A report by the Internet and Mobile Association of India suggests that the number of internet users in the country has reached 800 million in 2023. This surge in internet usage is driving a parallel increase in mobile wallet users, projected to reach 900 million by 2025.
As the Indian economy rapidly digitises, businesses must adapt to consumer expectations and technological advancements. Choosing a payment gateway that supports seamless transactions, best security compliance, and comprehensive reporting is crucial for staying competitive.
The best Indian payment gateway not only streamlines financial operations but also builds trust and facilitates growth in a diverse market. When evaluating payment gateways, several key features should be prioritised to ensure both efficiency and security. Here’s a comprehensive guide to the essential features that define the best Indian payment gateway.
How Does a Payment Gateway Work?
Choosing the best Indian payment gateway is essential for any business aiming to streamline its payment process and enhance customer trust. This multi-step process ensures secure, accurate, and efficient transactions, playing a vital role in transferring funds and safeguarding sensitive customer information. Here’s a breakdown of how it works:
1. The process starts with data encryption. When a customer places an order online, they enter their credit card information, which is immediately encrypted by their web browser. This encrypted data is sent to the vendor’s web server, protected by SSL (Secure Socket Layer) encryption to maintain security.
2. Next, the secure order information is transmitted to the payment gateway. The payment gateway forwards this encrypted data via a secure SSL connection to the business’s payment processor.
3. Then comes the transaction processing stage. The business’s payment processor sends the transaction data to the appropriate credit card network, which routes the information to the bank that issued the customer’s credit card.
4. In the fourth step, the payment processor requests authorisation. The issuing bank receives this request and responds with a code indicating whether the transaction is approved or declined due to reasons like insufficient funds or a lost/stolen card.
5. The final step is order fulfilment. The payment gateway gets confirmation from the customer’s bank that the payment is approved. This response is sent to the business’s e-commerce platform or website, officially marking the payment as processed. At this point, the business can fulfil the order.
While it may seem complex, this process happens almost instantaneously. The best Indian payment gateway ensures not only the facilitation of transactions but also the integrity and security of financial data.
6 Features of the Best Indian Payment Gateway
Selecting the best Indian payment gateway is vital for businesses aiming to provide seamless and secure transactions. With the fast growth of e-commerce in India, it’s important to choose a payment gateway that offers many features to meet diverse business needs.
Here, we explore six key features that define the best Indian payment gateway, ensuring efficiency, security, and customer satisfaction.
1. Security
Security is a top priority when selecting a payment gateway. It’s essential to choose a gateway that provides effective security features to protect both your business and your customers. Opt for the best Indian payment gateway that is PCI DSS Level 1 compliant, as this ensures the highest standards of data protection. Such compliance helps prevent fraud and data breaches, safeguarding sensitive financial information.
2. Easy Integration
The best Indian payment gateway should offer seamless integration with your existing platform. Effective integration reduces manual effort and minimises errors by automatically updating records whenever a new sale is made. A gateway that integrates smoothly with your current systems saves time and ensures that payment data is accurately reflected in your financial tools.
3. Detailed Reporting
A superior payment gateway goes beyond merely capturing transactions. The best Indian payment gateway should offer detailed reporting and faster reconciliation. These features help you analyse transaction data and make informed business decisions. Comprehensive reports provide insights into sales patterns and financial performance, which can be invaluable for strategic planning.
4. Invoicing Options
A payment gateway with built-in invoicing capabilities can streamline your payment processes. The best Indian payment gateway should include features for generating and managing invoices, simplifying the payment collection process. This functionality enhances convenience for boththe business and its customers.
5. Multiple Payment Options
To cater to diverse customer preferences, the best Indian payment gateway should support a variety of payment methods. This includes debit/credit cards, digital wallets, and other forms of electronic payments. Offering multiple payment options helps build customer trust and encourages repeat business by accommodating different payment preferences.
6. Fast Processing Speed
The efficiency of transaction processing is another critical factor. The best Indian payment gateway should provide fast processing speeds to ensure that payments are completed quickly. A speedy transfer from the customer’s account to the merchant’s account improves the user experience and reduces transaction time.
Choosing a Payment Gateway for Your Business Wisely
Selecting the best Indian payment gateway is crucial for your business success. It ensures secure transactions, enhances customer trust, and offers multiple payment options. Consider factors like security, integration ease, and transaction speed. Make an informed decision to steer growth and boost customer satisfaction, ultimately fulfilling your business goals.
To unlock the full potential of your business, you can choose payment solutions like Plural. Their solutions will help your business enjoy quick onboarding, multiple integration modes, UPI intent flow, and 100+ payment methods.