E-Commerce Payment

What is payment gateway?

Now days online payments become a vital part of our daily lives. We are not only transacting electronically via debit or credit cards but also through various other modes such as UPI, net-banking and wallets.
"You need both a payment gateway (to accept the payment details and connect to the payment networks) and a merchant account (to receive the funds) to make credit or debit card payments via your website."
Online payment is an essential feature offered by every e-commerce platform in the world.
Online payments are simple, easy and convenient. They allow you to buy products and services from all over the world.
If you are a seller, you can sell anything using internet connection to anyone in the world. You don't even need a device for your customer; a smartphone is appropriate.
An online payment gateway (PG) is a vital path that connects your bank account to the platform where you need to transfer your money.
A PG is a program/software that allows you to make an online transaction by various payment methods, such as net banking, credit card, debit card, UPI, or the many online wallets available these days.
A PG plays the role of a third party that securely transfers your money from your bank account to the merchant’s payment portal.

To explain this in simpler terms, at the time of buying a product from a popular digital platform like Flipkart, when you make the payment for the product, a payment gateway helps you in the process by transferring your money from your bank account or wallet to Flipkart.