What is the Future of Payment Gateway?

With the emerging advanced technology, everything has fast-forwarded to where individuals are one click away from purchasing goods and services. The digitization of transactions has revolutionized the whole system and played a vital role. Different payment services have significantly made the transaction process fast and seamless. One of the most efficient services is the “payment gateway.” This service is a technology executed by an e-commerce application or site that merchants use to perform a hassle-free transaction. 

The payment gateway allows merchants to no longer rely on the troublesome traditional payment systems. As a result, this service has reasonably transformed the market system for both customers and merchants.

Despite having multiple extreme risks of hacking and theft, this service is a promisingly highly secure platform for any transaction of money or services. This technology allows merchants to accept payment using various digital transaction modes, including debit cards, credit cards, e-wallet, even dependable high-risk payment gateway for long-term success.

How Does it Work?

A payment gateway is a merchant service offered by eCommerce app service providers, usually banks, directly or by the company authorized by them. Its function is to approve the transactions generally carried out by the customer to the service provider. When a customer wants any goods and services, they need to follow a procedure. This procedure can be of three forms: 

• The user can enter specific details of their encrypted card and make transactions. The details entered remain secured in the platform.
• Users can swipe the card. 
• Users can use E-cards, UPI, or net banking, and various wallets currently available. 

Once the transaction links to the payment gateway after approval, the transaction goes through. It verifies the customer card details securely, ensures the payment is attainable and eventually facilitates the payment to the rightful merchant. Thus, it acts as a gatekeeper to our transactions. You should know about the most trusted high-risk credit card processing and many things before buying a credit card.

Many consider it to somewhat similar to Spay India in terms of the processes.

Types of Payment Gateways

Digital transactions have enabled people to have a fantastic and effortless journey towards cashless transactions. The merchants always strive to make the whole experience a secure, flexible, and accessible one. And, payment gateways have played a significant role in keeping the transaction safe and ensuring customer satisfaction.

There are different types of payment gateways.

Self-Hosted Payment Gateway Integration

It is the most effortless payment method. A self-hosted payment gateway enables the customers to pay for the service or goods without leaving the site. Furthermore, this payment gateway intervention allows the merchants to accept the online payment from the customers on the site itself. Here the payment can be self-hosted by the merchant who controls the entire checkout process. However, since the merchant entirely controls this whole process, this implies that he even has to take extensive safety measures to protect his customer’s card or transaction details.

API or Non-Hosted Payment Gateway Integration

This payment gateway enables customers to carry out their payment directly on the checkout page by entering their transaction details. The process conducts the transaction using API. This payment gateway is similar to the self-hosted method, where merchants have complete control over the payment page user interface. However, there is no redirection involved. Therefore, it is a non-hosted payment gateway and gives the customers a one-page checkout experience.

Payment Gateway Integration or Payment After Redirection

This method redirects users to a page where they can further proceed with the payment by entering the required details of debit card, credit card, UPI, net banking, and even wallets. Here, the gateway acts as a third party as the customer has to leave the merchant’s site to proceed with the payment. It is the most common type of payment gateway method used by most startups and companies. The only disadvantage here is that the merchant has no control over the entire process and has no management or influence on the customer experience during the transaction process.

 When it comes to the functions of payment gateways, different payment gateways work differently. Therefore, when choosing the convenient payment method, it is better to consider the following factors:

• Details about any transaction fees. Suppose there is a transition fee associated with the payment gateway, then the specific payment gateway charges a small fee for further processing the transaction. 
• The sign-up process of the payment gateway, if it promises a secured transaction.
• Always read the terms and conditions of the payment gateway to determine the type of services it provides and supports for selling. 

Components in Future Payment Gateways

The following components will have a significant role in the future of payment gateway.

Biometric Authentication

With the extreme development and inventions in the science and technology sector, biometric authentication has advanced dramatically. Biometric data is considered more reliable and safer. Moreover, because the biometric data of each person is unique, there is no possibility of imitation. As such, it is vital to integrate it as a payment gateway safety measure in the future.

Artificial Intelligence

It is a shield provider against frauds, thefts, and hacking during transactions in a network. Institutions often use it for safety measures and also as a tool for customer service assistance. In the future, incorporating artificial intelligence in the services provided by payment gateways will offer more convenience in the process.

Blockchain

Incorporating blockchain technology in payment gateways will make it highly safe and secure. Moreover, identity-based blockchain uses an immutable ledger to store information and cross-verify collected data of the transactions, thus decentralizing data collection. Doing this reduces the risk of a security breach and further enhances the reliability and efficiency of payment gateways.

Voice transaction

As the emergence of voice technology has been influencing the customer’s attitude, merchants or retailers are now incorporating voice commerce in their company, enabling them to communicate with the customers using voice technology. It may further enhance the customer’s experience while carrying out a transaction with the retailer or the company.

Conclusion 

As for the future of payment gateways, there is no doubt that it will be at any disadvantage of its growth. The growth of the eCommerce industry has allowed merchants to expand their startups and services over the digital network. This growth has played a crucial role in the further advancements in payment gateways. Currently, only specific payment gateways accept cryptocurrency and other currencies as payment. However, with the acceptance of digital currency globally, almost all payment gateways will develop mechanisms to accept cryptocurrency as a mode of payment.

With the world-changing and adjusting to the new normal after the Covid19 pandemic, merchants are increasingly dependent on online cashless payment modes and payment gateways for business scalability and customer experience. It has also paved the foundation for future advancements and growth in payment gateways. Payment gateway services, with evolving epoch, are expected to advance more than the present scenario, making them an integral part of any company’s success in the future.