Payment gateway
Definition
A payment gateway or payment gateway is a technology that enables and secures financial transactions between a customer and a merchant during online purchases. It acts as a bridge between the seller's website and the financial institutions involved in the transaction.
Examples of payment gateways
PayPal
Features: Globally recognized, user-friendly interface, supports various payment methods.
Benefits: Widely accepted, offers buyer protection, easy to integrate.
Stripe
Features: Developer-friendly API, extensive customization options, supports multiple currencies.
Benefits: Flexible and scalable, suitable for both small and large companies.
Square
Features: Easy to use, offers solutions for both online and physical payments.
Benefits: Popular with small businesses, it offers integrated POS systems.
Mollie
Features: Supports various payment methods such as iDEAL, credit cards, and PayPal.
Benefits: Easy integration, transparent cost structure, suitable for European markets.
Adyen
Features: Global coverage, supports multiple payment methods, extensive reporting options.
Benefits: Suitable for large companies, offers a seamless payment experience.
How does a payment gateway work?
- Collection of payment information: When a customer places an order, he enters his payment details on the webshop's checkout page.
- Encryption: The payment gateway encrypts this information to ensure security.
- Authorization: The gateway sends the encrypted data to the payment processor, who authorizes the transaction with the customer's bank.
- Processing: After authorization, funds are transferred from the customer's account to the seller's account, completing the transaction.
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