This is classic story of traditional payments.There are different transaction network like MasterCard and Visa that banks have to sign up to. It allows the customers to make payments using these transaction network. The payment solution providers like nets, stripe, Braintree and VeriFone helps in the aggregation of the all payment networks. It is important for the merchants to connect with the payment solution providers if they want to accept payments. Between the customer and merchants payments, there are so many steps.
- It will take 2 to 5 days for merchants to receive payments
- Consumers have to pay the banks for the utilization of the services while merchants will pay the transaction network fee.
- If there is a payment across the border the customers will have to pay 0.75 to 1.5% transaction fee with worst currency exchange. It is the not favorable strategy because the merchant will have to pay the fee of foreigner cards.
The concept of Second Payment Services Directive was introduced by EU to reduce the number of middle hands between merchant and customer. Merchants get the access to customer’s account and so they can directly make a payment. However, the merchant has to be payment institute for this purpose.
Benefits of PSD2
- Between the bank accounts in EU, the payment transfer will be instant.
- Instant payment transfer between merchant and customers.
- The customer’s bank account data will be accessed by the merchant.
iTransa is genuinely simplified universal peer to peer transaction network for consumer and merchants where consumer never share any personal details(bank accounts or SSN) with merchants and other consumers and It helps merchants to have all types of transactions (online, pos, invoices ) at one place.
iTransa eliminates the need for banks,get rids of credit card fees,currency exchange fees and money transfer fees. It is instant transfer , globally available on any internet connected device, highly secure and nearly free value transfers.
- Instant payment
- Affordable transaction fee
- Reliable and secure
- With cross-border the exchange rate is accurate
- For foreign transactions, merchants will not have to pay extra fee
- Store money in XiK to avoid inflation
- ITransa is global but PSD2 is only for EU
- Merchants dont need to have payment license.