How to choose a payment gateway for e-commerce
Learn about the role of an e-commerce payment gateway solution, benefits e-commerce retailers may get using payment gateways, and how IoT payment gateways are enhancing online and brick-and-mortar retail.
The stay-at-home policies in the pandemic are making online shopping an everyday routine. Add the hype of November sales and holidays, and the profit of selling goods and services online will seem incredible: Salesforce revealed a 45% growth of digital sales on the eve of the holiday season 2020.
Analytics forecast further growth and expect e-retail revenues to amount to $6.54 trillion in 2022. Those e-retail business owners wishing to ride the wave of niche growth should employ robust technical solutions. Payment gateway implementation might help increase the number of sales and enlarge the audience.
This article will discuss:
- The role of an e-commerce payment gateway solution
- Benefits e-commerce retailers may get using payment gateways
- How IoT payment gateways are enhancing online and brick-and-mortar retail
Making a secure and use-friendly e-commerce payment gateway
E-commerce store payment integration is the process of connecting an online storefront with a digital payment gateway. The integration simplifies paying for goods or services - it offers providers a wide range of checkout options. It allows merchants to quickly set up billing, shipping, and payment processing through a single integration point.
The payment gateway integration happens as pictured below:
By integrating an affordable payment gateway, business owners may expect an increase in customer loyalty. But they should be careful about two aspects of a valuable payment system:
A user-friendly payment gateway system will offer customers access to a mobile app, where they could conveniently pay for several goods or services. The ease of access and functionality of the app would help retain customers. They should also be able to pay using different payment methods, such as Visa/ MasterCard, PayPal, and more. Merchants would be able to improve their payment handling, reduce cost, and the time of transactions.
The high security of a payment gateway is critical, and many organizations face challenges balancing the cost-effectiveness of a payment gateway and the security of transaction processing. Many e-commerce payment gateways require direct integration with various third-party payment providers such as PayPal, eBay, or any other variety of online payment methods. This integration may include scanning payment details directly from credit/debit card to the e-commerce payment gateway system, which expedites the checkout process but should comply with data encryption standards not to jeopardize data as it travels across the network from the server to the point of transaction.
Reliable implementation of an e-commerce payment gateway depends on the expertise of the provider responsible for the system. The provider should know the specific requirements of a particular retail business and have proven experience in payment gateway creation and integration for different cases.
Benefits of a payment gateway for e-commerce business
A reliable payment gateway solution delivers many substantial advantages but also has its drawbacks. Let's take a look at the pros and cons of having a payment gateway for your online retail solution:
- Seamless integration. A customer doesn't have to leave your e-commerce website to complete the transaction.
- Easy and fast transactions. Customers move quickly through the checkout and purchase the products they want quickly.
- One-click checkout. Around 40% of customers might cancel their purchase if a checkout activity is complicated. When you implement a payment gateway, your customers spend less time paying for products they purchased.
- Accessibility. Customers may purchase online any time, wherever they are, which is vital considering the lockdown. If making purchases on a trusted e-commerce website, they are guaranteed convenience along with payment security.
- Security. Payment gateways include fraud management and chargeback prevention mechanisms.
- High costs. Popular payment gateway providers may charge up to 2.9% per transaction. Maybe you should apply for a custom payment gateway development.
- Technical issues. Online payments may be delayed due to some operation on payment gateways, causing downtime. However, you can stay on the safe side, choosing a reliable solution less at risk of failures.
- Malicious attacks. Although payment gateways are equipped with fraud prevention mechanisms, they couldn't possibly protect from any time of illegal activities. Focus your payment gateway provider's attention on fraud mitigation options. Besides, be ready to support the loyalty of our customers to your e-commerce business.
While weighing all pros and cons, you should also consider your customers' needs and aim at making them happy by giving them exactly what they want to increase the number of consumers opening their wallets.
IoT payment gateways changing e-commerce
Customers want new convenient payment options and innovation while making payments, to say nothing that paying using wearable is safer than cash or even credit/debit card during the pandemic. Payment gateways compatible with IoT devices are valuable for both online and brick-and-mortar retail.
Payment activities via connected devices deliver a range of perks:
- A tap-and-pay option at retailers employing Apple Pay or Android Pay, using, for example, your smartwatch
- Paying with the help of voice assistants: no card, no smartphone, or watch — all you need to pay is your voice
- The glimpse into the future of cashless payments with Amazon Go
- A marketing advantage that allows you to amaze customers and gain a competitive edge
Connected devices are projected to revolutionize the customer shopping experience, removing the unnecessary hassle from paying processes.
An e-commerce payment gateway is an ideal solution to elevate your retail business. It would allow you to low costs, offer competitive pricing, and provide the options to handle huge volumes of payments securely within less time. If you understand your customer needs for easy, safe, and convenient payment ways and wish to increase your sales, it's time to opt for your custom payment gateway system and let technologies help you succeed.