Online shopping is a regular practice we see in the past few years. Most of the business follows digital payment methods making the shopping experience way better. The practice of holding liquid cash is reduced drastically. Well, it is way more convenient and secure. With the help of an online payment system, we can carry out shopping from all over the world. When we say online payment system, it is not restricted to debit card and credit card payments. Net banking, UPI transactions, wallets, etc., also come under online payment methods. Let's say you got into a shop and transferred money using any of the methods mentioned above. The dealer's account is credited with the amount you shared. Do you think the process enabling these transaction features is quite simple? How many of you are aware of the various factors that are associated with online transactions? Well, one such step is the payment gateway. A payment gateway is used to carry out digital or online payments from the website or app. In this blog, we are discussing payment gateways - what it is and how it works. Payment gateway is one of the most prominent features held by fintech apps. For those who wish to know what fintech applications are, do read our previous blog on Fintech apps. So let's get started!
The eCommerce platforms available nowadays offer online payment options. For this to carry out smoothly, a payment gateway is not an option but a mandatory feature. So what is a payment gateway? It is a technology used to carry out debit or credit card purchases by the dealers from the customers—the interface obtained for the users while carrying out an online transaction to collect payment information. Let's talk in simpler terms. For example, you have purchased a pair of shoes from an online shopping app, say Amazon followed by the payment procedure. A payment gateway (PG) helps you in the process by transferring the money to Amazon.
Payment Gateway - How does it work
Payment gateway plays an essential role in carrying out banking transactions between buyers and sellers by holding sensitive information regarding your bank account. It is a front-end technology that has complete responsibility during the transaction time. As the term suggests, it is a gateway that lets the transaction proceed when the customer enters the required banking details needed for the transaction. Allowing sensitive information to pass through requires a secure mode and a payment gateway ensures security by encrypting the data offered by the user.
1. Once the shopping is completed, the user clicks on the "proceed to checkout" button to carry out the transaction.
2. Among the various payment options such as net banking, debit/credit card payment, UPI transaction, the user chooses the convenient payment option.
3. The user is redirected to the "payment gateway," where they enter the bank details. Once the pieces are fed, the bank checks whether sufficient funds are available or not.
4. The payment gateway (PG) sends a message to the dealer mentioning the availability of the required amount. If there isn't enough money, the bank replies with a "No" to the dealer, and the dealer sends an error message to the customer. On the other hand, if there is a sufficient amount, the bank replies with a "Yes," and the transaction is carried out, letting the customer know about crediting the amount to the dealer.
5. The customer receives a confirmation message showing the order is placed.
We were discussing the unique feature held by the payment gateway, which is the security it offers. So now, let's find out the benefits of a payment gateway.
- Integrates with shopping cart
- Accepts multiple payment options
- Offers fraud management
- Offers recurring billing
- Offers chargeback prevention
- Offers faster payment processing
If you have an idea to go with a business that holds online payment methods, looking for the best mobile app developers who are well experienced in handling fintech apps and have fair knowledge in payment gateway, you have reached the right place. Being the leading providers of customised payment gateway services, Pixbit Solutions offers nothing less than the best fintech app development services globally. We have proved our skill through various works on fintech apps and payment gateway integration that we've delivered in the past.
We assure you with the well-experienced finest app developers. Any queries on fintech apps or app development services, give us a call!
Reach out to us at firstname.lastname@example.org