What Is Payment Gateway And Why Should Business Opt To Integrate Them?
Payment gateways are crucial for collecting and paying through digital payment modes for the goods and services we buy and sell daily. Whether the sale is made online, or through a brick-and-mortar store, without a payment gateway in place, no business can expect to switch over to cashless payments.
Moreover, they are more important now, than ever before because, in a post-covid world, most people prefer making contactless payments as opposed to paying via cash.
In this article, we will look at best free Payment Gateway, how they work, and why businesses should opt to integrate them!
What is a Payment Gateway?
A payment gateway helps communicate transaction-related information between various parties to enable digital transactions. It is a complex system that is responsible for collecting transaction-related data and encrypting critical banking information before passing this information on to the respective bank/card networks.
How Do They Work?
All payment gateways including the free payment gateway in India work in the same manner. Let’s have a look at the inner workings of a payment gateway system.
- Once a customer has selected a product/service, and hits the checkout button; payment-related information such as credit card details are captured and shared with the payment gateway
- The payment gateway encrypts this information and securely communicates this information with the bank/card network
- The card/bank network verifies the transaction information and checks the customer’s account for available funds
- If adequate funds are available, the transaction is approved and this information is shared with the payment gateway, the customer’s account is debited and funds are transferred to the merchant account
- The payment gateway informs the merchant and the customer about the sale, completing the transaction
This entire process happens in the blink of an eye, and anyone hardly ever realizes the complex nature of the process. Now that you have a basic understanding of a payment gateway, let’s look at the benefits of integrating one with your business.
Accept all forms of Digital Payments
With a payment gateway integrated into the system, a business can start accepting all kinds of digital payment modes including credit/debit cards, net banking, UPI, prepaid cards, digital wallets, etc. Moreover, the most sophisticated ones even allow accepting payments from social media channels such as WhatsApp, Facebook, Instagram, etc.
Secure and Fast
The transactions are effortless and fast providing customers with an enhanced shopping experience. Moreover, since all transactions are end-to-end encrypted, it prevents any instances of fraud or data leaks further expanding a business’ trust factor.
Accept International Currency
Businesses can easily expand beyond their home country with payment gateways that allow accepting a variety of international currencies. This can help a business scale up faster by reaching a brand-new untapped consumer base.
Creating top-of-the-mind brand recall is critical for a business these days to make them stand apart from the competition. Some payment gateways may allow a business to populate the payment page with the brand’s colors, logos, and fonts that give a personalized checkout experience to the customer while creating more brand recall.
Better Management of Book of Accounts
With a centralized dashboard, businesses can keep a track of the inflow and outflow of cash more effectively. This allows for better management of accounts helping businesses maintain better operational capability.
Integrating a payment gateway for your business is without a doubt one of the wisest decisions a business owner can make for the betterment of the business. They allow for a more streamlined process when it comes to collecting various digital payment modes, managing accounts, and providing an overall better experience for their customers.
If you are a business owner, opting for a payment gateway will help your business scale to greater heights and expand much faster. So, if you want to generate more sales, want better customer retention, and take your business to the next level; then it’s time to integrate a payment gateway for your business.