Payment gateway systems are an inevitable financial transaction for Ecommerce Development Services. However, people still feel reluctant regarding its usage. Despite the advancement, only 41.8 percent of people worldwide are actively using digital wallets and around 9 percent are using online bank transfers.
COVID 19 did change a lot of things and made online payment a necessity rather than an option. Online transactions are still pervasive and resisted by consumers.
Online Transactions for Ecommerce Development Services: Current Situation
According to an eConsultancy survey in the UK, online shoppers have shown the following concerns:
- Fear of data theft
Customers hesitate to share their credit card information as they fear its misuse.
- Doubting authenticity of an online store
Customers show mistrust toward a store that has no physical address or location. They cannot see the store physically so it feels out of reach for them in case any product or service-related issue arises. Other concerns include-
- Requiring assistance for transactions for non-tech savvy customers
- Other online fraud-related issues such as selling of information
Ecommerce payment gateways now prevent such fraudulent activities by providing card verification value (CVV) and address verification system (AVS). The online transaction timeline has seen its share of challenges. But with every challenge, it has only grown stronger. Technology has transformed payment gateways from being a money transfer portal to a customized payment platform. The Indian payment gateway market value is expected to reach $1.71 billion by 2025. The global market value currently stands at $18.20 billion.
Customers have shifted their payment preferences with an increase in internet penetration and awareness about the convenience of online transactions. The COVID-19 outbreak further escalated this transition. Online transactions, especially in the retail sector, witnessed a rise of 74 percent in March 2020.
(Source: ACI Worldwide)
Evolution of eCommerce payment gateways
Ecommerce payment gateways establish a global reach. They are device friendly, accessible, and cost-saving. They are far more secure now than from where they began. According to a Forbes article, eCommerce payment gateways are responsible for the growth of M-commerce by 53 percent.
Customers now have stopped agonizing over security issues. These gateways are far more scrupulous. Ecommerce retailers can win a consumer’s trust by providing SSL certificates with clearly stated contact details, policies, and security information.
Payment gateways are convenient and boost the final step of purchase that initially took a longer period. Lately, this service didn’t just work in favor of customers who can now buy something in case of urgency. It also enabled retailers to boost their sales in just three steps i.e., encryption, request, and fulfillment.
Also Read: ReCommerce for Custom Ecommerce Solutions
Types of Payment Gateways-
Ecommerce retailers popularly use three types of payment gateways. They are-
In this, a website takes customers to the payment page for completing the transaction. Redirects add convenience for the retailer as it enables the incorporation of a secure and efficient payment platform even for small businesses. An example of such a gateway partner is Paypal.
On-site and Off-site payment gateway
This type of gateway enables checkout on the website and processes payment at the back-end with a payment gateway. Although it does have its perks, this payment gateway takes away control from the buyer’s journey. ,/br>
Also, customers are sharing their financial information while checking out. It comes as an added responsibility for a seller to handle the info. Moreover, compromise at the third-party’s portal end can disrupt the quality of the process.
On-site payment gateway
Large-scale enterprises widely use this type of gateway. On-site payments grant complete control of the transactions to the retailer. But, t also comes with a lot of responsibility. Merchants are more susceptible to sensitive information. This means that they will be solely responsible for any kind of data loss or online fraud.
Some of the popular and trustworthy names in payment gateway services include Razorpay, Paypal, Stripe, and PayUmoney.
Ecommerce payment gateways offer the following benefits for any seller-
- Secure and faster payment
Industry-standard encryption coding ensures security and swiftness of the process. They efficiently protect sensitive data and prevent fraud. Customers don’t have to wait in lines for billing.
- Global customer base
Shoppers around the world can access an online store and complete purchase with payment gateways. It expands the customer base for a retailer exponentially.
- Shopping cart bundle
Customers can easily select products and add them to their shopping cart. The payment gateway- cart bundle then completes the purchase at checkout. Shopping cart computes a product price, sales tax, and shipping charges. A separate payment platform carries out the transaction processing.
- Pay anywhere, anytime
Payment gateways aren’t restricted to any manual labor or working shifts. They can operate 24/7. Customers can shop from an online retailer at any time of the day from the comfort of their homes.
Payment gateways have evolved a lot. But there are certain challenges such as-
- Absence of universality for different cards: Certain gateways do not accept all kinds of credit or debit cards such as Visa and MasterCard.
- Currency issue: Some gateways lack the option of international transfer.
- Security breaches due to flawed Transport Layered Security (TLS) encryption, mobile payment issues, and malware attacks.
A solution can be to go for multiple payment gateways (stacking payment gateway) to tackle these issues. Professional developers can provide better software solutions to meet the sales volume of a website.
Ecommerce payment gateways aren’t just a trend anymore. They have become vital for the survival of an online business. But, the selection and deployment of a payment gateway software can be a cumbersome task. An online marketing agency with Ecommerce Development Services can usher a business through the technicalities.