July 26, 2022
Sofort Payment Processing

Sofort is a widely used online banking payment method in German-speaking countries. It is an alternative to traditional payment methods, like using credit or debit cards.

It is a German platform founded in 2005 and was acquired by Swedish fintech Klarna in 2014 for $150 million. It is available in 13 European markets but is popular in Germany, Austria, Switzerland, and Belgium.

What Is Sofort?

Sofort allows merchants to receive direct payments from consumers’ bank accounts. It is a single-use payment method that requires customers to authenticate the payment after initiation. It further generates a real-time response once the transaction completes.

Sofort has a user base of 85 million across all the markets and is supported by more than 35,000 online merchants. The massive user base makes it one of the most desired online payment modes in the DACH region and Belgium.

The platform also supports four fiat currencies: Euro, Polish Zloty, Swiss Franc, and Pound Sterling.

Sofort Payment Flow

Sofort, because of its popularity and market reach, is supported by almost all major payment gateways. The payment flow using Sofort is also simple, making it another advantage.

  1. First, the customer should choose Sofort as the payment mode on the checkout page.
  2. Then the merchant platform will redirect the customer to an online banking environment. The consumer needs to select the country and bank.
  3. The authentication of the transaction is done by sending OTP via SMS or code generated through a secured device, which depends upon the chosen bank’s mechanisms.
  4. After the authentication is received, the balance is checked and final payment authorization is made.
  5. The platform then updates the payment status, and funds are sent from the consumer’s bank to the acquiring bank, which holds the merchant’s account.

Like any other payment method, Sofort can be integrated directly by the merchant. However, the process can be complex. Merchants are advised to integrate the payment method using a payment gateway. It makes the integration process both time and cost-effective.

Advantages of Sofort

There are many advantages of using a localized payment mode. Sofort’s board market reach offers numerous benefits to merchants. Some of them are:

  1. High banking coverage: Sofort has partnered with the leading banks across Europe. It supports almost all the banking platforms in the core markets.
  2. Real-time transaction confirmation: The real-time transaction confirmation allows instant payment and settlement. It is beneficial for both the merchant and the consumer.
  3. Relatively low fees: Sofort levies relatively low fees to merchants compared to other payment modes. It changes a fixed €0.10 fee on every transaction with an additional 1 to 2 percent of the transactional value, which depends on the type of business.
  4. Secure payments and fraud protection: It maintains a strong security profile. The authentication measures in place by the banks further add to the security layer.

Macropay and Sofort Integration

Macropay can simplify the integration of Sofort or any other such alternative payment mode on the merchant platforms. We offer an end-to-end integration process with our payment gateway and add several other essential features for the merchants. To learn more about our service, reach us at [email protected].

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