What are the Best Payment Gateways for Your Online Store in India?June 4, 2021
The eCommerce sector in India is surging expeditiously. Seeing its rising demand, a large number of businesses have already started working towards making their stores digital. Various factors contribute to making an online store successful. From interactive interfaces to seamless transactions to providing delivery at the doorstep, all these parameters are essential to run a profitable online store.
In addition, amidst the emergence of various fintech apps in the market, payment gateways witness a high level of importance from consumers. Most customers are likely to shop from an online store that has the desired payment gateway listed on their payment page. If not, the carts are abandoned, and you might be surprised to know that India has an over 51% card abandonment rate. So adding a simple payment gateway can do wonders for the sales of your store.
This blog will explore some of the best payment gateways for an eCommerce store available in India that are a must-have for your online store.
What is a Payment Gateway, and Why is it Necessary?
A payment gateway is a way to enable payments made by the consumers to a business on purchase of a product. It is basically a merchant that helps process payments to the eCommerce store.
Payment gateways are essential to conducting a convenient and secure transaction. A reliable payment gateway ensures that the transaction made by the consumer reaches your account safely without any hassle.
Let’s Understand How it Works!
To understand the working of an eCommerce payment system, you should first know about the following:
- Merchant Account: A merchant account is where all the money you get from the sale goes. You can get a merchant account through a bank, payment processing company, or any other financial institution. The account enables payment processing for online businesses.
- Payment Processor: The payment processor is the organization that deals with the transactions between your customers and your bank. The primary function of the processor is to provide security and protect you and the customers from fraudulent activities. Apart from it, they check for the credit card information such as its validity, available funds, card limits, etc.
- Payment Gateway: A payment gateway can be comprehended as a mediator between the transactions in your store and the payment processor. The gateway helps connect your merchant account with the debit card, credit card, or any other fintech app of the user. A payment gateway is crucial to carry out a successful secured transaction.
The working process for an online payment system is as follows:
- The customer selects a product and fills out his card’s information on the online store’s payment page.
- The information is sent to the merchant, where it submits the transaction.
- The payment gateway transmits the transaction information to the processor through a secured channel.
- The processor then verifies and sends approval for the transaction.
- The bank of the customers sends the money to the processor.
- The processor further sends this money to the merchant account.
- The transaction status is sent by the processor to the gateway that if the payment has been approved or denied.
- The merchant then receives an intimation for approval or denial.
- The money is then received by the merchant for the sold product.
Types of Payment Gateways
There are several payment gateways for an eCommerce store. However, before selecting the best one for your store, you should first know about its types.
- Hosted Payment Gateway (External)
This type of payment gateway is integrated externally with your website. It works by redirecting the user to the payment gateway site, where they need to fill in their card information.
The benefit of using this type of gateway is that you don’t need to worry about the security of the transactions. The hosting platform is responsible for compliance and security. Moreover, this type of gateway is easy to set up and requires minimal or no customization.
- Integrated Payment Gateway (Direct Or Shared)
This type of payment gateway is integrated within your online store. In this case, the customer will not have to leave your website. The transactions will be carried right there from the site. An API (Application Programming Interface) is used to send the data provided by the customer.
This approach is more convenient and straightforward as compared to the external approach. It is faster, and users with smartphones prefer paying for their shopping through this payment method.
Some of the Best Payment Gateways India
Selecting the right payment gateway method for your eCommerce store can be useful in driving the sales growth of your store. Take a look at some of the best payment gateways in India that you can embed into your store:
- PayPal: It is one of the most prominent payment gateways in the world. It is highly secured. It is an external gateway that takes approx. 2.9% processing fees for your transactions.
- 2Checkout: It is a popular payment gateway that ensures high-level security for transactions. It charges a processing rate of 2.5%-3.9% depending upon the product sold by the seller.
- Razorpay: Razorpay is a secured platform that is established well in the Indian market. It charges a processing fee of 2% for every transaction done through its platform.
- PayUMoney: PayUMoney has a considerable customer base in the Indian market. It charges a fee of 2% for domestic and 3% for international transactions.
- Amazon Pay: Amazon is leading its way to become one of India’s most used payment gateways. It is currently charging 2.9% processing fees for transactions done through its portal.
- Atom: Atom is a safe and simple payment gateway that offers the most affordable plans. The processing charges start from 1.8% and go up to 2.2%.
- CC Avenue: It is an international payment gateway and is suitable for stores having a global customer base. The processing fees for transactions begin from 3% on this platform.
- Paytm: Paytm is the most leading payment platform in India in today’s time. It has several plans for online stores, and the processing charges start at 2% in Paytm.
- PayUbiz: PayUbiz too has a substantial hold in the Indian market. It charges 2.9% and above processing fees for the transactions.
Confused About Which Payment Gateway to Pick for Your Store?
All this information must have left you in a daze on which is the best payment gateways for an eCommerce store. Though, the answer depends upon your requirements. Having a pre-integrated payment platform is undoubtedly more suitable for a commencing eCommerce store. If you haven’t already started building your online store, you must choose a hosted eCommerce platform that offers pre-integrated multiple payment gateway systems. Quick eSelling is an excellent organization that has various workable eCom solutions for all kinds of business needs. It is a one-stop e-commerce platform to launch future-proof online stores.