Having an online presence has become essential for businesses today. In fact, stats confirm that 71% of businesses already own their websites. If you have already launched a website, you might have come across the terms payment gateways and payment gateway integration services. If not, no worries, we will discuss it all here in this blog.
What is Payment Gateway Integration?
Every e-commerce store website requires a strong and secure payment processing system. Payment gateways act as a bridge between the customer’s online payment methods like credit/debit card, UPI, net banking, etc., the merchant, and the bank account involved in the transaction. The process of connecting or integrating these payment systems to a website or mobile app for secure and seamless financial transactions is called payment gateway integration.
The payment gateway market is continuously growing and is projected to expand from $37.72 billion in 2024 to $44.68 billion in 2025. According to reports, it reflects a compound annual growth rate (CAGR) of 18.4%.
(Source: Payment Gateway Market 2025 Report)
Major Types of Payment Gateways Integrations
- Hosted Payment Gateways
- Non Hosted Payment Gateways
- API-Based Integration
- Direct Post Integration
- Iframe Integration
- Mobile SDK Integration
- Subscription/Recurring Payment Integration
- Cryptocurrency Payment Gateways
Hosted Payment Gateways
It is a third-party payment solution that allows sellers to receive customer payments without storing their sensitive card details. The best examples of hosted payment gateways are PayPal, Stripe, and Razorpay. The key advantages are ease of integration and high security, and it is managed by the gateway provider. One of the major drawbacks is that sometimes the redirection may disrupt the checkout flow and impact the user experience.
Non-Hosted Payment Gateways
It is also known as Integrated Payment Gateways. Non-hosted payment gateways enable customers to complete transactions directly on the business website without being redirected to any external platform, no third party is involved in the transaction. Popular examples of non-hosted gateways are Authorize.Net, Adyen, and Square. Businesses using Payment Gateway Integration Services must follow Payment Card Industry Data Security Standard (PCI DSS) compliance rules. It states that they should be responsible for storing, securing, and conducting each transaction. There is another option, where companies can opt for a white-label payment gateway as a non-hosted solution. These are prebuilt gateways that can be customized and branded. One of the white-label solutions designed for merchants is MasterCard.
API-Based Integration
It is the best for sellers who want to take complete control of their website design. As the name suggests, API-based payment gateway integration services uses APIs provided by the payment gateway to connect the payment system with websites or apps. Two examples are Paytm APIs and Stripe APIs. The benefits include a fully customizable interface and advanced features like subscription management. The drawback is that it requires technical expertise for implementation and maintenance. And the merchant will be fully responsible for all transactions and security.
Direct Post Integration
Direct Post Integration means customers never leave the site to complete their purchases. When they hit the “buy” button, their payment information is sent directly to the payment gateway. This flexibility removes merchants from having to store sensitive payment data themselves, which can reduce the PCI compliance requirements.
iFrame Integration
Similar to the direct post-integration method, here customers can make payments directly on the merchant website without being redirected to another platform. This integration embeds a payment form via iFrame supporting a wide range of payment options and providing a smooth checkout experience. It also minimizes PCI compliance requirements for merchants, allowing businesses to control their site’s front end without managing sensitive payment details themselves, striking a happy medium between convenience and security. Two examples are Payza and Worldpay.
Mobile SDK Integration
Mobile SDK Integration lets businesses integrate a payment gateway directly into the mobile app to provide an optimized and seamless payment experience. PayPal Mobile SDK and Stripe Mobile SDK are two examples that facilitate secure and convenient in-app payments. If you have a mobile-first business, this is a great option with the least redirection and seamless checkout. However, it does come with challenges, such as the need for specialized app development skills and continuous maintenance to ensure it is compatible with the new updates. Despite its complexity, it’s a powerful solution for businesses that want to reach mobile-savvy customers.
Subscription/Recurring Payment Integration
The subscription or recurring payment integration is intended to handle reoccurring payments, especially those belonging to subscription-based businesses. Some examples include Stripe Subscriptions and Recurly. This solution automates billing and invoicing and reduces manual effort. However, it’s just for businesses that use subscription models.
Cryptocurrency Payment Gateways
Cryptocurrency payment gateways enable merchants to accept payment in cryptocurrencies such as Bitcoin and Ethereum. Such examples are Coinbase Commerce and BitPay. Attracting tech-savvy and global customers and reducing transaction fees through these gateways. However, they encounter challenges such as fluctuating currency values and limited widespread adoption.
The Key Roles of Payment Gateways
- Authenticating Transactions: Payment gateways double-check that the customer payment details are correct before proceeding with the transaction.
- Encrypting Data: They protect sensitive information by encrypting it during transfer.
- Facilitating Payments: Once everything checks out, they move the payment from the customer’s account to the merchant’s account.
- Providing Status Updates: The payment gateway notifies the transaction (success or failure) status to everyone involved.
Examples of payment gateways are PayPal, Stripe, Razorpay, and Square.
Key Features of Payment Gateway Integration Services
- Multi-Currency Support: For global businesses, this feature lets you accept payments in different currencies, making it easier to do worldwide business.
- Mobile-Friendly Payments: It ensures payments can be quickly processed on mobile devices anytime, anywhere.
- Recurring Billing: Recurring billing makes life easier for businesses with subscription models by automating regular payments without needing manual input.
- Fraud Detection and Security: Payment gateways are equipped with strong security measures like encryption, tokenization, and PCI DSS compliance to keep both businesses and customers safe from cyber threats.
- Easy Integration: With APIs and plugins, these gateways can easily be connected to various platforms like WooCommerce, Magento, or custom websites, so you don’t have to worry about technical hurdles.
Why are Payment Gateway Integration Services Important?
1. Secure Transactions
Secure online transactions represent the most critical reason why businesses should utilize payment gateway integration services. Payment gateways maintain customer security by integrating encryption protocols with fraud detection tools which secure personal data from cybersecurity threats.
2. Enhanced Customer Experience
A streamless checkout process is important for achieving customer satisfaction. These provide customers with a wide range of payment options that they find helpful and easy to use.
3. Boosts Business Credibility
A reliable payment gateway increases trust among customers. During checkout, when a customer sees a familiar and secure payment gateway they are more likely to complete their purchase without any hesitation.
4. Supports Global Expansion
Businesses looking to expand to worldwide markets can utilize payment gateways which enable them to accept transactions from worldwide customers in their preferred currency.
5. Streamlined Operations
Automated payment gateway integration services may minimize manual involvement, helping reduce human errors and allowing businesses to make time to work on their customer engagement strategies.
6. Insights and Reporting
Payment gateway end users gain access to built-in analytic tools for monitoring transaction analytics and understanding revenue trend patterns alongside customer behavior.
How to Choose the Right Payment Gateway Integration Services?
Consider the following factors when selecting a payment gateway for your business:
- Compatibility: Your payment gateway needs to perfectly integrate with your entire website framework including technical stacks and platform components.
- Transaction Fee: Also, check each transactional fee apart from the initial setup fee and continuous maintenance cost.
- Customer Support: Choose a gateway system that delivers exceptional customer service assistance to solve problems swiftly.
- Payment Options: Your platform choice for gateway payments must deliver various payment methods to accommodate numerous customer preferences until you make up your mind
- Security Features: Seek out gateways with high-level safety measures like SSL certificates, ways to protect data, and tools to stop fraud.
Conclusion
In today’s world, where online shopping is everything, having a solid payment gateway integration services setup is essential. It offers a smooth and secure shopping experience to customers and helps merchants grow. Not only does it protect transactions, but it also builds customer trust, which can really boost your business’s success.
Choosing the right payment gateway integration helps keep your business competitive, customer-focused, and ready to adapt to the ever-changing world of online payments. If you’re looking for expert assistance, EM Softech, our Payment Gateway Integration Services Company in US is here to help you grow your e-commerce business. Whether you’re just starting out or already established, integrating a trusted payment gateway is key to growing your e-commerce business. Get in touch with us to know more.