A payment gateway is a technology or service that enables businesses to accept and process online payments from customers. It acts as a secure intermediary between the merchant (business) and the customer, facilitating the transfer of payment information and authorization.
When a customer makes a purchase on an e-commerce website or any other online platform, the payment gateway securely collects the customer’s payment details, such as credit card information or bank account details. It encrypts the data to ensure its security and transmits it to the payment processor or acquiring bank.