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.
(Source: Statista)
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
- Doubting authenticity of an online store
- Requiring assistance for transactions for non-tech savvy customers
- Other online fraud-related issues such as selling of information
(Source: Statista)
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.Types of Payment Gateways-
Ecommerce retailers popularly use three types of payment gateways. They are-Redirect gateway
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. 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.
Benefits
Ecommerce payment gateways offer the following benefits for any seller-- Secure and faster payment
- Global customer base
- Shopping cart bundle
- Pay anywhere, anytime
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.
