With the rise of online payment methods, companies came up with more advanced and efficient payment gateways, making the entire process of money transaction smoother.
Today, there isn’t a single business – either POS and eCommerce, that doesn’t accept online payments from their customers. Payment gateways have not only changed the ways of online marketing but also became a fruitful solution for most of the POS retailers.
How does a payment gateway work?
A payment gateway validates an online money transaction by transferring information between a payment portal (including an eWallet app, or a payment website) and the frontend payment processor of an acquiring bank.
A payment gateway aims at securing all the sensitive information of the consumer by encrypting data (via SSL Encryption) throughout the entire process. The work procedures of a payment gateway are explained through the following simple steps –
Step 1: The customer places an order and clicks the Submit/Checkout button.
Step 2: The eCommerce store then redirects the customer to the payment gateway, wherein he/she will have to enter his/her details about the desired payment option, such as card number, bank, or other information. Next, the customer is taken to the 3D secure page, where he/she will be asked to authorize their transaction.
Step 3: After the payment is approved, the bank checks whether there is sufficient balance in the customer’s account.
Step 4: The merchant receives a message from the payment gateway accordingly. If the bank sends a ‘No’ reply, an error message is sent to the customer. If the response from the bank portal came in as a ‘Yes’, then the merchant seeks to receive the transaction amount from the bank.
Step 5: The bank then settles the money with the payment gateway, which further ends it with the merchant.
What to consider when choosing a payment gateway?
Choosing the right payment gateway for your business is essential to increase your brand loyalty and hence, your customer base. The more trustworthy and transparent your payment procedures will be, the lesser will be the cart abandonment numbers. Here are some tips to help you select the best on –
- Security: Ensure that your payment gateway has a minimum of 3D security protocols and complies with the PCI DSS (PCI Data Security Standard).
- Smooth website integration: Make sure that your payment gateway integrates with your website smoothly. This would also ensure a seamless payment process throughout.
- Payout time: Your payment gateway must not take too much time to settle the transaction money with the bank.
- Multicurrency support: If you are managing customers across the globe, then having a multiple currency payment gateways is a must!
- 24/7 customer support: Issues or site breakdowns are common, but you need to solve it as soon as possible to avoid any loss of transactions or customer dissatisfaction. With a 24/7 customer support system, you reach out to them as and when required.
- Supported business models: Make sure your business model meets with the standards followed by the payment gateway. There are two kinds of payment gateways – purely eCommerce and high-risk processors. Some high-risk industries include gambling, traveling, adult entertainment, etc.
Here is the payment gateway list of the top 25 most widely used and trustworthy payment gateway providers.
PayPal is operational across 200 markets on a global scale, founded in December 1998. At present, it has over 237 million account holders. One can perform transactions using more than 100 currencies, withdraw funds in 56 currencies and hold balances in 25. Payment gateway PayPal is used is most of the eCommerce websites in India.
Amazon Pay is an Amazon-owned online payment processing service that was launched in 2007. As of now, it extends its services across eight countries. Amazon Pay is designed exclusively for online retailers, thus ensuring a smooth online marketing experience for their buyers.
Adyen is a well-known, open-source online payment service provider that meets the highest security standards. With Ayden, you can accept payments from anywhere around the world, and it comes with the popular payment methods. Moreover, it also offers an in-depth, insightful analysis of your data.
Skrill is a UK-based payment solution that is quite profitable and is designed for both individuals and businesses. Using Skrill, you can accept payments from around the world. Skrill has a dedicated mobile application, making transitions easier.
Stripe was initially designed as a solution to recurring billing, Stripe also processes online money transitions. It comes with a group of open API for easy integration with your business infrastructure. Payment Gateway Stripe is using in most of the eCommerce business.
PayU is an India-based payment processing service that offers an integrated solution, allowing users to receive local payments. It provides 250+ local payment methods and has multicurrency support.
2CheckOut is a fully-featured US-based payment gateway that enables eCommerce merchants to accept online payments from buyers across the globe. With this payment solution, you won’t need to worry about payment delays or security issues.
Authorize.Net offers a flexible payment solution and is most suitable for retailers as it works in sync with their order management practices. For check payments, this PG provides a fully-integrated and electronic check payment solution.
Payza is one of the simplest and fastest online payment solutions in the world and is designed both for professional and private usage. At present, Payza even accepts a variety of cryptocurrencies, like Bitcoin and Altcoin.
If you are looking forward to improving your conversations and sales, SecurionPay would be the recommended payment solution for your business. It comes with simple payment forms and provides an option to remember the details of the user and his/her card details for quicker payment processes.
BlueSnap enables smooth and easy payments for eCommerce stores, websites, and mobile development and has a dedicated payment processor designed for retailers and merchants. This online money transfer solution supports 100 currencies, 110 payment types, and 29 different languages.
With BitPay, you can accept Bitcoin for your online transactions and is trusted by hundreds of businesses worldwide, including Microsoft, Shopify, Neteller, and more. It offers a whole new online payment solution, and with its global presence, you can instantly reach new markets.
SagePay offers a unique face-to-face payment solution, including mobile, contactless, or wireless. Apart from payment tools, this UK-based company also assists in invoice payments and provides easy-to-use phone payment tools.
Braintree offers easy and seamless integration solutions and has a worldwide presence across 40 countries. It supports 130+ currencies, and users can enjoy benefits like fraud protection and instant settlements.
Using CardinalCommerce, eCommerce businesses, and financial institutions can exercise complete control over their customer authentication strategies. This helps to enhance customer experience and boost sales. Also known as Universal Wallet, CardinalCommerce offers access to numerous digital wallets through a single integration, including Amazon Payments, PayPal, Visa Checkout, and MasterCard MasterPass.
Omise is the best payment service provider across Asia. They believe that online payment is fundamental for developing a successful business.
iPay88 is an Internet Payment Switching Gateway through credit card, Internet Banking, (E-Wallet), developed by Mobile88.Com
DOKU is a local electronic payment solution to offer new payment options to its customers. Customers will be able to choose to pay using the options; DOKU e-Wallet, Internet Banking, Bank Transfer, Convenience Stores.
VTC Pay provides online payment methods safe and convenient on the application of electronic wallets. The mission of VTC Pay is to develop cashless payment methods in Vietnam, to give an impulse to domestic eCommerce.
ENETs Debit is an Internet-based payment method that enables you to make a payment from your bank account using your PIN and ID.
Dragonpay is an online payment option that provides greater security and convenience than traditional credit cards.
Allpago is the new way of accepting payments in Latin America, providing all the relevant local payment methods in a single platform.
Braspag is an e-commerce company that offers payment solutions that enable the possible conversion for customers. The company also develops solutions for anti-fraud, checkout, tokenization, hosted payment page, payment processing, and reconciliation.
MercadoPago is the leading online payment solution in Latin America. MercadoPago is designed to facilitate transactions both on and off the MercadoLibre’s marketplace by providing a mechanism that allows its users to securely, easily, and promptly send, receive, and finance payments online.
Banwire is an Integral system of payments 100% Mexican, which allows e-commerce operations and mobile point of sale terminal at low cost and with cash payment options in various convenience stores.
In a nutshell, in today’s world of online marketing, customers demand faster and more flexible online payment options. Also, your buyers must be able to pay you anytime and from anywhere and on any operating system or device. Moreover, one-click payments, cross-sales and recurring payments are the recent trends in the online payment sector, which would facilitate faster transactions, and hence boost your conversions.