Payment Gateway in 2026: What Online Businesses Should Look For

February 6, 2026

E-commerce has evolved into a foundational sales channel for businesses worldwide and a core part of the global economy. According to a study by Juniper Research, the total value of e-commerce payments is projected to surpass $13 trillion globally by 2030, a 57% increase from $8.3 trillion in 2025.

This growth is driven by changing consumer behavior. A survey by McKinsey & Company found that nearly 40% of consumers reported shopping for groceries online within the past week, while one in three consumers now considers platforms like Amazon or Taobao their primary shopping destination.

With this rising demand, businesses need a secure and easy way to accept online payments. This is where a payment gateway comes in, helping online businesses process transactions smoothly and securely.

But what is a payment gateway, and why do businesses need one? This article explains the basics of a payment gateway and how it can help your business grow and scale faster in 2026.

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What is a payment gateway?

A payment gateway is the technology that allows businesses to accept online payments securely and efficiently. It acts as a bridge between customers, merchants, and payment providers, ensuring that transactions are processed safely while protecting sensitive customer data through measures such as encryption, tokenization, and fraud prevention.

With a payment gateway, merchants do not need to connect separately to each payment provider or manage complex payment operations on their own. Instead, all online transactions can be handled through a single integration and managed in one dashboard, making payment acceptance simpler, faster, and more reliable.

Beyond security and efficiency, payment gateways also provide solutions that improve the customer experience and increase conversion rates by reducing friction at checkout and making it easier for customers to complete payments.

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How does a payment gateway work?

A payment gateway acts as a middleman between customers, merchants, and financial institutions. It is involved from the very first step of the payment journey.

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1. Collect and secure payment information at checkout

When customers select a payment method and enter their payment information on the checkout page, the payment gateway securely encrypts the data and sends it to the payment processor for approval.

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2. Send the payment request for approval

The payment processor sends the transaction to the relevant bank or payment provider, depending on the payment method used. For card payments, the request is sent through the card network to the issuer bank, which decides whether to approve or decline the payment.

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3. Confirm the payment and charge the customer

If approved, the payment gateway charges the customer and transfers the money to the business’s account according to the settlement schedule.

If not approved, the payment is declined and the customer is asked to try again or use a different payment method.

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4. Updates payment status in the dashboard

The payment gateway updates the status of each transaction in real time and displays it in a dashboard. As a result, businesses don’t need to manually check transfers or match payments to customers. Payments are automatically tracked and organized in one place.

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Types of payment gateways

Payment gateways come in different types, depending on how the checkout experience is hosted and how deeply the business integrates with the payment system.

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Local bank integration: With this approach, customers are redirected to their bank’s website or app to complete the payment. Because customers use a familiar local bank interface, this option can feel trustworthy. However, the overall experience depends heavily on the bank’s technology, which may be limited or inconsistent.
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Hosted payment gateway: With a hosted payment gateway, customers are redirected to the payment gateway provider’s payment page during checkout, then sent back to the business’s website after the transaction is completed.

This option is secure and easy to set up, making it suitable for businesses that want to get started quickly. However, it offers limited control over the checkout experience and may not be ideal for businesses that want a fully seamless, on-site payment flow.
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API-based (integrated) payment gateway : An API-based payment gateway allows businesses to build a fully customized, on-site checkout that fits seamlessly into their existing product or platform. This approach gives businesses greater control over the payment experience. At the same time, the payment gateway handles sensitive payment data and compliance requirements, reducing technical and regulatory complexity while allowing teams to focus on growth instead of payment operations.

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How to choose the right payment gateway?

The types of payment gateways outlined above may already help narrow down your options based on business size and transaction volume. But what else should businesses consider?

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Business model

Even the most advanced payment gateway won’t help your business reach its full potential unless it fits your business model. To find the right match, start with a simple question:

‍What do you sell, and how do your customers usually pay?

If you run a subscription-based business, a payment gateway with recurring billing helps you collect payments automatically and on time. Many gateways offer technologies like network tokenization, which securely stores and auto-updates customer card details upon expiry or renewal. This guarantees predictable merchant revenue and uninterrupted customer service.

For businesses focused on one-time purchases, solutions like one-click checkout help minimize steps at checkout, reducing hesitation and drop-offs, and enabling customers to complete payments quickly, even for first-time buyers. The same technology also allows payment details to be saved securely, enabling returning customers to complete future purchases with a single click.
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If you’re selling through chat or offline channels and don’t have a website, solutions like Payment Links+ allow merchants to generate a customizable payment link with multiple payment options. This provides a secure and professional way to accept payments, while letting customers pay using their preferred method.

If none of these options fully fit your business model, many payment gateway providers, including Omise, offer expert support to help design a solution tailored to your specific needs.

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Customers experience

Customers are used to fast, intuitive digital experiences in their everyday lives, and checkout is no exception. That’s why your payment gateway should support a smooth and reliable checkout experience for your customers.

Seamless payment technology.
According to the Baymard Institute, nearly 1 in 5 customers say they have abandoned a cart because the checkout process was too long or complicated. To stay competitive, businesses should look for checkout technology that removes friction and shortens the path to payment.

Examples include passkeys, which allow customers to authenticate using Face ID, fingerprint scans, or other biometric methods they already use in daily life.
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Wide, flexible payment method support
77% of customers will abandon a website if their preferred payment method isn’t available. To meet modern expectations, businesses need to offer more than just credit and debit cards. Customers increasingly look for options such as real-time payments, Buy Now, Pay Later, and local payment methods commonly used in their country.

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Security & Reliability

If you’re new to payment systems, here are some basic standards to look for when evaluating a payment gateway’s security and reliability:

PCI DSS compliant: PCI DSS stands for Payment Card Industry Data Security Standard. It is established and managed by global card networks such as Visa, Mastercard, JCB, Discover, and American Express, and is designed to protect payment data throughout the entire payment lifecycle.
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High uptime: The higher a payment gateway’s uptime, the less downtime the system experiences — which is highly beneficial for businesses, especially those with high transaction volumes during both normal operations and peak campaign periods. Uptime levels of 99.99% (four nines) is a good benchmark to aim for.
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Real-time monitoring and incident response: Even with reliable systems in place, unexpected issues can happen at any time. Choosing a service provider that offers real-time monitoring and responsive, locally based support helps ensure issues are identified and resolved quickly.

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Easy integration and transparent pricing

A good payment gateway shouldn’t feel complicated for the teams using it every day. From the start, documentation should be developer-friendly and easy to work with, without requiring a large engineering team to integrate and maintain.

It should also offer flexible integration options to suit different setups — from APIs for businesses with their own websites to plug-ins for e-commerce platforms such as Shopify or Wix.

Meanwhile, clear pricing is just as important. A trustworthy payment gateway should not come with hidden costs. At Omise, we offer a simple, transparent pricing model with no setup or monthly fees. Businesses pay per transaction, with clear details on transaction and transfer fees available upfront to support decision-making.

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Future-Ready Technology

With the arrival of AI, technology is evolving fast. It is only right that your payment gateway keeps up with these emerging technologies.

Agentic commerce is approaching, where AI agents can browse, decide, and make payments on behalf of real people. Modern standards such as MCP and A2A protocols play a crucial role in enabling AI tools to interact with payment infrastructure. These foundations make it possible for payment systems to adapt as new commerce models emerge.

A future-ready payment gateway also offers a range of AI-powered tools that help teams work more efficiently and make better decisions. These include smart dashboards, AI assistants, as well as payment orchestration with intelligent routing, which automatically directs transactions through the most suitable payment paths to improve authorization rates and reduce failed payments.

On the security side, AI-powered fraud protection continuously learns from new patterns and signals. When combined with human oversight, it helps businesses respond to emerging threats while maintaining reliability and trust across their payment operations.

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Choosing the Right Payment Gateway in 2026

Choosing a payment gateway in 2026 is no longer just about accepting payments. It’s about building a foundation that supports how your business operates today and tomorrow. Taking the time to evaluate the right factors early helps businesses avoid costly changes later and move forward with confidence.

Explore how Omise’s payment gateway can support your business today.

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Resources

^{The secret to a seamless payment experience. (n.d.). Visa.}^{https://corporate.visa.com/en/sites/visa-perspectives/innovation/optimizing-payment-experience.html}

^{Pymnts. (2024, September 20). 77% of shoppers say ‘No sale, bye’ if preferred payment option missing. PYMNTS.com.}^{https://www.pymnts.com/news/payments-innovation/2024/77-percent-of-shoppers-say-no-sale-bye-if-preferred-payment-option-missing/#:~:text=As%20the%20demand%20for%20diverse,platforms%20and%20ensure%20customer%20satisfaction}^.

^{Juniper Research. (2025, September). ECommerce market to surpass $13 trillion by 2030 globally, with Stripe, Visa, and PayPal leading the charge. Juniper Research Ltd.}^{https://www.juniperresearch.com/press/ecommerce-market-to-surpass-13tn-by-2030-globally/}

^{McKinsey & Company. (2025, June 9). State of the Consumer 2025: When disruption becomes permanent. Retrieved January 27, 2026, from}^{https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/state-of-consumer}