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- Payment System Overview | Payment app
- Electronic Payment System (e-Payment) is a type of payment conducted via electronic or online mediums. Online payment systems eliminate the need for cash or cheque payments. It is a unique payment method that allows you to conduct online transactions via digital wallets, bank cards and internet banking systems. The funds are directly debited from your bank account.
- Electronic Payment Systems in Use : - UPI (Unified Payments Interface) - Credit and Debit Cards - Digital Wallets - Net Banking - Mobile Banking Apps
- Does UPI need a payment gateway?
- For Peer-to-Peer (P2P): Apps like Google Pay or PhonePe work directly between bank accounts.
- For Businesses (Online): A payment gateway is needed for automated reconciliation, generating dynamic QR codes, and handling the "intent" flow on websites.
Flow for UPI Without a Gateway
Initiation: The customer scans the merchant’s UPI QR code or enters their UPI ID.
Routing: The UPI app sends a request through the NPCI UPI “switch.”
Authentication: The customer’s bank (the PSP bank) authenticates the transaction using the customer’s UPI PIN.
Completion: Funds are transferred instantly from the customer’s account to the merchant’s bank account.
Businesses benefits of Payment Gateway
Automation: Automatically updates the order status in real-time.
Security: Provides a secure channel for transactions.
Flexibility: Offers multiple payment options beyond just UPI, including credit/debit cards.