Specifying 5 Ways Why Payment Gateway is Helpful For Startup Business

Payment Gateway

The startup ecosystem has taken over the world over the past several years, and the number of startups has changed drastically ever since Covid happened.

Running a startup involves a continuous flow of money in and out, where digital payments came into the picture. 

Each and every entrepreneur is on the run of creating something valuable for the people that can be consumed or acquired without the actual physical contact, right from their home through their devices.

Don’t you think how cool it is, someone coming on your website or application and paying digitally for acquiring your product without even having any sort of negotiation convo or else? 

Before jumping on the importance of a payment gateway for a startup, let’s first understand what it actually is.

What is Payment Gateway?

We can term a payment gateway as an online service used for making or receiving online payments.

Startup Business involves a continuous flow of money in and out, and with the giant wave of the internet kicking in from the past several years, running an online business has become almost a new trend, and it has ultimately given rise to digital transactions (sending or receiving money over the internet).

Now, let me walk you through the benefits of having a payment gateway for a startup business.

5 Major Benefits of Payment Gateways For a Startup Business

1. Safe, Secure, and Fast 

Integrating a good payment gateway on a website or an application helps in the smooth, secure & fast flow of money from the payer to the payee. It promotes safer digital transactions, which help enrich the customer’s experience towards your business. Thanks to them now, you can run your online business without any delays in receiving payments.

2. Saves Time

In the fast-moving digital world where everything is growing rapidly, no one likes to spend their time making physical payments anymore. This is another foremost reason why payment gateways have become so popular. It has given the flexibility to the users to make payments through the internet, without investing much of their time with just a few clicks, sitting anywhere in this world.

And this has saved a lot of time not just for the user but also for the merchants or the sellers.

Payment Gateway

3. Automation

Automation is regarded as one of the best introductions in the digital world, and payment automation is one. For example, Setting up an automated method of receiving online payments has saved time and money (spent on people managing online transactions) and minimized errors.

Not only this, but now you can also quickly generate invoices, etc., with just a couple of clicks.

4. Global Acceptance

Running your startup over the internet without payment gateways limits your business to remain at the local level, and you fail to compete and present your product in the global market.

It allows you to stand out in the global market, as it gives you the flexibility to accept online payments throughout the world, no matter where your business is located or your customer is, and it also cuts down the difference between the currencies and gives you a chance to become an international brand and scale your business in the countries you desire to.

5. Boost in Business 

Not having a proper ecosystem of receiving and making payments online not only degrades the customer experience but it also reduces the profits which you could have made if you had integrated a proper channel of making online payments on your website or application.

Let’s understand this with a quick example.

Suppose you run a clothing business by the name “Riverdale” through a mobile application.

Now here is a person called Alex who has heard a lot about your business and he came to know that your brand has a mobile application too. So he downloaded your mobile application and wants to purchase clothes for himself. 

After downloading the application, he selects the clothes of his choice and adds them to the cart, and then he finds out the application does not have a channel for making online payments.

Now just think about what impact it would create in the mind of Alex, who was almost going to become your customer. Not having a proper channel for online payment has degraded the Alex (customer) experience of online shopping on your application.

I hope with the above example you have understood how not having a proper channel for making online payments can not only degrade the customer experience but can also reduce your company’s profit.

Conclusion

Running an online business involves loads of digital transactions. Suppose a good channel of accepting online payments is not integrated on your website or application. In that case, it can limit your business from scaling and making an impressive impact on the user.

In this article, I have acknowledged you about the 5 significant Unfortunately, not benefits of payment gateways for a startup business, how they can help give your customers an enriching experience, making your brand reach each corner of the world, & how it can save your time, money and efforts.

Also Read: Expense Management System

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© Ruchi Verma

Disclaimer: I write this post as an informational part, please read all guidelines carefully before investing in financial transactions.

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Ruchi Verma

Certified parenting teen practitioner, multiple Award winner, mother of two active kids believes in sharing the right source of information to readers which could help them in every possible way!!

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26 Comments

  1. wow Ruchi, how beautifully you explained this entire concept by giving the clothing business example. Running a online business has become today’s trend and to run it successfully, there is no scope for loopholes.

    1. Online businesses need to make sure have safe payment gateways!!

  2. Many startups and payments have become so curtail. And sometimes we find it diffucult to trust a website that is new. yet safe and secure is best way for business and customers.

  3. Infact when I see a payment gateway, I feel more confident of making a purchse with the startup frankly.

  4. Great pointers ruchi. I agree running a start up business is a big deal in Today’s over competitive market. Having a facility of making an online payment can be helpful for customers and can offer advantages for start ups in long run.

  5. Shreemayee Chattopadhyay

    Online business is the new trend nowadays and it helps many people to earn during such tough time. My sisters are on clothing business. Your detailed information will help them.

  6. Absolutely correct. Understanding how payment gateway works is very important for online business Today. Your example makes it easier to understand. Hopefully will help many

  7. Being a small business owner myself, I agree that it is so helpful to have a payment gateway integrated as it helps customers and business owners in many ways. I like the fact that it surely automates many things.

  8. Truly any kind of online business revolves the risk of dealing with money, so we have to make sure of a safe payment gateaway. This is a very important post, specially for these times.

  9. Since I have in my job worked towards integrating payment gateways with an online food ordering system in the US, I can also share some insights. Payment gateways in the US operate in a slightly different way than India. For instance, in the US, payment gateways can request customers to block a certain amount of money from their card for payment against purchases. In India, perhaps that feature is not supported I think. Payment gateway companies like Stripe are yet to make a foray in the Indian market.

  10. In these times business, at least a major part of it is happening online and hence it absolutely makes sense to have a secure online payment system in place, a payment gateway is really helpful in boosting the business.

  11. The entire world has gone online and you can buy anything and everything that you desire by just entering your card details. Payment gateways have made life easy for the shoppers and sellers alike.

  12. Any website with a payment gateway has double the chance of retaining customers due to the ease in payments. Like you said it’s safe, globally accepted and a must for businesses now.

  13. I absolutely love how easy you make these topics for us to understand. Payment gateways are indeed a must especially in a time when new businesses are aiming for more and more customers everyday.

  14. I completely agree with you Ruchie payment gateways are a huge support for the startup business for the wide acceptance of these gateways globally.

  15. This is very informative post . I guess it is very important for Online businesses need to make sure have safe payment gateways.

  16. Payment gateways are a boon to local as well as national businesses. You have explained this beautifully with right examples.

  17. Online business has become a trend these days and for this a good secure and customer friendly payment gateway should be there . You have explained really well .

  18. Payment gateways are so helpful if you have small business and want to sell online. Safe payment gateways bring more business.

  19. Thank you, Ruchi for this post. For the longest time, I have been contemplating having a payment gateway for my counselling website because following up with clients has become a hassle and time-consuming.

  20. A good payment gateway is very important for any e-commerce platform. Helpful post for a start-up business.

  21. Super useful post for those who want to start their own biz. Your posts have very valuable content.

  22. Quite helpful for those planning to start their own business

  23. Thank you, Ruchi for sharing this. Last year, I along with my sisters had launched Swarna Utkala and we were thinking to add a payment gateway. This post brought lot of clarity.

  24. Payment gateways are so important now a days. Even for well established businesses, if their payment gateway does not work, it is quite irritable for the consumers.

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