What are Payment Gateways and Do You Even Need Them?

A payment gateway is a necessity for your online business. Here, find out about how integrating the best payment gateway in Malaysia can help you.

So, you’re all set to launch your e-commerce store in Malaysia…but wait have you integrated an online payment gateway?

Without that, your store will just be a catalog of products that lacks the ability to make or receive payments. 

This, in the end, can severely impact your overall business growth and revenue.

 

Basically, payment gateways are the bridges between you and your business. Having one integrated enables you to receive payments via…

  • Online banking
  • Card payments
  • E—Wallets
  • Split payments

For your online and traditional brick-and-mortar stores.

However, this isn’t the only benefit that comes with the Best Payment Gateway in Malaysia.

Here, find everything that you need to know about payment gateways and why it’s now the time to opt for one for your business.

Let’s get started…

 

Defining Payment Gateways and Their Need for Your Business

Providing a seamless user experience to your customers is the key to winning on today’s e-commerce battlefield. 

The more easily they can buy from you, the more they will keep coming back. That’s why you have to make sure that every part of the user journey is flawless.  

And you know what, offering multiple options during checkout can also boost customer experience and conversions. 

Using the Best Payment Gateway in Malaysia allows your customer to pay in their preferred way either by credit or debit card. 

Let’s see what exactly payment gateways are.

 

What is a Payment Gateway?

Payment gateways are basically electronic services that read and transfer the payment information from a customer to a merchant’s bank account via a secure internet connection. 

In other words, it allows the merchant to receive payments from its customers without any hassles.

 

In addition to this, there are only limited payment service providers that can avail fast yet secure payment gateways for your business. 

Here’s A Pro TIP: If you’re in Malaysia, go for Mobi to deliver your customer a seamless checkout experience. More than that, since it is the cheapest payment gateway in Malaysia, you can keep the most of what you make. 

How Does a Payment Gateway Work?

These are the 4 key stakeholders involved during the payment process. 

  1. The Merchant
  2. The Customer
  3. The Issuing Bank
  4. The Acquirer

But still, how does a payment gateway work?

When you click on that ‘PAY’ button, this is what happens behind that hassle-free process.

Step 1: Foremost, you have to fill in your credit/debit card details.

Step 2: Then the details are encrypted and sent to the merchant’s web server.

Step 3: After that, the merchant transfers the transaction details to their gateway (a secure and encrypted connection is used). 

Step 4: Then the information gets forwarded to the payment processor and afterward card association.

Step 5: Next, the customer’s card-issuing bank decides whether to accept or decline the requested transaction.

Step 6: According to the response, the payment gateway notifies the gateway owner.

Step 7: If the transaction gets approved then the requested sum of money gets transferred from the customer to the merchant’s bank account. 

Also, during these back-and-forth communications, the card details and other sensitive data are protected by Transport Layer Security (TLS) and Secure Sockets Layer (SSL) security protocol.

 

Types of Payment Gateways in Malaysia

Straight away coming to types of payment gateways, in general, there are three of these.

 

  • Platform-Based Gateways: These payment gateways are relatively costly but give the most control over the payment system. They are best for large business owners having a high volume of transactions. 

 

  • Offsite Payment Gateway: These payment gateways require your customer to be sent to a third-party server to complete the payment. Also, they handle all the techniques of payment processing.

 

  • Onsite Payment Gateways: Onsite payment gateways are similar to offsite. But in this case, your customer completes the checkout on your website only. However, payment processing is done using a third-party server. 

So, that was all about the technical terms related to the Best Payment Gateway in Malaysia!!!

Now that you know the basics about payment gateways, let’s now move toward the benefits of integrating the best payment gateways.

Or why there’s an urgent need of integrating a payment gateway on your e-commerce store.

 

 

5 Key Benefits of Integrating a Payment Gateway in Your Business

 

Having a payment gateway is a necessity for your eCommerce store. 

Not only do they increase the authenticity and security but also enable your customers to access your products 24/7 without worrying about any checkout timing restriction issues. 

Here are some more prominent benefits of switching to the best payment gateway in Malaysia

 

#1. You can Accept Payments VIA Multiple Options

The seamless payment experience and multiple payment options are also other factors that contribute to user experience and conversions.

 

Having these assures that your customer can make online transactions without any worries. Further, it also improves the trustworthiness, reliability, and visibility of your online store.

In vice versa, if you are accepting payments via a single source only, there are higher chances of poor customer experience.

 

This, in turn, can hurt your business growth and revenue. 

 

#2. Payment Gateways Saves Time

Out of all key advantages, the major advantage of payment gateways is that they help to save a lot of time.

That means now you don’t need to have a look at the excel sheet every time.

Also, since the data automatically flows, there’s now no need to enter the transaction details manually.

 

#3. Payment Gateways Offers Data Encryption

There’s always the risk of getting your customer’s sensitive data stolen.

But with a secure payment gateway like Mobi and others, you can now rest assured because each and every transaction is done via encrypted data transfer.

 

This means all your sensitive data like customer’s card information, mobile number, emails, and other related information are secured.

 

In addition, Transport Layer Security (TLS) and Secure Sockets Layer (SSL) further act as an extra layer of security. 

 

#4. Business Growth and Report

Having the best payment gateway like Mobi integrated can even help in your business growth.

This is because there are no time restrictions for your business. Now your customers can access your product and pay for them without worrying about any closing time.

This can even attract even more business to you.

Further, you can also get real-time reports about your sales. The data comes in handy when you are planning to expand your business.

 

#5. Payment Gateway Integration Helps to Reduce Human Errors

The best payment gateways can even help to reduce the chances of any human error during the manual entry of data.

Now that all your data are transmitted automatically, you, now have to worry more about expanding your business rather than finding lost invoices, calculation errors, and incorrect data entries. 

In short, if you’re planning for cost-cutting without affecting productivity, having one payment gateway integrated can be best.

 

Conclusion

 

Integrating the best payment gateway into your online store can be rewarding. Not only can it improve the user’s check-out experience but also boost your business too. 

 

However, you need to be careful with your choices. Not all gateways in the market can deliver results.

If you’re in Malaysia, going with the Best Payment Gateway like Mobi can be the best.

Its free and fast API integration, lowest payment fees, and secure payment processing have what making it increasingly popular.

For more about Mobi…get in touch with our support team.

Trending Blog Posts