Payment Gateway API: What Every Merchant Should Know

The last thing you want to think about as a busy eCommerce merchant is a payment gateway API.

However, regardless of what you sell or the size of your company, client satisfaction is almost certainly your first concern. After all, they are the lifeblood of your company.

You could be neglecting an essential aspect of the consumer experience. And it has to do with the most crucial stage of the purchasing process — the last page of the checkout process. If there’s even a hint of friction throughout the checkout and payment process, customers may begin to doubt if it’s safe to leave their payment information. You risk losing them entirely.

However, using the correct payment gateway API can eliminate these concerns and give your customers a smooth and flawless checkout experience.

This guide will discuss the concept of a payment gateway API, the advantages of integrating one with your eCommerce website, and what to look for when selecting a payment gateway for your business.

What is a payment gateway API?

API stands for Application Programming Interface. An API is a set of written instructions that allows two devices, apps, or databases to communicate and exchange information.

Simply put, it’s the software language that allows us to perform things online behind the scenes. APIs enhance the digital experience by making it more inventive and fun.

A payment gateway API connects your business to a payment processor and acquiring network by integrating with your eCommerce website’s checkout page. It allows users to complete transactions without being transferred to a third-party domain. This allows them to stay on your website throughout the process.

This can help you create a seamless payment experience, increase brand confidence, and strengthen customer connections. If you’re not using a payment gateway API, it’s the right time to get one.

The benefits of integrating payment gateway API into your eCommerce store

1. Improves your customer shopping experience by streamlining the payment process.

If you spend much time pouring over the analytics provided by dashboards for ecomm stores, you’ll begin to see that the checkout page is an essential component of an eCommerce website that is frequently disregarded.

However, this is when potential or current clients pass up their money and personal information. You’ll almost certainly lose the deal if you lose their trust.

The payment procedure is simplified by using a payment gateway API. Customers are never routed to another website; instead, they see your domain, which you can personalize with your logo and brand colors.

With this degree of convenience and simplicity, you can simplify the payment process, increase confidence, and minimize abandoned shopping carts.

2. It helps you understand your customers buying habits better.

A payment gateway API provides you with a wealth of relevant information rather than wading through an extensive list of transactions at the end of each week or month.

Use real-time data better to understand your clients and their different purchasing habits. As a result, you’ll be able to boost your marketing efforts.

3. You can accept multiple payment methods and boost your conversions.

According to research, the average shopping cart abandonment rate is 69%, attributed to customers’ lack of payment options.

With the correct API, you may accept a wide choice of online payment methods (trusted and favored by customers), from credit cards to digital wallets to local payment methods.

The more payment methods you have, the more customers you’ll be able to attract, and the more likely you’ll be able to convert website visitors into paying clients.

Keep customer data secure.

You’re no longer constrained to using hosted payment sites supplied by eCommerce platforms to minimize the danger of collecting credit card payments.

You may create a bespoke payment experience using a payment gateway API while the provider takes care of data security by encrypting crucial credit card information. You don’t have to worry about PCI compliance because payment gateway API providers are accountable for it.

Choose an API that allows you to handle a variety of payment methods, such as mobile applications, digital wallets, peer-to-peer apps, and installment payments, all while keeping your business and your customers’ information secure.

Offer an innovative payment experience.

You may be able to interface your payment gateway API with external apps. This depends on the API you pick for your eCommerce store. It has the benefit of allowing you to tweak the API and reinvent the payment experience to fit your business’s demands and consumers’ expectations.

Choose the best payment gateway API for your eCommerce business.

1. Ensure it’s secure.

For whatever form of transaction, payment security should be a top consideration.

To avoid online fraud with credit and debit card transactions, make sure the payment gateway you’re using is PCI compliant and uses 3D Secure.

You may also inquire about how the payment gateway API provider secures its servers and how its engineers and employees are educated to deal with payment security.

2. Find one that’s easy to use with modern features.

APIs aren’t new, but they’re continually changing, and new standards are being established.

First and foremost, ensure that the payment gateway is compatible with the eCommerce platform or your custom-built eCommerce website.

Then you’ll want to make sure it’ll make life simpler for you (or your website developers). The API should be straightforward to integrate with your eCommerce business. Functions should be simple to test and use.

3. Does it give you the features to grow your business?

Select a payment gateway API with the features you’ll need to succeed.

This covers the number of payment methods it accepts, customization options, and the end-overall user’s payment flow experience.

If there is any friction throughout the checkout process, you might want to keep looking.

4. Can you accept multiple currencies?

If you want to conduct cross-border sales and expand your eCommerce business internationally, ensure sure the API provider offers a wide range of currencies.

5. Check the time it takes to get payouts.

When it comes to the API, settlement times are more about the payment gateway than the capabilities and convenience of use.

However, it is still an important issue when picking a payment gateway API integration. As a result, you’ll want to make sure that your payouts arrive on schedule.