• HAZZA Network

The 4 Challenges of the Payments Industry

Updated: May 8

Wondering how complex the payments industry is? With approximately USD 482.6 billion worth of non-cash transactions made globally in 2016, the transaction process between consumers and merchants remains inefficient. Here are the 4 key pain points that the payment industry is facing:


  1. Lack of Universal Acceptance With tons of payment method providers available, merchants who are not well versed with the payments market are at a disadvantage. Moreover, the only current solution that merchants have are payment methods that are bundled by existing acquirers. Consumers don’t have it easier either. Today, especially in the Asia Pacific region, there is a leading payment method in each country. This can be a hurdle to merchants especially in the travel, retail and entertainment industry where inconvenience can be brought onto travelers who are looking to make purchases through their local payment methods. For example, WeChat Pay that is widely used in China, may not be readily available abroad.

  2. Inefficient Layers of Intermediaries In the payments ecosystem, there are multiple layers of intermediaries i.e Issuers, Payment Method Providers, Alternative Payment Methods, Merchants and Consumers. For merchants, their aim is simple - To have maximum access to payment methods at the lowest cost. Unfortunately, payment policies are complex and transaction fees range from 1.5% to 3.5% of the transaction value. For small-to-medium size merchants, the fees are often higher.

  3. Fragmented Technology Standards Currently, there is no one size fit all API that exists in the payments ecosystem which allows market participants to have a seamless connection. Merchants who strive to accept a range of payment methods are often on the losing end as they incur repetitive costs, in-house or through third parties to adopt the different payment methods.

  4. Complex Multi-Channel Implementation For merchants seeking to provide both online and offline payment methods, merchants will need to search and implement technology solutions separately as the requirements differ. These implementation projects usually take 1 to 2 years to complete, thus causing difficulties to merchants, especially for those who want to adopt digital payment methods.


With all that said, is the complexity that exists within the payment industry inevitable? Merchants have so many intermediaries to deal with, and the team at HAZZA is ready to tackle all of these challenges. Check out our mission and contact us as we onboard you to an open global unified payment network.


#FinTech #Blockchain #Payments #Cryptocurrency

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