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How Have Payment Gateways Changed the World

• Posted by John Driver December 9, 2021 Filed in Aliens & UFO 69 views
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  Without payment gateway companies in the world, we would not be able to do online shopping, and the world of e-commerce would only be a dream. How did the concept of online payments start, and who invented the payment gateway? Where can we find payment gateways in our daily lives?

  What is a payment gateway?

  A payment gateway happens when you complete an e-commerce application or transaction online at a shop and you must give authorization through the merchant service (payment gateway) to process the payment from your bank account.

  The history of the payment gateways and how it all started

  The day the world wide web was invented in 1969 is the day that we got closer to the idea of payment gateways. It made people realise that they could connect with other people without physically connecting with them at places like stores, libraries, and so on. In 1994, the Stanford Federal Credit Union established the first online internet banking services to all its bank members. However, it still has not perfected the online payment system and could only do micropayments. In addition to this, Amazon found a way to accept online payments through Pizza Hut, making Pizza Hut one step ahead of its competitors. After this, the evolution of online payments began, and started happening at a faster rate. As such, the demand for it grew. This is when people realised that they needed to find a way to make an online payment to purchase items and services online at companies. After much time, the first payment gateway was invented by Jeff Knowles.

  Offline and online payments have been happening simultaneously for large companies that it has almost become difficult to create a distinction for them. However, when mobile devices could connect to a smartphone, the e-commerce industry started to boom. Another reason for this industry to have grown so much is because of the pandemic and the restrictions that have been imposed upon society, almost forcing people to only buy their goods online. This made a lot of payment gateway companies realise that they needed to up their security and versatility to be able to function in any type of location or website.

  Lastly, something that made payment gateways even more popular was thanks to social networks and gaming. Companies soon realised that they could make a lot of money with in-app purchases as well as in-game purchases. Making the payment gateway industry faster, user-friendly, and able to let an online payment happen on any device that is connected to the internet and through any app or software as well.

  Conclusion

  The payment gateway has come a long way and the world has forgotten how reliable we have become using this service. Without it, we would not be able to do online banking, receive salaries, buy online products and services, and in addition, get payments in real-time.