The most popular electronic payment methodsIn the last couple of years electronic payment systems became popular mostly due to the growing financial capabilities of the internet generation which spends many hours online and has less interest in shopping in physical stores. These systems differ significantly from the traditional payment systems as they allow for the electronic transfer of funds without human intervention. Since this makes it possible to manage sales with less personnel, it is a competitive advantage for businesses which use these systems.

What is an electronic payment system?

In short, it is a payment method which does not involve cash or cheques.

What are the requirements for the payment institutions?
The activities of payment institutions are regulated at the European level. The Member-State of origin of the company issues a license with which the company can operate in the Single market. Both national authorities and the European Banking Authority keep registers on the companies that have been allowed to operate. That is why it is recommended that you check the register of the European authority, since the company’s name might not be present in one of the registers of the Bulgarian National Bank, but that does not necessarily mean that it may not operate in the Bulgarian market.

Which are the preferred payment methods?

Although it is inevitable that 2018 trends have changed, PayPal and the well-known bank cards surely continue to dominate the market. Nevertheless, many payment alternatives have emerged recently. Among them are:
• Google Pay – an online payment system developed in 2015 by Google which also functions as a digital wallet;
• SEQR – an electronic payment system that includes the scanning of QR code for verification purposes;
• Klarna – a payment system that allows for both paying after delivery, as well as “slicing” your payments without added interest;
• Alipay – a mobile and online payment platform created in 2004 by Alibaba Group.

The boom of Bitcoin, which is still used for a significant part of payments, lead to the creation of different fintech payment solutions. Among them are:
• PaySera – a Lithuanian fintech company which also operates in Bulgaria;
• Entercash – a fintech company licensed in Malta.

In Bulgaria ePay has been used for years. Recently we’ve also seen the surge of the UK-based company Revolut, which offers banking services, peer-to-peer payments, cryptocurrency exchange and other services.

If you too are searching for the best payment solution for your business, do not hesitate to contact us – your online legal consultant!

Vladimir Slavov

1Legal.Net Blog © 2020

Materials published on this blog are copyrighted. No part of them can be copied or used without the express permission of the author.
Tags: E-commerce