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What is Payment gateways?
A payment gateway is a merchant service provided by an e-commerce application service provider that authorizes credit card or direct payments processing for e-businesses, online retailers, bricks and clicks, or traditional brick and mortar.
Paying online is a fundamental feature that every e-commerce platform in the world offers. And they can provide this facility by integrating with a payment gateway.
An online payment gateway (PG) is a tunnel that connects your bank account to the platform where you need to transfer your money. A PG is software that authorizes you to conduct an online transaction through different payment modes like net banking, credit card, debit card, UPI or the many online wallets that are available these days.
A PG plays the role of a third party that securely transfers your money from the bank account to the merchant’s payment portal.
To explain this in simpler terms, at the time of buying a book from a popular digital platform like Flipkart, when you make the payment for the book, a payment gateway helps you in the process by transferring your money to Flipkart.
List of Payment Gateways:
PayPal Holdings Inc. is an American company operating a worldwide online payments system that supports online money transfers and serves as an electronic alternative to traditional paper methods like checks and money orders.
Stripe is an American technology company based in San Francisco, California. Its software allows individuals and businesses to make and receive payments over the Internet.