Payment Gateways Software

Payment gateways automate the financial transactions among customer and seller and transfer transaction data to financial institutions in a secure manner. E-commerce companies rely on payment gateways to secure consumer information through encoding and ensure safe passage of their transactions, from consumer to retailer to payment service.

Top 10 Payment Gateways

  1. PayPal
  2. Apple Pay
  3. Payoneer
  4. Skrill
  5. Razorpay
  6. Paytm Business
  7. Mobikwik
  8. Bolt
  9. Neteller
  10. WePay

Market Overview

Payment gateways incorporate with many other e-commerce software, which includes apps for subscription management and payment processing software for regular billing, and enable sellers to accept credit cards or other forms of digital transaction payments.

In 2019, the Payment Gateway market size was estimated at USD 17.3 billion and is projected to hit USD 42.5 billion by 2025, at a CAGR of 16.4 per cent over the 2020-2025 forecast timeframe. Payment gateway integration has become one of the most important facets of any enterprise in any market. It makes the raising of money into the chosen bank of consumers without infringing on confidential details.

Payment gateway is an application that transfers all information relating to the electronic purchase, as well as bank feedback or details such as payment is approved or refused to customers to individual banks. The payment portal between financial institutions and numerous e-commerce websites is commonly regarded as an intermediary. This payment gateway is able to validate online payments by encoding sensitive information. Payment gateways also provide some protection through offering address verification and card verification systems.

The payment gateway market can be segmented on a regional basis into North America, South America, Europe, the Middle East & Africa and Asia Pacific. Asia Pacific is anticipated to see the highest growth in countries such as India, thanks to many government's digital technology measures.  Furthermore, China and India are likely to experience outstanding growth over the forecast period due to the increment in the amount of small and medium-sized enterprises and online payment customers.

The industry is segmented into small & medium-sized businesses (SMEs) and major companies depending on the basis of scale of the company. Large enterprises retain the major share, but in the forecast period SMEs are likely to grow at a rapid pace. Payment gateway serves growing end-users including travel & hospitality, shopping, healthcare, education, finance, services and others. Retail segment has obtained the leading share and is anticipated to see noticeable growth over the coming years.

COMPETITIVE LEADERSHIP MAPPING TERMINOLOGY

The competitive leadership mapping showcased provides information for top Payment Gateways. Vendor evaluations are based on two broad categories: product offering and business strategy. Each category carries various criteria, based on which vendors have been evaluated. The evaluation criteria considered under product offerings include the breadth of offering, delivery (based on industries that the vendors cater to, deployment models and subscriptions), features/functionality, delivery, product quality and reliability, and product differentiation. The evaluation criteria considered under business strategy include geographic footprint (on the basis of geographic presence), channel strategy and fit, vision alignment, and effectiveness of growth (on the basis of innovations, partnerships, collaborations, and acquisitions).

VISIONARY LEADERS

They have a strong portfolio of Payment Gateways Software and associated services. These vendors have been marking their presence in the accounting software market by offering highly customized and easily deployable software for their commercial clients, coupled with their robust business strategy to achieve continued growth in the market.

DYNAMIC DIFFERENTIATORS

They have an innovative portfolio of Payment Gateways Software and have an extensive network of channel partners and resellers to increase the deployment of their services across various vertical markets. Over the years, the Dynamic vendors have been consistently generating positive revenue growth in the Project Management Software and their market position is enhanced by organic and inorganic strategies undertaken by them over the period.

INNOVATORS

They have an innovative portfolio of Payment Gateways Software and strong potential to build strong business strategies for their business growth to be at par with the Vanguards. These vendors have been providing server rack offerings as per their customer demands. Innovators have been forefront in deploying their solutions for niche and custom requests by their clients requiring the processing of high-performance workloads.

EMERGING COMPANIES

The emerging players are specialized in offering highly niche and tailor-made solutions and services to their clients. A majority of the emerging vendors have been undertaking multiple acquisitions and boosting their sales capabilities in various regions to offer their integrated services to a wide range of clients.

Types of Payment Gateway Software

Payment gateways mostly come in two different varieties: host and combined. Hosted payment gateways are simple to set up, and the founder of an e-commerce store needs no maintenance.

Hosted gateways for transaction: Such gateways take a buyer off the checkout page of the website. When a customer taps on site's 'pay now' button they will be redirected to the payment service provider tab. The customer will fill out their payment information here. They will be routed back to the website after the purchase, to conclude the purchase process.

Pro/self-hosted payment gateways: In this type, the customer is asked to fill payment details on the product website. Then these details are to be uploaded on the payment gateway service provider, after receiving the information. Some gateways need the information in a particular format while others require a hash key or a special authentication key.

Payment gateways API/non-hosted: This gateway enables consumers to insert their details directly on the seller's checkout site and execute purchases via their APIs or authentication queries.

Local Banks Integration: These are closely related to the gateways for hosting payments. The customer is routed to the page of the payment portal, where they will fill in the specifics of the purchase and communication. We are routed back to the e-commerce platform after making the purchase, and receipt data are often forwarded with redirection.

Platform-based online payment systems: This type offers e-commerce retailers a platform for direct selling of goods from their databases. Sellers need to generate subscriptions or product lines in the portal they provide, and customers are rerouted to this platform via the checkout button.

Why use Payment Gateways Software

The primary problem with e-commerce retailers is that how do they collect money from the customers. This is the biggest problem solved by payment gateway software. Many companies are acquainted with the complexities and costs of designing personalized payment systems for obtaining and storing credit card data. Payment gateway app addresses those problems at reasonably low cost and simple configuration. In addition, certain gateway payment solutions enable consumers to insert their own logos into the gateway. It guarantees the users are not diverted to a page by a third party.

Additionally, the capacity to track, recognise and respond to fraudulent behaviour is an essential aspect of the payment gateway program. Payment gateways help ensure the security and encryption of sensitive information about their customers and adherence with Payment Card Industry (PCI) regulations for their e-commerce business.

Payment gateway functionality also allows customers to fix any remaining errors and full refunds depending on the purchase details records for the company. A consumer activity log is vital to keeping customers aware of invoices, audits and cash flow, providing e-commerce companies with forecasting. In contrast to the database, some payment systems do provide transaction data insights, improving company forecasting and making things better like customer information and the capabilities of the e-commerce business to upsell or cross-sell accurately.

Reducing fraud — Payment gateways provide encryption of transfers to guarantee the confidentiality of the payer's details and to validate transfers to prevent fraud. Unapproved payments will lead to the notification, which will allow customers to refuse the payment before it passes through. Fraud security filters may involve high-risk nations, email service provider danger, high-risk BIN, account number size, high product code, shipment/bill payment fault, AVS failure, CSC failure, and many others.

Accepting payment in different ways — Users may set up when necessary continuous payments, subscriptions, separated payments and one-time payments. People can also make payments peer-to-peer as required. This flexibility enables people to understand their payment structure to their business model or client requirements.

Scalability — As a company expands the payment requirements always rise. Payment gateway platform makes it possible to scale by making improvements and integration with numerous e-commerce stores, as required.

Who Uses Payment Gateway Software?

E-commerce companies of all sizes rely on extremely simple-to-use payment gateways to direct a website user effortlessly from browsing through to purchase. Businesses turn to payment gateway applications to simplify payment transfers to ensure that transfers are safe and secured. In addition, gateways for payment connect with e-commerce sites and devices such as the applications for subscription management.

E-commerce companies — E-commerce sites are both the most important and frequent use of gateways for payment. Such firms need a way to receive electronic purchases in a manner that's easy for themselves and their clients. Transactions are simultaneous for all parties through payment gateways and are secured.

Charitable organizations and non-profits — The freedom to make contributions virtually immediately is particularly valuable for charities and other non-profits that are subjected under stringent levels of transparency and taxes. Funders are often more inclined to contribute to an organization or non-profit organization from a non-regulatory point of view, whether it is fast and easy to do so.

Individual clients — Peer-to-peer online payment apps make it simple for independent users to make quick, easy payments to their friends, family and individual entrepreneurs. Using a mobile phone, anyone can quickly and efficiently make payments to another recipient of the same device. Users don't have to hound the friends for pizza money; you can only submit a request or a one-time invoice with the exact sum that they owe you.

Market Dynamics

Drivers

  • The recent increase in digitalization and rising adoption of different digital payment methods, such as debit or credit cards, mobile payments and online banking.
  • The advent of apps that operate on various devices to enable payments online

Restraints

  • Risk of losing sensitive data is a major factor expected to hamper the growth of the global payment gateway market
  • The risk associated with hackers is another factor projected to hamper the growth of the global payment gateway market.

Challenges

  • Internet infrastructure varies in different countries and affects an online software’s accuracy and efficiency

Opportunities

  • The merger of different e-commerce sites and interesting discounts provided on online payments and the cooperation of banks with online retailers
  • Increasing digitization adoption by different businesses

Benefits of Payment Gateway Software

In addition to the general advantages of data transmission, the online payment gateway system can also offer many other advantages. Such as:

Digital terminal: A computer terminal is essentially a virtual version of the actual terminal in a brick-and-mortar shop. Otherwise, shoppers would not be able to enter their credit card information and purchase items without this functionality. Virtual terminals for portable devices, including both tablets and phones, can also be set up apart from computer web pages. In a real environment, too, a virtual terminal may be used by connecting a tiny credit card reader to a device via a USB cable.

Encoding and tokenization: As cybersecurity has become a more challenging problem to fix, software products for the payment gateway offer the opportunity to encode and tokenize financial information. These processes make the system more reliable, and it cannot be misused in case confidential information falls into the wrong hands.

Storing payment details: A good service e-commerce sites can give their loyal customers is the capacity to retain payment details so they don't have to re-enter their information whenever they make some other transaction. Buyers can store multiple cards at a specific website with payment gateway software, and choose one for buying. Also, it can save different addresses. These sensitive details are encoded individually from the e-commerce site and stored there.

QuickBooks: QuickBooks is compliant with several payment gateways nowadays. This helps online companies to share data to the accounting system swiftly, a process that would take a very long time with outdated technology.

Customization: Software for the payment gateway generally provides multiple application program interfaces (APIs). These additional packages of software can help you personalize a specific platform to pay.

International payments: Many financial companies through their payment gateways can have multi-currency and also multi-lingual capabilities. However, additional fees could be imposed for this functionality.

Customer support: Normally e-commerce payment systems come with appropriate customer support. Before selecting a global payment software system, do check and ensure that the company has a history of safeguarding its product and services and serving their customers.

Multiple payment forms: A payment gateway application will generally accept several payment forms. That includes the Passport, MasterCard, Explore and American Express. They may also include less common payment forms such as PayPal, or JCB.

Payment Gateway Software Features

Payment gateways mainly offer online payment services that enable consumers to submit and receive credit card payments directly from a bank account, as well as electronic payments. With the range of usable payment methods, as well as the various forms in which payments may be arranged, electronic payment platforms may deliver a broad variety. Payment gateways, though, have a number of apps that help enterprises operate efficiently both on- and offline.

Reporting — Data should be the closest friend of every corporate, and payment gateways offer critical information about every payment that is made through the channel. This can make tracking of how and where money enters and leaves the business easier, assisting to accurately assess future performances. This also gives an extra safety feature of the accessibility of where data is spent and whether it was an authorized transfer. This statistics can also provide a critical statistical profile for companies to be more conscious of who their client base is and where.

Manual payment entry — Manual payment entry allows the company to take down transaction data supplied over the phone or in-person and place it in the payment service, creating a greater degree of flexibility. This can also help companies to facilitate the returns or refunds that are requested over the phone.

Adherence with PCI — Payment Card Industry (PCI) rules guarantee electronic payment card customers protection by implementing specific safety criteria. These include safeguarding account holder data, maintaining a risk management program, enforcing strong access control initiatives, tracking and running tests networks on a regular basis, and sustaining a security architecture for data. Fortunately, this has already been included in most payment gateways, making it easy for the users.

Fraud protection — Fraud can be a big issue when trading online, and there are already protections in place for most payment gateways to defend their customers. Several payment gateways use a wide range of risk mitigation tools, ensuring all users have 360-degree protection.

Two-factor authorization — Two-factor authentication is a method that allows people to extremely-secure their account. After the user has signed into the system using web-based platform, the system will either send an email or a text message to the user just to ensure that they are the owner of the account.  Users can avoid unauthorized access to the system in this way.

Internationalization — International assistance may come in the form of foreign exchange and language support. Businesses may accept payments from across the globe by promoting several languages and currencies, which makes their business truly global. Through getting this built into the payment portal, businesses may stop negotiating with international banks and other institutions for which they might not be prepared to do business.

Potential Issues with Payment Gateway Software

Integrations — While e-commerce systems may be one of the most decisive factors to consider when choosing a payment gateway, other software implementations also need to be taken into account. Tools for handling subscriptions are also combined with payment gateways to handle ongoing consumer purchases. Additionally, you will need to consider shopping cart tools as they allow users to pick items for purchase and create a total amount to be made to pay through the payment platform.

Currencies and form of payment — Payment systems are restricted by the nations and currencies they endorse. It also allows companies in the e-commerce industry to have more than one payment portal to account for more customers. In addition, tools in this segment are restricted by the methods of payment they accept: credit cards, ACH payments, split payments etc. Before implementing a new payment portal into your e-commerce store it is important to consider where your consumers are and the payment methods that they use.

Transaction fees — For each transaction, most payment gateways will charge a small processing fee. This payment can be either a fixed amount or a small proportion and is often determined on a monthly basis by how many payments e-commerce business processes. Small companies typically pay a lower premium than e-commerce firms at the company stage. Monthly and registration fees are popular for most gateways of payment, too.

Considerations when Choosing Payment Gateways

Operations base: While the company's physical distance to gateway supplier may not be a huge issue, the business rules play a significant role. Before you even start accepting payments, make sure you have sufficient knowledge of your supplier's established rules and confirm if they are in perfect alignment.

Business nature: You may also wish to reveal your business to your gateway vendor before a deal is closed. Some suppliers can get selective with their customers' business, for some purpose. There are so-called high-risk markets such as gambling, poker, and pornographic entertainment that companies might be averse to and fail to cover.

Payment terms: How quickly can you start receiving your payments, and how much will you be charging the gateway? These are some of the queries you might need to formalize before you register the dotted line with your provider. Most sellers will be more than delighted to provide you with upfront knowledge, but some comparative research may be needed.

Trends Related to Payment Gateway Software

Mobile apps: Potential customers use their mobile devices to access cloud services to check-out within the store and pay for stuff before they step into the store. Savvy retailers such as Starbucks, Taco Bell, Domino's Pizza, Walmart, and Kohl leverage this phenomenon to sell mobile payment devices, which have seen their revenues grow.

Safer and easier payments: Many governments have achieved faster payment facilitation systems. Over and above speed, gateways and applications have become more adaptable and convenient. To secure online transactions, they ensure that their systems meet safety, compliance and risk management regulations.

Contextualized trade: Payments enable customers to participate in different digital interactions every day. Each day people spend many hours on the internet on various tasks. Companies track their actions and attitudes digitally to influence and trigger buyouts. These are spontaneous transactions that allow payment in creative ways.

Transparent payments: When more and more people choose electronic payment for daily purchases, consumer interaction is progressing gradually towards transparent transactions. This ensures transfers are combined with the purchase, so users don't need to input their payment details frequently. Types of smooth, transparent transfers include e-wallets, credits/rewards in-app, or authorisations for apps.

Recent Developments

In December 2019, Payoneer, a cross-border payment platform acquired Optile which is a next-generation independent payment platform to scale, unify, and optimize your payment setup.

In November 2019, PayPal, an online payment solution provider acquired Honey which helps people make smarter choices when they shop online.

In November 2019, Razorpay, a platform that enables businesses to accept, process, and disburses payments acquired Opfin, the best payroll software, payroll companies for small business

In October 2019, PayPal, an online payment solution provider acquired Gopay which provides third-party payment services for governments and corporations.

In August 2019, Razorpay acquired Thirdwatch which prevents fraud in digital, banking and e-commerce transactions in real-time using AI

In October 2018, Mobikwik, a financial services company that provides a fintech platform designed for online payments, life insurance, and loans acquired Clearfunds which provide Online, discount mutual fund robo-advisor for India

Payment Gateways Software

5 Experts are advising 40 Payment Gateways Software buyers   4 online
Internal Team
Filters
Reset

Comparing 36 vendors in Payment Gateways Software across 105 criteria.

TSYS payment gateways software is a mobile credit card processing system that takes various credit cards, creates reports and can be integrated with other POS systems and also generates electronic receipts. Modern technology, services and employee expertise enable TSYS payment gateways software to provide a wide range of solutions. Customers can efficiently operate their businesses across a variety of channels in many markets around the world.

Read less Read more
74
Likes

Wepay payment gateways software, a solid card processor, processing debit, credit, and ACH payments are good to consider with its highly secured and fraud detection systems. Wepay API and services are a good fit and easy to use for especially crowdfunding platforms. 

Read less Read more
97
Likes

Wirecard Payment Gateways Software runs one of the fastest-growing digital networks in the world. It delivers a wide range of innovative value-added services for digital payments both to business customers and consumers: online, mobile and at the point of sale. It provides companies with an 85000 + payment and risk management solution, dealing with more than 100 transaction currencies. 

Read less Read more
78
Likes

Worldpay payment gateways software has over 25 years of experience in accepting payments, which gives Worldpay the expertise on everything from the various forms of payments that foreign consumers may use to how best to protect the consumer from fraud. Worldpay operates across the globe, supporting more than 120 currencies and servicing over 40 countries worldwide. So, the client can accept payments from customers anywhere in the world.

Read less Read more
79
Likes
Payment Gateways Software Related Articles
    • Categories
    • For Experts