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Oct 28, 2020 - 0 Minutes read

All payment gateways for an online store and how to choose them

All payment gateways for an online store and how to choose them

The configuration of the means of payment that we make available to our customer’s turns out to be one of the last tasks that we implement when creating e-commerce. The options we offer seem like a trivial aspect, but it can be the difference between failure and success for an online store. Paypal, Stripe, bank purchasing gateways… How to choose? A customer may decide not to buy simply if they cannot find the desired purchase option. Can you imagine losing sales because your customers can't find a way to pay? It would be disastrous. It is for this reason that in this article, we will explain all the possible forms of payment methods and which ones to offer to your customers. Let’s start with this opening sentence: For a customer who wants to pay, all the facilities provided are still few. Let’s start.

What is a payment method and why is it so important

If you have e-commerce, you will know the difficulty of selling, and you will know this enjoyment when you receive the confirmation email during a purchase. Isn't that awesome?

However, this climax can be truncated in various ways; one of them being to not offer the customer a solution which satisfies him during the payment. The buying gateway, as the name suggests, is the way we offer the buyer to send the money to us. But more than a definition, what's important is that it should be a quick and easy experience. If we do not make this buying process as easy as possible, we will waste all the marketing work previously established.

The means of payment in an e-commerce or how to make our customers pay in a safe and convenient way?

Here are the options and tools so you don't miss out on sales.

1. PayPal

It has been on the Internet since 1998 and in a few countries it has been more complicated to enter the market, and ultimately PayPal has positioned itself as one of the most reliable platforms for online shoppers. Confidence is a key factor. It was a slow process, but little by little Internet users lost their fear when it came to paying online. The user should have all the peace of mind that his money is in a safe place. PayPal has worked hard for this and today it is one of the mandatory tools for any e-commerce.

A. The advantages of using PayPal as a payment method.

Let's see the benefits of such a service: Very well known: it’s some 10 million annual transactions and more than 200 million users confirm it. It conveys trust: anyone who knows PayPal, has an account and knows it's a 100% safe and convenient payment method Easy to set up: PayPal integrates with most CMS, whether you are using WordPress, Prestashop, Magento or Shopify or through a homemade CMS, it is accessible with little development. You have immediate access to money: logged in to your seller account, you can transfer the money to your bank or use it to make online payments with just one click. Recurring payments: If your store charges its customers monthly, for example, PayPal can schedule a debit per subscription. The ease and confidence that users have are, without a doubt, its speed and simplicity. From the buyer's point of view, it is for sure the easiest, but is it just as easy for the seller?

B. Disadvantages

Here are some reasons that may make you doubt: Commissions: PayPal is not an economical payment option. Especially if your billing is low, what about higher commissions, here's what PayPal charges: Payment is made outside of your page: when the user clicks to “pay”, they are redirected to the PayPal page to connect and finalize the payment. It might not seem like a big deal, but adding a step in the buying process and getting the customer out of your website is a downside, since you can't control what's going on outside.

Conflicts: In the event of a user complaint, PayPal will agree in most cases. There are many cases of e-commerce that have felt biased in the face of the arbitrariness of decisions held by PayPal. This won't happen if you do the right thing, but paypal can block your money without further explanation. But now let's see the big question:

C. Is it worth using PayPal?

We believe so, at least if your e-commerce does not have enough seniority and authority for customers to trust your brand. If not, PayPal will pass its authority to you and that is priceless.

D. BrainTree vs PayPal

If your e-commerce doesn't have a lot of international transactions with currency change , take a look at BrainTree. This is owned by PayPal but is intended for larger accounts with high volume around the world. It is the purchasing gateway, for example used by Uber or Airbnb. It is the most recommended payment platform if you accept bitcoin as a payment method.

2. Payment with Stripe

It is in a market dominated by PayPal that a new online payment service has entered the market with force. Stripe is an online payment method with more and more advantages that you should get to know and probably include as a payment method. Unlike PayPal, the user does not have a Stripe account; he offers the option of paying with classic bank cards: Visa, MasterCard, etc.

A. The advantages of Stripe

Easy to use: it is such a well-made, well-programmed tool that it is a pleasure for those who use it. In addition, working with its API is really very convenient. It integrates with your web: the entire purchasing process is done on the site, without having to reload the page. This is perfect for a “one page-checkout”. It adapts 100% to your template. No one will think this is a third party service. Economical: Its prices are the lowest on the market: European bank cards: 1.4% + 0.25 Euros per transaction. On-European bank cards: 2.9% + 0.25 euros per transaction. Security: to use Stripe, it is essential that your website is SSL certified, that is to say that the URL begins with http S .No need to go back and compare prices. For the smallest sales volume 1.4% + 0.25 for Stripe and 3.4% + 0.35 euros for PayPal. It also accepts recurring payments by subscription.

B. Disadvantages of Stripe

Is everything so beautiful? It depends…Advanced uses: it is a very powerful tool for large e-commerce and marketplaces. If you want to get the most out of the API, you will need some programming knowledge or the help of a developer. It is an external solution: we can always encounter some instabilities, price changes, etc. Less popular than PayPal: Users still don't know all the advantages of Stripe over Paypal, and many still trust the payment platform that Elon Musk founded and is now owned by EBay. Access to funds is not immediate: Stripe processes the payment and sends the money to the linked bank account a few days later. Now let's take a look at the third most popular payment option.

3. virtual POS

This form of payment is offered by banks to integrate the payment directly into your bank account. Payment is made as if your customer was in a physical store and made the payment by card, but without a payment terminal In most countries, each bank has its own Shopify Payment Gateways but in Spain, there are mainly 2 options: The main downside is that the payment is made outside of your website and generates a commission. They charge you a minimum, which is usually high, to have the POS. If you fail to bill enough to offset this fixed cost, stick with a service that doesn't require a minimum.

4. Other forms of online payment

There are other solutions which are the ideal complement so as not to let customers slip away for lack of variety: Cash on delivery: Years ago, it was essential in the absence of online trust. It tends to disappear. Por check: it is strange to see how platforms like Woo commerce continue to offer payment by check, in general it is used for testing. By transfer: ideal for users reluctant to give their credit card information. It takes 4-5 days to receive payment before sending the product.

Too many options?

So you've seen that the variety is huge, that's why it's important to see which options are the most interesting.

Which payment method to choose?

It is important to offer a variety of payment methods, but be careful not to overwhelm your buyer. Having too many options can be counterproductive. Our recommendation is to offer, in all cases, payment by card; through Stripe or a virtual POS. PayPal must be present even if it is necessary to face high commissions. Finally, a third option can be added for the more suspicious such as payment by bank transfer.

Other doubts? Here are some comparisons:

1. Stripe or virtual TPV?

It all depends on what you have negotiated with your bank. If you can easily get to the fixed billing required, the POS is a good option. On the other hand, if you are going to pay a very high fixed monthly rate, Stripe is a better option.

2. PayPal o Stripe?

For a recognized UI design Auckland that has won the trust of its users, you can perhaps eliminate PayPal. On the other hand, if you are in this case and you have a high sales volume (over 100k per month), PayPal's commission is similar to that of Stripe. In all other cases, use both payment methods.