HomeResourcesGlobal mass payouts and integrations for marketplaces Account Receivable
Payment infrastructure: Build or buy?
Larger businesses have more complex payment infrastructures. To manage this, there are two options. Invest in a payment platform or build an in-house solution. But which is the best option for your business and ambitions?
Payoneer answers this question and provides insights to help you make the smart choice for your business. Through the in-depth analysis, you will learn:
- Advanced payment structures and their core elements
- Key considerations for all international $250M+ GMV Merchants
- What building a payment engine entails–the resources, who it works for, and common pitfalls
- What buying a payment orchestration platform entails–the benefits, demonstrative build vs. buy cost calculations, and who it makes sense for.
Here is a summary of the key insights from the ebook.
Core elements of advanced payment infrastructure
Payment infrastructure gets more difficult the more money you make and the more territories your business operates in. Why? Because there are many challenges to cross-border payments. Chief among them is harmonizing the nine core elements of advanced payment infrastructure:
- Fraud Protection
- Smart Routing
- Retry Logic
- Payment Pages
The only option left to international merchants is to build or buy infrastructure that can handle the demands of the different regions and the increased revenue.
Payments infrastructure: Build or buy?
As a business looking to improve its payment infrastructure, you need to ask yourself the following questions:
- Do you trust your providers?
- Can you negotiate better terms?
- Do you have enough expertise and personnel?
- Can you future-proof your payment setup?
- Can you safeguard against provider failure?
- Is speed important in your time-to-market?
- How complex is your existing environment?
We cover these in detail in our ebook, bringing clarity and actionable steps to your build or buy decision.
Building a payment engine
Any business aiming to build a payment engine will need a realistic budget that accounts for all internal and third-party costs.
Costs will come from three main areas: data management, IT, and legal. There are also many smaller costs that quickly add up and a build time frame to factor in.
Before committing to a resource-intensive endeavor like building a payment engine, it is necessary to consider whether you have the resources, a long enough history of high-volume sales, specific bespoke payment needs, etc.
The ebook also reveals five common pitfalls of building a payment engine, which can greatly impact your choices.
Buying a payment engine
Your other option is to buy a payment orchestration platform. Many benefits come with leaving the building to a third party–burning through fewer internal resources being the most notable.
But the biggest benefit is the bottom line impacts of buying instead of building:
- Extra revenue: Fewer declined transactions, easier customer journey, etc.
- Cost savings: Minimal API maintenance, better supplier pricing, etc.
- Effort savings: Transaction aggregation, smart routing, etc.
Comparing the cost of building and buying by considering the growth rate, transaction costs, and the addition of payment providers every year will also bring some clarity to the true cost of both options.
Which makes the most sense?
This guide only scratches the surface of the building vs. buying debate.
Get the Payoneer free ebook today to gain financial literacy into the complexity of payment infrastructure for international businesses. Then determine which option is the best for your ambitions.
Jam-packed with insider knowledge and industry insights, it’s the only guide on payments infrastructure that you will ever need.
Developing a successful global business strategy is crucial for any business looking to expand beyond its domestic market. The benefits of entering the global market are endless. In this article, we will explore the main concepts of global business strategy.
For smooth operations and efficient fund transfers, marketplaces rely on integrating global mass payouts solutions. As experts in the cross-border payment industry, we have explored the challenges and best practices for implementing payouts solutions in today’s marketplace landscape, including compliance, currency exchange, payment reconciliation, security, and technical integration.
Online selling can be highly profitable if you use the right tools and reach the right audience with the right product. This article delves into the details of online selling, providing tips and resources for starting your own venture. Keep reading to learn how to get started, what types of products to sell, and where…
As more people embrace digital transactions, online payments have become vital for businesses. By the end of this article, you’ll have a clear understanding what online payment solutions for businesses are available for seamless online transactions. How they work, and their importance in today’s digital landscape.
As remote work becomes more common, Payoneer offers flexible payment solutions for salaried, hourly, or contract payments. Learn how it can help solve operational challenges and leverage your workforce.
This guide was created to help you confidently navigate the basics of internet banking. Expect to learn answers to questions such as: What is online banking and how does online banking work? We also run through safety measures for transacting online.