Payment Gateways: A Boon for Online Shoppers


Most of the urban crowd today is aware of the benefits of technology. Rural India is also cognizant because many parts of the rural landscape are using mobile technology to stay in touch with people who matter in their life. But the real advantage of this technological revolution is still to touch them. Most of them are unaware of the fact that they can conduct money related transactions using their handphone via the internet. As per statistics available, 323 million customers accessed the internet in India in 2016 which constituted about 24.3% of the total population. The numbers obviously have grown over the previous two years, but it is largely the metros and the larger cities where residents can use the internet. Villages are still to get the taste of this technical delicacy!

Technology is meant to make things easier for human beings. The purpose of discovering and inventing automated things is to facilitate men and women to perform their tasks better thereby improvising their living standards. But along with this, there also comes with an element of caution that needs to be practiced by the users. If you look around – all electrical and electronic gadgets need discretion while using, using different means of transportation needs proper vigilance on the part of the driver and the passengers, etc. Similarly, with accessing the internet and making online payments – they also require users to be careful and alert. But that is only one part of the story.

The online portals that facilitate shopping and money related transactions are the ones that need to invest in making their e-platform fortified so that there are no soft points that can be targeted by malicious software or criminals. It is the reason that most of the e-commerce sites choose to work with powerful payment gateway platforms.  Payment gateway in simple terms means a software and server system that guides the customer from the merchant website onto the payment site and back. While doing so, it makes sure that no information related to the customer and his transaction is leaked out or is intercepted by any unwanted third party. It is the reason that all payment gateways are scanned and evaluated for their security features before they are approved to handle such huge and sensitive data. The merchant who pays for this service needs to make sure that the payment gateway service provider has all the mandatory compliances in place, that the software and the hardware is powered with the required level of encryption technology and is security enabled.

The service providers, also called payment gateway aggregators are third party sites that enable online payment and collection for some merchants. Different business entities need to pay a start-up fee to start using the services of a particular aggregator. They also need to pay a transaction fee per sale or transaction once the gateway is up and running. The primary advantage of using an aggregator is that the merchant doesn’t require to go through the elaborate documentation and validation process that is mandatory for getting a payment gateway approved.

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