Do you know the number of e-commerce websites registered daily in India? Currently, it is more than 1 lakh per day, 25% of which are niche businesses.
Are there an equal number of payment gateways to choose from? Not at all. If you want to select any payment gateway, search for the term ‘payment gateway’ in Google. The top five search results will take you to the most renowned names in the payment gateway industry in our country.
Before we jump to the steps of selecting the right payment gateway for your business, you must understand the need for careful selection here.
The big boom in the e-commerce sector in India
The digital commerce landscape in India is evolving rapidly with time. The market size of the e-commerce industry is expected to reach $200 billion by 2027. Then, the mighty Covid-19 pandemic came into existence, which proved to be an inflection point for the industry.
The pandemic-induced lockdown paired with the movement curbs pushed the demands of online buying to record highs. Backed by a massive smartphone consumer base in the country and cheaper Internet, the Indian e-commerce market has become the biggest beneficiaries of Covid-pandemic.
The need for essentials buying combined with the convenience of online shopping has introduced millions of shoppers to the world of e-commerce, while also bringing an element of ‘lasting trust’ in between. On the other hand, it nudged new sellers towards digitizing their traditional business or starting a new one to have their share of profits from the e-commerce pie.
You might also be looking for the right payment gateway to join the Indian e-commerce bandwagon. With predictions that the paradigm shifts in consumer shopping behavior are here to stay, it calls for the need to invest in a trustworthy payment solution for the long term.
If you are in the middle of setting up an online business, you need to consider several key things before your online shop becomes fully functional. Accepting payments online is one of them. Hence, you must know what a payment gateway is and how it works before you zero in on any option. Keep in mind that the right payment gateway is important for your business growth and smooth customer experience.
Payment gateway selection – a stepwise checklist
Given below are some of the important factors you should consider while selecting a payment gateway for your online business:
When you receive online payment, you are asking the customers to enter their sensitive financial information, like card number and CVV. As an online business owner, it becomes your responsibility to handle this information the right way and keep it safe. It is where selecting a reliable payment gateway plays a vital role.
The topmost payment gateways in India are all PCI-DSS compliant. They also invest in fraud detection and screening technology to ensure the safety of all financial transactions. Make sure you double-check the PCI DSS compliance status of a payment gateway and other security measures before choosing it.
Besides this, you should also know the need for PCI-DSS compliance for an online business and the related processes to be followed.
Onboarding process and integration
If your website is all set to go live, for how long can you wait to start accepting online payments via a payment gateway?
Ideally, like any other business owner, you would want the payment gateway integration process to be short and simple. The last thing you would want is to wait for a month or two to get onboarded as a merchant with a payment gateway provider.
Gone are the days when the merchant onboarding process for payment gateways was quite long and cumbersome. Much to your surprise, you can become a merchant with a reliable payment gateway within a day or two, depending on the complexities related to your business.
Always look for a payment gateway that has a short onboarding process.
Running an online business means your targeted customers can buy from you round the clock. It also implies that payment-related issues can arise at any time, for which you need active support from the payment gateway provider.
While dealing with payment queries raised by your customers, your payment gateway provider should be accessible at all times and have minimum turnaround time. This is how you can ensure that your customers have an overall satisfactory experience while dealing with your business.
Hence, you should add this aspect as one of the key pointers to your checklist.
Ease of integration
In simple words, the ‘ease of integration’ means –
- Can you integrate it by yourself?
- Do you need a professional developer to do that for you?
- Is the payment gateway documentation easily available online?
- Are mobile SDKs available?
- Is plugin support available?
All these aspects, if covered by the payment gateway provider, will help you determine which one to choose.
One of the most important things related to payment gateway selection – pricing. For many businesses, it is just the MDR (Merchant Discount Rate) – the transactional rate charged to the merchants to enable online payment transactions via different payment modes. However, the pricing aspect is not limited to MDR as there are various other payment gateway charges involved.
To sort this pricing part, compare different payment gateways to find out the one that gives maximum value for your money. These days, payment gateways do not ask for setup or maintenance fees. But make sure you look for any additional charges like:
- Payment gateway purchase fee
- Monthly subscription fee
- Annual maintenance fee
- Hidden charges
Another crucial tip – do not make a decision on the pricing factor alone. It is because very low rates can also be a sign of inept payment infrastructure and facilities. Digital payments represent a market in which a high success rate will ultimately lead to a high customer retention rate.
You may also come across payment gateways that set an upper limit to the transactional amount that can be processed in a specific month. While this limit may not become a problem for small businesses, it is no less than an unexpected hurdle for businesses that process a significant number of transactions or deal in high-value products.
Obviously, there must be a reason behind setting these limits along with provisions to increase the same as the business grows. The only point is that you should know about these limits (if any) while selecting a payment gateway.
Multiple currency support
If you are running an international business or want to spread it further beyond national borders, selecting a payment gateway that only supports Indian currency does not make sense. Sooner or later, you would need to invest your time and efforts in selecting another payment gateway that supports International currencies.
For such a business, it is of utmost importance to let the target customers pay in their currency while you receive the money in your native currency. A payment gateway that can make this possible and even deals with the foreign currency exchange process will be your best bet.
The final countdown for payment gateway selection
Once you have narrowed down the choices using the checklist given above, it’s still half the battle won. Win this battle by reviewing the entire payment gateway selection process once again. Do this to find out if there is anything left to be considered, how the gateway integration will impact customer experience, and more.
If this final review takes time, it is alright. You would like to spend time selecting the right payment gateway rather than having to change it one after the other.
Payment gateway selection is indeed crucial for your business. Once you are ready to accept online payments, you can go full speed with business growth plans knowing that you chose the right gateway for your business needs.
What Paytm Payment Gateway Has in Store for You?
Imagine a payment gateway that checks out all the pointers above, and provides you with even more benefits. That’s possible and has the name – Paytm Payment Gateway. The trust and reliability of Paytm is packed into this payment gateway to help you grow your business and offer convenience of digital payments to your customers.
Paytm Payment Gateway offers:
- Wide range of payment methods, including Paytm Wallet and Paytm Postpaid (you won’t get them with any other payment gateways)
- T+1 settlements, allowing you to get the money into your bank account seamlessly (no holidays will stop you from receiving payments)
- 0% MDR on UPI
- High success rate backed by 250 million+ saved cards, 100 million+ saved bank accounts, and 15 million UPI IDs
- A robust payment solution that supports 2,500 transactions per second
Feeling excited to join hands with us for Paytm Payment Gateway? We are waiting to hear from you.