Payment gateways are essential tools that facilitate online transactions between customers and merchants. They act as intermediaries, securely transmitting payment information from the customer to the merchant's bank, ensuring that sensitive data is protected during the process. These gateways support various payment methods, including credit cards, debit cards, and digital wallets. By integrating with e-commerce platforms, payment gateways enable businesses to accept payments seamlessly, enhancing the overall shopping experience for customers while providing security and fraud protection for merchants.