Across the world, online shopping is rapidly increasing. In the United Kingdom alone, four in five consumers make purchases from online stores. This rate is only set to continue with the increasing growth of Ecommerce.
The rise in online shopping means online stores need to offer reliable and secure payment options to customers. This is where payment gateways come in.
Payment gateways for Ecommerce are software applications that enable merchants to accept online payments from customers in a secure and efficient manner. They play a crucial role in facilitating online transactions and ensuring that both customers and merchants have a smooth and secure experience.
Payment gateways are essential for online stores looking to boost their revenue and provide a secure and reliable payment processing experience for customers. By choosing a reputable payment gateway provider, online merchants can increase customer confidence, reduce cart abandonment rates, and streamline their payment processing.
In this blog, we unpack everything you need to know about payment gateways and how to use them to boost your online store, including:
- What is a Payment Gateway?
- Why is a Payment Gateway Necessary for Online Stores?
- Benefits of Using Payment Gateways for Ecommerce.
- How to Choose an Online Payment Gateway Solution.
- Steps for Merchants to Get Started with Payment Gateways.
What is a Payment Gateway?
A payment gateway is a software application that allows online merchants to securely accept payments from customers. The payment gateway online essentially acts as the “middleman” between the customer, the merchant, and the financial institutions involved in the transactions.
When a customer makes a purchase on an online store, the payment gateway encrypts the customer’s credit or debit card information, validates it, and transmits it to the merchant’s bank for processing. If the transaction is approved, the payment gateway sends a message to the online store, allowing the customer to complete the purchase.
Payment gateways are essential in online transactions as they ensure that the transaction is secure. They provide real-time authorisation and settlement of transactions, making the process fast, efficient, and smooth.
Payment gateways are broadly classified into two types:
- Hosted: Hosted payment gateways take the customer to a separate page to complete the transaction. When a customer selects a product to purchase and proceeds to the checkout, they are redirected to the payment gateway’s website to enter their payment information. The payment gateway processes the transaction and returns the customer to the merchant’s website once the transaction is complete.
- Integrated: Integrated payment gateways allow the customer to complete the transaction without leaving the online store’s website. The checkout page is seamlessly integrated with the payment gateway, allowing the customer to enter their payment information directly on the merchant’s website.
Why is a Payment Gateway Necessary for Online Stores?
Payment gateways play a crucial role in ensuring that online transactions are safe and secure for both merchants and customers. Payment gateways are necessary for online stores to build trust with their customers and protect themselves from fraudulent activities.
Fraudulent transactions can cost merchants significant amounts of money and damage their reputation. Payment gateways protect merchants by ensuring that transactions are legitimate and verifying that the customer’s payment information is valid. By doing so, they reduce the risk of chargebacks and other fraudulent activities.
Payment gateways provide a secure and reliable way for customers to make purchases without having to worry about their personal and financial information being compromised. This assurance can reduce cart abandonment rates, as customers are more likely to complete their purchases when they trust the payment process.
Benefits of Using Payment Gateways for Ecommerce
Online stores benefit from payment gateways when they select a payment gateway provider that is reputable, secure, and efficient.
Pixxles is an all-in-one payment processor that will provide your Ecommerce store with a payment gateway that will benefit both your online store and your customers. We provide a secure and efficient payment gateway solution that you and your customers can rely on for a smooth payment process.
Why Pixxles for your online store? Here are some of the standout features of our payment gateway for your online store:
- Security: Our payment gateway offers security to both merchants and customers. Our security features are compliant with the Payment Card Industry Data Security Standard (PCI DSS) and the Payment Services Directive 2 (PSD2) to protect the merchant from loss of revenue from fraudulent transactions. We also protect customers’ data by meeting the standards set in the General Data Protection Regulation (GDPR).
- Convenience: Our payment gateway is fast and efficient. This allows customers to complete transactions quickly and easily. The convenience of our payment gateway ensures customers do not abandon their carts, resulting in a loss of revenue for merchants.
- Global Reach: Our payment platform accepts various payments in 100+ currencies. This global payment gateway allows your business to expand its user base and increase your revenue opportunities.
- Integration: Our payment platform can be easily integrated with the most popular Ecommerce platforms, including Shopify, WooCommerce, Ecwid, and more. Our payment gateway integration makes it easy for online stores to manage their transactions with their existing Ecommerce platform.
Pixxles also offers business banking solutions to online businesses. Once you have received money from the payment gateway, our all-in-one banking solution allows you to then manage your business finances better.
How to Choose an Online Payment Gateway Solution
Choosing the right payment platform with the best-suited payment gateway solution is essential for the success of your online store.
Payment platforms are comprehensive services that provide online stores with a range of payment processing tools and features. Payment platforms include payment gateways as well as additional services such as fraud prevention, chargeback management, and recurring billing.
By choosing a payment platform that offers a secure and reliable payment gateway solution, you can provide your customers with a protected and efficient payment process. This can increase customer satisfaction and reduce cart abandonment rates for your online business.
Here are some essential factors to consider when choosing the best payment platform for your online store:
- Security: It is crucial to choose a payment gateway provider that offers secure and reliable payment processing services. Merchants should look for a payment gateway that complies with the PCI DSS and offers fraud protection and encryption.
- Fees: Payment gateway providers typically charge fees for each transaction and can also charge a monthly fee. The fees associated with payment gateways can vary depending on the provider and the type of payment gateway you choose. Merchants should choose a payment gateway that offers competitive rates and transparent pricing.
- Customer Experience: Merchants should look for a payment gateway that offers a user-friendly interface, fast processing times, and excellent customer support.
- Integration: The payment platform should be easy to integrate with the online store’s website. Merchants should choose a payment gateway that offers straightforward integration options.
- Payment Options: Merchants should choose a payment gateway that offers a wide range of payment options, such as credit and debit cards, e-wallets, bank transfers, and mobile payments.
- Reputation: Merchants should choose a payment gateway provider with a good reputation in the industry. They should read reviews and check the provider’s track record to ensure they are trustworthy and reliable.
Steps for Merchants to Get Started with Payment Gateways
To get started with a payment gateway, online merchants typically need to follow these general setup processes:
- Choose a payment gateway provider that meets your needs and budget.
- Sign up for an account with the payment gateway provider.
- Integrate the payment gateway with your Ecommerce platform or website.
- Test the payment gateway to ensure that it is working properly.
- Start accepting payments from customers.
Pixxles is a payment gateway provider that offers secure and reliable payment processing for online stores. Our all-in-one payment platform is the budget-friendly solution to boosting your online store with payment processing. Accept secure payments from around the world and provide your customers with an efficient payment process with Pixxles.
Apply today to get started with Pixxles payment gateway solutions.
What is a payment gateway?
A payment gateway is a software application that enables Ecommerce merchants to accept online payments from customers in a secure and efficient manner. It acts as a bridge between the buyer, the seller, and the financial institutions involved in the transaction.
How do I get an online payment gateway on my website?
To get an online payment gateway on your website, you will need to choose a payment gateway provider that meets your needs and budget, sign up for an account with the provider, and integrate the payment gateway with your Ecommerce platform or website.
How do payment gateways work?
Payment gateways provide real-time authorization and settlement of transactions, making the process fast and efficient. When a customer makes a purchase on an online store, the payment gateway encrypts the customer’s credit card information, validates it, and transmits it to the merchant’s bank for processing. If the transaction is approved, the payment gateway sends a message to the online store, allowing the customer to complete the purchase.