝗧𝗵𝗲 𝘀𝗵𝗶𝗳𝘁 𝘁𝗼 𝗔𝗣𝗜-𝗱𝗿𝗶𝘃𝗲𝗻 𝗶𝗻𝗳𝗿𝗮𝘀𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗲 transformed payments from siloed systems into modular, developer-friendly tools. Merchant onboarding became faster, integrations simpler, and innovation more scalable. Open Banking regulations enabled direct access to bank data, while new credit models redefined consumer behavior. Payments evolved into a flexible, programmable layer of the digital economy. 𝟱. 𝗧𝗼𝗱𝗮𝘆, we’re in the age of seamless integration. Payments are embedded in everything - from ride-hailing apps to SuperApps. Real-time rails like SEPA Instant, UPI and PIX are live. CBDCs are in pilot. However, as payment ecosystems grow more fragmented - with new methods, regional schemes, compliance layers, and fraud risks -complexity has become a major bottleneck for merchants, fintechs, and even banks. Integrating multiple providers, maintaining uptime across systems, and ensuring regulatory compliance isn't just costly - it's unsustainable without the right foundation. This is where a new breed of infrastructure players like 𝗔𝗸𝘂𝗿𝗮𝘁𝗲𝗰𝗼 fit in - offering the tools to simplify complexity and still retain control. • 𝗪𝗵𝗶𝘁𝗲-𝗹𝗮𝗯𝗲𝗹 𝗽𝗮𝘆𝗺𝗲𝗻𝘁 𝗴𝗮𝘁𝗲𝘄𝗮𝘆𝘀 let banks, PSPs, and fintechs launch their own branded platforms fast - without building from scratch. • 𝗣𝗮𝘆𝗺𝗲𝗻𝘁 𝗼𝗿𝗰𝗵𝗲𝘀𝘁𝗿𝗮𝘁𝗶𝗼𝗻 enables merchants to route transactions dynamically across multiple acquirers, reducing costs and failed payments while improving UX. • 𝗕𝗮𝗻𝗸𝘀 can embed API-driven acquiring services into their offerings without the burden of a full-scale tech overhaul. In a world where growth brings fragmentation, the real challenge isn’t enabling payments - it’s managing them. The advantage will lie with infrastructure that can unify complexity, adapt in real time, and scale across borders without adding friction. Opinions: my own, Graphic source: Akurateco Payment Hub Subscribe to my newsletter: https://lnkd.in/dkqhnxdg

If you are a Consumer Brands founder in India, you would have noticed one major change in the Shopify ecosystem last week: COD (Cash On Delivery) orders account for ~65% of e-commerce transactions. For some brands, COD can be even ~90% of orders…. 💀If you run an e-commerce business, the MOST dreadful word you can hear is “RTO” (Return to Origin). With a COD order, RTO is a double whammy —> you haven’t collected any money from the customer but you end up paying x2 in logistics fees i.e. a DEAD LOSS…. Per GoKwik (an e-commerce enabler), some consumer brands in India can have ~60% of COD orders resulting in RTO.. 🔄Shopify launched its own ACOD (Advanced Cash On Delivery) app on the Shopify App store in November 2017 to help e-commerce companies & brands handle COD & RTO by: (1) Providing Pin Code level analytics on when / where to NOT offer COD (2) Configure shipping rates to account for higher COD zones (3) Customize the check-out experience for the COD payment option on Shopify storefronts Per industry sources, ~33% of Shopify storefronts in India used the ACOD app.. 😦And, here’s what happened → on 15th July 2024, Shopify abruptly gave a notice that they would be rolling back the ACOD app in India in a few weeks.. Shopify went with the roll back on 31st August and the support documents highlighted 2 COD apps: (1) Kwik COD by GoKwik (*) - which is self serve & free to use (2) Razorpay COD & Checkout by Razorpay (*) - which requires onboarding ➡️If you own a Consumer Brand in India or use Shopify as your e-commerce storefront, please do check out these two alternatives. GoKwik works with over 2,500 brands on e-commerce enablement & Razorpay doesn’t need an introduction! PS: If you tell them I sent you their way, you might get onboarded faster 😆 #india #startups

In this deep dive edition of Fintech Wrap Up, I explored how AWS is enabling businesses to build modern credit card payment processing platforms and payment gateways with its powerful cloud infrastructure. As payments become increasingly digital, AWS provides a secure, scalable, and resilient solution to handle credit card transactions efficiently and in real-time. By using services like API Gateway, DynamoDB, Elastic Kubernetes Service (EKS), and Amazon Managed Streaming for Apache Kafka, businesses can meet high availability and low latency requirements while adhering to compliance standards like PCI DSS. The article delves into the lifecycle of credit card transactions, from authorization to clearing and settlement, offering detailed reference architectures for both the acquiring and issuing processes. It highlights AWS’s capabilities to support global expansion, manage compliance in different regions, and protect sensitive data through tools like AWS Payment Cryptography and ElastiCache. Key features include the ability to scale operations during seasonal spikes, maintain stringent security protocols, and automate monitoring for real-time issue detection. Whether businesses are enhancing their fraud prevention mechanisms, optimizing tokenization processes, or ensuring compliance with industry regulations, AWS’s cloud infrastructure provides the flexibility and reliability needed to succeed in today’s fast-evolving payments ecosystem. If you’re looking to future-proof your payment systems, this deep dive is packed with essential insights! #fintech #payments #aws #cardprocessing Prasanna Thomas Richard Panagiotis Tony Nicolas Arjun Dr Ritesh Sandra

The payments stack is quietly being rebuilt — and the latest move from Visa shows how fast that transformation is accelerating. Visa Intelligent Authorization is a new capability on the Visa Acceptance Platform that allows acquirers to modernize payment processing through a single API integration, capable of processing transactions across multiple card networks. On the surface, this looks like an infrastructure upgrade. But the implications for the payments ecosystem are far bigger. 1️⃣ Payments infrastructure is becoming “API-first.” Instead of banks or acquirers building and maintaining their own authorization stacks, they can plug into modular infrastructure through a single API. This significantly reduces the cost and complexity of modernization. 2️⃣ Orchestration is becoming the new battleground. As payment flows become more complex — with wallets, A2A, stablecoins and AI-driven commerce entering the mix — the ability to intelligently route and authorize transactions across networks will be a key differentiator. 3️⃣ Lower barriers for ecosystem innovation. Fintechs, PSPs and software platforms can integrate once and access multiple payment rails, accelerating innovation for merchants and enabling new commerce experiences without rebuilding core infrastructure. 4️⃣ Networks are evolving into platforms. Moves like this reinforce a broader trend: payment networks are no longer just processing transactions — they are becoming programmable infrastructure layers that others build on. For those of us working in payments, this shift is fascinating. The industry is moving from “card networks” to “payments platforms.” And when infrastructure becomes programmable, the real innovation happens at the edges — where fintechs, merchants, developers and partners build the next generation of commerce experiences. Exciting times ahead for the ecosystem! #payments #fintech #apis #digitalpayments #innovation https://lnkd.in/gXkpYQ2i

In the first half of 2024, £571 million was lost to card payment fraud in the UK alone, much of it driven by scams on social media. Fraud has clearly evolved, adopting more modern and sophisticated tactics. In payment, one standard governing how card data is protected, namely how it is stored, processed, and transmitted, is the PCI DSS directives. The Payment Card Industry Data Security Standard was created in 2004 and has been the backbone of payment security for nearly 20 years. This year marks a big shift. Its latest version, PCI DSS v4.0, will become mandatory in March 2025. This is the first major update in over a decade, so worth taking a closer look at the key changes. Overall, PCI DSS v4.0 focuses on critical aspects such as encryption, authentication, network segmentation, and vulnerability testing, ensuring businesses are better equipped to handle the 'modern' security threats that are increasingly sophisticated too. ◾As such one of the key changes is the introduction of a flexible compliance approach. This means merchants can choose security measures that best fit their specific needs and risks. This approach is well-aligned with how businesses today manage their security challenges. In the same way that authentication frameworks are becoming more adaptive to varying levels of risk, other security measures are also evolving to be more context-specific and scalable. ◾Another key update focuses on the Stronger Authentication framework. Multi-factor authentication (MFA) is now mandatory for all accounts accessing sensitive payment systems, including remote administrative access. Specifically, MFA is required for all accounts that interact with the Cardholder Data Environment (CDE). ◾Stronger encryption and better key management are now essential. Businesses must use modern encryption methods instead of outdated ones. They also need to improve how encryption keys are created, shared, and stored to reduce the risk of data breaches and unauthorised access. ◾Given the industry’s shift towards real-time data processing, the latest guidelines also encourage automated monitoring and the use of tools that enable businesses to detect and flag non-compliance in real time. 👉🏽#Paymentexperts any perspectives to share on #pcidss🎙️? --- 𝑾𝒐𝒏𝒅𝒆𝒓 𝒘𝒉𝒐 𝒘𝒆 𝒂𝒓𝒆? 𝑊𝑒 𝑎𝑟𝑒 𝑎 𝑡𝑒𝑎𝑚 𝑜𝑓 𝑃𝑎𝑦𝑚𝑒𝑛𝑡𝑠 𝑆𝑡𝑟𝑎𝑡𝑒𝑔𝑖𝑠𝑡𝑠, 𝑏𝑙𝑒𝑛𝑑𝑖𝑛𝑔 𝑐𝑜𝑟𝑒 𝑡𝑒𝑐ℎ𝑛𝑖𝑐𝑎𝑙, 𝑜𝑝𝑒𝑟𝑎𝑡𝑖𝑜𝑛𝑎𝑙, 𝑎𝑛𝑑 𝑐𝑜𝑚𝑚𝑒𝑟𝑐𝑖𝑎𝑙 𝑒𝑥𝑝𝑒𝑟𝑡𝑖𝑠𝑒 𝑤𝑖𝑡ℎ 𝑎 𝑐𝑟𝑒𝑎𝑡𝑖𝑣𝑒 𝑎𝑝𝑝𝑟𝑜𝑎𝑐ℎ. 𝑊𝑒 𝑎𝑠𝑠𝑖𝑠𝑡 𝑐𝑙𝑖𝑒𝑛𝑡𝑠 𝑡ℎ𝑟𝑜𝑢𝑔ℎ 𝐶𝑜𝑛𝑠𝑢𝑙𝑡𝑖𝑛𝑔, 𝑆𝑡𝑟𝑎𝑡𝑒𝑔𝑦, 𝑅𝑒𝑠𝑒𝑎𝑟𝑐ℎ, 𝑎𝑛𝑑 𝑇ℎ𝑜𝑢𝑔ℎ𝑡 𝐿𝑒𝑎𝑑𝑒𝑟𝑠ℎ𝑖𝑝 𝑝𝑟𝑜𝑗𝑒𝑐𝑡𝑠. 𝑳𝒐𝒐𝒌𝒊𝒏𝒈 𝒇𝒐𝒓 𝒑𝒂𝒚𝒎𝒆𝒏𝒕 𝒍𝒆𝒂𝒓𝒏𝒊𝒏𝒈 𝒓𝒆𝒔𝒐𝒖𝒓𝒄𝒆? ◼️ Sign up to our unique Payment Assets Library here: https://lnkd.in/dVXjGkzB ◼️Follow Paypr.work [ˈpeɪpəwəːk] for more #paymentinfographics #paymentstrategy #payprwork #paymentinsights

Most of the world is still debating real-time payments. Brazil and South Africa already moved on to what comes after. This Nuvei report looks at how these two countries are using payments to grow online commerce, and why they’re no longer side markets for global merchants. Here are my key takeaways: 🔶 PIX already accounts for a third of ecommerce payments in Brazil. It’s fast, free, and used everywhere from big cities to rural towns. 🔶 PayShap in South Africa is doing something similar, but through mobile-first rails that reach users who never had formal bank accounts. 🔶 Brazil’s cross-border ecommerce is projected to reach $51B by 2027, and South Africa’s is doubling, despite regulatory hurdles and shipping delays. 🔶 In Brazil, domestic credit cards still matter, especially because of installment plans. Ignore them and you lose the middle class. 🔶 South African consumers expect price transparency, flexible payments, and localised platforms, mainly in rural and multilingual areas. 🔶 Both markets are seeing digital wallets rise, SnapScan, PicPay, VodaPay, yet PIX and PayShap are pulling ahead due to lower costs and instant transfers. 🔶 Fraud concerns are still high, especially in Brazil. Merchants that show security cues, offer clear refunds, and support trusted methods build faster traction. 🔶 There’s still friction: high import fees, patchy rural logistics, and tight regulations. But merchants that use local delivery networks and MoR partners can figure around them. 🔶 None of this works if you copy-paste global playbooks. What wins here is adapting to the rhythm of local consumers—from social commerce patterns to payment habits. Brazil and South Africa are showing what practical, accessible ecommerce can look like when payments get out of the way. #fintech #payments #emergingmarkets #couchonomics #embeddedfinance #digitalassets #futureofmoney #futureoffinance NORBr Onalytica Favikon ⁠Global Finance & Technology Network Thinkers360 - ⁠- - - - - - - - - - - - - - - - - - - - - - - - - - - 👍 Hit like ♻️ Share it with your network 📢 Drop a comment 🎙️ Check out my podcast Couchonomics with Arjun on YouTube 📖 Get my weekly newsletter on LinkedIn: Couchonomics Crunch 🕺💃 In the MENA region? Join our Fintech Tuesdays community. 🤝 Let's connect! - ⁠- - - - - - - - - - - - - - - - - - - - - - - - - - -

If your checkout doesn’t localize, personalize, and monetize — you’re stalling. 80% of Malaysians now prefer digital wallets for international purchases (Airwallex, Sep 2025).That’s not a stat — it’s a direct customer instruction to fix your funnel. Here’s what the winners in Southeast Asia are doing — and what you should execute by year-end if you want cross-border GMV that sticks: 1. Fix the Checkout, Or Die in Cart 56% of SEA shoppers bounce if they don’t see their payment method (Adyen Index) - 🇲🇾 Malaysia: Touch ‘n Go, GrabPay, BigPay - 🇵🇭 Philippines: GCash, Maya - 🇮🇩 Indonesia: GoPay, OVO, Dana Yet many still default to Visa/Mastercard by habit — not insight. That’s friction, not funnel. Execution: - Add 3+ local wallets per market - Enable BNPL with Atome, Pace, Split - Localize pricing, tax, and returns for trust 2. BNPL = GMV Growth, Not Just Convenience - Atome hit US$4B GMV run rate - 63% income surge in 2025 as SEA consumers stretch purchases via flexible payments - ShopBack: wallet & BNPL promos now trigger buying more than discounts Execution: - Run BNPL promos before payday cycles - Bundle with creator discount codes or marketplace incentives 3. Social = Discovery + Checkout - Shopify SEA: 1 in 2 Gen Zs discover brands on TikTok - Cube x Impact: SEA influencer-led commerce crossed $46B in 2025 - 6x trust multiplier from creators over ads Execution: - Prioritize micro-creators with DM-only affiliate links - Track: click-through, cart adds, not vanity metrics 4. Frictionless Delivery = Cross-Border Loyalty - Asendia: 70% of SEA shoppers will pay more for guaranteed delivery & returns - Maybank: Grab’s loan book + GMV expected to outpace platform sales — because trust + reordering beats discounts Execution: - Add tracked shipping (Janio Asia, Ninja Van) - Offer GrabExpress-style returns-on-pickup - Automate refund flows into your checkout 5. SEA is 6 Markets, Not One Playbook Each = a different growth engine: - 🇵🇭 Wallet-driven, mobile-first, influencer-led - 🇮🇩 COD still relevant, TikTok + BNPL surge - 🇲🇾 Digital wallets dominate cross-border - 🇹🇭 TikTok Shop + LINE Pay combos - 🇸🇬 Mature BNPL, refund/returns culture - 🇻🇳 Fulfillment speed > brand trust Execution: - Build market-specific checkout flows, not templates - Run localized payment + promo logic per country Your 90-Day SEA Checkout Game Plan: ✅ Add 3 local wallets per market ✅ BNPL stack + promos running ✅ Influencer tracking tied to checkout ✅ Refund/returns stack integrated ✅ Payment logic per market localized You don’t scale in SEA with “one funnel to rule them all.” You scale by turning trust into transactions — country by country.    Disclaimer: Insights are for informational use only. Based on public data. No brand endorsements. #Ecommerce #CheckoutConversion #CrossBorder #DigitalWallet #SoutheastAsia https://lnkd.in/gmRVi9yn

Shopify is enabling Managed Payment Methods by default on 27 May 2026. No action is needed to activate it. If you're on Shopify Payments, it will simply turn on. Here's what it actually does: ✅ Local payment methods are activated automatically based on where your buyers are located ✅ The checkout order is personalised per customer using conversion data, purchase history, and regional trends ✅ New local payment methods are added over time without any manual setup ✅ Personalisation applies across all payment methods, including third-party providers ✅ Your payment customisation functions continue to work alongside it A buyer in Belgium sees Bancontact. A buyer in Poland sees BLIK. The most relevant options surface first, without any manual configuration. A few things worth knowing. If you already have a third-party version of a payment method installed, Shopify won't automatically activate a duplicate via Shopify Payments. You manage that switch manually. And if you deactivate a method yourself, Managed Payment Methods won't reactivate it. Shopify Network Intelligence is required for the feature to work. If SNI isn't active on your store, you'll be prompted to enable it when the feature rolls out. You can opt out at any time from Settings > Payments, or disable individual methods while keeping the feature on.

Welcome to 𝐓𝐡𝐞 𝐏𝐚𝐲𝐦𝐞𝐧𝐭𝐬 𝐀𝐜𝐚𝐝𝐞𝐦𝐲 by Checkout.com — Episode 4 👋 — Topic #4: 𝐖𝐡𝐚𝐭 𝐢𝐬 𝐚 𝐏𝐚𝐲𝐦𝐞𝐧𝐭 𝐕𝐚𝐮𝐥𝐭? ► A Payment Vault (also referred to as a Token Vault) is a secure digital repository that stores sensitive payment credentials, such as Primary Account Numbers (#PANs) and cardholder details. Instead of merchants handling and storing this sensitive information themselves, a vault service provider securely stores it, ensuring compliance with industry regulations such as PCI DSS (Payment Card Industry Data Security Standard). By using a Payment Vault, businesses reduce their exposure to fraud risks and regulatory burdens, allowing them to focus on delivering seamless customer payment experiences. — 𝐇𝐨𝐰 𝐭𝐨 𝐮𝐬𝐞 𝐚 𝐯𝐚𝐮𝐥𝐭 𝐢𝐧 𝐩𝐚𝐲𝐦𝐞𝐧𝐭𝐬 Instead of directly handling and storing customers' Primary Account Numbers (PANs), businesses can integrate with a Payment Vault to securely store and access tokenized payment credentials. How it works 👇 1️⃣ Payment details captured — The customer's PAN is collected via payment gateway integration or a standalone API endpoint. 2️⃣ Tokenization process — The Payment Vault generates a Token (a secure, tokenized version of the PAN) and stores it in the vault, each with a unique ID. 3️⃣ Token replaces PAN in transactions — Instead of using the raw PAN, the assigned token is used to process payments, enhancing security. 4️⃣ Automated updates for expired cards — The Real-Time Account Updater feature ensures stored credentials remain valid, reducing payment failures. 5️⃣ Transaction completes as usual — The remaining payment flow continues through the acquiring bank and card networks. — 𝐇𝐨𝐰 𝐝𝐨 𝐏𝐚𝐲𝐦𝐞𝐧𝐭 𝐕𝐚𝐮𝐥𝐭𝐬 𝐛𝐞𝐧𝐞𝐟𝐢𝐭 𝐦𝐞𝐫𝐜𝐡𝐚𝐧𝐭𝐬? ✅ Regulatory Compliance — Merchants avoid handling raw payment credentials, reducing their PCI DSS compliance burden. ✅ Fraud Prevention — Storing tokenized data instead of actual PANs limits the risk of sensitive data breaches. ✅ Seamless Customer Experience — Vaulted credentials enable one-click checkouts, subscription payments, and faster transactions. ✅ Improved Payment Performance — Features like the Real-Time Account Updater prevent transaction failures due to expired or lost cards. ✅ Multi-PSP Support — Vaulted credentials can be used across multiple Payment Service Providers (PSPs), giving merchants more flexibility in payment processing. — 𝐓𝐡𝐞 𝐌𝐞𝐫𝐜𝐡𝐚𝐧𝐭 𝐏𝐞𝐫𝐬𝐩𝐞𝐜𝐭𝐢𝐯𝐞 𝐛𝐲 Matteo Gamba "For merchants, a Payment Vault isn’t just about security—it’s about unlocking new opportunities in payments. With vaulted payment credentials, we can streamline customer journeys, reduce friction at checkout, and build more flexible, resilient payment infrastructures that scale globally." — Source: Checkout.com x Connecting the dots in payments... ► Sign up to 𝐓𝐡𝐞 𝐏𝐚𝐲𝐦𝐞𝐧𝐭𝐬 𝐁𝐫𝐞𝐰𝐬 ☕: https://lnkd.in/g5cDhnjC ► Connecting the dots in payments... and Marcel van Oost

I recently had a great conversation with the CFO of a big Latin American e-commerce marketplace. Here are my biggest insights: 1. Credit cards are declining While credit cards still dominate in countries like Ecuador and Panama, their reign is coming to an end. Why? Local processing rails are giving Visa and Mastercard a run for their money. 2. Brazil's Pix revolution Pix is a game-changer. Launched in 2020, it hit 100 million users in just a year. That's insane growth. What makes Pix special? → It's fast → It's easy to use → It's free for everyone Pix is digitizing transactions that were once cash-only, bringing millions of unbanked Brazilians into the financial system. 3. LatAm's homegrown solutions Wallets and Banks are creating their own "Payment Methods" with an improved UX, lower cost, higher approval rates, and NO Chargeback or Fraud. Here are few examples: Argentina: MercadoPago Brazil: NuPay, PicPay Colombia: DaviPlata, Nequi, Boton Bancolombia Peru: Yape and Plin In my opinion, these account-to-account (A2A) payments are set to dominate the market by 2026. 4. The Mexico exception While most of LatAm is racing ahead, Mexico is still cash-heavy. Their central bank solution, CoDi, hasn't taken off like its counterparts. 5. Cross-border potential We're seeing exciting developments in cross-border payments, especially between Brazil, Argentina, and Uruguay. The big question: How fast can we get people to ditch cash and cards for these new methods? It's a challenge, but one that presents massive opportunities for fintechs. At Yuno, we're at the forefront of this shift, helping businesses provide the best payment solutions for customers. The future of payments in LatAm is being written right now, and it's thrilling to be part of it.