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5 Key Elements of Digital Payment Systems

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5 Key Elements of Digital Payment Systems

Digital payment systems are becoming more and more popular, but what needs to happen in order for this growth to continue?

· Integration Zone ·
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The new Gartner Critical Capabilities report explains how APIs and microservices enable digital leaders to deliver better B2B, open banking and mobile projects.

In this post, we explain in detail why these five key elements will either make or break digital banks and e-wallets.

1. Security

General populace equates the institution of banks with the matter of security. Needless to say, the more the customer feels secure, the faster they will hop on to try out new features. Security is a massive cause for concern when payments become digital in nature. Right from the need to being able to assure that personal information is not being handed over to guaranteeing that their money is in safe hands, banks need to proactively declare that their systems and processes are completely secure.

There are constant threats of security breaches and countless cases of hackers having had the last laugh. As long as consumers have a fear that money transfer on digital platforms can pave way for more such disasters, it will be increasingly difficult to work towards a cashless economy.

Testing is immensely important in this case, owing to the immense relief it can provide to banks that are looking to take the road of digital innovation. Security testing can guarantee that applications and products are suitable to be launched into the market. Typical security requirements may include specific elements of confidentiality, integrity, authentication, availability, authorization and non-repudiation.

Clearly, it can be established that the consequences of a security breach are momentous. There is loss of revenue, loss of credibility, and also loss of customer trust. Security testing warranties an organization’s reputation, the confidentiality of sensitive data, and all-around customer trust.

2. User Experience

Companies are taking user experience seriously, and quite a few of them are innovatively redesigning crucial interfaces. Although when a product or application is first launched, the emphasis may be on the reception of the overall idea, over time, it has been tested and proved that applications with a great user experience can launch the business to a whole new platform. This is especially true for banking services, as even minor inconveniences can put off masses.

The inability to perform simple actions due to a complex user interface, or the inability to focus on the necessary action item due to distractions in the form of advertisements can all put off customers permanently. When dealing with funds, customers often look for simplicity and convenience.

As more merchants insist on going cashless in today’s economy, the one thing that FinTech companies and banking institutions alike need to keep in mind is the ease of integration. Customers are far less enthusiastic on the exclusivity of certain payment applications. This is because not all merchants accept the mode(s) of payment that a customer may opt for.

This brings forth the point, that seamless integration to net-banking websites and e-payment gateways would greatly aid cashless transactions, by making the payments hassle-free.

Software testing once again proves to be a solution in this regard. Testing platforms allow companies to perform integration and ensure that it is seamless much before the application hits the market. The whole user-experience module is also thoroughly tested to ensure that customers find the application easy to maneuver.

3. Functionality

The proper functionality of a banking application cannot be emphasized enough. Imagine, for a moment, that you choose to check your statement for the day. Instead, if the application takes you to book a deposit, for instance, would it not utterly boggle your mind? One might laugh at such a painted image, but it is indeed a probable factor if proper care is not taken.

As more financial transactions transfer from bank branches to mobile phones, the quality of mobile banking apps will become a point of differentiation for banks. Quality in such a scenario is, once again, defined by the functionality of the application.

Functional testing comprises of functionality testing, which is a feature validation of an entire function or component of your product. Software testing organizations are providing end-to-end test coverage, ranging right from the requirements-gathering stage, in order to ensure that the defect rates are reduced. The coverage begins with the business requirement documents, and extends to the end-to-end business scenarios, in an attempt to uncover critical defects in the existing system. The best approaches often involve every assignment from a business user perspective, so as to ensure that the system satisfies all of the user requirements.

4. Performance

The performance of an application can either drive the customer to exhilaration or to utter madness. Digital banking needs to take great caution in this regard. In the increasing world of cashless transactions, most customers depend on their banking cards or digital application to perform transactions seamlessly. At any given point of time, there will be millions of customers performing various transactions. If applications keep crashing and transactions keep failing, it becomes a matter of great inconvenience and can lead to immediate (and permanent) uninstalling of the application.

Performance testing is undoubtedly crucial. Right from monitoring the response time of the application, to ensuring that the load and stress testing are done, performance testing is necessary to gauge that overall, the app will respond like it has been intended to. It is important to be able to appropriately determine the finest approach and best methodology for performance testing and its subsequent validation. Superior performance testing services are usually equipped with the skill set to evaluate the end-user experience under fluctuating amounts of traffic and also the impact of different load and usage patterns for a particular application or system. Every moment matters, when it comes to a glitch-free online banking experience.

5. Data Integrity

Banking is the most important service that runs solely on the matter of trust. The customer is responsible for the provision of authentic information, while the banks are responsible for maintaining transparency and ensuring the safety of customers’ funds. In such a scenario, it becomes crucial to collect information that instantly reveals a customer’s financial data and, furthermore, expenditure trends. Compromising such data can have disastrous consequence, and banking organizations must take care to never be at the receiving end of such a disaster.

Software testing ensures that internal applications and processes are smooth and effective, and, most importantly, maintain data integrity, especially under the threat of a potential hack.

The new Gartner Critical Capabilities for Full Lifecycle API Management report shows how CA Technologies helps digital leaders with their B2B, open banking, and mobile initiatives. Get your copy from CA Technologies.

Topics:
digital payments ,integration ,e-commerce ,user experience

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