Payment Gateway — What It Is, What It Does, and How It Works

What is payment gateway?

A payment gateway is a technology used by merchandisers to accept purchases by disbenefit card or credit card. This is a broad term that encompasses a variety of forms including physical card catalogs that exist in brick-and-mortar retail stores as well as online payment processors.

However, slip-ups and missed payments are still a problem, and payment gateways have been initiated to accept payments by phone using QR codes or Field Dispatches Technology (LFT).

5 Trends in the Indian payment gateway market

Payment gateways are consumer-oriented interfaces that are used to collect payment information.

The traditional way of paying for goods at a store is by swiping a credit card at the checkout. However, this payment method can be tedious if the customer has to find their wallet and then search for their card in it.

One of the most important aspects of an online store is how customers complete their purchase. One popular step along the way is using a payment gateway in order to provide credit card or PayPal information.

E-commerce is the fastest growing indian retail sector at the moment and with good reason. Online stores enable you to buy products without setting foot in a shop, can try out products before buying, save money by buying bulk or find hard-to-find items from abroad. More and more people are now shopping online after the convenience of it became apparent. The use of technology to buy things will most likely continue to increase in the future.

Payment gateways typically differ from Payment Processors. Payment Processors work by gathering customer information about the purchase and then passing this along to retailers for payment.

For a secure, low-cost transaction, many users who use cryptocurrency prefer to use one of the payment gateways that also accepts crypto.

Have you ever had trouble with an ecommerce payment gateway in India? These days, many people experience payment gateways that won’t allow them to be paid.

The payment gateway is a vital part of the electronic payment processing system. Offering advanced technology that can send information to your acquiring bank, the transaction is processed.

In the past, payment systems needed a magnetic card with a stripe, and customer approvals were in the form of paper signatures. Nowadays, we have smart terminals which support all sorts of modern payment methods.

With the developments of new chip signature technologies, there’s no longer a need to present a signature while paying. You can simply enter your PIN into the payment gateway hardware. Today, many customers are using their phones for payments instead of having to go through the usual card & pin setup. This is making transactions much easier on them and reduces time spent in lines.

Banking institutions will have different architectures depending on if they are store gateways or online payment portals. Online payment portals require Application Programming Interfaces (APIs) to communicate with the user’s bank information, while store gateways can send the customer’s purchase order to the bank and receive an authorization response. There are two ways to process payments in the store: via POS terminals with access to related internet networks or by directly transferring the funds.

Mobile payment processing is complex and has a lot of moving parts. That’s why it’s important to work with an experienced company that knows how to navigate the world of mobile payments.

A payment gateway differs from a payment processor, a service that connects the client bank to the merchant’s account and facilitates actual effective movement. You can imagine them as two halves of the transaction: a payment gateway collects customer information for payment, and a payment processor uses this information to contact the bank and the customer’s merchant account, debit one account, and settle the other.

Example of India Payment Gateway Market

Dealers may have access to payment gateway systems through banking partnerships between traders or, if not, choose their own payment gateway system. Large banks such as State Bank of India and HDFC BANK have sophisticated payment gateway systems that purchase customers along with their own merchant banking services. Finally, traders can choose a variety of payment gateway technologies, provided they are compatible with the merchant acquisition bank that is being used for payment collections.

A recent example of payment gateway is Easebuzz, which focuses on flexible mobile payments for retail businesses. The company’s easebuzz allows customers to easily accept payments at special locations such as congresses or agricultural markets, or through itinerant showcases such as catering trucks.

With Easebuzz Payment Gateway technology, a retailer can attach a small piece of hardware to his mobile phone, which allows the customer to wipe his payment card for processing via the electronic connection of the mobile phone. Easebuzz sends the payment information to a merchant acquisition bank, which then temporarily processes the information for the trader temporarily.

The new products are likely to further increase the versatility and speed of the payment gateways. In recent years, blockchain startups have even introduced payment gateways for cryptocurrencies.

FAQ on payment gateways

How much a pay footbridge cost?

Payment gateways typically charge a combination of initial configuration fees, a flat monthly rate and a small rate for each transaction. Some walkways may also charge a fraction of each purchase. For example, Easebuzz charges a two-cent fee for most card transactions as well as 2.6% of the payment volume. Stripe bills 2.9%, plus 30 cents per transaction. It can also be calculated for equipment and installation.

What is a White Label payment gateway?

A white-branded payment gateway is a payment gateway whose brand can be adapted according to their customer’s preferences. This allows traders to receive payments via third party services while using their own name and brand.

Can I build my online payment Gateway?

Although you can build a payment Gateway from scratch, it would probably be too expensive to be worth it. Easebuzz estimates that the construction of a minimum gateway for processing credit and debit card transactions could cost a quarter of a million dollars, not to mention additional headaches of international transactions, foreign currencies and compliance.

Is Google Pay a payment gateway?

Google Pay is a digital portfolio that facilitates interaction with payment gateways. Instead of carrying a credit or debit card, users can store encrypted card data on their phone, allowing them to pay safely without their card being present.

Is Paypal a payment gateway or processor?

Although sometimes described as a payment provider, PayPal offers similar services for a payment gateway and payment processor. PayPal’s business accounts share many features with a processor, allowing traders to safely accept and redeem payments in their bank accounts. PayPal also offers a gateway service called PayFlow.

The bottom line

Payment gateways are an important feature of the digital economy. Through the safe and secure transfer of credit card information safely and securely, these systems reduce some of the obstacles to online commerce. Although the first payment gateways consisted of simple card readers, today they are sophisticated systems for collecting and authenticating PIN numbers, signatures and other data for commercial transactions.