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The online payment method is a crucial part of a business. As the digital economy is continuously expanding, this increases the necessity of having an integrated online payment system. For new businesses like e-commerce sites, SaaS companies, and service providers, ensuring an online payment method that can be integrated smoothly is important for growth and customer satisfaction. As the use of smartphones keeps rising, the use of online payment will also continue to rise; apart from that, cheaper internet also contributes to the increase in online payment. Every Indian business that sells things online needs a Payment Gateway in India to process and accept payments from customers.

1. It's hard to get going and get permission.

Many payment gateways require a lot of paperwork, like proof of a real working business website, along with business registration certificates, GST details, bank account information, and KYC documents. This process can be hard to understand and take a long time for new and small businesses. Delays in verification can push back the date when a product goes live, which can hurt early sales. Some payment gateway providers say they can approve payments right away, but in reality, approvals may still depend on the type of business, the level of risk, and compliance checks. Businesses that are high-risk, like gaming, crypto-related services, or platforms that work across borders, often have to wait longer to get approval.

What it does:

• Late entry into the market

• Missing out on possible customers

• New businesses are angry about how things work

Before starting to work with a payment gateway service provider, a business should make sure all of its paperwork is in order and choose one that is known for easy onboarding and quick approvals.

Also Read : Payment Methods Explained: Types, Benefits & Business Impact

2. High transaction fees and costs that aren't clear

Another big worry is how much transactions cost. A normal payment gateway in India takes a cut of each transaction and adds extra taxes. At first, this might not seem like a big deal, but as the number of transactions goes up, it can have a big effect on margins.

Businesses might have to pay more than just their normal fees:

• Costs for getting started

• Fees for yearly upkeep

• Costs for settling

• Costs for refunds and chargebacks

Businesses might find hidden costs if they don't carefully look over their pricing structures.

What it does:

• Margins of profit went down

• It's hard to come up with fair prices.

• Problems with making a budget

Answer: Before integrating, businesses should look at a few different payment gateway service providers, try to get lower fees when they can, and make sure they know all the costs.

Must Read : Instant Settlement Payment Gateway In India: Complete Guide

3. Problems with cash flow and payments that are late

It's very important for a business to pay its bills on time. Most payment gateways don't automatically offer same-day or instant settlements. Settlements might not happen for T+2 or T+3 working days instead. When payments are late, small businesses and startups may have trouble paying their bills, keeping track of their inventory, and covering other business costs.

Some gateways may charge you more to get to your money faster, even if they settle faster.

What it does:

• Holes in cash flow

• Difficult to grow the business

• Getting credit from other people

Answer: Choosing a payment gateway in India that lets you choose between flexible settlement cycles or faster payouts can help you keep your money more stable.

4. Problems with downtime and connecting technology

If you want to add a payment gateway to a website or mobile app, you need to know how to code. Companies that don't have their own development teams may find it hard to deal with APIs, SDKs, and security settings.

Customers might not be able to finish their transactions even after a successful integration if the gateway goes down or there are other technical problems. When payments don't go through during busy sales times, it can cost money and make people less likely to trust the brand.

Result:

• People are leaving their carts behind more often.

• Customers who are unhappy

• Not making money when you're not working

Answer: Businesses should choose a payment gateway service provider that has a good uptime record, easy-to-understand technical documentation, and fast help for developers.

Suggested Read : 10 Security Standards for Businesses | Payment Gateway in India

5. Problems with payments and a bad experience for users

One common problem with paying online is that it doesn't work. These problems can happen for the following reasons:

• The server at the bank is down.

• Problems with the network

• Wrong information about your UPI or card

• Authentication issues

In India, where UPI is very popular, even small problems can mess up a lot of transactions. Customers get angry when payments don't go through more than once, which lowers conversion rates.

What it does:

• People are leaving their carts more often.

• Not bringing back customers.

• Less trust in the brand

In India, a good payment gateway should have smart retry features, support for many different payment methods, and easy-to-use interfaces.

6. There aren't many ways to pay

People today want to be able to pay with UPI, debit and credit cards, net banking, wallets, EMI, and buy now, pay later (BNPL) options. It can be hard for customers to choose what they want if a payment gateway doesn't have many options. This is a big problem in India, where people from different parts of the country and groups pay in very different ways.

Result:

• Lower rates of conversion

• Missed chances to sell

• Customers had a tough time.

Answer: Businesses should pick a payment gateway service provider that lets people pay in a lot of different ways in the US and adds new ones all the time.

Conclusion