From Auto Rickshaw drivers in every corner of the city to Self Check-out counters in a Decathlon store, everyone is converting to cashless. Payment gateways are used by the majority of retailers today to process customer payments.
Technology like a gateway for online payment enables a company to accept customer debit or credit card payments. The vendor and customer are informed of the approval using online payment platforms. A bank may offer its customers the authorization procedure, or a specialized financial service provider may offer it as a separate service.
Online payments are gradually regulating the corporate environment in this payment gateway era., digital wallets (including super wallets), eCommerce mobile apps, and related technologies. But even this industry has experienced change; M-commerce has overtaken E-commerce. Smartphones and the mobile internet have hastened this transformation. M-payments grew at a whopping growth rate of 28.9x in a meager five years from 2010-2015.
Let’s examine a payment gateway’s operations in detail throughout the payment process
1. The customer selects the good or service they wish to buy before going to the checkout page.
2. Customers enter their credit or debit card details on the payment window. This data is securely delivered to your payment gateway based on the server-to-server integration and encryption level you have in place.
3. The payment gateway performs fraud checks and encrypts the data before sending it to the acquiring bank.
4. The acquiring bank securely delivers the information to the card schemes (Visa, Mastercard).
5. The card schemes carry out an additional screening level before sending the payment information to the issuing bank.
6. After a final check, the issuing bank approves the transaction. The acquirer receives the notification of the accepted or denied payment once it has been returned from the card schemes.
7. The payment gateway then sends the approve or deny message to the merchant after receiving it from the acquiring bank. If the transaction is accepted, the acquirer obtains payment funds from the issuing bank and deposits them into the merchant account.
8. The merchant may show a payment confirmation page or request a different payment method from the consumer, depending on whether the transaction was allowed or denied.
9. The act of depositing the money into the merchant’s account is called settlement. The arrangement of a merchant with their payment gateway will determine when the actual settlement will occur.
Although a majority of the operations in a transaction take place in the back-end, a payment gateway is advantageous for both clients and merchants. These processes can be completed in less than three seconds or almost immediately.
Innovative payment solutions companies have gone further and introduced a super wallet containing bank accounts, debit cards, and credit cards. For instance, Paynimo by TechProcess gives customers access to a robust multi-mode payment platform that can transform a retailer’s smartphone into a virtual Point-of-Sale (PoS) device. Payments are made securely through smartphones owned by both the merchant and the customer, replacing cash-on-delivery with e-payment on delivery. This next-generation super wallet should also have the capability to permit one-time-use transactions using actionable payment links that expire within a set period after use to maximize security to be a step ahead in the m-payments ecosystem.
Some even let users print prepaid cards for offline purchases directly from their wallets. Others have online shopping malls where vendors advertise their bargains. Banks are also considering including a QR (quick response) code reader in their apps, which would let account users use their cellphones to scan a code created by merchants to make mobile payments.
Gateway for online payment is revolutionizing the payments scene in the country and world. Also, multiple Online payment platforms continuously increase standards through innovations like contactless mobile payments. With the exponential growth in M-commerce, the Mobile Market, and mobile payments, this ecosystem is not showing any signs of stopping.
M-payments revolutionize the very essence of business in the sense that it improves payments for the same. M-payments are faster, convenient, and more secure. Cash and credit cards are less likely to be lost or stolen since mobile payments make it unnecessary to carry them around. It takes longer to count cash or wait for a chip card transaction. Customers produce their mobile devices and authenticate the purchase while using mobile payments. Consumers benefit from a quicker, more user-friendly experience, while businesses benefit from faster transactions.