E-commerce payment gateway in India www.deekpay.com

The e-commerce space in India is growing dynamically, with its gross merchandise value (GMV) estimated to be over $55 billion in 2021 and expected to surge to a staggering $350 billion by 2030.

In 2023, smartphone penetration in India covers over 907 million users. Growing affluence of domestic consumers in India has expanded the reach of online shopping. The accessibility of affordable data plans has fuelled the growth of digital commerce.

Through market observations, while electronics and apparel are leading the way in e-commerce, emerging categories such as ed-tech, hyperlocalised services and food-tech are also carving out their own markets, and the role of the Government of India in fostering this ecosystem is bearing fruit through initiatives such as the Open Network for Digital Commerce (ONDC), which will be launched by 2022.The ONDC aspires to provide all players in e-commerce with a ONDC aspires to provide a level playing field for all players in the e-commerce space, creating a landscape of equal opportunity and digital empowerment, especially for MSMEs.

in the wake ofE-commerce in IndiaThe potential of this industry is huge, supported by dynamic policies and government initiatives. The average selling price (ASP) in Tier 2 and below towns is almost at par with that of big cities.

Notably, Indian e-commerce and consumer internet companies are witnessing significant growth in PE/VC funding, soaring from $8.2bn in 2020 to $15.4bn in 2022. With this industry booming, e-commercePayment GatewayThe importance of this is highlighted by the fact that it is a key channel for enabling seamless transactions in this dynamic digital marketplace.

What is an e-commerce payment gateway?

An e-commerce payment gateway facilitates online transactions between customers and merchants, securely processing payment information such as credit card details. It is an important link between the merchant's website and the payment processor, ensuring that transactions are secure and completed in a timely manner. By using an e-commerce payment gateway, merchants can easily accept payments from online customers, thereby increasing the overall convenience and efficiency of their online payment process.

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Importance of E-commerce Payment Gateways in India

India's e-commerce payment gateway is a remarkable testament to the country's digital transformation. WithDigital payments in IndiaThe industry is booming, and it is not only stimulating economic growth, but also fuelling the emergence of complex payments ecosystems, exemplified by the rise of new banks.

In this evolutionary process, the Government's proactive efforts are aimed at modernising and standardising various aspects of e-commerce operations in India. These include aspects such as payment collection, privacy measures, data protection protocols and international trade regulations, all of which are key to creating an enabling environment for digital commerce.

In this environment, the trend towards the adoption of innovative payment methods has changed significantly.Unified Payment Interface of India, payment links and digital wallets have witnessed the rapid rise of India's e-commerce payments market, which was previously dominated by cash transactions.UPIIt is particularly popular among consumers, accounting for 641 TP3T in volume and 501 TP3T in value.In addition, digital wallets have become a fast-growing payment channel, accounting for a quarter of all e-commerce payments.

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The role of e-commerce payment gateways

In the field of e-commerce, the payment gateway is by its very nature at the centre, a key process that facilitates the acceptance and seamless processing of online payments. This complex mechanism co-ordinates the transfer of funds across the digital landscape and is a vital channel between customers and merchants. In order to initiate this transaction, the customer needs to share their credit or debit card details, including expiry date and CVV code. With this information, the buyer can begin the payment journey that will ultimately transfer funds into the merchant's vault.

In this complex interplay, payment gateways become guardians of secure transactions, harnessing the power of encryption and advanced authentication protocols to ensure the confidentiality of sensitive financial data. In addition to its role as a digital guardian, the payment gateway is the key to connecting virtual shopping carts with real-world financial institutions. It skilfully translates the desires of online shoppers into tangible monetary exchanges, transforming browsing and selection into fast and secure transactions.

Moreover, the importance of payment gateways is not limited to transaction processing mechanisms. They play an important role in enhancing customer trust and facilitating a seamless user experience. By ensuring that the payment process is intuitive, efficient and free of complexity, payment gateways help foster customer loyalty and satisfaction. This, in turn, enhances brand reputation and encourages repeat transactions, thus contributing to the growth and sustainability of e-commerce businesses.

How payment gateways can help e-commerce platforms

Online payment gateways enable merchants and customers to authorise transactions seamlessly over the Internet. Payment gateways act as intermediaries to facilitate secure transactions between merchants and customers. E-commerce platforms that integrate payment gateways enhance their ecosystems and improve the customer shopping experience. Payment gateways ensure fast and secure payments and streamline the entire process, making it easy to use and efficient. Payment gateway services are provided by banks or authorised third-party providers, ensuring a trusted and regulated payment environment.

How e-commerce payment gateways work

E-commerce businesses actively receive electronic payments from their customers, and there are several intermediate steps that need to be taken before a seller can receive funds.

stages in the e-commerce payment gateway process:

Checkout: Customers complete the checkout process by entering their payment information. Transmission: Secure payment gateways capture and encrypt credit card or payment details for a seamless user experience. Self-hosted payment gateways require additional security. Card issuer confirmation:Payment ProcessorVerify the purchase of a credit card transaction with the issuing bank. At times, the bank may also communicate with the customer. Transaction Approval: After the bank confirms the payment, the payment processor notifies the customer that the transaction was successful. The bank validates it and initiates the shipping and fulfilment process. Funds Transfer: Although the transaction appears to be complete to the customer, the seller is still waiting to receive the funds. After a few days, the funds are transferred to the seller's e-commerce accounting software, thus officially completing the transaction.

Key features of online payments on e-commerce platforms

Customer Security: Customer security is critical when purchasing online. Concerns about the security of personal information are legitimate, so security is a top priority. Online transactions should prioritise security to ensure a hassle-free shopping experience. Reserve Bank of India (RBI) and government regulations: due to government andReserve Bank of IndiaGuidelines have been established, including the PCI-DSS standard, for online payments to be secure. Compliance with these standards by payment processors ensures the secure transmission of customer data. Payment options: Customers prefer debit/credit cards or digital wallets. Availability of preferred payment options on the checkout page is critical; lack of options may cause customers to abandon purchases. Payment gateway integration: a seamless experience is critical. Integrating payment gateways provides instant notifications, reduces administrative work and provides a smooth customer journey. Integration eliminates manual payment processing. Enhanced Checkout Integration: The design of the checkout page is critical to a user-friendly experience. Clear instructions and requesting only necessary information streamlines the process. Product and payment details should be easily accessible. Fast transaction processing: Fast transaction processing ensures a seamless shopping experience. Efficient flow of funds between retailers and customers increases satisfaction.

concluding remarks

The right payment gateway can help businesses increase profitability, reduce costs and enable them to have a greater advantage over their competitors. Before choosing a payment gateway make sure you carefully evaluate your business needs and future goals to select the ideal e-commerce payment gateway that matches your business.

Atpay - we are a professional provider of payment solutions and have been deeply involved for many years inIndia PaymentsWe have successfully provided payment functions for countless customers at home and abroad. We are fully confident in payment integration and high-risk payment processing, and welcome inquiries and exchanges.