As the eCommerce industry is growing rapidly. To offer a convenient and secure platform to customers, an eCommerce platform needs an efficient payment gateway that will increase sales and profit. Online payment gateways have gained immense popularity over the last few years. There are numerous reasons behind their popularity. Before discussing those reasons, let’s understand the meaning of a payment gateway.
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What is a Payment Gateway?
A payment gateway is an eCommerce service that verifies and accepts or declines the payment processing on the behalf of the businesses. These payment gateways ensure that all the transaction information is passed between the merchant and the customer securely. Nowadays, payment gateways use special verification technologies for security.
How Does Payment Gateway Work?
When a customer orders a product from an eCommerce store, the payment gateway performs several tasks to authorize the transfer.
Here are the basic steps for a payment gateway:
1. Encryption
The data is encrypted by the web browser before transferring it to the payment processor used by the vendor’s bank.
2. Authorization Request
The transaction data obtained by the payment processor is then transferred to the card association. The authorization request is then accepted or denied by the bank.
3. Filling the Order
Authorization is then forwarded to the payment gateway. The payment gateway then processes the payment within a few seconds.
4. Deposition
The business owner then submits the authorizations to his bank and the bank deposits the approved funds into his account.
The majority of people try to get answers to the commonly asked questions such as
- Is it secure to use?
- Should we choose it for our eCommerce store?
- How is it beneficial for our online store?
You’ll get the answers to your questions after learning the reasons to use payment gateways in your online store.
Top 10 Reasons to Integrate Payment Gateways in eCommerce Store
We have compiled some of the major reasons why you should use the payment gateway for an eCommerce store.
1. Save Your Time
The biggest reason why online payment gateways are preferred by customers is that they save a lot of time. It just takes a few seconds to make payments using an online payment gateway. And not only this, it helps you collect your payments too in seconds. This offers comfort, convenience, and peace of mind to customers as well as business owners.
2. Boosts Conversion
Having an eCommerce store with several products? Unable to turn customers into sales? Then, it is no use. The most common reason why customers abandon the website while shopping is a declined payment. It is advisable to optimize payment methods preferred by your customers to increase your conversion rate. Keep in mind that frictionless checkout and an easy customer shopping experience can increase conversion.
Simply say, adding a global payment gateway to your eCommerce store can help you get customers from different countries.
3. Eliminate Additional Charges for Customers
If your business deals with multiple countries, online payments can incur additional charges such as taxes, convenience fees, etc. In that case, a customer needs to bear extra charges for sticking to your brand.
Adding international payment gateways will help you. No doubt, this will help you keep your customer satisfied with your brand.
4. Exceptional Online Security
Let’s speak about security. There is no shortage of individuals trying to grab vulnerable payment information online. You already know it and even your customers are aware of it. So, payment gateways are designed to safeguard the integrity of sensitive bank information using data encryption.
5. Ensure Customer Loyalty
Customer loyalty plays a vital role in every business. Do you know? Repeat customers represent a healthy and thriving business. Online customers return to the same brand or business only if they are provided with convenience.
Providing the right payment methods is one of the major things you need to do for customers. This will make their payment journey smooth and secure. It is advisable to use a secure eCommerce platform to ensure a seamless payment solution.
6. Global Expansion
It’s no secret that payment methods are not the same across different countries all over the world and online customers do not rely on a single payment method. Make sure that your eCommerce store has an international payment gateway to accept payments in multiple currencies.
Still haven’t set up a global payment gateway for your eCommerce store? It’s high time.
7. Handle Refunds and Online Frauds
These terms are widely used in the digital world. No customer wants to face any kind of issue with his online order. There are several factors that play an important role to attain customer satisfaction. If you want your customers to stay loyal to your brand, you need to focus on the management of refunds and online frauds. It is advisable to provide secure global payment gateways using data encryption methods to keep frauds away from sensitive data.
8. Business Automation
Online payment gateways are not only provided to benefit your customers, but they also help you run your business smoothly. Business automation is another reason for integrating payment gateways into your eCommerce store. Recurring billings and payouts can be automatically withdrawn to avoid delays in payments and maintain steadier cash flow. Business automation not only saves time and money but also reduces errors.
9. eCommerce Support
A payment gateway plays a vital role in eCommerce by helping make web or mobile payments possible. This method allows your customers to buy products or services from your online store without entering payment information manually. So, it is advisable to select a payment gateway to make the online checkout experience quick, smooth, and secure.
10. Reduce Failed Transactions
Failed transactions are another headache for businesses. They can cause inconvenience and incur extra charges. But, online payment gateways eliminate declined transactions. The payment request either gets accepted or declined in its initial stage only.
Final Words
Learned about the reasons behind the popularity of payment gateways in an eCommerce store? What are you waiting for? Start integrating international payment gateways for your online store to boost online sales.
