Running an online business has become the new norm in the modern world. From the online grocery to personal care/beauty product markets, the consumer digital economy of India is expected to become US$ 800 billion by 2030, says IBEF.
Most businesses – either traditional or modern, now look for ways to accept payments online from their customers, which is where a payment gateway plays a crucial role.
If you have plans to start accepting payments online via your website or app, selecting the most suitable payment gateway is a must. The right selection of a payment gateway depends on your knowledge about payment gateways, how they work and benefit businesses in the long run.
However, you might haven’t heard about the 2D payment gateway. Knowing the difference between 2D and 3D payment gateways will help you move a step closer to making an informed decision.
Let’s start with the basics of a 2D gateway.
What is a 2D payment gateway?
2D payment gateway is a type of payment gateway that allows the customers to make online payments without a security check or a One-Time Password (OTP). In other words, a customer only needs a card number, its expiry date, and CVV to pay online. The payable amount gets deducted from the linked bank account without any additional security authentication.
Primary challenge related to 2D secure payment gateway
As clear from the definition above, transactions handled by a 2D payment gateway seem less secure because of the lack of final authentication. Although 2D payment gateways involve various mechanisms to ensure payments security, they are more likely to be intervened by hackers.
The unauthorised hacking interruptions may make the transaction process less secure and hence, prevent the end-users from using such a payment platform. It is where the need for an extra security layer comes up.
Also Read: Accept International Payments Hassle-Free with Paytm Payment Gateway
3D payment gateway to your rescue
A 3D payment gateway is the one that uses 3D secure technology to add an additional layer of security to the financial transactions processed via merchant websites or apps. It is designed to provide better control to the end-users over the financial transactions happening using their card details.
The process involved in completing a transaction via a 3D payment gateway is as follows:
- A consumer decides on buying a product or service online and enters his credit card information.
- With a 3D payment gateway facilitating the transaction, he will be prompted to a secure pop-up window.
- He will receive a unique authentication code via SMS or email.
- He needs to enter that code in the pop-up window field to verify the transaction. The payment will only be processed if this code gets verified.
Why should you choose a 3D payment gateway?
If you are running an online business or are willing to start one, you would want to ensure the highest security for payment transactions processed on your website or app. One way to make it possible is by integrating a reliable 3D payment gateway.
The risk of data breaches, cybercrimes, and online payment frauds has become more prominent, which can be best handled when you select a suitable payment gateway in India. With 3D payment gateway integration, you can also reassure your customers that their financial information will be safe with you. Such an assurance can even make skeptical customers feel confident to buy from you.
Other than providing the much-needed security of financial information, a 3D payment gateway can benefit you in many other ways.
Advantages of a 3D payment gateway
- Reduction in payment frauds
- Additional security layer to prevent misuse of customers’ financial information
- Higher sales and repeat orders because of customers’ trust and loyalty
Also Read: Tokenisation: Definition, Its Impact on Online Payments, and More
What makes a 3D payment gateway different from a 2D payment gateway?
The following table covers the differences between a 2D and 3D payment gateway:
2D payment gateway | 3D payment gateway |
Supports direct payment transactions between a merchant and a buyer | Involves 3D secure technology as an additional layer for protection against frauds |
Does not involve payment authentication via an OTP | Involves payment authentication via an OTP |
Less safe for online merchants | Safer for merchants accepting payments online |
| Seems less secure to both businesses and buyers | Enables a sense of security for both merchants and customers |
Also Read: How to Choose the Best Payment Gateway in India?
Paytm Payment Gateway – End Your Search Here
Selecting a suitable payment gateway for your business website does require thorough research in terms of payment gateway features, benefits, and pricing. As a business owner, you would want the chosen payment gateway to allow easy integration, quick activation, and support the widest range of payment sources.
End your search for a payment gateway at Paytm Payment Gateway, which is trusted by the leading unicorns in India for smooth payment processing. Here’s why you should add Paytm Payment Gateway to your business website or app:
- 100% online onboarding – 10x faster than ever before
- Quick integration with robust APIs, SDKs, and plugins
- Supports all payment sources – credit cards, net banking, debit cards, and even more – Paytm Wallet, Paytm Postpaid, and Fixed Deposits as a Payment Source
- Industry-high success rate to ensure no payment transaction fails
- Dedicated support via email and toll-free number
- 0% MDR on UPI Transactions
- T+1 settlements – you will get the money in your bank account the next day automatically
- Backed by 250mn+ saved cards, 100mn+ saved bank accounts, and 15 mn UPI IDs
