Payment gateways, UPI, and payment links are the technologies that make the modern digital economy work. Without them, we would not be able to transact using digital currency and would need to carry cash with us at all times for purchasing any goods and services.
Moreover, eCommerce would not have expanded the way it has, since merchants would need to depend on time-taking payment modes such as cheques, drafts, and cash on delivery with a higher chance of order cancellations.
In this article, we will look at the best payment gateway in India, payment processors in India, UPI, and payment links to get a better understanding of what they are and how they benefit both merchants and the end consumer!
What is a Payment Gateway?
A payment gateway is a system that allows for two-way communication between buyers and sellers’ bank/card networks to allow for seamless online transactions. It happens over a secure channel that makes use of randomization to hide sensitive information. Security is assured through encryption of data and information to prevent hackers from fraudulently getting access to a consumer’s financial details.
What is UPI?
UPI stands for United Payments Interface which is a system designed to work across all banks and card networks without the need to share any banking information. All transactions take place via bank transfers making it one of the safest options to transact.
What are Payment Links?
Payment links are URLs that are generated and notified to the customer either via email, push notification, or SMS, which allows them to click and make secure payments for purchased goods and services. It makes use of payment gateways and payment processors to ensure that whenever a customer clicks a link, they can transact securely without risking their financial data.
Now that we have an idea about payment gateways, UPI, and payment links; let us look at 5 things that you might not have known about them!
There are Multiple Payment Gateways that Merchants can Integrate
Did you know that as a merchant you have a lot of choices when it comes to integrating a payment gateway on your eCommerce site? Moreover, you do not need to spend a fortune in getting one. The best payment gateways in India offer affordable plans based on the scale and scope of business and sales volume. Merchants can negotiate better deals when it comes to transaction fees. Moreover, if you use a hosted gateway then you will not need to make any investments as all transactions happen on a third-party secure site after which customers are redirected back to the merchant’s site.
Save on Transaction Fees Using UPI
It does not make sense for a small business owner, especially someone who runs a grocery store, or other smaller establishments to opt for a payment gateway, as they work best with online stores. Moreover, the transaction fees would be an added expense that is not always possible for small business owners to bear. With UPI, merchants do not need to bear any transaction charges, and since it works seamlessly across all banks and card networks, your customers will always be able to make payments instantly no matter which banking network they might be on.
UPI Can be a Gamechanger for B2B Platforms
UPI has been highly successful across all industries, especially in the B2C sector where the number of end-consumers using UPI has seen a steady rise. However, UPI is practical and advanced enough to have a tremendous impact on the B2B segment which has high-volume transactions of significant amounts. Payment links in combination with UPI can help businesses save a significant amount of money which can be used to grow and expand the business. The only downside to it is that UPI has a transaction limit of ₹1 lakh per day, but that can be compensated by opting for direct bank transfers between businesses.
Payment Links are Going Beyond SMS and Email
A business is no longer stuck with sending payment links over an SMS or email, as multiple options are available. These days merchants can send payment links over WhatsApp, Facebook, Instagram, etc, further expanding the scope for accepting digital payments.
Fund Settlement Time
In case of payments made using a payment gateway, the funds could take 1-3 days before being transferred to the business account of the merchant. However, in UPI and using payment links that work with UPI, the payments are instantaneous. While the funds being held up in the merchant account for a few days is great for big eCommerce sites since it helps them serve refunds and chargebacks better; small business owners and shopkeepers will find UPI a better option.
The best payment gateway in India, payment processors in India, UPI, and payment links have changed the game for both business owners and customers in multiple ways.
Transactions happen faster with near-zero errors which helps businesses deliver a great customer experience. Customers no longer need to rush to the ATM to withdraw cash every time they want to purchase items. It is a win-win situation for all!
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