Payment gateways for online transactions have never been easier to use. They've also never been a more popular target for hackers and scammers. Businesses that rely on online payment processors may be hit the hardest. Indeed, Shape Security reported in 2018 that 90 percent of total login attempts to online retailer websites were fraudulent hacking attempts. This is the highest of any industry. That's why it's critical to understand how the quality of your e-commerce payment gateways can help you fend off these attacks in real-time by acting as an encryption buffer between buyer and seller.
Receiving payment online through high-quality payment gateways can also assist you in reducing load time. Furthermore, according to abandonment surveys, some of the top reasons for abandoning a shopping cart can be addressed in the quality of your gateway:
• 15% abandon the shopping cart in order to have a better in-store experience.
• 6% abandon due to a lack of payment options
• 4% abandoned due to technical difficulties.
With all of this in mind, you might be wondering: how do you choose a payment gateway that maximizes convenience, minimizes risk, and ensures the security of your customers' information? Let's get started with those answers and more.
Receiving Payment Online through Payment Gateways?
A payment gateway is a merchant service that accepts credit card payments for e-commerce sites as well as traditional brick and mortar stores. PayPal, Stripe, and Square are all popular payment gateways. Most payment gateways accomplish this in a matter of seconds by performing the following steps:
- Encryption: A payment gateway will encrypt (encode for private use) data between the user's browser and the retailer's server for exclusive use between the seller and buyer.
- Request: An authorization request occurs when a payment processor obtains approval to proceed with a transaction from a credit card company or financial institution.
- Fulfillment: Once the payment gateway has received authorization, the website and interface can move on to the next action.
Other functions of the payment gateway include screening orders, calculating tax costs, and using geolocation for location-specific actions.
The Benefits of Receiving Payment Online
Image is taken from Strikingly user’s website
Online payment enables cashless purchases of goods and services via credit cards, mobile phones, or the internet. The primary benefits of accepting online payments are cost and time savings, increased sales, and lower transaction costs. The following are the benefits of online payment:
1. Increased Revenue
As internet banking and online shopping becomes more common, so are receiving payment online. The use of cash and checks is dwindling by the day. Electronic payment has emerged as the most viable option for developing cashless payment systems. Even the majority of customers do not use cash and prefer electronic transactions. In that sense, e-payment enables your company to sell to customers who prefer to pay electronically. As a result, you will be able to gain a competitive advantage over those who use traditional payment methods.
2. Explore the Global Market
The most significant advantages of online payment are the ability to establish your business globally and easily receive online payment. You can accept payments from anywhere in the world using the electronic payment method. Most people want to try new things and prefer better options, so cross-border shopping is becoming more popular. As a result, digital payments enable transactions both within and outside of the country. You can grow your business globally and conduct online transactions.
3. Transactional Cost Savings
Customers must previously visit the store with sufficient cash or use cheques to purchase the products. However, digital payments now save customers time and effort. They can shop online and even pay via electronic means. The process of receiving payment online lowers the cost of the transaction compared to the traditional method of payment. You don't need to hire anyone, especially if you're just going to be a cashier and dealing with the costs of processing payment slips. To swipe your card or pay online, there are usually no or very small fees. In the long run, e-payment may save both individuals and businesses money on transaction fees.
4. Payment Protection
Accepting online payments is more secure and reliable for sellers than accepting cheque payments. The sellers can receive online payment immediately, with no risk of bounced checks or other associated fees. They are not required to check the cash and cheques for authenticity. The method of receiving payment online is even subject to stringent regulations, making it more secure and trusted.
5. Credit Cards to Make Low-Balance Purchases Easier
Even if you don't have any money in your bank account, you can use a credit card. As a result, customers can pay with their credit cards. If you sell expensive items, you can offer customers the option of breaking down payments into small installments and paying for those installments with credit cards.
6. Acceptance of Payment Methods
Cash and checks are the only forms of payment accepted in traditional businesses. However, today's business setup includes online payment methods. Depending on the type of customer, the sellers provide a variety of options for receiving payment online. Clients can be given a variety of payment options. You can use any payment method you want. Most of the top payment providers offer payment options such as eWallets, cryptocurrency, prepaid cards, and others.
The Benefits of Having Multiple Payment Gateways
As a result of these difficulties, fast-growing companies connect their applications to multiple gateways in order to enable both business and technical innovation. Let's look at some of the most important reasons for using multiple payment gateways.
a. Increases Customer Trust
If a customer is unfamiliar with the PG brands, they may be hesitant to proceed with the transaction. In fact, 19% of carts are abandoned if customers do not trust the site with their credit card information. Customers prefer PGs that they have previously used successfully. Especially since they entrust the PG with their private financial information. As a result, having multiple payment gateways can boost customer trust and conversion rates.
b. To Serve as a Backup
Technical failures may occur while receiving payment online. Due to sales overload, payment gateways may fail to process the payment. In such cases, customers can purchase the product from another seller. To avoid such scenarios, it is always preferable to have multiple payment gateways on the merchant's website. Improves According to International Sales Reports, 38% of customers have encountered a lack of preferred payment options on websites. The key to resolving this problem is to make multiple currency options available on the checkout page. An e-commerce website allows you to sell to anyone, regardless of location. The difference in currencies, on the other hand, is a problem. To process payments from multiple countries, a single payment gateway may not be sufficient. To collect payments from international customers, merchants must deploy multiple PGs on their platform. Selling internationally benefits both the company and the seller's geographical coverage. In fact, 63 percent of Indian online businesses sell to more than one country.
c. Meets All of the Customer's Requirements
Payment gateways differ in their features. It is difficult to find all of the features in a single payment gateway. Some gateways do not accept certain brand cards, and others do not provide monthly subscriptions. If customers are unable to find the features they seek, conversion rates may suffer. In fact, 7% of carts are abandoned due to a lack of payment options. Customers can pay in a variety of ways thanks to the availability of multiple payment gateways for paying and receiving payment online.
d. Provides Data Analysis
Payment gateways provide the seller with various types of data. The information provided by each payment gateway company is not the same. During data analysis, each piece of information serves a specific purpose. Merchants can make informed decisions to improve their business based on this analytical data.
Various Payment Methods for Your Strikingly Simple Store
Image is taken from Strikingly
Strikingly is a website builder that lets you add a Simple Store to your site. You can attach various payment methods from which your customers can choose. Strikingly ensures that your account information and your customers' information are secure in each of these payment options.
∙ Payment through PayPal
Paypal is a well-known and trusted payment method. It enables your customers to pay for their purchases without having to enter their credit card information on your website. It is also available in almost all countries, so it is best to include it among the payment options you provide to your customers for receiving payment online. Even if you don't know if you have or will have customers from all over the world, it's still a good idea to be prepared and accommodating. Paypal can assist you with this.
Online payment gateways are an important part of any business in the world of eCommerce. Stripe is an online payment processing platform that was created specifically to meet the needs of online businesses. You simply need to open an account with them and link your credit card(s), and you can easily pay and receive online payments. Despite the fact that you won't be able to serve customers from every country on the planet, it's still a good idea to have it as one of your payment options because many customers use and trust it.
Square is yet another payment option that you must include in your store's payment options. It is a credit card and point-of-sale processing software that is also widely used around the world. You simply need to create your own Square account, link it to your website, and attach your credit card/s. Then, from your very own business website, you can accept credit and debit card payments. The catch is that, while this is one of the most popular options for receiving payment online, it only serves a few countries. It can only accept transactions from the following countries: Australia, Canada, Ireland, Japan, the United Kingdom, and the United States.
∙ Apple and Google Pay
Apple Pay and Google Pay have come a long way in competing with all of the other types of payment options. Customers are more likely to trust them because of their brand name. Once you've activated your Stripe or Square account, you'll be able to accept payments automatically. Your customers do not need to enter their credit card information if they have already set up their respective mobile wallets. Google Pay and Apple Pay will automatically detect the payment method that the customer has set up on their devices and use it to complete their transactions. It is a convenient and trustworthy payment method that you would benefit from incorporating into the various payment options you provide your customers.
∙ WeChat Pay and AliPay
Image is taken from Strikingly
WeChat Pay and AliPay may be useful with Chinese buyers depending on the type of business and target market you have. It enables these customers to pay for their transactions by transferring funds from their bank accounts via the internet. While they only accept payments from Chinese customers, they are accommodating to business owners like you. Customers can use Wechat Pay and AliPay to pay you as long as you have a Stripe account. These payments will be made in the currency that you have specified in your Stripe account.
They both accept the following currencies:
- Australian Dollar
- British Pound
- Canadian Dollar
- Hong Kong Dollar
- Japanese Yen
Alipay accepts additional currencies such as NZD or New Zealand Dollar. China is a large country with a large number of potential customers. As a result, if you don't include this as one of your site's payment options for receiving payment online, you may miss out.
∙ Payments Made Offline
Image is taken from Strikingly
Setting up offline payments as one of your multiple payment options means that your customers do not need accounts in the various types of payment methods available online. They are not required to pay online in order to complete their transactions. You can reach an agreement with your courier service providers using this method. You can authorize them to accept payments from your customers after the products are delivered to their doorsteps. It is up to you to configure the offline payment process. Surprisingly, you can only set up offline payments for specific countries.
To summarise, payment gateways are an essential component of an eCommerce website and should be carefully chosen with your company's needs in mind. Choosing a payment gateway that does not correspond to your target market or product type can significantly reduce your sales. As a result, before investing time and money in integrating the most appropriate payment method, it is best to conduct some preliminary research on the various options available for receiving payment online.