The world of electronic payment systems is growing in both size and competition, and there are some changes you need to be aware of. We recently spoke of eBay’s decision to abandon the online payment option of PayPal for a smaller European system called Adyen. Today, we are going to take a closer look at what Adyen is and why so many big-name companies are switching to this minor name system.
What is Adyen? Adyen is a payment service provider based in Amsterdam that categorizes itself as “a single payments platform to accept payments anywhere, on any device.” The company specializes in back-end payment systems for online merchants that currently accept over 200 forms of payment and 150 currencies. Since its launch in 2018, it has proven to be massively successful with business-to-business companies and sales.
Simply put, Adyen was designed to be easy to use no matter where you are.
Now for the real question: why are companies switching?
Even though Adyen is not a payment system that is making headlines as often as options like Square and PayPal, the system has some well-known clients in its repertoire. Companies such as Uber, Netflix, Facebook, and Spotify are taking advantage of the small system to make online payments easier for their customers.
Companies like eBay use Adyen, which means that the e-commerce site now has a managed payment system to control the entire purchasing experience for both buyers and sellers. This feature eliminates the need to travel to a third-party site to transfer funds like sellers had to do when the site partnered with PayPal.
Most people may not realize how many steps go into an online purchase, and most e-commerce sites make it look easy. Motley Fool broke down in an article the difference between transaction steps with most online payment systems and Adyen’s setup. The company has grown so quickly by targeting large companies that need to scale rapidly and minimize the amount of customer churn.
Since Adyen operates as a single, all-encompassing platform, the online payment system is ideal for omnichannel firms like Nike that sell products worldwide and have to deal with different processors, providers, and payment gateways. The single platform nature of the system eliminates those problems by putting all the company’s eggs into one basket. Another proposition for Adyen’s service is the transaction fees clearly outlined depending on any aspect of the sale, including payment method, processing fees in certain parts of the world, bank fees, all of which the merchant can take into account before the transaction is made.
Adyen is a fast-growing and innovative online payment platform gaining traction with companies looking to simplify the checkout and transaction processing for their customers and sellers. This provider is one to watch out for as the online payment industry changes with the new market.