ECommerce businesses need a way to accept payments through their websites. The more payment method options that an eCommerce can offer, the better the opportunities to make sales, secure repeat business, and develop a profitable business. There are many gateway providers, and knowing what your business needs will help you to select the right option for your business.
Making a decision about which payment gateway option is right for your business is based on many factors. Your digital business type, your region or regions of operation, your customer demographics, and even your security concerns.
What is a payment gateway?
A payment gateway is a technology that makes it possible for merchants to accept debit or credit card payments from customers, particularly in eCommerce.
Of all eCommerce transactions around the world, more than 75% are made through a form of digital payment, such as digital/mobile wallet, credit card, or debit card.
Selecting the right eCommerce gateway means understanding what one is, how they work, and how they are different from other things, like a payment processor, which is also essential to your business accepting and processing your payments.
Which payment gateway is right for your eCommerce store?
Selecting the right payment gateway requires an understanding of your growth projections.
If your business is following a profit motive, then the cheapest options are the most appealing. However, for digital businesses wanting to expand into international markets, a higher-quality payment gateway provider is often a better option.
Some things to consider about selecting a payment gateway to include:
- Cost – How much does the payment gateway cost?
- Region – Does the payment gateway operate in your country?
- Features – Which features are included such as dashboard and security?
- Mobile – Will it work properly on mobile devices?
- Security – What sort of security is included?
- Types – Which types of credit card payments are accepted?
- Technology – Is it easy to install or does it need to be professionally integrated with your system?
There are many considerations before investing in a payment gateway provider. Many of those considerations are cost, which can take some of the focus. However, a closer look at security, integration, and scalability is often overlooked. Weighing the pros and cons means really understanding the direction of the business, its growth opportunities, and your customers.
There are many third-party payment gateways that offer tools that help you track your profits, manage your accounts, and generally understand your business with simple analytics. If you’re using Stripe, adding any of the following payment gateways is easy.
7 of the best payment gateways for eCommerce
There are many great providers for digital businesses, serving merchants working in B2B and B2C, and even customer direct.
Stripe is one of the most popular eCommerce payment gateway providers. It commands about 10-20% of the market, second to PayPal. Stripe has a massive regional reach, operating in multiple countries and accepting many currencies, making it a good choice for online businesses that are truly global.
Braintree, owned by PayPal, is a payment gateway that focuses on customizability, flexibility and security. While Braintree accepts international payments in more than 130 currencies in over 45 different countries and regions around the world, it does not support high-risk businesses, which can be challenging for many eCommerce merchants.
PayPal has been around since 1998 when it was established as Confinity, becoming PayPal in 2001. It was acquired by eBay in 2002, then spun off from eBay in 2015. It is still one of the most powerful fintechs with more than 375 million registered active accounts in more than 200 countries.
However, it is expensive for customers and merchants. Payments attract expensive fees, and often payments are stalled or refused because of KYC and AML, which is good, but it can be frustrating for businesses and customers.
Skrill works with high-risk industry businesses. The company offers services in more than 130 countries and supports 40 currencies. It has a mobile app for customers and account holders making payments access easy. While complex payments can take time to process according to AML regulations, the platform works with multiple currencies and merchants who work in industries that find it difficult to find providers.
Verifone’s payment gateway is a good choice for smaller online merchants selling to an international market. The provider covers more than 200 countries and accepts over 45 payment methods and is one of the most expansive payment gateways available. It offers easy integration and customization, making it good for growing online businesses.
WePay is based in the United States. It provides an integrated and customizable payment solution to platform businesses such as crowdfunding sites, marketplaces, and small business software companies. However, WePay’s pricing plan(s) is not transparent and merchants must contact them directly for a quote. Services are limited to businesses based in North America.
Anzen8 is an industry-leading partner for online merchants offering sales internationally. With multicurrency payments, leading customer care, and fast processing, it is one of the best solutions for small-to-medium online enterprises, expanding into the global marketplace.
Selecting a gateway provider
Selecting your payment gateway provider should be a carefully considered process. Your provider needs to serve the regions you are working in, accept multiple currency payments and provide you with a secure and swift service. Researching your options will save you money in the long term. You should approach the provider as a long-term investment and partnership. Be sure to learn as much as you can about the provider, its capabilities, and how compatible with your needs the service really is before committing.