A payment gateway is a merchant service provided by an e-commerce application service provider that authorizes credit card or direct payments processing for e-businesses, online retailers, bricks and clicks, or traditional brick and mortar. The payment gateway may be provided by a bank to its customers, but can be provided by a specialised financial service provider as a separate service, such as a payment service provider.
Payment gateways are a service that helps merchants initiate ecommerce, in-app, and point of sale payments for a broad variety of payment methods. The gateway is not directly involved in the money flow; typically it is a web server to which a merchant's website or POS system is connected. A payment gateway often connects several acquiring banks and payment methods under one system.
The benefit for retailers here is that the gateway is responsible for the security of the transaction and the customer's data. One possible drawback is that, since it takes customers away from the site, it can harm conversion rates. The customer may not be expecting this or may not trust the gateway.
Fondy, PayPal, Authorize.Net, Stripe, 2Checkout, and Adyen are the top 5 best online payment gateway providers. They offer numerous beneficial features that can help in increasing sales by easing up the checkout process and offering your customers several payment options, in various currencies.