A website is made of multiple segments from design to back-end coding and from product pages to payment options. it takes a lot of effort to deploy and maintain. While having an eCommerce website is one thing, having one which resonates with customers and brings in sales is another thing.
To make sure your website holds up to the promise. one of the key factors to consider is a fast and secure payment gateway. The impact of payment gateways on eCommerce is significant, but before we get into the benefits let’s try to understand what payment gateways are all about!
What is a payment gateway?
A payment gateway is a software or a front-end system that takes in customer data and transfers it to the bank where it’s verified. The bank verifies if the card has enough funds or is eligible for a transaction or not and then funds are transferred to the merchant’s bank.
The payment gateway works with a payment processor to carry out the task of transferring data and verifying it to confirm a purchase.
Some popular examples
Below are some popular payment gateways that can be great options for your business:
- Amazon Pay
Importance and impact of payment gateways on eCommerce
Below we have mentioned 6 points that highlight the importance and impact of payment gateways on eCommerce.
- Provides different payment options
- Caters to rising customer demands
- Makes payments easier
- Offers high levels of security
- Easily integrates with shopping carts
- Allows convenient installation and maintenance
Now let’s get into the details of the above points.
1. Provides different payment options
Every customer that comes to your store won’t pay the same way. Some might want to pay via a credit card and some might want to pay through a debit card and so, you must offer a variety of methods to them so they can easily make a purchase.
A payment gateway can help you with that. It is a software that allows transactions through:
- Internet Banking
- UPI (unified payments interface)
- Credit or Debit cards
- Online wallets etc.
You can add these options to your website and attract the maximum number of customers possible.
2. Caters to rising customer demands
During the pandemic, we have seen a large number of people shifting to online shopping. While brick and mortar (physical) stores are still in existence and many are flourishing, the eCommerce world has become a major shopping destination.
To make sure you can meet the rising customer needs you need to have an optimal system of payments that can handle customer influx efficiently. In 2021, more than 2.14 Billion people are expected to make a purchase online. With that many people depending on eCommerce, you must work on a payment gateway for your site that satisfies growing consumer needs.
3. Makes payments easier
A website that has an interface that is easy to navigate and understand, can greatly improve conversion and customer trust in the website. If the process of making payments is too long and requires lengthy sign-ups, the customer might skip to an easier alternative and you might lose sales.
Many payment gateway options make it easier for websites to add customer check-out pages. That way you don’t need to redirect customers to another page and hence offer them a seamless checkout experience.
4. Offers high levels of security
Hacking, data theft, and misuse of information are not uncommon in the online world. Data is becoming increasingly valuable and many online service providers that don’t charge you for their services, use your data to fulfill certain unethical goals. That leads to a loss of trust on the customer’s end.
To make sure your customers trust you with their information, a secure gateway is very important. A payment gateway uses encryption to change your information into an unreadable form using a public key and then decodes it, through a private key. That way someone else cannot read or misuse customer data and information can only be read by someone with a private key.
5. Easily integrates with shopping carts
A shopping cart is just like a cart you see at shopping malls where you add items as you like. In a shopping mall or store, you take the cart to the counter once you are done, and based on the products, you are presented with a bill.
On an online store, the same principle is followed but virtually. With a payment gateway, payment and cart options are easily integrated and the customer can select products and choose a payment option easily. He doesn’t have to switch between multiple pages that saves his time.
6. Allows convenient installation and maintenance
The ease of shopping matters immensely to the customer but if the process of maintaining and installing software is difficult for you.
It can affect the user as well to avoid that, one should opt for a payment gateway software that is automated and can be easily installed.
The easy installation step will save your time as you only need to set an account to get started with the software in most cases. Plus, for updates, you will be notified so you can schedule them and keep the software up to date.
In this article, we went through the advantages of payment gateways and their impact on eCommerce. A payment gateway is software that takes customer data and transfers it to the bank for verification. With the right choice of a payment gateway, you can offer easy payment options and provide variety to each customer.
Payment gateways are secure options that keep user data safe and are easy to integrate with carts, making the shopping experience great for customers. They are easy to install and maintain for a longer period. Updates can be scheduled and thus keeping them up-to-date is very convenient for website owners.
We hope this article was useful. Check out more articles like this one on our website to gain more information.