A payment gateway is the payments ecosystem. It enables online payments for consumers and business firms.

You dont need to be a payment gateway expert for using it. But it is worth understanding what is the payment gateway and how money transferred from one account to another.

Online payment is the basic feature of every e-commerce platform in the world. offers. If you want to develop your own app you can contact a payment gateway development company or a developer.

A payment gateway is one of the simplest ways for businesses to collect online payments. Online payments are a part of our daily life now. We do transactions through debit or credit cards, UPI, net banking, E-wallets, etc to ease our transactions.

This blog will explain to you what is a payment gateway in a deep way. After reading this blog you will sure what payment gateway services your business should have.

What is Payment Gateway?

The payment gateway validates the customer’s card details before making any kind o transfer. The transfer is done securely and the funds are being checked to ensure availability.

We can also say that it is a tunnel that connects customers’ bank account to the platform where you need to transfer your funds.

Netflix Clone 

For example, Imagine you like a book on Flipkart and now you want to buy it. So you added it to your cart and went to payment options for the book.

In these options, you will find multiple payment gateways like UPI, net banking, Paypal, Paytm, credit card, debit card, etc that helps you in processing the money to Flipkart.

A payment gateway acts between a website and its acquirer bank. It always encrypts sensitive information.

It ensures the card information securely passed from the customers to the acquiring bank via the merchant websites.

We can say payment gateway is the middle man between your customer and the merchant.

Why We Need A Payment Gateway?

A card cannot be physically swiped on a POS terminal. They rely on card information provided by the customer. The fraud risk rate is higher in these types of transactions.

It would be very easy for the fraudsters to do frauds if the payment is done out of online payment flow. It leaves you even more exposed to fraud and the damaging image of your brand.

It acts as a gatekeeper for customer’s payment data. The issuing bank uses data encryption techniques to keep unwanted threats.

Aside from saving frauds, it also protects merchants from expired cards, insufficient balance, closed accounts, and exceeding transaction limits.

Conclusion