Accepting payments from customers is essential for running your business. So here is Stripe as a payment gateway coming. Payment gateways facilitate the process by securely transferring payment information between your customers, your website, and your bank.
More than 80% of purchases made in the United States are anticipated to be made using a method other than cash by 2022.
While in Malaysia the market for payments had a 2021 market value of USD 157 billion and is anticipated to grow at a CAGR of 10.30% over the next five years.
After the outbreak of the COVID-19 pandemic, there has been a significant increase in online payments for goods and services, especially for Ecommerce transactions, in urban and semi-urban cities.
Further, e-wallet and fintech companies are working harder to incorporate technology into local commerce, making online payments more accessible.
How Does a Payment Gateway Work?
The payment gateway is a crucial part of the online payment processing system. It is the front-end technology in charge of transmitting client data to the merchant-acquiring bank, where the transaction is eventually processed. Here are the steps of the payment gateway work:
- The customer places an order and payment details are sent to the payment gateway for processing.
- Payment details are encrypted for security.
- The payment gateway sends an authorization request to the issuing bank.
- Issuing bank approves or declines the transaction based on available funds and credit limit.
- The merchant receives a confirmation from the payment gateway.
- The payment gateway settles the transaction by transferring funds from the customer's account to the merchant's account.
Types of Payment Gateway
Each payment gateway has its own set of features and advantages, making it essential to select the one that fits your business's needs. Here are some of the most popular types of payment gateways:
1. Hosted Payment Gateways
A hosted payment gateway allows customers to complete their transactions without leaving your website. This type of payment gateway is easy to set up and manage. It typically comes with built-in security features to protect against fraud.
2. Self-Hosted Payment Gateways
A self-hosted payment gateway provides more control and customization options than a hosted gateway. You are responsible for the security of the payment process, making it essential to have the necessary technical knowledge and resources.
3. API Payment Gateways
API payment gateways allow merchants to integrate payment processing into their own websites or mobile apps. This type of payment gateway provides complete control over the payment process, allowing for customization and integration with other business systems.
4. Mobile Payment Gateways
Mobile payment gateways allow customers to complete transactions using their mobile devices. This type of payment gateway is becoming increasingly popular as more people use their mobile devices to shop online.
5. Virtual Terminal Payment Gateways
Virtual terminal payment gateways allow merchants to accept payments over the phone or through mail orders. This type is ideal for businesses that operate with a physical storefront and want to offer payment options for customers who are unable to pay in person.
What is Stripe Payment Gateway?
Stripe is a payment gateway that makes it easy for businesses of all sizes to accept payments from customers. The goal is to make online payments simpler and more accessible for everyone. Today, Stripe powers millions of transactions every day for businesses in over 120 countries.
Stripe offers the latest technology to detect and prevent fraud, including machine learning algorithms, 3D Secure authentication, chargeback protection, and more.
Who Uses Stripe?
Here are a few examples of the types of businesses and industries that use Stripe:
- E-commerce
- Software as a service (SaaS) businesses
- Nonprofits and fundraisers
- B2C Marketplaces
- Mobile apps
- Online retailers
How does Stripe work?
Stripe works by providing businesses with a payment gateway that connects their website to the Stripe platform. When a customer makes a payment on the business's website, the payment information is securely transmitted to Stripe for processing.
After that, Stripe verifies the payment information and either approves or declines the transaction. If the transaction is approved, Stripe transfers the funds to the business's bank account within a few days.
Integrating Stripe with Your Website
Integrating Stripe into your website's payment flow is a relatively straightforward process.
1. Create a Stripe account
The first step is to create a Stripe account here. Simply head over to the Stripe website and sign up for an account. Once you've completed the sign-up process, you'll be taken to your Stripe dashboard.
2. Add a payment form to your website
Next, you'll need to add a payment form to your website. This is the form that your customers will use to enter their payment information. You can create a payment form using HTML and CSS or a third-party payment form provider.
3. Connect your website to Stripe
Once you've created your payment form, you'll need to connect it to your Stripe account. To do this, you'll need to generate a set of API keys from your Stripe dashboard. These keys will allow your website to communicate with Stripe's servers and process payments.
4. Test your payment flow
Before you go live with your new payment flow, it's important to test it to ensure that everything is working. You can do this by creating a test transaction in your Stripe dashboard. Then, make sure that the payment is processed correctly.
5. Go live
Once you ensure that everything is working, it's time to go live with your new payment flow. Simply update your website's payment form to point to your live Stripe API keys, and you're ready to start accepting payments from customers.
Why use Stripe for online payments?
There are some reasons why Stripe is a popular choice for your businesses to accept online payments. Here are some of the benefits:
- Ease of use: Stripe's platform is designed to be easy to use, even for businesses that have no prior experience with online payments.
- Security: Stripe takes security very seriously and uses a range of advanced measures to protect both businesses and their customers from fraud and other online threats.
- Customizability: Stripe's platform is highly customizable, allowing businesses to create payment flows that are tailored to their specific needs.
- International support: With support for over 120 currencies and payment methods, Stripe makes it easy for businesses to accept payments from customers all over the world.
- Integration: Stripe can be easily integrated with a wide range of third-party applications, making it a versatile choice for businesses of all sizes.
Final Word
Integrating Stripe into your website is a straightforward process that can be completed within a few hours. If you're looking to integrate a payment gateway with your business platform, don't hesitate to reach out to us at VirtualSpirit.
Our team of experts can help you navigate the complex world of online payments. We help you to ensure that your payment processing system is secure, reliable, and efficient. Contact us today to discuss more on how we can help you take your business to the next level!
