With more than 658 million internet users in January 2022, India has emerged as one of the fastest-growing online consumer markets worldwide. The Covid-19 pandemic became an impetus to e-Commerce platforms, making them a common phenomenon rather than a unique experience. However, when selling products or services online, a merchant cannot do without accepting digital payments. This is where a payment gateway comes into the scene.
With online transactions worth Rs. 20,000 crore taking place in India every day, it’s crucial to select the best payment gateway that provides both convenience and security. Let us look at the growing importance of payment gateways in this digital era.
Gives a Competitive Edge
Merchants that engage a payment gateway to go digital gain a competitive edge over similar businesses. Apart from making business operations more manageable and convenient, the powerful technology of digital payment providers makes them accessible to a more extensive cross-border customer base. E-Commerce stores that digitize their payment processing have a better position to capitalize on a large market comprising 750 million smartphone users in the country.
Helps Cater to Diverse Needs
Irrespective of its size and extent, every online business has customers with access to different resources. An e-Commerce business with a digital payment gateway is more likely to cater to their diverse needs than a business that accepts only cash and card payments.
Over the last few years, Indian payment platforms have advanced to incorporate multiple payment methods, ranging from cash and card to e-wallets, payment links, UPI payments, and net banking. Accepting payments through different mediums has gained more importance than ever today.
Boosts Sales and Profits
The increasing number of businesses shifting online creates an urgent requirement for online payment processing systems. This can only be made possible by a payment gateway. Apart from driving conversions, it also results in higher revenues, broader access, and increased profits. The best payment gateway allows businesses to accept payments through diverse platforms in multiple currencies, thereby boosting their sales irrespective of their geographical location and time zone.
Keeps a Business Up With the Trend
The digital era of online payments is moving at a rapid pace, as technological and fintech innovations take place almost every other day. A small enterprise often finds it challenging to stay at par with this speedy progress. However, with the use of a payment gateway business can easily handle transactions while keeping up with the latest innovations. So, merchants need not worry about new market developments.
Reduces the Cart Abandonment Rate
According to 2022 statistics, the cart abandonment rate across industries is around 70%. Many consumers abandon their carts because the payment gateway is too sluggish, complicated, or offers limited payment options. However, the best payment gateway has advanced features that can help significantly minimize the cart abandonment rate. It clearly indicates that a business can reduce its cart abandonment rate with the correct payment gateway integration.
Ensures Security During Online Transactions
Customers enter their crucial financial information while sending payments online. Hackers may steal this information on the way and use it for malicious purposes. Non-tech-savvy individuals can easily fall into the trap of online payment fraud. However, payment gateways encrypt the shared information, allowing customers to engage and transact with the e-Commerce platform freely.
With PCI compliance, SSL certificates, 2-factor authentication, and encryption methods, the best payment gateways ensure that the information shared online remains inaccessible to any third party. Security is one of the most crucial aspects for online businesses, making a reliable payment provider indispensable to them.
Streamlines the Cash Flow
A payment gateway helps a business maintain a steady cash flow. Traditional systems take 3-5 days to process the payment and transfer the funds into the merchant’s account. However, a reliable payment gateway transmits amounts pretty fast, allowing the business to get its money quickly and use it for other purposes. Payments made through e-wallets and UPI apps are even faster. Therefore, a payment gateway helps a company maintain a strong cash flow compared to traditional payment methods.
The best payment gateway gives the needed push to drive e-Commerce platforms further. However, the good part lies in the payment gateway one selects. Several gateways are out there, not all of which are well-equipped to deliver the required features and benefits. The key is to go for a gateway a business can rely on from different ends.