How to Integrate a Payment Gateway into Your Website in 2025

In a world where customers have endless options, a smooth checkout experience is key to boosting conversions.

In fact, according to the Baymard Institute, 68.8% of online shopping carts are abandoned, with 22% being due to a complicated or lengthy checkout process.

A reliable payment gateway not only speeds up transactions but also enhances security and builds customer trust. As e-commerce revenue is projected to hit $4.32 trillion in 2025, every transaction matters.

Simply put, it connects your website to a secure third-party service, enabling you to accept credit cards, digital wallets, BNPL options, and even cryptocurrency.

In this post, we will explore how to integrate a payment gateway into your website in 2025 and provide the best possible experience for your buyers.

What is Payment Gateway Integration?

Payment gateway integration refers to the process of embedding a secure transaction system into a website or application, allowing businesses to accept online payments efficiently and securely. Behind the scenes, it connects the dots between your buyer, your business, and the banks or payment processors handling the money.

Here's how it works:

• When a customer kicks off a payment, the payment gateway encrypts the data.
• It checks the payment details and forwards the request to the issuing bank or payment processor.
• Once approved, the gateway permits the transfer of funds to the merchant's account.

Integrating a payment gateway is a must to reduce cart abandonment and improve the user experience.

Redirect-based gateways send users off-site to finish the transaction. While quicker to set up, they can disrupt the customer's journey and result in poorer conversion rates. On the other hand, seamless interfaces allow clients to pay directly on the website, increasing confidence and conversions by up to 35%.

Let's take a look at the differences between the two types:

Types of payment gateway integration for websites

There are various payment gateway integration solutions for websites, each appealing to a different set of business requirements and technical capabilities.

1. Hosted payment gateways

These gateways redirect customers to a secure third-party page for checkout. The provider manages all compliance, security, and data storage.

• Pros: Easy to set up, PCI DSS compliant, and secure.
• Cons: Redirect disrupts user flow and may lower conversion.

2. Self-hosted payment gateways

Businesses collect customer payment details on their site and then send them to the gateway using APIs.

• Pros: Pros: Full control over user experience, customizable checkout.
• Cons: High responsibility for data security and PCI compliance.

3. Direct payment gateways (on-site integration)

Gateways like Stripe offer APIs that enable payments to be processed entirely on your site, with tokenization for security.

• Pros: Seamless UX, faster payments, better conversion rates.
• Cons: Requires developer resources and compliance checks.

4. Local and international gateways

Use local gateways like Paytm in India for UPI and wallet support, and international gateways like Stripe or Adyen for cross-border transactions.

• Pros: Tailored to regional preferences, better acceptance rates.
• Cons: Limited currency or method support is available in some markets.

How to integrate a payment gateway in a website: step-by-step guide

Integrating a payment gateway into your website allows you to accept safe online payments, which is critical to e-commerce success.

Follow these six important steps to properly configure your gateway:

Step 1: Select the right payment gateway

Begin by comparing providers based on transaction prices, settlement timeframes, payment methods supported (cards, UPI, wallets, BNPL), ease of integration, and compliance standards.

Stripe, for example, provides global assistance and extensive customizations, whereas Razorpay and Pine Labs Gateway are popular among Indian merchants.

Step 2: Register and complete KYC

Set up a business account on the chosen platform and complete the Know Your Customer (KYC) verification. This includes presenting documentation such as business registration evidence, bank account information, and PAN/GST for Indian merchants.

Step 3: Obtain API keys and integration documentation

Once authorized, you will be given test and live API keys. Most systems provide SDKs or plugins for platforms like Shopify and WooCommerce, as well as proprietary APIs that allow for direct integration.

Step 4: Implement an API or plugin on your website

Developers can incorporate the payment gateway into CMS platforms using REST APIs or by installing ready-made plugins. Use secure HTTPS endpoints that adhere to PCI DSS rules.

Step 5: Test transactions and troubleshoot

To perform mock transactions, go to sandbox/test mode. Validate all successful, unsuccessful, and canceled transactions. Check for any error messages or unsuccessful callbacks.

Step 6: Go live and monitor payments

After a successful test, switch to live mode. Using your payment dashboard, monitor transactions frequently to keep track of settlements, refunds, and chargebacks.

Best payment gateway for e-commerce websites

The optimal payment gateway for your e-commerce website in 2025 is determined by five key factors:

• Security
• Transaction Speed
• Platform Compatibility
• Multi-Currency Support
• Flexible Choices (Such as Buy Now, Pay Later)

Pine Labs Gateway is a top-tier solution that helps you scale efficiently.

It is PCI DSS Level 1 compliant, assuring strong data security, and supports a wide range of payment methods, including UPI, cards, net banking, BNPL, and EMIs, which is essential for serving diverse customer needs. Our API-first architecture enables quick, configurable integration with systems like Shopify, Magento, and WooCommerce.

Common challenges in payment gateway integration & how to solve them

While integrating a payment gateway is vital for e-commerce success, many businesses face a number of problems during the deployment process.

• Technical issues: Common technical concerns include API errors, inconsistent replies, and delayed checkout loading times, particularly on mobile devices. These difficulties might disrupt the customer experience and result in abandoned carts. Poor documentation or a lack of developer help might worsen the problem.
• Security concerns: Managing sensitive cardholder data necessitates stringent PCI-DSS compliance and effective fraud detection. Failure to comply might expose your company to security breaches, data leaks, and legal ramifications.
• Compatibility issues: Integrating gateways across CMS platforms such as WordPress, Magento, or custom-built sites might cause compatibility issues. Some plugins may lack support for certain payment methods, currencies, or languages.

Pine Labs addresses these issues with a developer-friendly API suite, pre-built plugins for popular e-commerce platforms, and lightning-fast API response times to avoid checkout delays.

We offer tokenization and powerful fraud filters, which reduce risk while preserving an intuitive user experience. Furthermore, the platform is entirely PCI-DSS compliant, providing security and scalability for both startups and organizations.

Future trends in payment gateway integration

The future of payment gateway integration is being moulded by advancements in AI, speech technology, and financial ecosystems.

AI-powered fraud prevention

AI-driven fraud prevention is becoming more common, with gateways such as Stripe Radar and Razorpay Thirdwatch utilizing machine learning to detect and reject suspicious patterns in real time, lowering fraud while maintaining user experience.

Voice-enabled payments

Voice-enabled payments are becoming more popular, particularly with the development of smart assistants. PayPal has begun testing voice-activated payments, enabling speedier, hands-free purchases on mobile and IoT devices.

Crypto & blockchain integration

Cryptocurrency and blockchain technology are being integrated into conventional gateways. Platforms like PayPal and Stripe now handle cryptocurrency transactions, allowing retailers to accept Bitcoin, Ethereum, and stablecoins while retaining compliance and conversion options.

BNPL & subscription-based payments

Buy Now, Pay Later (BNPL) and subscription-based payments are gaining traction. Pine Labs, Stripe, and Adyen now have built-in BNPL and recurring billing solutions, making it easier for e-commerce companies to boost affordability, retain consumers, and generate recurring revenue.

To wrap up

In 2025, seamless payment gateway integration isn’t just an option—it’s a necessity.

With rising cart abandonment rates and increased desire for secure, fast, and flexible payment solutions, selecting the correct gateway can have a direct impact on your conversions and customer confidence. Your payment solution must change to meet customer expectations.

To achieve the best outcomes, prioritise security, device/platform compatibility, and a seamless user experience.

Ready to smooth out your checkout experience? Begin integrating Pine Labs Gateway to explore the full potential of your e-commerce business today!