What is Payment Gateway in Retail? Explained

A payment gateway in the retail industry is an online service that facilitates secure and seamless transactions between a customer and a merchant during an electronic purchase. It acts as the intermediary that authorizes and processes payment transactions by securely transmitting sensitive information, such as credit card details, between the customer, the merchant, and the financial institution. Payment gateways play a crucial role in ensuring the security and efficiency of online transactions, providing a layer of encryption and authentication to safeguard financial information. They support various payment methods, including credit cards, digital wallets, and other online payment options, contributing to a smooth and trustworthy e-commerce experience.