A payment gateway is an e-service that allows people to do online transactions through the medium of credit cards, debit cards, internet banking, and online wallets. You are entering the world of e-commerce. Research says that on an average 2.5 million transactions fail during the payment transaction on irctc.co.in. Hence, obviously, payment is a big issue for you, but not now. If you have created your own store already then understanding payment processes is half the battle.
Paypal is doing great in this business and is very reliable and speedier too. For any payment gateway associated with a bank, a business bank account and merchant account is being set up. This takes several weeks to process and you can only pay when the merchant ID is received. But, what if you are paying for the first time? Today, very few people have enough patience to wait. But Paypal is the solution to speedier online payment transactions. Paypal’s quoted time to set up is just 15 minutes and the payment can be transferred into your bank account within 7 days. It is a trusted brand, free of cost and accepts all the credit cards.
Another solution to online payment is PayU. Nitin Gupta Country Head, PayU India Internet Pvt Ltd says, “The potential market size of online payment industry is around $ 150 billion in the next 5 years. Currently the penetration is roughly at a tenth with travel accounting for about $ 8 billion, financial services being $ 1 Billion, e-commerce half a billion and the remaining big pie constituting for utility and bill payments.” PayU also provides payment though credit cards (Visa/Mastercard /Diners), debit cards of all banks including Mastero, net banking of 29 banks including major PSUs, EMI and cash card & wallets.
There are many other payment gateways that provide trusted and secure payment services like Payupaisa, Payzippy etc.
If you have a doubt on how the whole process of payment works have a look at the figure below which is taken from “Here’s what you need to know about Payment Gateways” by Anmol Sabherwal in The Tech Panda.
The most important consideration while choosing a payment gateway is it should provide trusted, fast and reliable payment options to the customers and best services to the retailers.