Generation of third-party payment platform and the function it plays

Generation of third-party payment platform and the function it plays

1. Definition of third party payment

Contract with major banks, with a certain degree of strength and reputation to protect third-party independent institutions to provide a trading platform.

The buyer pays through the best third party payment processors channel, through the channel of notifying the seller of the delivery, and the buyer receives the payment from the channel of notifying the seller.

Funds in the third-party mobile payment service platform is a stop, not anyone can become a third-party payment institutions, need to have a strong endorsement to gain the trust of both the buyer and seller transactions.

2. Motivation of third-party payment

E-commerce development to promote the emergence of third-party mobile payment methods, sellers need to be able to achieve the sale of goods online, can only be docked with banks.

But small and medium-sized sellers do not have the technical and economic strength to dock and enough credibility, so that the bank is assured to help him do this, and through the bank also does not have so much energy to dock one by one.

Third-party payment, third-party institutions as a transaction intermediary + credit guarantee, equivalent to payment portal to the bank, they have strong enough technical strength and credit guarantee.

3. The role of payment gateways

The essence of the third-party payment management tools is the payment gateway, the role of the main in several points.

Communication function: the most basic, that is, the transmission of transaction information, true and accurate transmission of transaction information between buyers and sellers to ensure that the goods match.

Network protocol conversion function: The merchant system and the banking system run on different networks and cannot be directly connected. Therefore, an intermediary is required to complete the conversion of network protocols. Bank system: Bank network. Merchant system: Internet.

Data encryption function: It is easy to understand that security is especially important in anything related to money.

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