Why are Payment Gateways Important for Business Transactions?
Why are Payment Gateways Important for Business Transactions? - Why are Payment Gateways Important for Business Transactions? - Behind the rapid growth of online shopping transactions intensity, there is substantial support for the payment gateway systems in Indonesia in which keeps getting better.
The security and convenience of online transactions make Indonesians more confident to shop online. These two factors are the main reasons why online-based MSMEs in Indonesia should be encouraged to implement payment gateways for their online stores.
In simple terms, the payment gateway works by being the transactions representative between buyers, banks, and sellers (online shops).
Therefore, before deciding to use this service, here is the payment gateway mechanism in an online store that you need to know:
1. A buyer wants to buy products or services in a particular online store. He then chooses a payment method and performs payment transactions based on the information given by the payment gateway system.
2. Payment gateway then forwards transaction information to the chosen bank or payment processor. This system can connect to any choice of banks available in Indonesia.
3. The payment processor then passes the transaction information to the card issuer, such as Visa or Mastercard.
4. The bank will receive transaction information and send a particular code to the payment processor, confirming whether the transaction was successful or failed.
5. The payment processor will perform confirmation by sending back the information sequentially to the payment gateway – to the online shop – then to the buyer until the transaction is declared done or successful.
6. All incoming payments from buyers will go to the payment gateway account. Any received funds can be retrieved at any time without nominal restrictions and extra fees.
Any online store that has implemented a payment gateway service will surely earn credibility, especially to build trust with the existing customers and potential customers.
That is important for MSMEs who have started sustaining their online businesses, to maintain the Top-of-mind awareness for many potential customers. So, what are the benefits of having a payment gateway from the customers' perspective? Here is the explanation:
4 Benefits of Payment Gateway
1. Having a Variety of Payment Journeys
Customers have their payment method preference when it comes to online shopping. For example, they love using credit cards, utilizing the 0% installments, going to the nearest ATMs for transfers, also using an e-wallet.
These methods are still very likely to change depending on the current consumers' financial ability as well. Therefore, most customers will prefer online stores that provide various payment options.
2. Providing a Sense of Security During Transactions
Making payments through a payment gateway can provide a sense of security and comfort. Customers don't need to feel the fear of losing their money or when using credit cards.
Payment gateway system, such as Midtrans, is officially registered and licensed by state institutions. In addition, Midtrans is also equipped with security features that enabling it to detect anomaly transactions automatically.
3. No such Thing as Last Order
One of the perks of doing online shopping is the exclusion of operational hours. Citing from the data provided by several credible sources, it has stated that there is an increase of online transaction amount at night, especially between 8 pm to 9 pm. It means that customers can freely purchase and perform transactions at their convenient time.
4. Providing Payment Status in a Responsive Manner
Quick responses such as "I transferred the money, please check!" or "Have you received the payment?" usually appear right after someone manually made a payment to do online shopping.
Customers would want a confirmed transaction status as quickly as possible once they have transferred their payments.
The payment gateway system can responsively provide reports on the transaction status in real-time to minimize customers' concernment after making transactions.
From the business owners' perspective, the payment gateway system offers its perk as well. Business owners can focus on product development rather than wasting time and energy on building an electronic payment system for their online stores.
The payment gateway integration process with products such as Midtrans is considered simple, fast, and reliable. To make it more convenient, Midtrans is also equipped with a dashboard that can be easily accessed by you as a business owner or your employees.
Other benefits include the sales reconciliation process, starting from sales reports, customer transaction details, voids, and refunds. Not stopping there, another benefit that is tailored for credit card transactions, including fraud detection technology to prevent fraudulent payments is also provided by Midtrans.
With that many benefits, customers will feel comfortable shopping at your online store. That being said, this means a proper payment gateway system will always prepare the business for optimized benefits.
So, are you getting more interested in using payment gateway services for your online business? Utilize the Pojok Usaha services to choose which system best suits your online business needs. Click here for complete information.