A
payment gateway is a secure online service that
processes payments when someone buys something on a website or app.
Simple explanation
A payment gateway works like a
digital card machine (POS machine) but for online transactions.
When a customer pays using a
credit card, debit card, net banking, mobile wallets, or UPI, the payment gateway:
- Collects the payment details securely
- Encrypts the information so no one can steal it
- Sends it to the bank for approval
- Returns approval or failure to the website
- Completes the transaction if payment is successful
