Module: Introduction to E-Commerce

Topic: Payment Gateway & E-Wallet

Speaker 1 – Luqman Mohd Hata, Business Development & Marketing, PayNet
Speaker 2 – Kenneth Kuan, Sales Director, kipleBiz
Speaker 3 – Elly Tan, Central Territory Manager, Boost

Most of us have heard terms such as e-wallet and payment gateway before. As they are all connected to online payments, it is common to see people using them interchangeably, and that causes confusion for merchants venturing into the e-commerce world.

What is a Payment Gateway?
A payment gateway is the online equivalent of PoS machines. That means, essentially, that a gateway works as a bridge between the website and the card acquirers or banks, providing the technical solution that authorizes card payments. When using a payment gateway, merchants are required to establish a contractual relationship with banks and card acquirers, as well as with the gateway provider.

What is a E-Wallet?
E-Wallet is the online equivalent of a physical wallet. It refers to an electronic device or online service consumers can use to make electronic transactions. Users can securely store their bank information and card details in the e-wallet system. Additionally, they can also fund their wallet account and use that money for payment transactions.

Regardless of its type, an e-wallet is a payment method. A payment gateway on the other hand, works as a channel for the payment transaction between the buyer and the seller. Therefore, consumers can choose to pay via digital wallet, but the website will still need the gateway to complete the transaction.