Difference between Online Payment Gateway Solution and Online Payment Processor
Setting up an e-commerce payment solution can be tricky. Terms such as ‘e-commerce payment gateway’, ‘payment processor’ and ‘electronic wallets’ are thrown around liberally by some payment service providers. Read on to know the differences between these terms.
What Is a Payment Gateway? An e-commerce payment gateway is a technological solution that authorizes card payments. An online payment gateway works as a channel between the ecommerce website and banks or card companies. To use an online payment gateway, e-commerce businesses have to establish relationships with banks, card companies and also the technology solution provider.
What does A Payment Processor Do? The primary function of an online payment processor or online payment service provider is to develop payment gateway solutions for clients so that they can accept cashless transactions through various electronic payment methods. The responsibilities of an epayment or online payment service provider are far-reaching. These companies act as mediators between e-commerce businesses and banks or card companies. They provide services for fund settlement and offer technical solutions including integration for multiple payment channels, multi-currency transactions, comprehensive reporting, PCC DSS compliance, fraud detection and much more.
How Do Electronic Wallets Work? Hong Kong online payment gateway providers offer a variety of payment methods including credit card, direct debits, bank transfers, mobile payments, and electronic wallets. Electronic wallets are becoming increasingly popular among online shoppers due to the efficiency, security, and utility they provide. Users can load e-wallets with money that’s in their bank account or by using their credit cards. They can then use the loaded amount to pay for goods and services. To use an e-wallet, users are required to store certain information such as bank information, personal particulars or card details in the highly secure system.
Payment Service Providers Are Vital Links An e-wallet is considered to be an alternate payment method. In China and Hong Kong, the popular e-wallets are Alipay, Wechat Pay, Apple Pay, and Paypal. Cashless mobile payments done by scanning QR code are also becoming popular due to convenience, security and instant outcomes. Businesses benefit because mobile payment solutions deliver a shorter settlement period and lower operational costs. A mobile payment solution can be developed by a payment service provider. To enable transactions via e-wallets or mobile payments, an e-commerce business would still need a payment gateway and the support of a Hong Kong online payment gateway provider to complete a transaction.
Now that you understand the differences between these terms, go ahead and discuss your requirements with a toprated Hong Kong online payment services provider!