Here's Why SMEs Cannot Afford to Avoid Payment Gateways Any longer
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
When it comes to online business, reliability is crucial. The primary focus of the business is to find a credible payment gateway because no customer wants to face any error during their purchase.
Setting up an online business is easy and quick but the difficult part is to manage and execute the business without any technological glitch. The business should have detailed knowledge about the trending technologies and secure payment gateway option in order to make a good profit and run the business smoothly.
When it comes to business, organizations look for an effective online payment management system. There are many payment gateway options which are instant, affordable and offer excellent services. It is an excellent adaptation for small enterprises too. As per the research, 86per cent of the customers prefer online payment via credit and debit cards. More than 60per cent of customers find online payment the easiest and safest method.
When it comes to payment gateways, a study conducted by Spreedly shows, 99per cent all the transactions are successful since it follows high technology. In case of return or refund, customers can get the merchant information via payment gateways.
What is a Payment Gateway and how does it work?
A payment gateway is a type of service which is highly used by online businesses to smoothly manage the payment made via plastic money by the customer. A payment gateway is must if you wish to run the online business smoothly. It manages the information transfer between the e-commerce business and bank seamless.
The customer payment detail is sent to payment gateway which validates the same with issuing bank and also tracks the result within a few seconds. The payment gateway handles all the processes until the payment is deposited from the buyer's bank account to the merchant.
Role of A Payment Gateway
A credible payment gateway service is essential for processing the online credit and debit cars during e-commerce purchase. The primary role of a payment gateway to authorize the online transaction.
A transaction is considered as invalid without the approval of the payment gateway. The risk of hacking and online fraud is minimal because the critical credit card credentials are instantly sent from the e-commerce website to the payment gateway. A right payment gateway ensures complete security of information and transaction.
5 Benefits offered by Payment Gateways for SMEs
The leading payment gateways are giving SMEs an excellent platform to manage the online transaction effectively at an affordable cost.
The biggest challenge faced by the SME is to offer flexible and safe payment choices to their customers. With a reliable payment gateway, the transaction can be processed smoothly.
When it comes to online business, it is must use a secured payment gateway, which offers complete security of payment and user data. An end to end encryption should be followed to ensure each transaction is done safely. The leading payment gateways follow strict 128-bit SSL encryption for the secured transaction.
3. Visibility and Lead Generation
Visibility is a crucial factor when it comes to SMEs. Many payment gateways offer a platform for the merchants which helps them to create an online portal for their business, brand, services, and products. This helps the business to attract credible online crowds. The SMEs can generate new leads and eventually convert them into sales.
The biggest benefit of online payment gateway is, once the transaction is done, the business can get paid instantly. SMEs highly encourage payment gateways, there is zero need of formal documentation processing to get paid.
The payment gateway provides a choice to remember card details of the customer, which offers quick checkout. High-tech features are used to secure critical user information and card details. As per statistics, credit card (42 per cent) is the most preferred payment method of an online shopper.
Online payment gateways are the most reliable choices to save time and money. This works well even if you don’t have an e-commerce portal. The payment gateways are the most trusted choice by the customers. It helps to cut heavy transaction cost and manages payments effectively. In short, the payment gateway is the backbone for all the SMEs.