To enable customers to make payments by card or phone on an online platform, the e-commerce platforms integrate various terminals on a platform. These terminals or other checkout portals used by e-commerce platforms are called payment gateway options. The payment gateways can either be hosted payment gateways, self-hosted payment gateways, API-hosted payment gateways and local bank or wallet integrations.
Payment gateways are software that is cloud-based and integrated into a platform to connect merchants and customers. The job of this software is to securely capture the payment data and to make a safe and secure transaction of money from the customer’s account to the merchant’s account.