Understanding the Startup Ecosystem
Startups are often misjudged but play a crucial role in any country’s economy. Though startups are considered small or new businesses, their contribution to the overall economic growth of a country is quite significant. How the startup ecosystem in a country works is directly proportional to the rise and fall of the GDP of a country as it renders mass employment to the youth of the nation. According to reports, the total number of startups in India rose to around 9,000 in 2019, making it the third-largest startup ecosystem in the world, only behind the US and China. Given that startups have single-handedly raked in about $50 billion revenue since 2014, it is important to understand the usage of payment gateways and payment gateway benefits for startups to flourish alongside established tech-giants.
Fintech, logistics, healthcare, e-commerce, and online gaming are some of the popular startup sectors in India currently and are also the ones expected to flourish in the post-COVID era. During the pandemic, we saw the surge of delivery related apps and many retailers switching to online/delivery business right from groceries and clothes to food and medicines. Payment gateways are essential elements in this crossover to digital payments by most local entrepreneurs and retailers.
Payment Gateway Benefits for Startups
Before listing the payment gateway benefits for startups, it is important to understand what is a payment gateway first. Payment gateways are facilitators for digital payments that act as a medium between the merchant’s website or payment portal and the customer’s bank by verifying the bank details. Post verification, the payment gateway processes the transaction by debiting the amount from the customer’s bank account and crediting the same in the merchant’s account for the purchased product.
You may wonder why one would need a payment gateway to do so. A merchant would ideally require a convenient medium to collect payments from customers, and payment gateways enable them to do so without the trouble of processing each transaction by reaching out to the respective banking partner. The payment gateway ideally enables accepting customer payments via your website or app. Some of the top payment gateway benefits for startups are
