The Rising Stakes of Reliable Payments: How Testing Powers Technology

In the financial world, nothing is more critical than getting payments right.

A simple error or untested integration can turn transactions into a logistical nightmare. In a global economy where delays mean dollars lost, payment testing becomes a critical function.

“Typically, 2 in 10 digital transactions fail,” Testlio CEO Steve Semelsberger told PYMNTS during a conversation for the B2B Payments 2024 event. “Payment failure at time of purchase, whether it’s a B2B transaction or B2C transaction, is a really big problem. It’s a trillion-dollar problem for companies.”

That’s where payment testing comes in — running systems through rigorous checks to catch every hiccup before it hits the market. From compliance challenges to software bugs, any minor issue can have major repercussions.

Without thorough testing, payments advances like embedded finance and cross-border solutions — even blockchain payments — can crumble under the pressure of real-world transactions, Semelsberger said.

Rise of Payment Testing Solutions

As businesses expand across borders and integrate embedded finance solutions, payment testing is crucial.

Testlio’s testing approach uses real people, real devices and real accounts to create realistic scenarios.

“We can have somebody in Nigeria processing money in, and someone in Argentina taking money out,” Semelsberger said. “We want to ensure that the entire transaction from bank through network to bank is secure and completed.”

By simulating real-world transactions, the testing process can identify and resolve issues that may not be apparent in a controlled environment.

Payment failures can occur for numerous reasons — ranging from device compatibility issues to back-end system errors. Identifying these issues is only the first step; the real value comes from finding the root cause and implementing a solution, Semelsberger said.

“Even if things are deployed well, and these are really large companies, it still matters at times the device you’re on and the state of that device,” he said. “And so intentionally using in the wild devices we find is a great way to make sure that things work well.”

Human Element: Balancing Manual Testing and Automation

With over 10,000 quality analysts and engineers worldwide, Testlio focuses on ensuring that devices, software and payment gateways function seamlessly. The company’s client roster includes tech giants like Amazon, Microsoft and PayPal, as well as emerging companies.

Over the past decade, the software testing industry has seen a push toward automation. While automation offers efficiency, Semelsberger cautioned against overreliance on it.

“There’s been an industry overcorrection towards automation,” he said. “Companies are now moving back to a hybrid, integrated approach that fuses automated and manual testing.”

This balanced approach, which Semelsberger called “fused testing,” is especially important in payment scenarios. By combining automated tests with manual interventions, issues can be detected and resolved before they reach the customer.

Companies often face challenges in identifying and addressing potential payment issues. Semelsberger said Testlio’s approach includes signal-driven testing, which uses customer feedback, monitoring systems and social media signals to identify problems. These signals help prioritize issues and allow companies to act on them efficiently.

“A key focus for our clients is zero-escaped issues,” he said, explaining that Testlio’s testing processes aim to prevent any issues from reaching the end customer.

As the adoption of cryptocurrency and blockchain technology grows, payment testing is evolving to accommodate these new forms of exchange. Testlio is working with crypto companies such as Uniswap and BitPay to test blockchain-based transactions. Semelsberger said these tests require specialized knowledge and skills.

“For blockchain and crypto, you need experts who deeply understand the technology,” he said. “This isn’t a scenario where just anyone can step in.”

This level of detail is necessary for large corporations and small businesses, and across sectors as well, Semelsberger said.

“For big companies, there are often months of testing,” he said. “For small companies, it’s hours, but you can now do it at a level of scale that was hard to achieve before.”

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