How D2C brands can secure and enhance customer experience with Payment Gateways

Posted on April 30th, 2021
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How D2C brands can secure and enhance customer experience with Payment Gateways

Introduction

In India, the e-commerce sector is rapidly expanding. Consumers are provided with multiple advantages like a wide range of options to choose from, fast checkout, easy navigation across the platform, accessibility from anywhere in the world, and instantaneous cashless payment. However, it’s not sufficient for seamless shopping. In order to make it seamless, and provide consumers with flawless transactions and delivery right outside their doorstep, it is imperative for e-commerce platforms to offer an effective payment gateway for increasing customer loyalty and generating more revenue.

What is a payment gateway?

It is a piece of software that collects and transfers payment data from the consumer to the payment processing bank and then transfers payment approval or decline, back to the consumer. A payment gateway safely validates the card details and makes sure that the funds are available and allows traders to get paid. Also, a payment gateway encrypts sensitive card details and ensures these are securely transmitted from the customer to the acquiring bank through the trader.

How does the payment gateway work?

Now that you have understood what a payment gateway is, let’s go further and analyse how a payment gateway works during the whole payment trip.

  1. By clicking buy now or the corresponding button on the e-commerce platform, a consumer initiates the payment transaction.

  2. The e-commerce platform refers to the client to the payment gateway through which the client enters pertinent card information.

  3. The payment gateway redirects the consumer to a secure transaction authorisation page.

  4. Upon approval by the payment gateway, the banks check the account of the customer to determine whether or not the transaction succeeds.

  5. The client is informed by the payment gateway (successful transaction or transaction error).

  6. The bank settles the payment by the payment gateway if the transaction is successful.

  7. The payment is settled with the vendor by the payment gateway and information is sent to the consumer about the transaction and completion of the payment process

Advantages with payment gateways

There are many compelling reasons why a payment gateway is a good fit for an e-commerce platform and here are some of those listed below.

  • Fraud management

It is safer and more reliable to accept payments online. You can easily block transactions from suspicious countries and IP addresses to keep potential fraudsters at bay. Also, the payment gateway is included with CAPTCHA for distinguishing human attempts from malicious ones. Online payment gateways give you the ability to protect your company and your clients, increasing your reputation and reliability.

  • Less time and effort

Efficiency and time saving are important in the digital world. You don’t want to waste your time going to the bank or maintain an old fashioned ledger for keeping a track of your payment. With payment gateways, the transactions are immediately recorded and you are left with more time to invest in your other activities.


  • Expanding the audience

Since e-commerce is growing at a rapid pace, in order to retain and acquire new consumers, you must provide a more convenient way of purchasing. Nowadays consumers prefer online purchasing and cashless payment more than ever. If you are offering a secure payment gateway, you are bound to acquire more consumers.

  • Quicker action

The speed with which transactions are completed is critical. Manual payment systems are quickly becoming obsolete. Check payments have too many issues, such as inadequate funds and verification times that are too long. Using payment gateways, all transactions are instantaneous and verified on the spot.

Conclusion

India has seen a sharp increase in demand for cost-effective, time-saving and discount-driven e-commerce marketplaces. To remain competitive in a highly competitive field, you must use payment gateways for your online business. You should do your research before choosing a service provider to make sure you’re getting exactly what you need.

We understand that choosing the right online payment partner is a critical decision for your company that is the reason we have designed a unified payment platform at Logibricks with a focus on consumer experience. By leveraging our payment solution, you will be able to deliver an enhanced and frictionless shopping experience to your consumers.


Category:
Best Practices

Posted on:
April 30th, 2021