When consumers purchase something online, they enter their payment information at the checkout. The online payment gateways securely receive this information and send authentication requests to the buyer’s bank to process payment. After obtaining authorisation, the amount is deducted from the user’s bank account. The payment gateway receives the funds and sends them to the seller’s bank account as per the settlement agreed.
Thus, the payment gateway technology provides a safe payment infrastructure for processing payments online. It serves as a mediator between the seller, customer, bank, and the payment network. Below are the top seven reasons why an online payment gateway is important in Indian businesses.
1. Cater to the Increasing Digital Needs
The Indian consumer is changing rapidly. Even for their smallest needs and simplest searches, they use the internet to get what they want. Therefore, payment gateways enable Indian businesses to meet the increasing digital needs. They gain a competitive edge and participate in the digital revolution, which is essential for their business growth.
2. Ensure Security
Payment gateways enable a secure transaction environment and safeguard the business from security issues. SSL security and end-to-end encryption support data transmission in an encrypted manner. Fraud prevention tools protect the business against card and payment fraud. Consequently, payment processors in India bring down chargebacks, scams, losses, and disputes to the minimum.
3. Earn Loyal Customers
Payment gateways give customers a flexible and fast way to make online payments. They may transact from wherever they are using their desktop or mobile phone. By giving customers a personalised experience with payment gateway tools and APIs, the business successfully earns their loyalty and turns them into returning customers.
4. Cost-Effective
Accepting payments using online payment gateways is cost-effective. By managing smooth operations online, it helps a business reduce operational costs. Besides that, there is no requirement for cash management, as the money goes directly into the business bank account, further reducing the cost.
5. Automated Management
Robust APIs enable real-time analytics, transaction management, and graphical representation. It gives the business an intelligent platform for crucial functions like settlements, refunds, settings, payment links, etc. It saves time by automating business management.
6. Powerful Use of Technology
Installing a high-tech payment gateway makes a business digital-ready in the current digital environment. It automates business payments and makes them better, fast, and 24/7 available. A business can grow exponentially by reaching global customers through the gateway. Thus, Indian companies get ample growth opportunities to turn into multinational companies.
7. Multiple Modes of Payment
A business can meet their customer needs by offering them multiple modes of payment. It encourages customers to complete their transactions. Many reputed payment processors in India support various methods of payment during checkout, including debit cards, credit cards, net banking, e-wallet, QR code, UPI, and EMI.
Using a payment gateway provides an excellent customer experience. Thus, Indian businesses need it today to get ready for the future. However, selecting the right gateway is also essential for a business. The right payment gateway that fulfils the above seven reasons is undoubtedly the right choice.
