Affordable IPTV Payment Gateway for OTT & Streaming Media Merchants
The Internet Protocol Television (IPTV) has transformed digital media. Traditional terrestrial UHF and VHF broadcasting, as well as transponder-driven set-top box transmissions, have seen a massive decline in user base. On the other hand, companies that offer channel streaming through the internet have seen a significant rise in user base. There are many reasons that make Internet Protocol Television an excellent choice for users across the world; however, the industry faces critical challenges when it comes to implementing payment processing systems.
The IPTV specialist team at QuadraPay has written this cheat sheet to help IPTV merchants not only get approved for IPTV payment gateways quickly but also pay less in transaction fees.
An IPTV payment gateway is a credit card processing solution designed specifically for internet TV and OTT platforms. With an IPTV payment gateway, merchants can accept domestic and international transactions and sell subscriptions.
The Evolution of the IPTV Industry
The IPTV industry has transformed significantly. In the past, technology like VOD was expensive due to high data costs. Affordable bandwidth now allows OTT platforms to stream IPTV channels globally. With super-fast 5G and satellite broadband technology, streaming videos is no longer a problem. Many terrestrial TV channels now consider the maintenance cost of broadcast equipment a total waste.
Traditional video streaming over UHF/VHF frequencies required broadcasters to rent satellite transponders and deploy V-sat earth stations, which is now expensive. Many channels have already started streaming on YouTube, Vimeo, and Amazon Fire Stick, to name a few.
Market Potential and Challenges
According to Markets and Markets, the global OTT market is expected to reach $434.5 billion USD by 2027. The potential of the IPTV and OTT industry is enormous, attracting many entrepreneurs. However, these entrepreneurs face serious problems when applying for an IPTV payment gateway, as most banks simply reject this industry.
Traditional banks consider this industry high risk and do not work with IPTV merchants. Only a few providers, known as high-risk merchant processors, offer services to legitimate IPTV companies. QuadraPay has already established partnerships with these providers, offering an excellent onboarding experience. Contact us today for a free, zero-obligation quote for an IPTV payment gateway.
The Critical Role of Payment Gateways in IPTV Services
IPTV payment gateways form a robust backbone for the IPTV industry. These payment gateways enable subscribers to make payments to IPTV companies for subscriptions, top-ups, and recharges. The role of an IPTV payment gateway is so critical that businesses cannot survive without it.
With an IPTV payment gateway, IPTV providers can easily collect payments for subscription fees, pay-per-view charges, and other related packages. Some of these IPTV companies also sell streaming sticks and IPTV boxes, which convert a regular television into a smart TV. By offering users the ability to make payments through their preferred credit and debit cards, IPTV companies not only improve customer experience but also boost business revenue and reduce churn rates.
The delivery of IPTV content is always through the internet, which attracts cyber threats. By implementing a robust payment gateway, merchants ensure the safety of transaction data and prevent fraudulent transactions. Modern IPTV payment gateways come with features like encryption and fraud detection algorithms. These special features offer excellent benefits to subscribers as well as IPTV service providers.
By implementing dynamic currency conversion, IPTV payment gateways can truly become international. Service providers can accept payments from customers in multiple currencies and various local payment methods. This feature helps IPTV companies tap into the global market and enhance overall business profit.
A fully functional payment gateway with excellent integration capability contributes to a positive subscriber experience. With the right payment gateway, IPTV companies can offer smooth transaction processing to customers. A better user experience can directly impact customer retention rates.
Choosing the Right IPTV Payment Gateway
When choosing an IPTV payment gateway, merchants must consider several important factors to make informed decisions. These factors can significantly impact payment processing efficiency and user experience.
Security Standards: The payment gateway must ensure high-security standards and comply with industry-required parameters. By working with a processing company that meets these requirements, merchants can reduce various risks.
Integration Support: Integration support is paramount. The payment processing company must have a support team that can assist merchants with integration requirements. The support team should be ready to provide assistance whenever the merchant needs it.
Adoption of New Payment Methods: Working with a payment processor that proactively adds new payment methods can significantly benefit the IPTV company. With new payment methods, merchants increase the likelihood of transaction success.
Clear Pricing Structure: A clear pricing structure with genuine terms and conditions is essential for IPTV merchants. Before accepting an agreement, merchants must ensure their interests are protected and they are offered a reasonable contract.
Large Payment Gateway Companies: Working with a large payment gateway company can also motivate merchants to scale their business. Large payment gateway organizations have a history of supporting businesses of all types, including small, medium, and large organizations.
Key Features of Effective IPTV Payment Gateways
The payment processing demands of IPTV businesses are slightly different from those of conventional e-commerce merchants. Merchants in the IPTV industry require special transaction processing features for better business operations. Some of the most important features are listed below.
Subscription Payment Options: Subscription payment processing helps merchants to charge customers regularly, which is common in the IPTV sector.
IPTV OTT In-App Payments: VOD and IPTV merchants require a mobile app payment gateway for IPTV due to the high usage of Android and Apple devices. With mobile app payment solutions, merchants can accept in-app payments for subscriptions, add-on packages, and value-added services.
Multi-Currency Support: This is mandatory for IPTV businesses as they offer channels and video content in different languages, meaning customers can be located in various parts of the world. Sticking to only one transaction currency may not be a good choice, which is why a multi-currency IPTV payment gateway is essential.
Alternative Payment Methods: Apart from accepting credit and debit card payments, IPTV merchants should have the ability to accept payments through other methods, including e-wallets and bank transfers. Adding local payment instruments also increases overall sales. This is especially crucial for IPTV companies that stream to Latin America and Africa.
Real-Time Transaction Processing: This increases customer satisfaction as users can immediately start watching their favorite shows after making payments. Real-time transaction processing also benefits merchants by providing immediate notification of successful transactions, boosting confidence.
Integration with Content Management Systems: Most IPTV companies require integration with content management systems like WooCommerce and WHMCS. With the right API documentation and ready-to-use plugins, integration becomes easy. Platforms like WHMCS help manage subscriptions and add or remove packages easily.
Rates and Fees for IPTV Merchant Processing
The pricing varies depending on many factors. In the online streaming/VOD/IPTV market, most merchants do not cross the $100K per quarter mark.
If a merchant has a low sales volume and no previous processing history, there is a high chance that the applications will have to go to a high-risk acquirer/payment aggregator. In this case, the rates will be higher than low-risk accounts, and merchants may also be subject to upfront setup charges.
If a merchant’s profile is attractive and has a proven volume of over $100K per month, the setup charges may be reduced or completely waived at the underwriter’s discretion.
The Future of IPTV Payment Gateways
The IPTV industry is destined to keep growing and will continue adding new technology. From standard definition to high definition and from high definition to virtual reality, this industry has already adopted some of the finest technology. In the coming years, we may see the integration of blockchain technology with IPTV payment gateways, which will potentially enhance security and offer better transparency. Blockchain technology may also help payment processors reduce transaction costs.
AI-driven fraud detection tools may use machine learning algorithms to help identify fraudulent transactions. IPTV payment gateways might also be integrated with IoT and smart home devices. The learning gained by today’s payment gateway companies through IPTV processing may be utilized to offer a better payment processing experience in the future.
About the OTT and IPTV Industry
IPTV stands for Internet Protocol Television. It enables video on demand as well as interactivity between the services. The only difference between IPTV and cable TV is that IPTV uses the internet, whereas cable uses satellites to broadcast television programs.
Some of the most popular IPTV services include Disney+, Hulu, HBO Max, and Netflix. These days, it’s not that difficult to start your own OTT platform. There are ready-made SaaS platforms that offer ready-to-use interfaces. These SaaS solutions are incredibly beneficial for merchants interested in the IPTV industry. For example, Muvi provides a free trial and excellent support throughout your streaming service launch.
QuadraPay for IPTV Credit Card Processing
IPTV and OTT companies play a vital role in the growth of digital content monetization. The industry is expanding and evolving very quickly. It is now a proven reality that OTT and IPTV technology are here to stay. QuadraPay has established strong connections with payment processing companies that are comfortable evaluating the applications of merchants from this industry. These solutions can offer a dynamic edge to qualifying merchants, helping them stay ahead in the competitive market. Ask QuadraPay today for a zero-obligation free quote for your IPTV payment gateway requirements.
Suggested Resources for IPTV Merchants
Research Markets: IPTV Global Forecast Report by Research and Markets
IEEE: IPTV Delivery Networks: Next Generation Architectures for Live and Video-on-Demand Services
