A cashless society is both intuitive and inevitable. Singapore, Hong Kong, and Sweden were among the first countries to embark on the adventure. However, the majority of these early endeavours were focused on plastic money, which can take several forms, including debit and credit cards, prepaid cards, and store cards. The goal was to promote digital monetary transactions while limiting or eliminating the use of real cash in the economy.
India is no exception to the concept of a cashless society. The national priority of moving to a cashless economy, on the other hand, stems from far more sophisticated and significant causes. India faces unique and greater obstacles than other countries, such as those related to cash circulation (difficult to trace, uncomfortable to carry, costly to print, and prompt withdrawal of mutilated/soiled currency). It has taken on greater significance in removing the frictions that exist throughout the process by eliminating intermediaries, transferring the benefits and subsidies of various social welfare programs directly to the last mile beneficiaries, ensuring that all households in the country have access to banking, combating corruption, and more.
What are payment gateways?
An online payment gateway uses technology to manage electronic payment methods. It approves a customer transaction in the same way as a physical point-of-sale (POS) does.
Payment gateway offers a variety of services in addition to receiving and processing online payments.
- Storage of payment details for a limited time: Customers’ payment information is temporarily held safely before being routed to banks.
- Encryption services are available: Payment gateways encrypt sensitive data as it travels between banks and payment processors.
- Reports of reconciliation: It’s difficult to match settled funds to transactions. Payment gateways give reports that make reconciling and identifying discrepancies easier.
- Ability to use a virtual terminal: To avoid using a standard credit card terminal, they process transactions offline and settle with the online batch.
- APIs and integration are both available: Modern payment gateways come with a powerful and versatile API, as well as strong integration possibilities with financial, accounting, tax, and eCommerce platforms.
Why use payment gateways?
With credit card frauds at a record high lately, eCommerce businesses are finding it difficult to sustain without proper fraud management. Meanwhile, payment gateways help businesses avoid such frauds and ensure that all the transaction data are safe, secure, and encrypted.
Also, a payment gateway provides an eCommerce store owner with the choice to process alternative payments online. This makes it more convenient for the shop visitors as most of them are quite conversant in the technology and are happy when given an alternate solution. There are two crucial factors that influence eCommerce sales: trust and preferred payment options. These two factors combined can uplift eCommerce sales to a great extent.
Payment methods are not the same across different countries. And eCommerce customers around the world don’t use one method alone. Having a payment processor with good global ties, an eCommerce business can work faster towards its plans to cater to the requirements of an international audience.
B2B Companies and their Payment Gateway
Payment gateways are frequently the deciding factor in whether a consumer stays or leaves. These are the customers’ most important and primary interfaces. If customers choose to make a payment, this is where they anticipate a secure and simple online transaction. Hence, they require a secure and speedy way to pay for the services they have received. It is in the hands of the company to make it reputable and trustworthy.
The company must take up a few considerations before choosing the best payment gateway. They are as follows;
- The payment gateway must be decided before the product launch.
- Minimal to no risk due to fraud.
- No geographical barriers.
- Cost factor while choosing a payment gateway.
These gateways come in handy to B2B companies in many crucial situations such as;
- As a financial transaction collection platform.
- With a variety of payment alternatives, diverse clients get on board.
- Carry out new activations and renewals in a smooth manner.
- Make it simple to enter new market regions.
Importance of Payment Gateways
Once the payment gateway has been decided, the company may start monetizing its services. With speedier cash flows, they benefit from early revenue realization. Similarly, minimizing the number of processes could speed up consumer activation. Not only that, the renewal processes may be made more frictionless by eliminating fewer steps and releasing payment gateway information ahead of time, allowing clients to make payments and stay on board.
With a forecasted compound annual growth rate (CAGR) of 26.5% to 2021, India’s eCommerce market represents a fast-growing opportunity for the eCommerce industry. India’s online shopping sector is worth $36.5 billion currently and has consistently been expanding in recent years. These figures give a clear picture of the importance and need for payment gateways.
India’s transition to using cashless payment gateways is a truly notable one. Over the years, various digital payment platforms have come up with an array of amenities in them. One such recent platform is Zaakpay. It is an India payment gateway that offers commendable services and is API powered. It offers the following:
- Developer-friendly APIs
- Sample codes for testing
- Flexible integration options
- Expansive web libraries
- Responsive API designs
- Plugins for major platforms
It also allows a variety of payment modes such as;
- UPI & QR Codes
- Debit & Credit Cards
- Net banking
- Mobile Wallets
- Pay Later
Conclusion
India is significantly ahead of other developing countries with an advanced market, banking, technology, and networking infrastructure. It will prove beneficial to the B2B companies in the country and contribute to the national economy better. Zaakpay is surely an interesting addition to the existing list of India payment gateway.
