How does payment gateway work
Back in the day where the internet was not so common is was rather difficult to do online transaction because of the fact that that the technology like payment gateway was non-existent. Not until now was making an online transaction that easy. Most of the people that get the most of it are the one who runs e-commerce business, just by allowing online transaction like a credit card through their website they are able to make more sales as a result. We are going to talk more about how the payment gateway in details.
What is a payment gateway
In a simple word is a way of accepting the financial transaction. Security has always been an issue when accepting the financial transaction. That is the reason why accepting encrypted and secure method like credit card and cryptocurrencies make a whole lot of sense.
This one core functionality of any business that wants to be successful is to be good at financial money. Thanks to smart tech companies that help in providing better help with technologies, a platform like Quickbook helps a lot as an online accountant.
There is a lot of great information about payment gateway on Wikipedia.
Benefits of having a payment gateway
There are many people that will benefit from them and most of them tends to gravitate in the online world. One of the most common payment gateways is PayPal.
For example for a typical brick and mortar business, it is far more common to deal with hard cash money. Unless your country is in some economic stress then it makes more sense to use another method of payment.
Now come the freelancers, if you are not familiar with this topic I will greatly encourage you to read my blog post on freelancer. Most of the work they do is not locally their main customers come from overseas.
This can add up great processing fees in the action of transferring money in the bank. In the long term, you are losing money. First the processing fees of currency conversion. The most currency that is widely used by most freelancers I see is the US dollars. So instead they use a payment gateway.
What kind of people uses payment gateways
Most of the people online use some kind of payment gateway. This case is only valid if they did purchase a product online, it can be anything from a simple book to an online course. You need a payment gateway to be able to accept the online transaction.
To scale it a bit there is a blogger who gets paid for their program that promotes and on ads. To note that when a country restricts payment due to conflicting laws then you can use another payment platform to get paid countries like Thailand, Vietnam, Sri Lanka are sometimes the victims. That is mainly due to the high amount of fraud in the area.
Due to the high amount of traffic e-commerce stores receive and all their transaction is online they use more than one payment gateway. This is to be able to extend more reach for online visitors. Some payment platform that is not allowed in a country will work in another place.
This also applies to business owners and can help in lowering the cost of the overall budget. Some of the payment platforms like PayPal do offer online invoicing. Reducing staff in the accounting department helps in having a better cash flow management.
Still, there are a lot more categories that will fit in. For most people, this will be more than enough, as long as you are allowing an online transaction to occur you are bound to use a payment gateway.
My personal opinion
There are many people who do have great ideas but do not get the support needed to be able to start their project. When having a payment platform that will allow people that are interested to participate they can also make their project a reality. I also see millennials to use it more often as they want more freedom compared to the previous generation. This technology greatly allowed people to send money anywhere in the world without any fear.