Pick the Best Payment Gateway for Your E-commerce App
Time and speed are the fundamental components a user expect from an e-commerce app. An ecommerce app is the innovation of the day. The shopping can only be quick when the best gateway for payment is integrated into your ecommerce app.
Online payments are much more convenient than paying money when users select their products from an e-commerce store. It’s up to the user to choose the mode of payment like E-payments or Cash on Delivery. The e-payment mode will help you have a successful shopping on the go and should be incorporated during the mobile app development phase.
What is Payment Gateway?
A service offered by the gateway provider that initiates transactions for online businesses and retailers. It transfers the data between a gateway, the Front-end processor or the incorporated bank.
A payment gateway automates the transaction between the user and vendor. It is, for the most part, an external service like a system of computer processes for the benefit of the vendor through secure Internet connections. The payment portal model permits the vendor to acknowledge electronic payments like credit/debit card payments.
How to pay online? What are the mediums to perform e-payments? A direct and simple technique with quick payments consolidates the best payment gateway. The payment gateway providers list is described below:
There are some aspects to be considered like security, cost, and other payment modes while going for an online payment gateway.
How Online Payment Systems Work
It is usually hard to understand how the payment process functions and the difference between a payment gateway and a payment processor.
There are four key parties required in an online transaction:
- The customer
- The vendor
- The procuring bank
- The issuing bank.
Each transition aims to transfer cash from the issuing bank to the procuring bank as per the agreement between the customer and the user. The payment processor and payment portal help in connecting all 4 parties in the payment chain.
The payment processor takes care of the transaction by transmitting data between you, the vendor, the issuing and the procuring bank. It enables you to work with the credit card machines and other equipment you use to acknowledge payments.
A payment portal approves payments for online stores. This is essential since it is prohibited, because of security reasons, to transfer data specifically from your site to a payment processor. This mode of gateways is somewhat similar to a middleman between the client’s data and the banks.
What Happens if You Choose Wrong?
We would prefer not to sound a bit harsh, however, if you opt for the wrong payment gateway, it can have a catastrophic effect on your eCommerce store. From one perspective, it can seriously reduce the number of users while and scare off vendors as well. Both because of the absence of a suitable option with user reach of the specific payment system.
In outsider perspective, that may not appear exceptionally tragic — if you consider the other components of an e-commerce solution (items, shipping, offers, accounting etc.) — poor payment gateway may end up like throwing cash out of the window.
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Types of Payment Gateway
The key question you should decide before opting the most appropriate Payment Gateway for your business. Payment portals are fundamental of two kinds:
1. Hosted Payment Gateway
Hosted Payment Gateways redirects the users to the service provider to fill up the payment data(credentials). Some of the common examples are PayPal and 2Checkout which is sought after among the audience.
- No Security Burden: The greatest advantage of such portals is that the offsite service provider or the network host has to deal with the security issues and PCI compliance.
- Free from Set Up Issues: Set up is the sole obligation of the Payment Service Providers. Moreover, you don’t need to worry over the know-how to integrate.
However, these modes of payment gateways are not preferred in some countries.
- No Control Over UX: Such payment solutions often fail to inspire users with moderate and sophisticated UI’s. This can have a key impact on the conversion rates of your business.
2. Integrated Payment Gateway
This mode of gateway associates your eCommerce store to the gateway services by means of an API. Gateway service providers like Stripe, Authorize.net encourage such API calls to make direct payments through your eCommerce store. They also go by the name of Non-Hosted Payment Portals.
- Smooth Payment Experience: Integrated payment gateway offers the best user experience since; prospective buyers are not diverted outside the store site.
- Mobile and User-Friendly: their quick and intuitive response goes in favor of the mobile frenzy population.
On the flipside, these payment gateways have their share of burdens.
- Security Responsibility: Since you have to secure your payments, it is must to have PCI DSS Compliance and SSL Certification. One security breach and your store must face the danger of a whole review.
- Custom Integration and Maintenance: Your store may not be compatible with the features offered by the service provider. The ongoing maintenance and custom development can’t be neglected by integrating the gateway APIs.
Factors to Consider While Choosing a Payment Gateway
It is quite hard to settle on a payment portal most compatible for your eCommerce store since it depends on your business needs. If you go with mainstream ones, such as PayPal, PayUMoney or Skrill, you will observe their transaction charge on the higher side. However, if you opt for the little ones, like the Citrus, they have great functionalities and less transactional charges. In any case, it isn’t simple, and you can’t fix one on the basis of cost.
The best one you opt should also suit your business needs and we can help you with tips to help you choose the best.
1. Choose between Setup Fee or Transaction Charges:
In case you are a brand or startup, you might not want to pay an initial cost of about Rs 8000 or above since it will take time to develop your business. At this point, it would be wise to think about a payment portal which does not charge any setup fee.
But, if you are a reputed brand or a startup with deep pockets for marketing, you may choose Payment Gateway with lower exchange rates which could be as low as 1% to 2% (with the supposition that you will assemble activity rapidly).
2. Decide if you require Automatic Billing Support:
If the service or product you are offering needs subscription, you have to pick payment gateway which allows automated payments. Gateways such as PayPal offers such services.
3. Reviewing the Purchase Funnel:
Consider the guidelines required to get to the payment confirmation page, if there are too many guidelines, a customer may drop off.
If there are too many steps prior to payment, it may result in disaster. So review the purchasing funnel on Payment Gateways site or request that them to show a demo. This is a decent method to get an idea of how the procedure will really work on your eCommerce app. Although, it would be ideal if you take note of that you don’t have much freedom on Hosted Payment Gateway. But, Integrated Payment Gateways offer you better flexibility.
On Integrated Payment Gateway, you can settle on a one-page checkout, style form fields, multi-page checkout as per your requirements. With the help of Analytics, you can eliminate the obstructions and gain better conversion.
4. No Need to Stick to a Payment Gateway:
Begin with whatever payment gateway sounds good to you. The duty of a gateway portal is to successfully execute the transaction from the customers. It is easy to migrate from a payment gateway to another next (unless you can pay a hefty amount) so keep on improvising.
5. Keep Multiple Payment Gateway Option:
If you are a newbie in the business field, it is better to have numerous payment choices as it might make confidence in your new customers. Include PayPal as your additional payment choice as it is well known and buyers trust it.
6. The Reputation of your Payment Gateway:
The reputation of your payment gateway could be very convenient to kick-start a mutual relationship with your respective customer.
7. Do you serve clients abroad:
If you serve clients abroad, make sure that your payment gateway is compatible with foreign credit cards.
8. Customer Support:
Try to get in contact with the technical support team of various gateway providers, if you can’t connect with them, maybe it isn’t the correct Payment Gateway for your business. Be that as it may, if you are certain about your technical ability you could choose otherwise as well.
9. Be certain that your CMS bolster your preferred Payment Gateway:
All e-commerce CMS accompanies off the rack payment gateway plugins. To ensure that the payment supports your CMS.
10. Consider Cash on Delivery:
Cash on Delivery (CoD) is an exceptionally popular payment option in India. An option you cannot disregard if you need to establish your eCommerce business. Users will begin paying once they have a couple of positive transactions with you. CoD is an absolute necessity for the success of eCommerce in India.
Premjith is a former mobile app developer now focusing on Digital Marketing. He currently works for Mindster, a Leading mobile app development company in India. He wants to work with people that have the same interest, the same motivation. He always digs for intuitive knowledge with a technological insight.