Benefits of Using a Payment Gateway

Koerniawan Hidajat and S. Sarwita Salini

Universitas 17 Agustus 1945 Jakarta, Jl. Sunter Permai Raya, North Jakarta, Indonesia

Keywords: Payment Gateway, Triangulation, NVivo

Abstract:

This research aims to obtain concepts and information about the benefits of using a payment gateway. The

research data sources are online news, YouTube, social media, and research articles for 3 years, namely 2021

to 2023. Data sources are selected based on credibility and suitability of the data to the problem being studied.

Data processing uses NVivo 12 Plus software. There are four stages of data processing, namely the data input

process, coding process, visualization process, and conclusion determination process. Coding validity was

evaluated using a triangulation approach. The research results obtained seven points of benefits needed by

payment gateway.

INTRODUCTION

The value of the global e-commerce sales market is

expected to grow to $6.35 trillion by 2027. As

customers increasingly prefer digital transactions,

businesses that fail to adapt risk being left behind,

losing potential customers and revenue to

competitors. The online payment experience can

influence how many transactions a customer

successfully completes. In a survey of online

shoppers, 18% of cart abandonments were due to

inefficient or complicated checkout processes. And as

e-commerce grows, cybercrime related to online

payments is also on the rise. Businesses need to

address both issues by creating an online payment

experience that is simple and efficient for customers,

while also being highly secure and ready to combat

the ever-growing number of fraud attempts. Payment

gateways play a key role in achieving this complex

and important goal. Below, we discuss what

businesses need to know about payment gateways

are, how they work, their important role in e-

commerce, and how they operate within the broader

payment processing system.

In recent years, Indonesia's digital economy has

developed rapidly. Payment gateways play a vital role

in accelerating the growth of this industry. It can be

seen how big the contribution of payment gateways is

in driving Indonesia's digital economy, the total

online payment transactions carried out via payment

gateways in 2022 will reach approximately IDR

2,000 trillion, an increase of 35% compared to the

previous year. Data shows that the widespread

adoption of digital payments in various business

sectors such as e-commerce, travel and other online

services is in turn driving the growth of the digital

economy. Payment gateways also play an important

role in supporting the development of the digital

economy. Growth of Micro, Small and Medium

Enterprises (MSMEs) in Indonesia. Data shows that

around 80% of the total online payment transactions

carried out through payment gateways come from

small, medium, and micro businesses. This shows

that MSMEs are increasingly adopting online

business models to expand market reach and increase

income. With an easily accessible and affordable

payment gateway, MSMEs can optimize the use of

technology while developing their business so that it

has a positive impact on MSME growth. The digital

economy.

LITERATURE REVIEW

A payment gateway is a transaction medium provided

by e-commerce application services. Can authorize

credit card processing or make direct payments to

customers in online business activities. This

Indonesian payment gateway can make transactions

easier for businesspeople and customers. Payment

gateway is the most appropriate solution to make the

payment process easier and more accurate. This is the

main thing that online businesspeople must pay

attention to. This is a service that facilitates the

276

Hidajat, K. and Salini, S.

Beneﬁts of Using a Payment Gateway.

DOI: 10.5220/0012579500003821

Paper published under CC license (CC BY-NC-ND 4.0)

In Proceedings of the 4th International Seminar and Call for Paper (ISCP UTA ’45 JAKARTA 2023), pages 276-281

ISBN: 978-989-758-691-0; ISSN: 2828-853X

transaction process between buyers and sellers. This

way the online shop can ensure that the payment

method is working properly. Commonly used

payment methods are bank transfer, using a credit

card, virtual account, via digital wallet or small

market outlets. Here are the benefits, how it works,

and tips you can apply to your online business

(Hubster, 2023).

METHODS

This research uses qualitative research methods using

a systematic literature review approach. The literature

studied does not only come from research articles, but

also from several sources obtained online. Sources of

processed data come from YouTube, online news,

research articles and other social media. The data

source must come from a credible source, whether

YouTube channels, online news, and other sources.

Data is searched using keywords that match the

research question. The consideration for using this

data is due to the availability of adequate data on the

internet and it can be accessed easily (Hafidhah &

Yandari, 2021). The selected data sample is data

published during the last three years, namely 2021 to

2023. The data processing uses NVivo 12 Plus

software. This software was chosen because it can

produce coding visualization images and the way to

use the software is very user friendly (Tambun &

Sitorus, 2023).

There are four stages carried out in the data

processing process with NVivo, namely the data input

stage, coding stage, visualization stage and

conclusion stage (Sitorus & Tambun, 2023). The first

stage, data input uses two methods, namely internal

data input and external data. Internal data is data input

to NVivo without using an internet connection. This

data is usually data that is already available on the

laptop, such as research articles. Meanwhile, external

data is data that is input into NVivo using an internet

connection, the data input process uses the ncapture

for NVivo facility. Examples of external data

originating from the internet such as YouTube, online

news, and various social media. The second stage,

coding data according to the answers to the research

question. Coding is simple words or sentences that are

answers to research questions. At this stage, content

analysis is carried out, namely the stage of

understanding the words or sentences in the research

data (Tambun, 2021). Specifically for the coding

process for YouTube data sources or social media

sources in video form, coding is carried out after there

is a transcript of the YouTube content or video.

Analysis was carried out by making transcripts, then

a coding process was carried out (Salahudin et al.,

2020). The third stage, create a coding visualization

image. Visualization coding is a collection of coding

that forms an image. Coding images are

interconnected with various data sources. This coding

image is analyzed in the process of drawing research

conclusions. The fourth stage, determining research

conclusions. Research conclusions are answers to

research questions. The answer can be seen from the

existing coding. Coding is considered to have strong

validity if the coding is confirmed from various data

sources. Coding validity is strong if it is confirmed at

least three times from various data sources. This

principle is a measurement of coding validity using

the triangulation method (Natow, 2020). Next, the

coding is sorted based on the most confirmations to

the coding with the fewest confirmations. These

coding are used as answers to research questions, as

well as research conclusions.

RESULTS AND DISCUSSION

This research produced several references consisting

of 3 YouTube, 10 Online News, and 2 research

articles. and 3 social media. The coding process was

carried out using NVivo 12 Plus Software. There are

seven codings that are valid and confirmed at least

three times in the data sources studied. Below is a

visualization image of the resulting coding. All

coding in Figure 1 is an answer to the research

question. Coding comes from content analysis of the

various data studied. The coding process uses the

facilities available in the NVivo 12 Plus software. The

following is a summary table and intensity of each

coding created.

4.1 Faster Payment

Payment gateways can create transaction activities

that are easier and faster to process, regardless of how

many payments are received. Businesspeople no

longer must confirm every incoming transaction

manually, while customers also don't need to bother

sending proof of payment because everything is

recorded in a dashboard that records the

reconciliation process (Nicepay, 2021).

4.2 More Payment Options

The first benefit of a payment gateway is that it allows

you to provide various payment methods. This will

make it easier for consumers when shopping at your

Beneﬁts of Using a Payment Gateway

277

Figure 1: Image Visualization Coding.

Table 1: Coding Results.

Coding

Intensity

References

Faster payments

(Nicepay, 2021); (Januaji, 2023); (Hubster,

2023); (Fazz, 2022); (Noviah, 2022); (ID,

2021); (Duli, 2019); (Swarnalakshmi et al.,

2023); (Phylot official, 2021); (Bayarind,

2022)

More payment options

(Siddiqui & Goyal, 2023); (Nicepay, 2021);

(Perdana, 2023); (Silvia, 2023); (NISP, 2021)

You can pay directly on the spot without

having to spend cash

(Fazz, 2022); (Siddiqui & Goyal, 2023);

(Bayarind, 2022)

Wider reach

(Siddiqui & Goyal, 2023); (Nicepay, 2021);

(Hubster, 2023); (Faspay, 2021)

Make online transactions easier

(Yovita, 2023); (NISP, 2021); (Silvia, 2023);

(Silvia, 2023); (Nicepay, 2021); (Dev, 2023);

(Siddiqui & Goyal, 2023); (Duitku, 2021)

No need for multiple accounts

(Januaji, 2023); (Faspay, 2021); (Silvia, 2023);

(Duitku, 2021)

Security guaranteed

(Yovita, 2023); (NISP, 2021); (Faspay, 2021);

(Silvia, 2023); (Perdana, 2023); (Fazz, 2022);

(Nicepay, 2021); (Noviah, 2022); (Razorpay,

2021); (Dev, 2023); (Duitku, 2021)

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store. Because consumers have many choices when

they want to make payments according to their

wishes. Just imagine, what if you only provide one

bank account as a payment method but it turns out

that many of your customers are not your customers?

Apart from being burdened with inter-bank transfer

fees, they may become lazy about shopping at your

online shop. The more payment methods available in

an online business, the greater the opportunity to

provide transaction convenience and increase

customer satisfaction. By integrating a payment

gateway, businesspeople only need to provide one

bank account to receive incoming transactions from

various channels, such as virtual accounts, credit

cards, bank transfers, retail stores and digital wallets

(Nicepay, 2021).

4.3 You Can Pay Directly on the Spot

without Having to Spend Cash

Cashless is a term that means no or no use of physical

cash. Nowadays, the cashless system in question is a

transaction using a digital form of payment. This

applies to every type of payment and transaction

carried out by every person. The benefit of cashless

that can be felt by everyone is convenience, because

by using cashless they no longer need to carry a lot of

cash, so they can minimize the risk of theft (Siddiqui

& Goyal, 2023).

4.4 Wider Reach

The integration of various payment methods in an

online business can expand market reach, considering

that customers can adjust the method they want, and

can make transactions from anywhere and at any

time. In addition, the proliferation of so many internet

users have enabled an increase in incoming

transactions (Nicepay, 2021).

4.5 Make Online Transactions Easier

One of the benefits of this payment gateway is that

the online transaction process becomes easier. This

relates to payments that can be made online. So, you

don't need to come to the bank or go to the seller

directly. With this convenience, you can use your

time more effectively. Especially if you are busy. It

will be very profitable if you use online transactions

(Nicepay, 2021).

4.6 No Need for Multiple Accounts

The first convenience obtained by having an online

payment system is that businesspeople do not need to

provide all accounts from all banks in Indonesia.

Payment gateway allows you to automatically

connect with banks in Indonesia in just 1 integration.

Online shops don't need to provide multiple accounts

from various banks. because with a payment gateway,

payments from various bank accounts will be entered

into one main account belonging to the online shop

(Faspay, 2021).

4.7 Security Guaranteed

1. Encryption: Payment gateways use encryption to

ensure that sensitive information such as credit card

numbers is protected during the data transfer process.

This means that if a hacker tries to steal the data, they

will not be able to read the data.

2. Authentication: Usually payment gateways require

customers to enter a password or other form of

authentication before completing the transaction

process. This helps prevent cases of fraud and ensures

that only the original account owner can make

purchases.

3. Fraud detection: Used to identify suspicious

transactions and provide warnings to online shop

owners or debit or credit card holders.

4. Certification: Payment gateways must meet strict

security standards, such as having a Payment Card

Industry Data Security Standard (PCI DSS)

certificate. This serves to ensure that the payment

gateway can implement appropriate security

measures to deal with data leaks or other security

issues.

Transaction security, as well as safeguarding

customer data and information are the basics that

payment gateway service providers must continue to

pay attention to. This can be ensured by the existence

of an anti-fraud system, such as the Fraud & Risk

Identification System & Knowledge (FRISK) which

helps monitor risky transactions. On the other hand,

Payment Card Industry Data Security Standard Level

1 certification and a license from Bank Indonesia are

also considerations (Nicepay, 2021).

5 CONCLUSIONS

The results of this research have obtained answers to

the research questions posed at the beginning. There

are seven benefit points that can help users of the

Payment Gateway system, so that it can become an

Beneﬁts of Using a Payment Gateway

279

alternative and solution for society in meeting their

daily and business needs. The seven benefits are fast

transaction process, various payment methods, can

pay directly on the spot without having to spend cash,

wider business reach, easy transaction process,

businesspeople don't need to create multiple

accounts, guaranteed security. The results of this

research can be implemented by payment gateway

users so they can know and receive education

regarding the benefits of payment gateways, so they

can avoid various kinds of conflicts or problems. The

research recommends seven benefits to become a

wise payment gateway user in the technological era,

where the payment gateway process can be activated

easily by the public and businesspeople.

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