A payment gateway is a technology that facilitates online transactions between customers and businesses. It acts as a secure bridge, encrypting payment information and transmitting it from the customer to the merchant’s bank for authorization. When a customer makes a purchase, the payment gateway captures and encrypts their payment details, such as credit card or debit card information, and securely forwards it to the payment processor. Once the payment processor verifies the details with the customer's bank, it sends an authorization response back to the payment gateway, which then informs the merchant of the transaction's success or failure. Payment gateways streamline the payment process by handling various types of payments, including credit/debit cards, digital wallets, and bank transfers, while ensuring security and compliance with industry standards. They are essential for e-commerce businesses, enabling seamless and secure transactions and enhancing customer trust and satisfaction.