The payment systems have evolved as the online payments popularise on the ecommerce domain. Debit/credit cards, internet banking and even e-wallets have emerged as a means of offering extreme convenience to shoppers for payment of goods and services they buy. These transactions are initiated and completed via a network that we refer to as ‘payment gateways’.

Payment Gateway – What is it?

A payment gateway is an application that allows buying and selling on ecommerce or physical stores through online payments. They facilitate payments from the customer to the merchant using a virtual assistant that uses the information like card number etc. over a secured platform. Payment gateway solutions use a two-step methodology to complete a transaction:

1.  Authorisation                                        2. Clearing

Below is an image giving an overview on the ‘authorisation’ and ‘clearing’ processes individually.

payment gateway

How do payment gateways work?

In between the processes of customer buying a thing or placing an order and paying for it to complete the buying process, several tasks occur simultaneously. These tasks are performed by the payment gateways, which includes sending data about transaction and buyer to the vendor’s bank, authorisation of the mode of payment and ultimately fulfilment of the order after processing.

Online payment gateways are equipped with some unique tools for detecting frauds like:

  • Identity morphing detection
  • Address Verification (AVS) Checks
  • Geolocation
  • Computer fingerprinting

Here is a list of the top 5 payment gateways in India:

1.      Citrus Pay

Citrus Pay is one of the most popular and best payment gateways in India with the largest number of customers availing its facilities. It supports all cards including MasterCard, RuPay, Visa, American Express and more. It even has its own wallet named Citrus Cash with utmost security levels.

2.      PayUMoney

With as high as 4000+ active merchants using PayUMoney, it becomes a well-known payment gateway in India that provides a secure platform for sending and receiving money. It has a wide network of banks as partners.

3.      Bill Desk

A one-of-a-kind billing portal – Bill Desk allows customers to receive, view and pay all types of bills – all at a single place. It is a renowned platform that is easy to use, quick and safe. Moreover, it gives the customers liberty to decide when to pay along with frequent alerts and reminders.

4.      CCAvenue

Another highly-adopted payment gateway CCAvenue provides an array of payment options and is available in 18 languages (including Indian and foreign languages). Furthermore, it supports currencies from over 27 countries.

5.      JusPay

JusPay is recognised for simplifying the payment process using mobile and comes with an express checkout facility. It uses smart practices that reduce the load time of pages, auto reads OTP using SMS permissions and more…


This article express a fundamental overview of payment gateways, their popularity and other aspects. This payment system has been hugely successful lately, more so post demonetisation in India. However, the challenges are always encountered and as a result, these methods are continually evolving. In the coming times, it will be fascinating to track the growth of payment gateways.


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