The online payment ecosystem is undoubtedly one of the most innovative sectors that have grown like never before over the last few years. Innovation is not only driven by the changing face of online transactions but also by making the payment systems faster and more secure. 2021 is expected to bring mass acceleration to the payment methodologies and payment gateways have the biggest role to play in it. Wondering how, let’s find out!

Payment gateways are changing the face of online transactions.

With the increase of customer demands and their expectations from the online payment systems, online payment gateways are emerging out as the most lucrative solution for both businesses and customers. In order to gain the trust of the customers, online merchants need to provide them with next-generation payment solutions that are faster, safer and free from any hassle. While payment gateways are not new to this digital world and have been in practice for the past few years, they have become nearly indispensable after the outbreak of coronavirus.

According to Statista, online payments in the country are expected to grow with a CAGR of 20% and touch the 660 million mark by the end of 2023. And believe it or not, online payment gateways are the biggest reason behind this booming growth. But how exactly does a payment gateway work and how can it benefit an online merchant?

What is the Payment Gateway?

Payment Gateway, in the simplest terms, is a type of transaction service that allows online and offline merchants to accept payments from their customers sitting at any corner of the world. Not only the business owners, but payment gateways also facilitate the customers by providing them with a way to make faster and more secure payments anytime, anywhere, without putting their confidential financial information at risk.

Basically, it acts as a secure link or interface between the bank and the payment applications such as online wallets, UPI, Net banking, etc. It streamlines the digital transactions in a controlled and well disciplined manner.

Ways In Which Payment Gateways Are Changing The Payment Scenario

1. Faster And Secure Payments

The main reason behind the popularity of the payment gateway system is the lightning speed of transactions it provides. Before the arrival of online payment gateways, digital payment processing was a bit slow, complicated and prone to failure. Customers had to fill in their credit/debit card details or banking information and then wait for confirmation, receive OTP and then pay the merchants. This was not only complicated, but it was a bit time-consuming as well. But with the arrival of payment gateways, things changed dramatically. Now, customers can make payments in seconds without risking their private data.

2. Convenience & Ease of Use

A payment gateway allows merchants to collect payments from their customers living in any part of the world. Today, businesses can go global and accept payments in a number of currencies and via multiple payment methods. Payment gateways are free from any language or geographical barrier. They serve as an all-around payment solution for a business. With features like recurring billing and mass payouts, business functions with more ease and convenience.

3. A Step Towards Cashless Economy

The increased use of payment gateways is a step towards a cashless economy. In fact, the pace at which we are moving towards a cashless economy has increased significantly since last year when the world has been dealing with coronavirus. No doubt, the pandemic has shattered the world and disrupted a majority of brick and mortar businesses, but it has brought a positive change in the online payment industry. Businesses that have integrated a payment gateway have saved themselves from the downfall. In the upcoming years, payment gateways will definitely play the biggest part in the rise of a cashless economy.

4. Increased Competition

With the popularity of payment gateway technology, more and more companies are launching their own digital payment gateways, boasting great functionalities and advanced features. The fierce competition in the payment gateway industry is the sole reason behind the availability of exceptional features. On top of it, the prices of payment gateways have also become affordable, which means even the budget-conscious business owners can enjoy the benefits.

The Future of Payment Gateways

Although nothing can be said about the future, payment gateways will definitely shine along with the digitalization of the world. With the boom of online industries and businesses expanding globally, payment gateways will continue to stay as an irreplaceable part of modern payment systems. Most business owners have realised their importance and have already started using them. And the remaining small businesses and startups will also adopt them soon. According to experts, having a payment gateway today isn’t merely an option, but it is a need for every business regardless of the size and industry it is operating in. This is how payment gateways are changing the face of online transactions in a powerful way.