The basis of electronic Commerce is to earn money, and for that, you need to know the payment gateways for your online store. TechSplashers presents you with the best alternatives to choose the most suitable one for your business. Whatever your decision, you must earn the customer’s trust to get conversions. We invite you to closely evaluate the different forms of payment.
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Having an online store that generates income requires integrating one or several Internet payment methods. This is nothing more than the method that we will use to receive the money for the sale of a product or service.
For this, we must integrate at least one payment gateway into our e-commerce site. It is through these services that payments to an online store are authorized. As expected, it is a decision that requires a lot of attention to choosing the most appropriate one.
Through them, the client will close the purchase. Therefore it is necessary to offer him all the confidence and security in the transaction. It is a decision as or more important than choosing the best hosting service for e-commerce. The buyer must feel that his data is protected and that the business is safe.
Payments by bank cards (debit and credit) and PayPal are the best-known in Europe. Before making a purchase, users verify the payment methods and -many times- if they do not find one of these options, they abandon the purchase.
According to the 2018 annual e-commerce study carried out by IAB Spain, 85% of online shoppers use credit and debit cards. The second most used form of payment is PayPal, with 79%. Far behind are bank transfers with 39% and cash on delivery with 28%. The latter is almost obsolete.
Among the elements to take into account in a payment gateway are comfort, usability and security. Also the speed of the transaction, confidence and cost. We will see more details about these points below.
Along with the two alternatives that we mentioned before, there are many other options available to make payments on the Internet. Some are more widespread than others. However, it will depend on each particular e-commerce which one is best for you to integrate into your platform.
Each of them has its advantages and disadvantages that you will have to compare to choose well. If you plan to start an online store or start earning money with your blog, read these points carefully to choose the online payment gateway.
It refers to the time it will take to activate the payment method in your online store. Look for an alternative that you can integrate in a short time. Some platforms can be configured in less than 24 hours.
Others require more time. For example, to get a Virtual POS that allows you to accept cards, you must negotiate with several banks in search of the best option. Not only that, but after getting an agreement, you have to wait for their permission to install it. But being one of the most preferred options by customers, it is worth the effort.
This service implies a cost that you must assume. Calculate the total cost of using a payment method by adding the installation cost, the maintenance cost and the fee to be paid for each transaction.
Those would be the three basic aspects. Extra services increase the cost but focus on these three aspects to have an estimate.
When users have to leave the store to complete the payment, they are more likely to abandon the purchase. That is why it is convenient for the system to offer an Application Programming Interface (API). This function allows you to manage payments from the same store.
It is also necessary that the payment system has an SSL security certificate. This is apart from the one you contract with your cloud hosting, although some platforms offer the possibility of installing the one you already use.
The security certificate guarantees that customer data is encrypted and nobody can access it.
In addition to the SSL certificate, you must have an Address Verification System (AVS). The function of this service is to request the fiscal address of the buyer’s card to verify that it is the owner.
It is important to know well the characteristics of the target customer. What payment methods do you trust, what currency do you use, the credit cards you handle, etc.? For example, if your online store is aimed at Spaniards, you must include Visa and Mastercard, which are the most common.
Should I integrate a digital wallet? Despite being a safe method, there are still few users of this method. In some sectors, it may be convenient to include this system. Evaluate who your client is and offer them the best method for their profile.
When contracting a hosting service such as VPS servers, you have surely valued that it has an effective customer service system. The same should happen with the payment system provider.
Choose a company with technical support that has several methods of attention in case there are problems. The service must be fast because a failure will make you lose conversions.
The payment method you choose must be up to date with technology trends. They are becoming more and more frequent through mobiles. Therefore, it must be possible to pay through these devices.
The rise of electronic Commerce is a global reality. Naturally, each online store has to have its own payment method. It is important to give users different options to make their payments. In this way, there are many more possibilities that the visit of the users turns into a purchase. There is currently a wide range of payment gateways, many of them optimized so that customers can use a credit card. Also, various applications such as PayPal.
In addition to the payment gateways themselves, it is interesting to know which are the best platforms to create an online store, as well as the necessary steps to create an online store.
Now that we are aware of the keys to choosing a good system let’s find out which are the best payment gateways.
This system is one that allows you to receive payments by credit and debit cards. It is a safe and fast method. In addition, users are familiar with this type of transaction, and that is why it is one of the most used.
The Virtual POS is a payment terminal that you contract with a bank, this being the one that establishes the conditions. By installing it in e-commerce, payments are processed immediately.
The data goes from the user to the bank without going through the store. This also means that the buyer must leave the website to make the payment. Accepts only Visa and Mastercard formats.
The commissions for its use are low, around 1%. It is also a system that protects both the customer and the seller.
Paypal is the favourite payment method on the Internet, as confirmed by the same IAB Spain study. So you should implement this system in your e-commerce.
It is a method in which the user does not have to leave their bank details in the store, so they feel safe. In addition, you can make purchases with your cards from PayPal.
It offers a series of outstanding advantages: protection against fraud, live support, etc. It adapts precisely to all types of businesses, regardless of their size and sector of activity.
The payment is made quickly. However, the money remains in PayPal. So it requires a transaction to transfer it to the bank account. One of the drawbacks of this system is that the usage fees are very high.
The implementation of PayPal on an online site is very simple since it is enough to add a button. The process takes no more than a few minutes. It only has one disadvantage, and that is that customers have to leave the store to make the payment.
It is another of the most popular payment systems, although less used than the previous two. It is safe for both the client and the seller and does not involve extra costs for the merchant.
The customer makes a transfer from their own bank and must wait for the seller to receive confirmation for the transaction to be completed. This means that it is a slower process than the previous ones because it can take up to 48 hours before the store receives the money. After this time is that the shipment is made.
Although it does not require any extra investment, it is necessary to have good management to track payments.
It is a method in which the customer pays for the product upon receipt. Although this means more security for the client, the advantages it offers are not many. For example, the shipping company is the one in charge of the collection and charges a commission between 3 and 5% of the value of the product.
There are those who consider it a good option for an online store that is just starting out and needs to gain the trust of customers. However, for the seller, it is a risk because he may incur losses. There is a possibility that you will have to bear shipping costs if the customer rejects the product.
The e-commerce giant offers online stores a secure and trusted option for customers to make their payments. Amazon Payments is available on all devices, which is a huge plus point.
Also, the integration with the website is based on APIs, so this payment gateway is very easy to customize. And finally, it should be noted that Amazon Payments offers a very simple environment for buyers to pay.
yupay! is a payment gateway that is presented as the alternative for financial institutions in Spain to PayPal. It is a digital bank wallet in which customers can store a series of cards with which to pay for purchases made over the Internet.
Its operation is very similar to PayPal. For its implementation in e-commerce, it is a mandatory condition to request the keys from the bank with which the business works. A 100% secure application, with which buyers feel calm because they should not expose their data.
This is one of the most popular payment platforms today as it offers a wide range of benefits. One of the most outstanding is that it has a series of functionalities that allow managing complex payment requests, such as crowdfunding campaigns.
In addition, this platform is perfectly adapted to support online stores with customers from all over the world so that they can make their payments in different currencies.
All this without forgetting that WePay offers the most cutting-edge payment options on the market, such as Android Pay or Apple Pay for mobile devices with these Operating Systems.
It is a similar alternative to PayPal but with some differences. It is in full growth and that is why it is less known. But it is a good option for the merchant as the commission is lower than that of its main rival.
It is an easy and fast method in which the payment is made without leaving the online store. Credit card payments can also be made with this system.
It offers great functionalities regardless of business activity. It is one of the best applications for customers to make their payments as it is secure, customization and easy to configure.
Just like in PayPal, the money stays in Stripe. However, transfers to the bank account can be automated.
It has a service called Sigma, in which those responsible for online stores can check relevant data in real-time: sales, analysis, etc.
This is one of the online payment gateways that an increasing number of e-commerces are currently betting on. It offers a large selection of customization options and, in addition, its integration is very simple. During the implementation, a demo can be created of what the purchase process would be like from the customer’s point of view for each chosen configuration.
This is one of the most recommended solutions for online stores that sell to the whole world since 2Checkout is available in a total of 15 languages and offers no more and no less than 87 currency options.
The global Internet giant has not wanted to be left out of offering users the possibility of paying for their purchases through an online payment gateway. Thus, Google has presented Google Wallet, a platform that allows money transfers in the same way as PayPal.
Google Wallet has a wallet card, which is called Google Wallet Card. This gateway is connected to the Google user account and offers a world of possibilities.
Dwolla is one of the best online payment gateways, which is presented as a bank transfer solution. Online store owners can accept bank payments from their customers in a matter of seconds. In addition, this gateway has a number of outstanding features, such as shopping cart plugins.
Suppose API integration is very simple and adapts precisely to all devices, including mobiles. E-commerce owners can track business activity in real-time: check information on recent transactions, manage customers, view revenue statistics in the control panel, etc.
This is one of the most popular payment platforms today as it offers a wide range of benefits. One of the most outstanding is that it has a series of functionalities that allow managing complex payment requests, such as crowdfunding campaigns.
In addition, this platform is perfectly adapted to support online stores with customers from all over the world so that they can make their payments in different currencies.
All this without forgetting that WePay offers the most cutting-edge payment options on the market, such as Android Pay or Apple Pay for mobile devices with these Operating Systems.
One of the great advantages that Segura offers is that it allows you to make purchases online. It is the customer who determines the terms in which he wishes to pay for his purchase, with the only condition that the first of them is paid a week later. Its operation is very similar to PayPal. It is a safe platform and suitable for those businesses that sell products at a relatively high price so that the purchase in installments makes sense.
This platform offers a number of payment solutions for companies both large and small. In addition, it allows you to pay at the moment or choose a monthly payment option. It offers a series of exclusive WorldPay services, such as automated billing or customization loyalty cards for customers.
WorldPay is characterized by accepting more than 300 payment options so that each and every one of the buyers will find the one that best suits their specific needs.
Simplify Commerce is a MasterCard company created to make it easy for online stores to receive payments. A very flexible gateway that allows buyers to pay using MasterPass, Android or Apple Pay. When it comes to integrating the application in e-commerce, it is very simple since it can be done through a large number of programming languages, such as Ruby and Java, among many others.
There are other forms of online payment that can be implemented in e-commerce. Among those additional options we find the following:
And the list of methods is even more extensive; it includes online and offline systems. There are payment gateways for all needs. When you go to choose between them, make sure you understand how each one works. You have to be able to immediately answer any questions from buyers.
It is also important that you include several systems in your online store. The more options you offer, the more conversions you will have. If your e-commerce is active, review your customers’ preferences from time to time and update the payment gateways.
Some also offer the possibility of registering subscriptions and recurring payments, this being an advantage for the store and for the customer.
Regarding which is the best online payment gateway, the truth is that there is no universal answer since it depends on the preferences and needs of each e-commerce. To take the best decision, there are a number of aspects that it is important to know and assess.
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