Understanding Payment Processing For Ecommerce

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

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

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

Why Merchants Who Treat Payments the Same Everywhere Struggle to Scale Any merchant who has had to deal with expanding their business globally knows that it isn't as simple as just offering some new payment methods, but rather that it is about understanding how each region prefers to pay and then optimizing to accommodate customers to do that. However, I still frequently talk to merchants who think that having the "essential" payment options, such as credit cards, PayPal, or maybe a digital wallet, is enough to go global. In reality, local nuance matters far more than you’d expect. According to McKinsey & Company, over 70% of global e-commerce growth stems from regional payment preferences. Think Klarna in the Nordics, iDeal in the Netherlands, and Pix in Brazil. Missing these nuances is like speaking the wrong language: you can offer the “right” payment methods, but still lose customers who don’t see their preferred local approach. As a Payments Strategist, I’ve frequently worked with merchants who invested heavily in marketing to expand internationally, only to stumble at checkout because they treated all customers the same. But why is that? Let me explain... What most merchants often get wrong is: Overlooking local behavior. Some regions have a high adoption of specific e-wallets or cash-based vouchers. Sticking only to global card brands can lead to cart abandonment. One-size-fits-all fraud checks. Global fraud patterns don’t translate cleanly across borders. A strict rule set for Europe could create false declines in Latin America, where the IP and device profiles differ. Difficulty in scaling operationally. Managing multiple gateways, local acquirers, or alternative payments can become an operational nightmare. Without the right orchestration layer, you end up with scattered data and inconsistent reconciliation. Missing out on better approval rates. Visa and Mastercard have both reported higher authorization rates in cross-border transactions when merchants adopt local processing or network tokens. The solution? Focus on regional optimization, not just “adding more payment methods.” Payment orchestration platforms (like IXOPAY) enable merchants to tailor routing, tokenization, and risk checks to each market. That means higher approval rates, fewer false declines, and better customer experiences—no matter where your shoppers are. Personally, I see local payment strategies as the final piece of the puzzle for a true global scale. Having multiple methods at checkout is essential. Knowing how people want to pay and implementing the technology to support is what ultimately drives growth and revenue. What do you think? Are local payment preferences the hidden barrier to global expansion, or are merchants focusing too much on niche payment methods? Let me know in the comments. P.S. Check out my newsletter for more Payments Strategy Breakdowns https://buff.ly/IDbkSLw

The Hidden Impact of Payment Methods on Your Sales: Are You Losing Customers at Checkout? 💸🛍️ Did you know just 1 in 4 shoppers abandon carts specifically because your payment options don't match their preferences? 😬 I discovered this firsthand after analyzing checkout data from 30+ e-commerce stores last quarter. One fashion retailer was puzzled by their high mobile abandonment rate despite solid traffic and product page engagement 📉📱 The diagnosis was clear: their checkout offered credit cards only, with a clunky form that required manual entry on mobile. We introduced Apple Pay, Google Pay, and Shop Pay — all offering one-tap checkout — and their mobile conversion immediately jumped 📈 24%. Here's what I've consistently found works: 👇 ✅ Digital wallets are no longer optional. When we added Apple Pay and Google Pay to a home goods client's checkout, 38% of their mobile transactions shifted to these methods within weeks. These customers weren't necessarily new — they were existing visitors who previously abandoned due to payment friction 😓💳 ✅ Buy Now Pay Later options unlock higher AOV. A beauty brand I consulted with introduced Afterpay and saw their average order value increase by 17% while abandonment decreased. BNPL isn't just for big-ticket items anymore. 💅🛒 ✅ Payment method visibility is critical. An electronics store was hiding alternative payment options behind a "more payment methods" dropdown. Simply making all options visible on the initial checkout screen increased completion rate by 11% 🧲 ✅ Regional preferences matter enormously. For a client targeting European markets, adding local payment methods like iDEAL (Netherlands) and SOFORT (Germany) increased conversions in those regions by 35% 🌍💶 Here's the key insight most brands miss: Payment preferences aren't just about convenience — they're about trust and identity 🤝✨ When shoppers see their preferred payment method, it creates an immediate sense of familiarity in an otherwise unfamiliar checkout process 🧠💡 The implementation isn't complex 🔧 Most major e-commerce platforms now offer these payment options through simple integrations or native functionality 🧩 📊 The data shows conclusively: diversifying payment methods is one of the highest-ROI checkout optimizations you can make, often delivering double-digit conversion increases within days, not weeks or months 🚀💰 💬 What's been your experience with alternative payment methods? And have you tested their impact on your mobile conversion rate specifically? 📱🧠

Funny how something as boring as checkout became the hottest part of eCommerce... For years, everyone obsessed over ads, content, and conversion hacks. But the real battle? It’s happening in those final three clicks, where trust either converts or collapses. In the Netherlands, that battle is changing fast. - 52.2% of online purchases now happen through digital wallets. - BNPL is growing at 12%+ CAGR, moving from fashion to electronics, even groceries (Mordor Intelligence, 2025). I used to think checkout was just something you set up once and don't have to think about it too much. Turns out, it’s one of the biggest growth levers you have. Shopify is leading that shift: ✅ Shopify Payments supports Apple Pay, Google Pay, PayPal, and iDEAL (essential in NL). ✅ Shop Pay boosts conversions by 1.72x compared to standard checkouts. ✅ Shop Pay Installments (BNPL) offers flexibility for customers, while merchants still get paid upfront. Flexible and trusted payment options don’t just reduce friction, they build loyalty. And with 63% of eCommerce GMV already coming from mobile, the merchants who nail checkout will be the ones who win. Growth doesn’t just happen in the funnel. Sometimes, it’s hiding in the last click. Visual example from one of clients Dstrezzed where great products meet great checkout. #eCommerce #Shopify #DigitalWallets #BNPL

🚀 More local payment methods are now available in additional countries on Shopify One of the easiest ways to improve conversion isn’t redesigning your store. It’s letting customers pay the way they already trust. Shopify has expanded the availability of local payment methods across more countries, giving merchants access to payment options that shoppers already use every day. Think: • iDEAL in the Netherlands • Bancontact in Belgium • BLIK in Poland • TWINT in Switzerland • MobilePay in Denmark and Finland • Multibanco in Portugal • And more The best part? These payment methods work directly through Shopify Payments and are shown dynamically based on the customer’s location and currency. No complicated checkout experience. No extra friction. Just a more local buying experience. (Shopify Help Center) As commerce becomes increasingly global, localization is no longer just about language and currency. It’s also about payment preferences. A customer in Amsterdam doesn’t want to pay like a customer in New York. And Shopify continues to remove those barriers. Changelog: https://lnkd.in/diyZ9EzW Documentation: https://lnkd.in/dnkeM5wZ #Shopify #ShopifyPayments #eCommerce #ShopifyPartner #ShopifyDevelopers #DTC #OnlineStore #Retail