8 Reasons Why Choosing Good Payment Gateway Makes Sense For Online Business

The E-commerce industry has witnessed a steep growth in the past few years all over the world. India has also seen the emergence of a number of online businesses selling tons of products and services to customers. Particularly the e-commerce industry, which is likely to reach US$ 99 billion by the year 2024, growing at a CAGR of around 27 percent from 2019. An industry this big also invites millions of transactions taking place every now and then. Handling this volume would have been very cumbersome or almost impossible with the conventional payment methods. This problem of handling and processing uncountable transactions securely is solved by the advent of payment gateway in India.

A payment gateway offers a fast and reliable way to make payments

A payment gateway offers a fast and reliable way to make payments.

Businesses use payment gateway in India to process transactions securely online. With this, merchants can provide a secure channel for their customers to make payments. It is actually a tunnel that connects the customer’s bank account to the platform where the money is to be transferred for the purchase of a product or service. A payment gateway serves as a third-party payment authenticator to process a secure transfer of money. It is safe to say that it is imperative for any online business to have a payment gateway and the reasons for which we will discuss here.

Why Choosing a Good Payment Gateway in India is Necessary for an Online Business

Running an online business without an efficient platform to receive payment from customers is impossible to imagine. It is not only the size of the business that decides whether one should have a payment gateway or not. There are a number of reasons that explain why a payment gateway in India is beneficial for any online business.

Higher Payment Security

Although the e-commerce business is growing at a rapid pace in India and so does online payment, many small merchants who cannot afford to integrate a robust payment system face a number of issues while receiving payments. The absence of a payment gateway creates a security risk both for the money being transacted and customers’ sensitive information. A fraudster can use customers’ credit card information to make unauthorized payments if there is no third-party security provider. A payment gateway in India helps Indian merchants to secure the customer’s information through encryption and makes sure that fraudulent transactions do not take place. A good payment gateway system also provides tokenization, by which a merchant can protect its customers’ sensitive data by limiting the data’s storage to as few places as possible. The merchant can also use it to meet PCI DSS compliance.

Easy Checkout

Customers don’t want to fret while making payment. Hence, it is necessary for any online business to facilitate a smooth and seamless platform for its customers to make payments for their purchases. A payment gateway in India allows online merchants to receive payments in no time. They can provide a user-friendly checkout platform to the customers. Customers mainly desire a simple UI and protection of their sensitive data. It is observed that more than 40 percent of customers end up cancelling their purchase just because the payment portal is complicated and full of hassle. A customer doesn’t want to waste his time and effort in the complications of the payment system. Furthermore, a complicated payment platform also creates a sense of risk in a customer’s mind forcing him to give up his mind for the checkout. A good payment gateway, on the other hand, offers a simple way to make payments.

Payment gateways allow you to checkout easily

Payment gateways allow you to checkout easily.

Diverse Payment Methods

Not all customers are the same. When it comes to making payment for a purchase, customers generally lookout for the availability of the payment method that they prefer. For example, many people find using UPI apps instead of pulling out a debit card from their pocket and filling in multiple fields. It is also seen that merchants who provide diverse payment methods are preferred over others. Hence, it is necessary to integrate all popular payment methods in the checkout page. All these can be accomplished by using a good payment gateway.


Your customer won’t like to build his shopping cart in one place and make payment in another. Providing him the option to pay right where he is building his cart proves to be very convincing. The best thing about any good payment gateway of India is that it can easily integrate with the shopping cart and allows the customer to make the payment right where he wants to checkout. A good payment gateway provider in India offers an integration guide and support to the merchants. Merchants should also check for the option of API integration to automate payments and seamlessly manage everything on a single platform.

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Avoid Chargebacks

Chargebacks may seem a good and justified thing for a customer in case a transaction is disputed and the customer is the ultimate victim. However, this is no less than a burden for any online business. Often, the payment fails but the customer is charged. In such a case, the customer raises a chargeback and the merchant has to pay back mostly. Not only this, but chargebacks can also happen because of unclear return policy, absence of transaction proof, etc., and in all these cases, it is the merchant who has to suffer. Hence, if a merchant is looking for a payment gateway in India for his online business, he needs to choose the one that keeps all the transaction records and proceeds the returns automatically if the customer is entitled to. This helps the merchant to avoid unnecessary chargeback requests.

Faster Processing

Old and cumbersome methods of payment were slow enough to have become a thing of the past. No one can imagine counting cash and sorting denominations before making any payment. Payment gateways process payments within a blink of eye. Everything gets authenticated in no time- the merchant’s and customer’s details are verified, the payment amount is confirmed, and the parties involved are notified instantly about the status of the transaction.

Hassle-free Reconciliation Through Payment Gateway Dashboard

Manual cross-checking of income against payment, the payment received against payment registered, etc is prone to a lot of errors. A merchant might need a proper reconciliation tool to keep the records clean. A payment gateway fulfills the need for a reconciliation tool and allows the merchant to track and cross-check all payment related information on a dashboard.


Integrating a payment gateway in your online business is no such hassle and can be setup easily if the merchant has an existing website or application. Since the integration does not require much effort, the setup cost is also quite less. Added to this, the cost of maintenance is also negligible when compared to the exorbitant money that gets wasted in maintaining other payment systems.


It is seen that many customers, who earlier opted for cash on delivery are choosing online payment methods now to make any purchase. The reasons are quite obvious but one thing that should be taken into account is that customers are also getting familiar with online payment systems. This level of familiarity and acceptance of online payment methods by the customers have also led all new online businesses to start with integrating payment gateways in their systems.

It goes without saying that the wide implementation of payment gateway in India has made accepting payments easier than ever. The merchants now don’t have to worry about the payment method, security of customers’ data, fraudulent transactions, etc., and can focus completely on providing better products and services to their customers. Payment gateways have made accepting payments not only fast but secure as well so that online businesses can progress without any hindrance.

About Ambika Taylor

Myself Ambika Taylor. I am admin of For any business query, you can contact me at [email protected]