Different payment platforms are seen to offer varying benefits for the use and hence the disadvantages and advantages cannot be clustered by payment platform models or its profit models alone . Freshbooks is a third party-payment provider. It can be termed as a more business engaging solution than just a third party-payment provider because of how it gives small business owners more options. Many existing banking solutions are integrated into these systems and this gives the businesses the choice of selecting third party-payment providers for handling some of their cash flow transactions (Foyston, 2017). Understanding the advantages and disadvantages with respect to the context in which they need the third party-payment provider, the key players, the fee structures, the services and more would be important in ensuring the best service is generated. The advantage of using a third-party payment provider like Freshbooks is that it is used in more than 120 countries and hence more small business owners are vouching credibility for it. Some of the advantages of using this model is that it is easy and adaptable. Its flexibility meant that it could be incorporated easily into new businesses, for the purpose of setting up invoices, for managing cash flow to and from client, for accepting online payments etc. The primary fee that is charged is around 2.9 per cent for services. While this is a flat fee for payment generation between two sets of end clients, the fee itself might be considered a little too high in comparison with other payment providers. Therefore, this could be a disadvantage of the model. As media articles suggests, this form of an interface does not just work as a shopping cart application, but is more suited for service based business owners (Lindzon, 2014). It can be used more creatively if required and this expands the scope of its operations.
Payfirm is yet another payment service provider from Canada that is being pushed strategically with its partner CIBC. Payfirma model unlike FreshBooks makes use of a multichannel payment solution. The advantages of Payfirma are that it presents a one-way solution for businesses that want a consistent rate. Not all business will want the customers to face a fixed per cent when it comes transactions, having some form of negotiation will help them (Jin et al., 2007; Bollen, 1989). Small scale business companies ideally find Payfirma as a convenient way to incorporate the payment infrastructure within their existing business services alignment. The advantage of having negotiable fees is in fact one of the main element that helps the company, as a company spokesperson said, the fee is 2 per cent (Lindzon, 2014). However, the fee can be reduced to a fixed rate of 2 per cent or less in negotiation and much of the third-party payment providers would find this a very competitive undertaking. Small scale business benefits immensely with this form of payment system.