Fintechs have been grabbing the spotlight over the last few years and with rapid changes in business models there are opportunities to disrupt and offer a better customer experience.
As digital technology changes we have seen a new competitive landscape in online lending, banking, e-commerce, the transfer of money and payment platforms.
For many online gateways or internet gateways that operate in Australia they follow a variety of variations to get payment authorisations to the issuer.
Below is a common way to send an authorisation to the issuer. Many online payment gateways create a partnership with a preferred Acquirer to offer a combined solution to a merchant. This gives the merchant an online gateway, ability to process payments and settle funds through one payment provider rather than traditionally maintaining multiple commercial relationships. Although this is a combined offer multiple points of failure remain throughout the flow.
The next model is called the switch to Issuer model and this reduces a point of failure at the Acquirer. In this case the gateway communicates directly with the schemes to reach the issuer.
If you have any to add or have any feedback it would be great to hear from you.
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