A payment gateway is a technology that facilitates the transfer of information between a payment portal (like a website or mobile app) and the bank that processes the payment. It acts as a bridge between the customer and the merchant, ensuring that sensitive information is securely transmitted.
When a customer makes a purchase, the payment gateway encrypts the transaction details and sends them to the payment processor. The processor then communicates with the customer's bank to authorize the transaction. Once approved, the funds are transferred to the merchant's account.
Payment gateways are essential for online transactions.
