Payment gateways are a common element today in electronic commerce. Here we explain how they work.

Electronic commerce or e-commerce has become the new way of trading worldwide. It is the simplest and most accepted modality that both companies or sellers and consumers have found to carry out all types of transactions in the market easily and safely.

From showing their products, offering additional services, letting the user know how their processes work and the growth and success of companies to making sales and home deliveries. Everything that has space in electronic transactions is found on the Internet using Payment Gateways.

A large percentage of companies worldwide do business online, either companies or business models called Brick and Clicks (Brick and Click) or Brick and Mortar businesses (Brick and Concrete, traditional business form). Constantly adapting to changes in technology.

All these companies seek a presence on the Internet and must give users unique and different experiences that make them feel confident and secure when making a transaction. Currently there are multiple Payment Gateways that offer companies and customers the security of an effective exchange without delays.

However, not everyone knows what a Payment Gateway consists of. Many people use these means without knowing what their function is or what level of security they should look for so that their personal information is well protected.

What are Payment Gateways?

The main idea of Payment Gateways is to provide Internet users with an easy and secure experience when they make a purchase on a website or simply need to carry out an unbanked transaction.

The Payment Gateways are digital platforms that provide the service of monetary transactions between two parties. They are essential for electronic commerce because they allow the consumer to purchase a product or service safely and quickly without having to move from their location.

Today people can purchase any product from their mobile phone and the mission that e-commerce must fulfill is simply to ensure that the consumer who visits your online store can purchase your product without complications.

The customer must feel that their browsing, consultation and product selection experience is comfortable and when making the payment they can do so without complications or wasting time.

Can you imagine what would happen if a customer has everything ready in their shopping cart and when making the payment through a Payment Gateway everything gets complicated? You will immediately decide to abandon the purchase and the transaction will be cancelled.

Surely at some point, as a seller of one product, you have also become a buyer of another. You understand what the needs are as a consumer and that is why understanding it and providing that unique and comfortable experience should be a priority for e-commerce.

A bit of history

Although there is no exact record of when the first purchase was made online, it has been determined that these commercial exchanges date back perhaps more than 30 years. It is possible to do a little review since it was made easier for consumers to pay electronically.

However, it is good to analyze what were the main factors that allowed the start of this excellent modality that It has opened the borders of commerce, making room for e-commerce.

The main and most important factor is the level of access to the internet and mobile devices worldwide. Statistics say that approximately 67% of the population has access to a cell phone and the Internet, this facilitates the expansion of electronic commerce allowing more consumers to carry out transactions.

Not only is internet access important, technological development and advances are as well. The e-commerce has improved its interface platform to provide users with an unmatched experience along with the goal of engaging these consumers.

The possibility of making payments easily and safely is another factor that has influenced the evolution of electronic commerce. Developing platforms and applications for payments and transactions without having to go to a bank and from the comfort of home is the last step taken so far.

The first form of non-face-to-face marketing that was registered was cash on delivery. Through this form of payment, consumers could request any type of product that was offered with advertising on television or newspapers and it was paid when home delivery was made. Being sure that these clients were going to receive what they had ordered.

In 1995, the dotcoms came out, with the arrival of the first e-commerce companies “eBay” and “Amazon”, who officially started electronic commerce allowing consumers to make their payments through their credit cards.

This is how internet commerce evolved, transforming the different types of traditional payment methods such as POS (Point of Sale Terminals) to Payment Gateways platforms that have allowed the expansion of companies on the internet.

How do Payment Gateways work?

Although nowadays payments are still made in a personalized way and there are still stores with physical locations, the form of payment between these and electronic payments is similar.

Any type of product or service was paid by going to the establishment where a commercial relationship was created between two parties, the buyer and the seller. At the time of making the payment, the seller asked you for a series of information and you made the payment satisfactorily.

The same occurs with electronic commerce, when making a payment through a Payment Gateway the system requests certain information that will be safeguarded at all times through the encryption of the information so that it is not read by third parties.

SSL (Secure Socket Layer) or TLS (Transport Layer Security) systems are used for encryption. These safeguard the information at all times. The browser directs the data to the store where the purchase has been made and incorporates it into the payment platform that connects this information with the seller’s bank.

Once this information has been checked, the seller’s bank forwards the information to the client’s bank platform, which verifies the data and authorizes the payment. In the same way, if the bank does not approve the transaction, it also notifies the user.

All these operations between banking platforms and Payment gateways sound complicated, however they are transactions that last seconds. That is why it has turned out to be the best alternative for electronic commerce.

Making payments through Payment Gateways has become the best adapted system that has been developed so that consumers can carry out their transactions easily and safely from the comfort of home. It is an excellent alternative for sellers and buyers.

Technology is advancing by leaps and bounds and e-commerce is not far behind. Access the Payment Gateways to provide users with the best service and the best online experience is the indicated alternative. Modernize your monetary transactions and move forward.