How Payment Gateway Integration Can Boost Your Business Growth

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In today’s virtual revolution, the ability for companies to accept online payments isn’t always simply an additional function; it is a fundamental necessity pivotal to growth and continued relevance. 

According to the latest stats, the value of digital transactions is set to reach $6.7 trillion by the end of this year. Further, the global payment gateway market will be worth $293.9 billion by 2033. On the same note, you should know that the eCommerce payment gateway market is set to grow globally at an unexpected CAGR to surpass a whopping $11 million in the next 6 years. If this is not the right time to integrate a payment gateway on your website, then when is? 

Payment Gateway Integration is the cornerstone of this virtual financial ecosystem that is expanding fast. Through this exploration, we aim to unveil the vast effect integrating a payment gateway will have on a business by

• Improving the consumer experience, 
• Ensuring strong safety, and 
• Appreciably increasing revenue

What is Payment Gateway Integration

Integration of a reliable payment gateway seamlessly connects an e-commerce site or mobile application to a payment gateway – a digital bridge facilitating secure transactions between customers and merchants. 

This gateway is a third-party service that authorizes and processes transactions in real time, supporting numerous payment methods with credit scorecards, debit cards, e-wallets, and bank transfers. This integration is essential for corporations wishing to streamline their online transactions, offering a frictionless fee for customers.

You may ask, why integrate a third-party service on your website and not develop a payment gateway software instead? Let us explain. 

A readymade payment gateway software is apt for small businesses that don’t require too many specifics. In the USA, 99.7% of businesses are small businesses, of which 80% are run by the owner, while 16% or so have less than 20 employees. 

Such small businesses do not require custom-made software to deal with their customer transactions. A reliable third-party payment gateway can do the job alright. 

However, large enterprises with diverse requirements and preferences need robust, customized software tailored to their complex payment processes. However, such businesses already have custom-made payment software, dealing with their day-to-day transactions. It is the small and medium-sized businesses that need to go through with payment gateway integration on their websites. 

The Necessity of Payment Gateway Integration Today

The significance of payment gateways transcends basic transaction processing today. In an era dominated by e-commerce, understanding payment gateway integration requirements is crucial for conducting secure, efficient, and versatile online transactions, which is paramount for online businesses. Not only does it simplify the buying process, but it also broadens the customer base, enabling businesses to operate on a global scale. Moreover, it instills a sense of trust and security in customers, knowing that their financial data is handled securely, which is indispensable for building long-term customer relationships.

So how does an integrated third-party payment gateway ensure secure transactions? 

Well, all payment gateways need to incorporate various security technologies,e.g. tokenization, fraud management, and of course, encryption, to enable 100% secure financial data management and transactions. On top of that, these gateways need to comply with the PCI DSS (Payment Card Industry Data Security Standard), and SSL/TLS Encryption standards, among others to maintain their reliability in the market. They also need to be open to recertifications and audits as and when required. 

With such a reliable payment gateway integrated into your website, there will be a seamless and secure flow of financial data across both parties (the customer and the merchant), reducing the chances of cart abandonment, fraud, and data theft. 

Considering the Inherent Benefits of Payment Gateway Integration

While it may not be easy to choose a particular payment gateway from the list of available options, you need to understand the “Why” first. Every business has different transaction needs, thus different payment gateways to consider. However, the benefits that you can get from various white-label (existing) payment gateways are somehow similar. Let us give you an idea regarding that. 

A drastic increase in sales

Integrating a payment gateway directly influences the sales volume by offering a seamless and flexible checkout process. Businesses effectively widen their market reach by enabling customers to purchase from anywhere in the world, at any time, with their preferred payment method. This adaptability to global trends and preferences can significantly elevate sales figures, tapping into markets previously beyond reach due to payment barriers.

Improved Customer Experience

A paramount factor determining the success of online purchases is the ease and speed of the checkout process. Payment gateway integration ensures a smooth transactional flow, keeping customers within the business’s ecosystem rather than redirecting them to external payment sites, often leading to cart abandonment. Moreover, it provides:

• Instant feedback on the transaction’s success or failure.
• Enabling quick resolution of payment issues.
• Thus enhancing the overall customer experience.

Security Assurance 

The bedrock of successful online transactions is robust security. Payment gateways are designed with advanced encryption protocols and security measures to safeguard sensitive customer information against potential fraud and breaches. Adhering to international security standards such as PCI DSS, PSD2, SSL/TLS Encryption, etc. ensures that businesses are protecting their customers and maintaining regulatory compliance. This is essential in the digital age, where data breaches can significantly tarnish a company’s reputation.

Expanding Globally

If you look forward to expanding your business globally, adding a payment gateway to your website can be the first step. Several white-label payment gateways support multiple currencies, giving you the scope to reach out to a global base of customers. Nothing can be better than paying for international services/products with local currencies, right? By offering this experience to your global clientele, you can increase your chances of global business expansion. 

How to Choose The Right Payment Gateway Provider 

Before integrating a payment gateway, you should first choose one. According to the 2024 list by Forbes, the following are the best white-label payment gateways you can consider for your website:

• Authorize.net – Fraud prevention at its best
• Stax – Hefty transactions faster
• Shopify – eCommerce startup owner? This is yours to get! 
• Payline Data – For all those subscription-based transactions
• Elavon – For POS systems 
• Helcim – High volume payments faster 
• Stripe – Tailored payment systems 
• Clover – Best for small businesses in the food industry (clubs, restaurants, diners)
• Square – The retailers’ favorite
• PayPal – Highly versatile diverse payments for global businesses

You should consider some other factors while choosing the right payment gateway for your site. These are:

Payment processing and subscription fees 

What does your business need? Should you go for a diverse payment gateway that offers multiple facilitates for easy transactions? Or should you opt for a simpler, cost-effective one? The two ways you have to pay for any payment getaway are subscription fees – money that you have to pay every month, and payment processing fees – the money that you need to pay for processing each transaction. 

See if the payment gateway offers free trials to help you evaluate its services for a short period. You also need to consider if the payment will happen on your website or off-site. For example, Stripe and Square deal in off-site transactions, while PayPal mostly handles transactions that are redirected to their site. If you want to integrate a payment gateway that will allow all transactions to happen on your servers, find one accordingly. 

Security Features

Given the critical importance of data security in online transactions, evaluating a provider’s security measures is paramount. Look for advanced security technologies like SSL encryption, tokenization, and fraud detection capabilities. Ensuring compliance with PCI DSS and other regulatory standards is crucial for maintaining data integrity and customer trust.

Accepted Payment Modes

Another vital factor is a provider’s compatibility with various payment methods. The more payment options a gateway supports, the broader the potential customer base it can serve. This flexibility is essential for businesses expanding their market reach internationally, where payment preferences vary widely.

Volume of Transactions 

This is yet another factor that many business owners tend to overlook while opting for a reliable payment gateway. You should check if the chosen payment system can handle the scale of your business. To ensure that, you need to estimate the volume of transactions in your business processes. Most payment getaways charge a high sum for exceptional transaction volumes, so it is better to get an idea first. 

Last but not least, you should check if the payment system can handle an increased volume of transactions when your business scales up. It should cater to horizontal scaling if your business requires the addition of extra resources or instances to distribute the load. 

Mobile-friendliness and overall customer experience 

According to a report by Grand View Research, the value of the mobile payment industry will grow at a CAGR of 36.2% between 2023 and 2030. 

It is needless to assume that more people will be paying through their smartphones and tablets in the days that follow. Hence, it is imperative for the payment gateway that you have chosen for your website to be mobile-friendly. Besides, you also need to confirm if the gateway offers a seamless overall user experience on all devices. 

Compliance Standards

Several security compliance standards ensure safe and hassle-free online transactions. before choosing a payment gateway, you should make sure that it adheres to the same. Some of these compliance standards that every payment gateway should adhere to are:

• Payment Card Industry Data Security Standard (PCI DSS)
• Security Sockets Layers & Transport Layer Security (SSL/TLS) Encryption 
• Payments Services Directive 2 (PSD2)
• ISO 27001 – International Standards for IT management systems 
• GDPR (General Data Protection Regulation)

Type of Integration

Not all payment gateways offer easy integration. Before you finalize one, review the system’s API documentation to evaluate how hassle-free the integration will be. A complex integration also costs more, thus giving you more reasons to check the API documentation first. Also, do not forget to evaluate the provider’s developmental support, in case of issues or hassles while integrating the payment gateway into your website. 

Customer Support

Efficient, responsive customer support from the payment gateway provider is indispensable to tackling emergencies. Transaction issues must be resolved quickly to maintain customer satisfaction and protect revenue. Go only for providers offering 24/7 support via multiple channels to ensure accessible and effective troubleshooting. 

Steps to Integrating a Payment Gateway into your website

You have already taken the first step – Choosing the right provider. Do not forget to research the gateway’s industry reputation before you finally decide to go ahead. 

Now, the real work begins – integrating the system into your website to enable seamless transactions. Follow the given steps to do it hassle-free. 

Step 2: Setting up an Account

With a provider selected, the next phase is establishing a merchant account, which will be the repository for the funds acquired from online transactions. The setup process includes submitting detailed business information and conducting due diligence to verify the business’s legitimacy and credit risk. This step is crucial as it ensures a secure financial environment for the merchant and its customers.

Step 3: Acquiring the API Credentials 

On registration, the system provider will give you the API credentials, like the merchant ID, API key, and secret key. You can make API calls with the help of these documents for secure information exchange, and seamless communication between your system and that of the gateway. You should also study this API documentation thoroughly to understand their response methods during issues and emergencies, and any other technical specifics or limitations that the system may have. 

Step 4: Updating your website 

Now you need to hire some seasoned experts in the coding field to update your website or incorporate new development features. The coders can help complete the integration process by tweaking the existing code of your website to accommodate the payment processing system. Any error in this step can result in more expenses, so it is better to leave it to the experts. 

Step 5: Sandbox testing 

Ask your developers to create a sandbox testing environment to check if the API calls, responses, and error-handling processes are working fine. Sandbox testing is examining any software in an isolated environment without affecting the parent application. You can perform this test without real transactions. 

Step 6: User Acceptance Testing (UAT)

You should also select a group of preselected users to evaluate the payment gateway’s performance regarding user experience aka user acceptance testing. Ask them to give honest feedback on their experience of making transactions through the new payment gateway. Note down any issues that they have faced and ask your developers to conduct API calls to the provider for changes or modifications if required. 

Step 7: Get Approval from the Gateway Provider 

You need to obtain approval from the payment gateway provider to use the system on your website. Also, acquire the necessary certifications before going ahead with your plan to accept payments in real-time. 

Step 8: Stay Updated at all times

The vendor may make changes to the payment gateway from time to time. You should keep track of these changes and update the system accordingly. Otherwise, there may be disruptions, resulting in transaction cancellations or payments on hold. If there is anything, like the introduction of a new security feature or a new update on the vendor’s side, update the system on your website immediately. 

Final Thoughts 

Integration of payment gateways is transformative for businesses of all sizes and scales. It streamlines operations, safeguards customer data, and vastly improves the customer experience. This strategic move propels sales through enhanced market reach and transaction efficiency and builds a foundation of trust and reliability with customers.

As the digital marketplace evolves, payment gateway integration will remain a critical component of business strategy. Innovations in payment processing, including faster, more secure transaction methods and the incorporation of emerging technologies, promise further to enhance the efficiency and security of online transactions. By integrating adaptive and advanced payment solutions, businesses that stay ahead of these trends will be well-positioned for sustained growth and success in the competitive digital landscape.

In essence, integrating a payment gateway is far more than a mere operational upgrade—it’s a strategic investment in your business’s future. By recognizing its importance and acting on it thoughtfully, companies can unlock unparalleled growth and establish themselves as leaders in the digital economy.

FAQ on Payment Gateway Integration

Do you have any other questions before adding a payment gateway to your website? We hope that the FAQ below will cover those doubts.