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Guide to Payment Facilitation and Payment Implementation for E-Commerce



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E-commerce is becoming an increasingly crucial sales channel these days. The growth trajectory for global online sales channel is expected to boom fromUS$234 billion in 2007 to US$1.09 trillion by 2017, which is a compound annual growth of about 16.2%. In fact, it has been observed that not only in India but also throughout the world, the declining retail sales trends have not affected the e-commerce market. This modest growth of the e-commerce sector suggests that over the last decade e-commerce market has shown significantly faster growth rates than traditional retail sales. More competition and innovation have led new companies to enter the market and make a sale even when they are asleep.

Along with the growth of e-commerce, several other industries enjoyed a boost in their sales and service, one such industry is the payment industry.  The payment industry has been developing new services and products to capture a part in the growing space of trade. All these new developments aid consumers with additional security and convenience while making any online purchase. It has been noticed several times that offering confusing payment options which are simply not in accordance to the banking needs of the customer leads to shopping cart abandonment.  Such solutions are not good for sales and can affect any e-commerce business adversely.

Emergence of Payment Facilitators

The traditional merchant service market had several intermediaries that helped the merchants manage their merchant accounts. These were Aggregators, ISOs and Third-party processors. The aggregators looked over the problems of micro-merchants. The third party processors were mainly responsible for payment gateways, which also worked in collaboration with ISOs. The traditional ISO acted as a sales agent and assisted merchants to do the underwriting and prepare documentation. Over time, larger ISOs emerged and had more involvement in the underwriting process. Online payments gained popularity and the industry for merchant services evolved. With several other changes and new trends, smaller size merchants came to the overview. However, with traditional payment methods and larger ISOs, working with these merchants became tough, so emerged the payment facilitators.

Payment Facilitators- Who are they?

A payment facilitator can be defined as the Master Merchant who facilitates the debit and credit card transactions for sub-merchants. Some reputed Payment Service Providers are PayPal, Square and Stripe. The payment facilitator is quite different from traditional merchant account providers. They take the underwriting risks, merchant funding, handle initial underwriting and general support from the portfolios of the sub-merchants.

Several software companies working as payment facilitator soon realized the additional cost they borne by paying third party for gateway and merchant services. At some point in time, they understood the payment process cycle and took control by opening their own payment gateway to make transactions cost effective and easy for companies.

What is Payment Gateway?

A Payment gateway is a channel that enables a website to accept payments from clients and customers over the internet. To make an ecommerce site complete, it is necessary for the brand to implement this payment method. One of the several benefits of e-commerce is to earn or make a sale while you sleep. However, without payment gateway it is hard for any buyer to buy an item and for any seller to sell one. All currency, payment, transaction and cross-border selling issues are looked after by this payment gateway.

Difference between Payment Gateway and Merchant Accounts

Whether you are a merchant or a buyer, you can get confused between Merchant Account and Payment Gateway. To make it simple, here’s our explanation: A merchant account is an account that a seller would have to set with their local bank to handle all credit related transactions. Having a merchant account does not mean a seller can sell online. To do that he would require a payment gateway that will take care of all real-time transactions online. Several banks have their own payment gateways. Subscribing to their gateway along with a merchant account from them reduces the operational cost. Other alternatives include a merchant account from your local bank along with third party payment gateway service like Google Checkout, PayPal, etc.

Payment Implementation for Send My Gift

Send My Gift is an online gifting store that was incepted in the year 2015. With over 7000 sellers offering custom gifting solutions, SMG is becoming a leading name in the field of online gifting service. As an upcoming giant in the field of gifting service provider, Send My Gift came to us for site optimization and digital transformation solutions. After analyzing their website thoroughly, we highlighted various technical and non-technical problems to them. Rasbor’s dexterity and technological prowess mended all the problems that the site faced and generated a transformed site with optimized performance.

Among several problems that were changed for SMG, one was payment process facilitation. Our experts included integrated custom payment methods like COB (Cash-Before-Delivery) and COD (Cash-On-Delivery). We also implemented one-step checkout integration in Magento for an increased process speed. One page checkout reduced the chances of customers abandoning cart, thus increasing the conversion rates. Further, the delivery charges levied were streamlined and then determined according to the pin codes provided by the buyer’s location. The change in payment processing options introduced smooth functioning and speed to the overall site.


The process of choosing a payment gateway, opening a merchant account, and implementing it on your website is quite easy. With the number of advantages that these advanced payment systems offer, it becomes mandatory to implement the safest solution on your store based on the transaction numbers you deal every day. Most open source ecommerce platform will have their own integrated payment modules, but you can always select additional features and merchant accounts from reputed payment facilitators for extra security. Implementing genuine and reliable payment solutions ensure customers enjoy a smooth transaction experience with the trust that their financial details are safe and secure. If you haven’t executed anything yet, you should do it today!

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Guide to Payment Facilitation and Payment Implementation for E-Commerce