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Ways to Accepts Online Payments for Your Startup

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If you are setting up an eCommerce store or selling digital products from your website, you’ll need a payment gateway to accept payments from your customers.

Until a couple of year back, setting up a payment gateway was a mammoth task. It used to involve a lot of documentation, verification, huge setup fees and technical know how to make it work. But now, it has become very easy to setup a payment gateway for selling your products in India.  Online digital transactions can be accepted by merchants through multiple ways, each with its own set of advantages and challenges. However, before choosing a payment gateway, there are 5 things to be considered:

  • Payment gateway cost (Setup fee, TDR, Annual free, etc)
  • Time to setup everything
  • User Interface of the gateway
  • Payment options (Credit/Debit Cards, Netbanking, Mobile Wallets,etc)
  • After-sale Support


There are three payment options you can choose from:


Bank’s Payment Gateway aka Second Party Payment Gateway

Second party payment gateway is an online payment method provided directly by the bank. A business owner can directly contact his/her bank and get a payment gateway set-up. Though the process looks simple, it’s actually tiresome as you have to go through a lot of paperwork and the set-up time is high. Also, banks have a low Transaction Discount Rate(TDR) in simple words it means transaction fees, but their setup costs are very high. If you are a small business or you are trying to setup an online business for the first time, the second party providers would be very expensive initially.






Third Party Payment Gateway

One of the fastest and easiest way to get your online payment mode set up is through a third-party payment gateway. They also charge TDR, but the set-up fees are low and also negotiable. Same as banks, third-party payment gateway supports all major credit and debit cards, net banking, but they also offer other payment modes as well. For example, MobiKwik Payment Gateway has 50+ Netbanking portals, and popular e-Wallets all on one screen meaning your customers can transact without navigating to another page.

While both the methods look similar, but third-party has an advantage in terms of flexibility, user-friendly interface, and easily interactable.




Mobile wallet integration

Another way to accept online payments is through mobile wallet integration. Your consumer can download the mobile wallet app on their phones, can get it recharged and pay you directly from there. Wallets are easy to integrate and convenient to use from the customer standpoint. Wallets also support all kinds of payment options. Plus, they also offer various discounts and schemes, thus helping in customer retention.






After evaluating several factors like costs involved, effort required, customer experience and customer adoption, the start-ups can choose between either a third- party gateway or mobile wallet. Both are effortless and efficient process for online digital payments.

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