How does a payment gateway work?
The data provided by Poonirma Chinta, Senior Banking and Payments Analyst at GlobalData, finds that e-commerce in Malaysia is anticipated to increase at a compound annual growth rate of 11.7% between 2024 and 2028 to reach MYR 78.4 billion in 2028. The data is driven by Malaysians' growing preference to shop online.
The rise of e-commerce in Malaysia has made business owners and customers have a hassle free shopping experience. However, we need to take into account the safety concerns around data privacy and security with cashless transactions as scams are on the rise in Malaysia. That's where payment gateway comes in - it offers solutions for business owners looking for secure online payment options.
While shopping for your New Balance sneaker, have you wondered how your transaction can be done safely? Let’s look into the world of payment gateway.
A payment gateway acts as the central system in the payment processing system, when you are making a purchase.
As a consumer, entering your card details can feel like a breeze - almost like magic! You might not give it much thought because the transaction happens so seamlessly, but let’s pull back the curtain and see the fun behind the scenes:
Picture this: You are on Shopee and trying to buy a New Balance sneaker and you enter your debit card details, the payment gateway creates a secure tunnel. This tunnel protects your sensitive information as it travels from your device to the seller’s bank. The payment gateway sends your card information to the bank for approval. It checks if you have enough funds. If everything checks out, the bank then gives an approval.
Once approved, the payment gateway facilitates the transfer of funds from your account to the vendor’s account. Ensuring that everything is safe and sound. Finally, you receive confirmation that your purchase was successful, allowing you to shop with ease!
Payment gateways are crucial to the e-commerce industry. By handling sensitive card information and streamlining the payment process, they help businesses reduce risks and ensure transactions. This means you can shop online with confidence, knowing that your payment details are protected. So next time you enjoy a hassle-free shopping experience, remember to appreciate the payment gateway working behind the scenes.
Why Picking the Right Payment Gateway for Your Bussiness Matters?
Here’s the deal: the right payment gateway is a need for a seamless checkout experience. Before you decide on one, ask yourself these questions:
