How digital payments work

The world of digital payments it is very vast and brings into play very different technologies: starting from transactions contactlessup to the Online shopping carried out within e-commerce or platforms.

Regardless of the individual mode, the user must still enter identification information and payment data. After that, the procedure that characterizes the individual transaction depends on the individual certified payment services.

From this point of view it is important to consider the payment gateway infrastructurewhich are distinguished between payment gateways redirectedpayment gateway self-managed and payment gateways hosted.

What is meant by digital payment

It is possible to talk about digital payments o digital payment whenever users perform transactions resorting to electronic instruments. The wording can also be used to indicate the purchase of goods or services through direct debit.

Per categorize the types of digital payments it is possible to catalog the different ones certified payment services: think in this sense about PagoPAused nationally to make payments to the Public administration.

But it is also possible to review the technologies used in transactions: For example, transactions performed in mode contactless or with mobile POS. But also those carried out within the e-commerce and which, more generally, fall within the scope of the so-called innovative payments.

Il contactless payment involves the use of a smart cardand token of uno smartphone, which simply needs to be brought closer to an enabled POS terminal. As suggested by the wording “contactless”, the payment takes place without the devices entering actually in contact.

I mobile POS they are a sort of evolution of the traditional POS, which they use specific devices for reading of cards, smart cards and smartphones. Finally the e-commerce they simply are electronic commercial activities: sites, pages or platforms designed for sales and consequently for digital transactions.

What it takes to make a digital payment

A user interested in carry out digital transactions must first find a way to register your payment details. This step is necessary regardless of the type of product or service you want to purchase later.

Male insertion mode of this information varies from case to case. On the one hand, some e-commerce sites require the insertion of payment details inside of your management system. The same goes for sites and platforms.

On the other hand they exist applications and services that allow you to record Payment details which will then be valid for multiple transactions. This is the case, for example, of Apple Wallet e Google Pay: Payment systems that store credit and debit card information inside smartphones with iOS and Android operating system. But it is also the case of PayPal and everyone else digital wallets developed by third partieswhich may or may not be integrated into sites, pages, e-commerce and platforms.

To make an online payment you must first register your payment details. You can then proceed with your transactions

Regardless of whether the user enters their payment information within an app or page, the procedure it is part of a broader registration process. The user creates an account with information necessary for his unique identification: for example name, surname, telephone number, address and email address.

To access certain payment systems it may be necessary to communicate the details of an identity document valid. This step is also necessary if you want to purchase particular products or services.

By logging in with your account to the platform or app in question, it becomes possible take advantage of certified payment services. In some cases the user can associate multiple payment methods to a single account, choosing each time the one with which you actually want to carry out transactions.

How digital transactions work

Il functioning of digital transactions varies based on the digital payment methods described in the previous paragraphs. For example in the case of contactless paymentsthe user shares information about his card, his digital wallet or his bank account through the where radio.

In the case of online certified payment services things change and here the so-called are brought into play payment gateway: infrastructure that allows transactions to be transferred to payment processors.

So the user selects a product within an e-commerce and start the transaction. The gateway of payment transfers data to the processor. After that the processor of payment directs the data to the credit institution where the user holds an account.

Certified online payment services use infrastructure such as redirected, self-managed or hosted payment gateways

I payment gateway they are generally organized within three macro-categories: we are talking about payment gateways redirectedpayment gateway self-managed and payment gateways hosted.

Il redirected payment gateway it is the one described in the previous paragraphs. In this case the user is generally taken inside a new web windowwhere you must enter your payment details.

Il self-managed payment gateway instead it allows the user to complete the purchase within thee-commerce or the reference site. Portal that must be equipped with PCI DDS certificationnecessary for the collection of payment data.

Finally the hosted payment gateway it’s kind of a middle ground between the first two. From the APIs allow the entry of payment data within the site or e-commerce. And they also take care of in-app payments for mobile devices.

to know more: Digital payments, what they are, what they are, innovation and platforms