A Gateway — more commonly referred to as a payment gateway — is a vital piece of technology that authorizes credit card or direct payment processing for online businesses and retailers. It acts as a digital counterpart of a physical point-of-sale terminal that we typically encounter in brick-and-mortar stores.

The primary role of a payment gateway is to serve as a conduit for transaction data, facilitating its secure transmission between the customer, the merchant, and the relevant financial institutions.

When a customer initiates a transaction, the payment gateway encrypts sensitive information such as credit card numbers to safeguard it from potential security threats. It then forwards this encrypted information for authorization and subsequently for settlement.

Payment gateways are instrumental in ensuring the integrity and security of digital transactions, enabling businesses to provide a safe and smooth shopping experience for their customers.