By providing seamless payment-making between merchants and consumers, payment gateways have been some of the instigators of the boom of e-commerce for large and mid-cap companies. Gateways offer a simpler, safer, and more dependable way to make local and cross-border international payment transactions, acting as the mediator between provider and recipient, and enabling e-commerce to function fluidly. 

Whilst gateways have grown in use over the last decade, many companies still adhere to their traditional markets when it comes to the geographical areas they access commercially. However, with gateways at the forefront of globalisation, it’s now easier for merchants and consumers alike to sell and purchase in virtually infinite market locations around the globe. To take full advantage of gateway technology, merchants need to broaden their horizons, and harness gateway technology to leverage scale-up through increasingly accessible environments. 

International expansion opportunities

The largest benefit provided by gateways to businesses looking for scale-up opportunities is the access to new evolving markets. Payment service providers like Transact365 use their experiences to identify markets with the most potential and establish partnerships in key jurisdictions. At the moment, interest towards Latin America, India and Africa is rising, leading to payment service providers expanding into these areas. 

For merchants, accessing new markets provides a far larger demographic to target irrespective of products or services. Having external technology in place to receive secure payments from different continents is the primary reason for the unlimited scale-up opportunity; it also means that payment infrastructures are already established, removing this responsibility from the merchant.

Before payment gateways and the e-commerce boom, accessing these markets would have been far harder, with only large companies able to afford the facilities and infrastructures required when penetrating new markets. With online purchasing enabled by payment gateways, merchants and consumers alike can take full advantage of new markets far quicker and more economically viable than ever before, meaning even the smallest of businesses have the scope for international scale-up. 

This feeds back into a broader point. In the past, globalisation was driven by large companies that had the resources needed to build an international presence. This has now changed - the creation and proliferation of sophisticated technology means that mid-cap companies can also take full advantage of new market opportunities previously deemed inaccessible. 

Operating for the future

Gateways provide businesses with the opportunity to think proactively about future activity, like inventory purchases, rather than waiting for inbound payments to determine their next move. With real-time reconciliation, payment gateways provide secure and fast payments internationally, meaning merchants are granted more freedom and security over their inbound and outbound assets. Essentially, this means merchants can focus on the trades ahead rather than the ones already occurring. 

For the consumer, easier payment making through gateways can increase their satisfaction with the merchant, as digital payments are faster than manual methods so goods can be shipped faster. The ease of payment will boost the regularity of purchases, driving scale-up through increased trade and revenue. 

E-commerce will only increase

It’s important to understand that payment gateways aren’t going anywhere, in fact, it’s quite the opposite. As business practices and shopping habits continually gravitate toward the internet, payment gateways stand to be increasingly crucial for businesses for years to come. With e-commerce sales making up 24.5% of all retail sales worldwide by 2025, the growth of e-commerce year-on-year organically provides more opportunities for all manner of merchants and consumers. 

Payment gateways also open up social channels for trade opportunities, as e-commerce rapidly becomes a regular inclusion on the likes of Facebook and Instagram. This widens the opportunity for merchants to deal online and further facilitates the targeting of previously untapped buyers. By offering seamless trade on social channels, companies can begin to direct e-commerce traffic in new ways. With nearly four billion people using social media the opportunity for scale-up in this channel is virtually limitless, all the while the metaverse grows.

Lastly, spurred further by having to shop online during the pandemic, the increasing popularity of e-commerce has combined with the expansion of payment gateways to provide a cyclical opportunity for growth.