What is a Payment Gateway?
A Payment Gateway is a word utilized for the E-commerce facility which offers a station to approve the credit or debit card expenditures from the purchaser’s bank to the online sellers. In other terms, payment gateways enable the handover of capitals from the purchaser to the website by means of an available portal.
Types of Payment Gateways
There are two kinds of payment gateways, one is Direct Gateway and other is External Gateway.
External Payment Gateway-
Here the client is forwarded to another online gateway to process the deal and can be transmitted to the parent site once the deal is established. Direct Gateway Though, in the Direct Payment Gateway, the payment procedure is completed on the parent website itself.
What do you understand by Digital Wallet?
A digital wallet is quite different from Payment Gateway and it allows patrons to store their cash in an online case, which the clients can use for numerous online dealings straight from the wallet. Digital wallets aid you save time as well as are safer since no need to enter your card details each time while you do a business deal online.
Types of Digital Wallets
There are numerous smartphone apps which provide digital wallets such as –
- Paytm
- FreeCharge
- MobiKwik
- Hotremit
- Oxigen
- Various other digital wallets
By digital wallets, one can pay service bills, recharge his mobile phones and Direct to Home links as well. The procedure is done in a similar manner as you would perform through an outmoded wallet.
Digital Wallets versus Payment Gateways
Although Digital Wallets besides Payment Gateways are a means to make and receive payments, they are dissimilar as far as their usage and features are concerned. There are a few of the differences that one can discover-
- First of all, you must install the software or applications of the Digital Wallet on your smartphone besides entering your facts to begin using it whereas, in Payment Gateway, no such system is required while using Payment Gateway. You can merely select from the numerous Payment gateways on the webs, fill in your identifications and the reimbursement is completed.
- Secondly, the individual information accessed in the Digital Wallets is processed only once, while, in Payment Gateways, the user needs to enter his proof of identity every time when performing a monetary transaction online
- Thirdly, one can credit cash in the Digital wallet online as well as use it any moment and any place while no such procedure is obtainable with payment gateways.
- Fourthly, a digital wallet is only an unclear form of the outdated wallet, while a Payment gateway is the vague procedure of the PoS types of machinery
- Fifthly, Payment gateways act as a network for a monetary transaction among the purchaser and the seller, it is obvious that the payments done through digital wallets would need a payment access for the deal to be effective. Payment gateways are therefore is the base for every monetary transaction online, whereas digital wallets are only a kind of payment.
- Sixthly, Digital wallets are obtainable to customers free of fees, and they’re equally easy to acquire. Wallets can also be acquired at a wallet seller’s sites. The wallets are free for customers, but the dealers need to pay fees for the facility. Whereas in Payment Gateways there is no such charge is needed.
- Seventhly, there are chances of fraud can be found maximum in Payment Gateways processes as there are two parties are involved one is the seller and the other is the buyers and sometimes it is difficult to track out the details whereas in Digital Wallets there are more than two parties are involved and chances of fraud will be minimum.