In India the e-commerce industry is growing at a rapid rate and the momentum is also spreading across the whole of Asia. The reason for this exponential growth is that conducting and receiving online payments is no longer burdensome. Along with the transformation of the payment system, the whole process has become extremely simple.

This simplicity in the payment system has paved the way for Indian start-ups to accept online payments. Whenever a customer wants to conduct an online transaction, he or she provides their payment details while checking out and the payment information received by the payment gateway transfers in a very secure environment. Therefore, the payment gateway sends an authentication request to the customer’s bank in order to deduct the total amount of payment.

After obtaining the authorization the payment gateway completes receiving the funds and according to the settlement duration, the payment gets settled in the merchant’s bank account. This is the reason why start-ups can easily link their business with any payment gateway provider and start accepting online payments from their customers.

The concept of a payment gateway is to provide a secure payment environment for processing online payments. Thus, it works as a mediator between merchants, banks, customers, businesses, and payment networks.

Definition of a payment gateway?

A payment gateway is a type of software application that makes things simple and easier for processing an online payment. It is also a medium through which merchants or businesses can connect their mobile applications or websites directly with the bank.

Whenever a merchant utilizes a payment gateway in order to authenticate and complete a transaction process, the merchant sends his or her customer’s payment details (credit/debit card, UPI, net banking information) directly to the payment gateway for ratification.

When the payment gateway authenticates the customer’s details with the bank then the amount is released from the customer’s bank account and promptly transferred the money into the bank account of the merchant.

Benefits of a payment gateway for Indian Startups

Nowadays, most of the start-ups and e-commerce platforms that are offering their products and services directly to customers are using the assistance of payment gateway providers in order to complete any kind of online financial transaction. The reason behind this is the significant benefits offered by the payment gateways in India:

• Quick transaction process
• Convenience of payment
• Secured transaction process
• Huge customer base
• Can be bundled with a shopping cart

Without a payment gateway, any start-up or merchant of an online e-commerce platform will have to individually reach out to each and every banking partner that can help them to receive online payments. A payment gateway can streamline the whole process while helping the customer conduct secure transactions each time they purchase something from the online store.

Qualities that a start-up should look for while choosing the best payment gateway for his or her website

If you are stepping into the e-commerce industry as a new start-up then you will require a payment gateway in order to collect money directly from your customers. Yet, selecting the right payment gateway can be a challenging one for your start-up.

You must look at all of your requirements for the start-up before selecting a proper payment gateway that can successfully meet all of your needs. Although there are multiple payment gateways available in India, not all of them may satisfy your requirements. Here is a list of suggestions that can effectively help you choose the best payment gateway for your start-up or e-commerce business:

Transaction charges and setup fees

Initially, a start-up might not prefer paying for the setup charges and that is why you should select a payment gateway accordingly. At the same time, established brands would prefer a payment gateway provider that asks for lower MDR or transaction charges.

Transition according to business requirement

While choosing a payment gateway service provider you will need to understand that your business or start-up is not permanently bound to a payment gateway service provider. For example, you can use the service of any payment gateway provider that specifically assist by providing payment services to the start-ups and businesses in the Indian subcontinent.

It also has more than 120 payment options and you can also reach the global audience through Cashfree. Moreover, it also has 15 percent higher success rate than any other platform in addition to dashboard and analytics.[1] 

Reputation of the payment gateway

In order to confirm the credibility of the payment gateway service provider, you will need to assess if your current payment gateway service provider is using standard security protocols which are used by the reputed gateway service providers. Also make sure it provides services such as fraud protection, tokenization, etc. that will enhance the payment security for both the business and its customers.[2] 

Automatic billing facility

If you are in need of automatic billing support then you must link with a payment gateway provider that also supports automatic recurring plans. If you are a business that offers annual subscriptions then you will also require automatic billing support.

Supporting international transactions

If you are a business that also sells its products in the international market then you need to make sure that your payment gateway provider also supports the use of foreign credit cards because without it accepting the payment would be virtually impossible for you.

Supporting multiple payment modes

You would want your customers to transact at ease therefore multiple payment modes can help your customers do the same. It can be one of the most beneficial factors for your business. Moreover, if you have lots of payment options then the customers would like to complete the transactions as soon as possible. Make sure your payment gateway provider supports multiple payment modes such as UPI, wallets, debit and credit cards, EMI, QR code, net banking, etc.

If you are looking for the best payment gateway for a start-up then you should check out Cashfree. It can provide you with all the above-mentioned facilities while making the transaction process of your website easy and convenient. Moreover, it has the lowest MDR in the market while there are no convenience and setup fees required.

this is a vague point- instead talk about choosing a scaleable platform

acc to transaction volume, growth in number of customers etc

talk about ensuring customer safety through respected pg brands