Key considerations in selecting tools for building payment tech platforms

As digital economy is evolving, payment systems have transformed from simple transaction processing tools into sophisticated platforms that enable seamless, secure, and efficient financial interactions.

Your business background doesn’t matter, as long as you are running an e-commerce store, a fintech startup, or a global enterprise, the ability to integrate modern payment systems is an advantage for success.

This article highlights the tech platforms at the forefront of modern payment systems.

What You Need to Know About Tech Platforms for Building Payment Systems
When building a modern payment system, choosing the right tech platform is very important for ensuring that transactions are processed efficiently, securely, and with a seamless user experience.

Here are some key considerations to keep in mind when selecting and implementing payment tech platforms:

Security and Compliance

Security is the backbone of any payment system. Look for platforms offering encryption, tokenization, two-factor authentication, and fraud detection tools to protect sensitive financial data.

Multi-Currency and Payment Method Support

To cater to a global audience, your payment platform should support multiple currencies and payment methods, including credit and debit cards, bank transfers, digital wallets, and emerging technologies like cryptocurrency.

Transaction Fees and Cost Structure

Each payment platform has its own pricing tag, typically charging a combination of a flat fee and a percentage of each transaction. It’s important to evaluate these costs, especially if your business processes high transaction volumes.

User Experience (UX)
Your payment system should not only be secure but also provide a smooth and intuitive experience for users. Lengthy or  complicated payment processes can lead to abandoned carts and lost sales.

Analytics and Reporting

A robust payment platform should offer detailed analytics and reporting features, enabling businesses to track payment trends, revenue, and key metrics.

Scalability

As your business grows, so will your transaction volume. A payment system should be able to scale without glitch to handle thousands or even millions of transactions per day without performance degradation.

Integration Capabilities

The payment platform you choose should integrate easily with your existing systems, such as e-commerce platforms, CRM tools, and accounting software. Many modern platforms offer APIs that allow you to build custom payment experiences.

Top Tech Platforms for Building Modern Payment Systems

Without beating around the bush, let’s explore most suitable tech platforms for integrating modern payment systems.

Cloud-Based Payment Platforms

Cloud computing has revolutionized the infrastructure behind payment systems, enabling businesses to build and scale payment solutions more effectively. Cloud-based payment platforms like Stripe, Square, and Adyen provide businesses with flexible, API-driven environments.

These platforms offer a variety of payment methods, including credit cards, digital wallets, and localized options, allowing businesses to cater to global audiences without the need for complex infrastructure.

Blockchain and Decentralized Payment Platforms

Blockchain technology is emerging as a game-changer for the financial industry, offering decentralized payment systems that bypass traditional banking networks. Platforms like Bitcoin, Ethereum, and Ripple provide decentralized payment options, enabling peer-to-peer transactions that are fast, secure, and resistant to fraud.

Digital Wallets and Mobile Payment Platforms
The rise of smartphones has led to the widespread adoption of mobile payment platforms and digital wallets. Companies like PayPal, Apple Pay, Google Pay, and Samsung Pay have made it easier than ever for consumers to make payments directly from their mobile devices.

These platforms offer secure and convenient ways for users to store payment information and make transactions both online and in-person. Also, digital wallets are often integrated with other smart devices, enabling payments in wearables, cars, and home systems.

Fintech APIs and Payment Gateways

Fintech APIs are powering the next wave of innovation in payment systems. Platforms like Plaid, Yapily, and Razorpay offer APIs that allow developers to embed payment functionalities directly into applications, streamlining everything from bank transfers to credit scoring.

Similarly, payment gateways like PayPal, Authorize.Net, and Braintree act as bridges between e-commerce websites and financial institutions, enabling secure transaction processing.
Artificial Intelligence and Machine Learning in Payment Systems
Artificial intelligence (AI) and machine learning (ML) are transforming how modern payment systems operate by enhancing fraud detection, personalizing customer experiences, and optimizing transaction processes.

Payment platforms like Mastercard and Visa are leveraging AI to detect and prevent fraudulent activities in real-time. Additionally, AI-driven chatbots are increasingly being integrated into payment systems to assist customers with inquiries and transactions.

Open Banking Platforms

Open banking is another trend reshaping the payment industry. Platforms like Tink, TrueLayer, and Plaid allow third-party developers to build applications and services around the financial data held by banks.

By offering APIs that enable access to bank accounts and financial information, these platforms allow businesses to create more transparent and user-friendly payment systems.

Conclusion

The landscape of modern payment systems is evolving rapidly, driven by advancements in technology such as cloud computing, blockchain, AI, and open banking.

Businesses that wish to remain competitive must embrace these platforms and integrate their payment systems in ways that prioritize security, scalability, and user experience.

Ugochukwu Onwuta is Senior Product Manager at AZA Finance. With a portfolio of over 20 projects involving payment and digital solutions implementation on a wide range of platforms, across Africa, he is at the forefront of advocacy for the adoption of digital payment innovations in Nigeria.