The Best Payment Gateway in India for Your Small Business
4 min read
The widespread use of the Internet has brought several changes in how businesses conduct themselves. In fact, global e-commerce sales have been estimated to grow to a market value of USD 6.35 trillion by the year 2027. Many customers are increasingly turning to digital shopping and payment methods, and businesses that fail to adapt to this risk being left behind.
herefore, finding a payment gateway that accommodates your business requirements and supports multiple payment methods is crucial.
Another reason to find the right payment gateway is to enhance your customers’ experiences and ensure security. Surveys showed that an inefficient or difficult checkout process caused 18% of abandoned shopping baskets. Cybersecurity has also become a concerning issue, and the right payment gateway can ensure your transactions are secure.
What exactly is a payment gateway? A payment gateway is a technology businesses use to accept payments from customers. This can include card-reading devices or payment portals online. Some brick-and-mortar payment gateways such as physical card readers, have also begun accepting payments using QR codes, making them accessible to mobile devices. In short, they are interfaces that collect payment information from customers.
Payment Challenges Faced by Small Businesses in India
Small businesses in India play a crucial role in providing important products and services to buyers. Many have started accepting online payments but still face certain challenges due to their smaller scale. These include:
1. Multi-channel payment facility
In an era where most buyers prefer online payment methods, it becomes important for businesses to be able to accept many different modes of payment. UPI (Unified Payments Interface) and QR codes have become the norm in India. Modes like credit or debit cards, digital wallets, and net banking are also popular for online and brick-and-mortar stores. For small businesses, it can be challenging to deal with multiple service providers and interfaces, as well as take on expensive solutions.
Online payment gateways often charge a small portion of the transaction as platform fees and processing costs. These can be considerably high and eat away at revenue. It is important for small businesses to find gateways that accept various payment methods and are secure and affordable.
3. Security concerns
When it comes to online payment methods, security is one of the biggest focus points. Protection from fraud and information leaks are serious considerations, and customers expect to be able to make secure transactions. Therefore, it is crucial to choose a payment gateway that protects your customers from cybercrime attacks, fraud, and other security concerns. The right payment gateway also keeps financial and personal information safe for customers and small businesses.
4. Reconciliation challenges
Organisational visibility can often be limited for businesses, making it difficult to trace the source and purpose of individual payments once they reach the business’s account. This applies to all payment methods—online and in person. A lack of organisational visibility leads to challenges in reconciliation and visibility. Business accounts usually have no way of being certain about various stakeholder balances.
5. Technical reliability
Small businesses also face challenges with technical reliability when dealing with payment gateways. This could include integration complexity, a lack of user support, security concerns, high transaction fees, currency mismatches, limited scalability, and more. This can also make it difficult for businesses to manage customer experience.
How to Choose a Payment Gateway
When conducting research, it is essential to remember that there is no single “best” payment gateway for your small business. However, there are some points to keep in mind:
Decide your specific business needs and target audience.
When choosing a gateway for your brand, consider factors like transaction fees, ease of integration, payment methods, security, and customer support availability.
Different gateways offer different fees and features, each with its own strength. Therefore, knowing which benefits your business needs the most is important.
Conclusion
Payment gateways are vital to bringing your online business to a broader audience. Before beginning your search for the best one, keeping a tally of what points your business requires- customer support, security, transaction fees, or something else is important. When looking for the right one, consider conducting thorough research online and try out different ones. These steps will ensure you are able to find a payment gateway that will help you meet your business requirements.
