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Choosing the right payment gateway solution is a crucial decision for any online business. Whether it is an eCommerce company or a fintech company, a B2C company, or a B2B enterprise, choosing the right payment gateway can make digital wallet solutions or a business website robust, reliable, and secure.

In this blog, we will discuss the key factors to consider for selecting the right payment gateway for your online payment solution. But, before moving ahead, let’s quickly look at the types of transactions that payment gateways can execute.

Payment Gateway and Types of Transactions

The payment gateway is a service for accepting and processing payments in online and brick-and-mortar stores. It serves as a bridge to facilitate the transaction between customers and merchants. Payment gateway ensures secure transactions by following security protocols and encryption techniques. Whether you have a business website or a dedicated enterprise app, the payment gateway transfers the data to payment processors or banks and vice versa.

The mobile wallet company can integrate the payment gateway into the mobile money solution for executing the following types of transactions seamlessly and swiftly-


This type of transaction is based on checking whether the customer has enough funds to pay. During authorization, a merchant or vendor ensures that a credit or debit cardholder is capable of paying for the order. This type of transaction does not involve the actual money transfer, and it is useful for orders that take time because of shipping and manufacturing processes.

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It is a fund processing type where the previously authorized payment is transferred to the merchant account.


It is a combination of authorization and capture. Here the cardholder is authorized first and then funds may or may not be transferred. Most digital payment solutions are designed for this type of transaction because it is useful for immediate purchases like eTickets and a subscription purchase.


The payment gateway can initiate the refund process in the case of a canceled order or a merchant applies for a refund payment process.


It is similar to a refund and it is done if funds were not transferred.

Online payment processing is a bit more complicated and involves multiple stages. It is not as simple as seen on the desktop or a mobile device in the form of a small window or checkout section. Whether it is a P2P payment solution or an eWallet app solution, the process is executed after verifying the transaction data on both ends. The payment gateway takes about 3 to 4 seconds to perform several tasks after the customer checks out.


Payment Process using Payment Gateways

While checking out, the customer passing the card number, card expiration date, and CVV to pass the transaction data. The data is encrypted and sent to the merchant web server through an SSL connection. The merchant passes the transaction data to the payment gateway using another SSL channel. The SSL channels are encrypted to safeguard the confidential data.

The transaction data goes to payment processors, which are connected to the merchant’s account and a payment gateway for transferring the data. Here the payment processor passes the transaction to the respective card network like Visa, Mastercard, etc. The card network verifies the transaction data and passes the same to the card issuer bank.

The bank either accepts or denies the authorization request and responds with a code back to the payment processor. The code has the transaction status and error report. Now, the payment gateway receives the transaction status and passes it to the company’s websites.  The customer can see the transaction status. The issuer bank transfers the fund to the merchant account the next day. This transaction remains between the issuing bank and the acquiring bank.

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eWallet app development company can utilize any of the main methods to integrate a suitable payment gateway- Hosted, Direct Post, and Integrated.

Let’s go through the top factors to consider for choosing the right payment gateway.

How to Select the Most Suitable Payment Gateway for Your Business? 

International Acceptance

Think of PayPal and String. They are internationally accepted gateways. Even if you own a local business and a local payment gateway provider is available, it is better to keep your business ready for international trade by integrating international payment gateways. It can help you attract more customers and leverage the benefits of cross-border trade.


Your online business can grow eventually. When it involves international business activities, your customer base will increase rapidly. Here, the payment gateway should be scalable and capable to handle increased sales volume. Therefore, you should consider the scalability of payment gateways.

User’s Choice

These days, people prefer online shopping using their smartphones. Therefore, the choice of a payment gateway should be based on mobile-friendliness. Popular payment gateways are, therefore, preferable.

Complexity and Integration Process

A reputed eWallet app development company can easily integrate the payment gateway in Android and iOS applications. But then, if you need a robust digital payment solution, it requires more time and development effort to integrate and customize the payment gateway.

User Experience

This is the most necessary aspect to consider. An ideal payment gateway should give a quick and seamless checkout experience. Also, the gateway you selected should be capable of accepting payments from all popular payment methods including net banking, credit cards, and debit cards.


Some payment gateways demand transaction fees. These fees depend on multiple factors and usually equal to the percentage of the billed amount plus a flat fee. You can opt for a cost-effective and yet powerful payment gateway for integrating into the business website or app.

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Concluding Lines

Selecting a payment gateway solution that addresses your transaction needs effectively can take your time and effort. The digital wallet solutions provider can help you make a decision, but you can keep in mind that the payment gateway you select should have almost all aspects we have mentioned here. With this, you need to keep preference to the seamless performance while selecting the payment gateway.

Solution Analysts is a leading mobile app development company. Our in-house team of experienced app developers can build robust, secure, and feature-rich fintech app for the BFSI sector. We also build customized digital wallet solutions with technological advancements. Just drop us a line at and mention your fintech or wallet app requirements. We will get back to you with a complete strategy.

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