Best 5 Payment Gateways for Ecommerce Every Entrepreneur Should Know
Checkout experience can impact potential sales. According to a survey conducted by YouGov, an established UK-based International internet market research firm, approximately, 50 percent of regular online shoppers would stop online shopping if their preferred payment gateway were not available for facilitating transactions. Approximately 40% said that they would prefer purchasing online from that retailer who has multiple payment gateways. The market share of digital wallets is expected to increase. According to WorldPay, an established payment processing company, the incidence of transactions through alternative payment methods is estimated to account for nearly 60% of all transactions by the end of 2017.
From all the stats mentioned above, it can be inferred that checkout experience can make or mar customers’ e-commerce experience. Before incorporating any payment gateway in their respective eStores, retailers should understand how a particular payment gateway can truly enhance the checkout experience of users.
Payment Gateways Auto-populate customers’ information
Checkout process can be improved by some payment gateways such as PayPal and Amazon Payments. Such payment gateways auto-populate customers’ information thereby eliminating certain steps. Customers can check-out quickly. As a matter of fact, most of the customers prefer those payment gateways which facilitate one-click checkout.
It does not necessarily mean that customers will definitely visit your store to make a purchase. Thanks to the painless and easy checkout experience, customers will prefer your e-store over those of your competitors. According to a report by Bain & Company, a reputed American management consulting company, an increase in customer retention rate by 5% shall increase profits up to 95%. Isn’t this overwhelming?
Not all payment gateways integrate with your current platforms
It is very much possible to integrate every payment gateway into your current platform. There are certain payment gateways which require huge custom development. Some platforms do not have enough plugins to incorporate Amazon Payment gateway. However, those platforms may have built-in plugins to incorporate Orbital payment gateway. If E-retailers are willing to invest time and money, they may integrate tough-to-incorporate payment gateways. However, I suggest to not go to extreme levels of custom development.
Many modern e-stores are compatible with most of the widely used payment gateways. If you are unable to incorporate most of the modern payment gateway, your platform might have become outdated. Here is a suggestion- Do NOT use an outdated platform. Know the trends of the industry.
Payment Gateway and Social Networking Sites
People love social networking sites. Facebook has more than 2 billion monthly active users. Twitter has nearly 325 million monthly active users. Instagram has more than 600 million monthly users. Payment gateway companies are well aware of the fact that people like social commerce. For instance, Relay allows customers to shop online without leaving their Twitter. Similarly, Stripe launched a product to facilitate transactions from Twitter. Many payment gateways are observing the level of engagement of customers on various social platforms. Consistency in innovation and Growth Hacking can assure growth and profitable future.
Here is a brief on the best 5 payment gateways for e-commerce every e-commerce entrepreneur should know:
PayPal started its journey in December 1998 as Confinity. This payment processing company was established by Max Levchin, Peter Thiel, and Luke Nosek. The founders are known for spearheading online payment processing. PayPal has always been strong and is going strong today as well. The fact that they have acquired Braintree and Venmo speaks volumes about their progress. Ever since they severed ties with eBay, they have become one powerful entity. PayPal has more than 200 million active users.
Can PayPal be your sole payment solution? Of course, it can be your sole solution. However, many e-retailers use PayPal as an alternative. In other words, PayPal is used as a “backup” solution. Many customers wish to save time by not doling out their credit card information to every possible retailer. PayPal is used by all such customers. PayPal has been in the payment processing business since the past 19 years and is going strong. It is secure and trusted. PayPal supports all platforms. In fact, there is no need of any platform integration. PayPal redirects to its own site and necessary information is provided by Express API.
Do not forget to do some A/B testing to validate the checkout experience. By the way, you can terminate working with PayPal gateway any time. You are not required to sign any contract obligation. However, you are required to comply with the PayPal user agreement. Some of its notable clients are Walmart, Dollar Tree, Netflix etc. For an exhaustive list of PayPal’s clients, visit this page.
Amazon is known for its impeccable customer service. For all intents and purposes, the checkout experience that customers witness from Amazon.com is unmatchable. To provide the same top-notch experience, Amazon initiated Amazon Payments in 2007. One unmissable feature of Amazon Payments that contributes to very high conversions is 1-click purchase option. This 1-click shipping option auto-populates all the client’s information. Many eCommerce platforms such as Magento, Shopify, Volusion, OpenCart, PrestaShop and WooCommercesupport this payment gateway. To know more about integration options, visit Amazon Integration Options.
Amazon doesn’t charge you for setup and installation. Also, there aren’t any hidden charges. Amazon is known for its transparency. There isn’t any fraud protection fee either. To know more about the pricing details, click here.
Ever since its journey from 1996, Authorize.Net has been carrying a decent name for itself in the payment processing space. Apart from payment processing, Authorize.Net provides other services such as:
- Subscription based services
- Fraud protection
- Simple checkout options
This payment gateway is supported on platforms such as WordPress, Magento, Shopify, Volusion, Bigcommerce etc. Get the complete list of supported platforms here. This payment gateway is secure and e-retailers can delve into the granular details of security settings. There is a caveat-Migration from Authorize.Net to any other payment gateway is painstakingly difficult. E-retailers should redo the complete procedure of collecting payment information from their respective clients. Neither e-retailers nor customers love this ordeal.
There are no early termination charges. However, e-retailers are required to pay certain contract and termination fees if they opt to go through a reseller.
Braintree was launched in 2010. After its acquisition by PayPal, it operates as a PayPal company. They accept even bitcoin payments. This clearly speaks volumes on how progressive Braintree is. It is supported on all major platforms such as Bigcommerce, Magento, WooCommerce, Spree Commerce etc. View the complete list of its supported platforms here. E-retailers need not sign any contract agreements with Braintree. To know more about its pricing details, visit this page.Some of its notable clients are Bonobos, Airbnd, Casper and Uber.
Do you have any doubts or concerns? Feel free to drop a line or two in the comments section. I shall reply in a day or two. Let me know your thoughts on best payment gateways. Keep watching this space for some amazing insights on E-commerce trends. My best wishes are with you and your e-commerce venture. Cheers!
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