payment gateway services

Understanding Payment Gateway Services: An Essential Guide 

Payment Gateway services play a pivotal role in modern e-commerce. These services act as intermediaries between merchants and customers. They facilitate secure online transactions by encrypting sensitive information. Consequently, businesses can offer various payment methods to their clients. This convenience helps in boosting sales and customer satisfaction. Furthermore, it enhances the overall shopping experience. 

How Payment Gateway Services Work 

The functioning of Payment Gateway services is straightforward yet crucial. Initially, the customer chooses a product and proceeds to checkout. Next, the payment gateway encrypts the payment details. It then sends this data to the acquiring bank for authorization. Once approved, the transaction is processed, and the funds are transferred. This entire process happens within seconds, ensuring a smooth transaction. 

Benefits of Using Payment Gateway Services 

Payment Gateway services offer numerous advantages to businesses and customers alike. For businesses, they reduce the risk of fraud by providing secure transaction channels. Moreover, they support multiple currencies, enabling global sales. For customers, they offer a seamless and secure checkout experience. This trust encourages repeat purchases and brand loyalty. Therefore, integrating a reliable payment gateway is essential for any online business. 

Choosing the Right Payment Gateway Service 

Selecting the right Payment Gateway service is vital for business success. Start by considering the security features offered. Look for services that comply with Payment Card Industry- Data Security Standard PCI-DSS. Additionally, evaluate the transaction fees and other costs involved. It’s also important to ensure compatibility with your website platform. By doing so, you can ensure smooth integration and operation. 

Major trends in Payment Gateway Services 

Several key trends are currently shaping the landscape of Payment Gateway services. One of them is biometric authentication which includes fingerprint scanning, facial recognition, and voice recognition. Another is the integration of artificial intelligence and machine learning. These technologies help in detecting and preventing fraudulent activities in real-time.

Additionally, the adoption of cryptocurrencies as a payment option is gaining momentum. This offers customers more flexibility and businesses the potential to tap into new markets. Emerging technologies like blockchain and AI are shaping the future of online payments. These innovations promise even greater security and efficiency and newer technologies can provide businesses a significant edge. 

Adapting to a Mobile-First World 

The shift towards mobile-first strategies is another significant milestone in Payment Gateway services. With the increasing use of smartphones for online shopping, payment gateways are optimizing their platforms for mobile users. Features like one-click payments and mobile wallets are becoming standard. Furthermore, the development of progressive web apps (PWAs) offers a seamless and app-like experience on mobile browsers. As a result, businesses can cater to the growing number of mobile shoppers. This adaptability is crucial for maintaining a competitive edge in the market.  

Payment Gateway services provide the security and convenience necessary for successful online transactions. By understanding how they work and their benefits, businesses can make informed choices. Selecting the right service and staying updated on trends is crucial. Ultimately, a robust payment gateway can significantly enhance business growth and customer satisfaction. 


Recurring Payment Via UPI Or Credit Cards?


Does your business require a collection of online payments for products and services at regular intervals?
Payment gateway providers make it easier for customers with Credit card options. With UPI coming into a lead, it would be a great contender. Which one should you go for recurring payments? Let us find out.

What are Recurring Payments?

In a recurring payment model, the service providers deduct the purchase amount from the buyer’s account at regular intervals which are set up automatically.
There are multiple recurring payment businesses, some use an invoice method wherein a payment is automatically deducted against an invoice and others use a Subscription Model business wherein you only pay as you use the services or product.

How does Recurring Payment Work?

To enable recurring payment, a customer must save the card and grant permission for the recurring charge. Stored payment data can then be used used to automatically process payments for repeat services or subscription model business. Payment gateway service providers can automate all types of business billing needs. Some have payments based on invoice cycle others initiate and manage recurring payments. Solutions are different for both types and thus it is necessary to identify your billing needs before getting a recurring service.

What is UPI?

Unified Payment Interface (UPI) is a single platform that provides different banking services and features. If your bank is UPI enabled, you can create a UPI ID that can be used for making transactions. A transaction can be made using an Aadhaar number, Mobile Number, and Virtual Payment Address (UPI ID). UPI allows the user to transfer and receive money from one bank account to another by using a smartphone. It enables the transfer directly from a bank account to the merchant and also handles basic banking activities. UPI is a revolution that can be an alternative to e-wallets, in other words, UPI is the best thing in the online money market.
According to NPCI, in March Rs.1.33 Lakh Crore of transactions is made via UPI which is a 24% increase from February 2019.
In 2018, UPI launched its second advanced version UPI 2.0 with more features but NPCI did not add recurring payments to support in it. This feature could be coming in UPI 3.0.
The feature can enable customers to issue a one-time mandate for recurring payments for services from the merchants. The best example can be automatic payments of monthly bills and subscription-based services. RBI refuses to release these features for UPI for fear of its misuse.

UPI vs Credit Card for recurring payments?


Business prefers to set up recurring payments against Credit/debit cards. Some global businesses like iTunes set it up on debit cards with One-factor-Authorization.

Unified Payment Interface:

  • Recurring payment support for UPI is coming soon.
  • A customer has full control over authorization for the requested payment.
  • In the case of refunds, the merchant and buyer communicate directly.
  • UPI is will be available with the banks that do not provide recurring payments.
  • A recurring payment can be availed by anyone that has UPI.

Credit Card:

  • Recurring payments are available on credit cards.
  • Money is debited Automatically without the customer’s involvement.
  • In the case of refunds merchant also has to deal with the customer’s bank.
  • Recurring payments can be availed by those having a Credit card.
  • A recurring payment cannot be availed with banks that do not allow it on a card.