Over the past decade, India has undoubtedly improved its ease of doing business. However, running a business successfully requires much more than focusing on the core business operations. Managing finance is one of the critical challenges for most new businesses. The digital infrastructure and new-age financial solutions have addressed these challenges to quite an extent. However, there are still gaps that need to be filled.
Payment Gateways and Digital Ecosystem
Payment gateway integrations to websites have helped businesses collect payments online from customers, and choosing the right service provider is crucial. The wrong payment gateway can cost you a lot of money due to high downtime or other technical glitches. Today, most customers rely on different online platforms to purchase products and services, and many of them also prefer to pay online. Reliable payment gateways play an essential role in delivering a glitch-free experience to customers.
Characteristics of the Right Payment Gateway
The right payment gateway is highly contingent on the nature of your business and the industry it operates in. So let’s take a contextual look into the characteristics of the right payment gateways for different types of businesses.
1. Micro Small & Medium Enterprises (MSMEs)
The MSME category includes businesses with an investment capital of less than INR 10 crore and employees up to 50 people. These are the basic criteria for a business to be classified among MSMEs. If your business falls into this category and you are planning to take it online, a reliable payment gateway is a must-have. Here are some key points to consider before choosing payment processors in India.
- Cost-effective plans
- Quick setup process without any coding requirements
- Simple documentation process and fewer legal considerations
- Easy to use interface for customers to make payments
- Option to collect payments from multiple payment modes, including UPI, digital wallets, net banking, credit/debit card, etc.
- Provides flexibility to collect payment on multiple digital channels like WhatsApp, Facebook, Instagram, etc.
2. Small Hyperlocal Businesses
Small hyperlocal businesses are limited to a specific geography and aim to serve customers in a particular location. From local fruit vendor and vegetable sellers to general stores and medical shops, all these falls in the hyperlocal business category. These businesses can grow their sales quickly by offering an option to pay online. Here are some essential factors to consider while choosing a payment gateway integration.
- Provides the flexibility to collect payments from various methods, including net banking, digital wallets, credit and debit cards, etc.
- Easy to set up and hassle-free KYC process to start online payment collection
- Options to customize and choose the best suitable one for your business
- It doesn’t require any coding knowledge to make simple changes
3. E-commerce Brands
E-commerce brands are businesses that provide products or services on online channels. If you are running an e-commerce brand and employ over 50 people, here are some crucial factors to be mindful of while choosing a payment gateway integration.
- Choose a reliable payment gateway solutions that can manage a large influx of online customers
- Hire a technical person to manage different aspects of the payment gateway, including any coding requirements
- Payment processor should help you easily collect payments through different payment modes on the website
- Offer the option to customize the checkout and payment page to add branding elements
How to Choose the Right Payment Gateway?
Choosing the right payment gateway can help to boost your conversion rates by offering a glitch-free payment experience. It also adds diversification by providing multiple payment modes so that customers can choose a preferable one for their purchase. There are several factors to consider before choosing a payment gateway. Some of the most crucial ones are listed below.
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Website integration
Most businesses today have an online sales channel. It is important to check the integration options available on your website’s platform. It should be able to accommodate the payment integration you want to connect.
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Onsite or off-site
Another important thing to be mindful of is whether you want customers to pay on your website or need to redirect them to a different platform. Payment gateways also offer the iframe pop up feature on websites.
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Setup costs and documentation
Another vital factor to consider is the documentation process and setup costs. It should be in the budget of your business. Besides this, you must also check the pricing.
Final words
These were some of the most crucial factors to consider when choosing a payment gateway integration for your business. In addition to the factors mentioned above, one must also consider the tool’s security to deliver a secure experience to customers.
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