Are you building a SaaS platform or eCommerce business and unsure which payment service provider should you use? This article provides the best options for international transactions and highlights the importance of choosing the right business account and payment processors to receive payments.
Key Takeaways:
- Select payment gateways that align with your business needs and target customers.
- Ensure support for multi-currency and local payment options to cater to your customers.
- Find an affordable pricing structure that suits your business model.
What is a Payment Gateway?
A payment gateway is a service that enables merchants to securely accept debit or credit card payments online. It facilitates the authorization and processing of payments, ensuring transactions are completed smoothly and securely. It encrypts customer data and uses security protocols to protect sensitive information during the transaction process, providing a convenient and safe way for customers to make purchases online.
It is critical to choose which payment gateways that best suit your customers as it heavily influences their willingness to pay. Take the Philippines as an example, Filipinos are used to using cash through Gcash and credit cards would deter purchasing. On the other hand, over 80% of Chinese prefer to use Alipay, UnionPay or WeChat Pay. Stripe is one if not the most popular provider for it provides global convenience to all major countries, most notably China and India.
Most Popular Payment Gateway Providers
Stripe
Stripe is a payment service provider that enables merchants to accept credit and debit cards, mobile wallets, and buy now, pay later (BNPL) services. It is a highly customizable payment service provider, supporting a wide range of payment methods, including credit/debit cards, bank payments, Discover, JCB, Diners Club, China UnionPay and other international methods. It operates in over 30 countries and supports over 135 currencies. Stripe offers transparent pricing and 24/7 customer support via chat, email, and phone, with additional technical support in a developer chat community. However, its tech-focused nature may pose challenges for less tech-savvy users, and its functionality for in-person payments is limited compared to its robust online payment capabilities.
PayPal
Launched in 1998, PayPal revolutionized digital payments in person and online, and maintains a strong global presence, commanding a 42.35% market share. PayPal claims its trusted name can boost customer conversion rates by up to 44%. PayPal is a widely used and easy-to-integrate payment processing platform and provides documentations in all languages. You can accept payments in 25 currencies from 200 countries with one of the fastest transaction speeds. However, its extensive offerings can be overwhelming, and its processing fees and poor currency conversion rates can be expensive for small purchases. Additionally, it is not ideal for high-risk or high-volume businesses.
Ecommerce-focus Payment Providers
Amazon Pay
Amazon Pay is an online payment service that allows Amazon customers to make purchases on other e-commerce sites using their Amazon account. It integrates with platforms like Shopify, BigCommerce, and Adobe Commerce, and supports payments via Alexa devices. Ideal for businesses focused on online sales, Amazon Pay offers easy checkout, global customer support, and no setup or monthly fees. Integrate Amazon Pay if your customers are Amazon users. With over 310 million active users globally, Amazon has a vast customer base. Approximately 230 million of these users are from the United States, making it a powerful payment option for businesses targeting this market. However, it lacks in-person payment support, volume discounts, and custom packages, and has a reserve policy that can delay payouts for new accounts. For more versatile payment needs, consider alternatives like Square, Stripe, or PayPal.
Shopify ( Adyen )
Shopify is an e-commerce platform that allows users to create, customize, and manage an online store, including listing products, taking orders, and accepting payments. It offers four subscription plans and an enterprise-level solution, all of which include access to Shopify Payments, its proprietary payment service. It accepts a variety of payment methods, including debit and credit cards (Visa, Mastercard, American Express, etc.), digital wallets (Apple Pay, Google Pay, etc.), PayPal, and manual payment methods (cash on delivery, bank transfer).
One downside of Shopify Payments is its limited availability, as it is only accessible to Shopify users and is available in just 18 countries and regions, despite Shopify having merchants in over 100 countries. Additionally, if you prefer not to use Shopify Payments or it isn't available in your location, you can opt for a third-party provider. However, Shopify will impose additional transaction fees on top of those charged by the third-party provider.
Square
Square is a payment service provider renowned for its point-of-sale (POS) software and compact white tile that plugs into checkout systems; however, it does not offer a standalone payment gateway. It supports credit, debit, corporate, prepaid, and reward cards. Card payment acceptance via the Square app is available in the United States, Canada, Japan, Australia, the Republic of Ireland, Spain, France, and the United Kingdom, but not in U.S. territories or for cross-border transactions. Square processes payments in three ways: through its POS hardware for in-person payments, and online payments integrated into online stores or mobile apps, including a free e-commerce website with pickup and delivery options or social media sales.
Square has several drawbacks and the major one is it doesn’t offer currency conversions. Instead, they charge all transactions in the currency of your account and this may deter some international customers. Square is also unable to run on Windows devices and its limited suitability for complex businesses that might require a more specialized POS system.
International Payment Gateway Alternatives
Quote-based Transactions - Worldpay
Worldpay is a leading merchant services provider owned by Fidelity National Information Services Inc. (FIS), catering to small businesses in industries such as grocery, personal and professional services, retail, and food services. Worldpay is best suited for businesses that need a customizable payment solution. Its quote-based packages can be tailored for larger, established businesses, especially those with coding expertise to customize their payments page.
A significant drawback of Worldpay is its lack of transparency around pricing and contract terms. Businesses must contact Worldpay directly to receive a quote, making it challenging to compare costs with other providers. Additionally, the costs of additional services like OmniShield Assure and the iQ analytics platform are not clearly disclosed, adding to the difficulty of assessing the total cost of using Worldpay's services.
Large Volume Transactions - Adyen
Adyen is ideal for businesses wanting to accept payments online, in-app, or via mobile, it may not suit low-volume merchants or brick-and-mortar businesses due to its minimum invoice amount and limited features for physical storefronts. Clients such as Spotify, Uber, and Etsy enjoy the omnichannel payment processing platform for its ability to accept payments online, in person, and via mobile. It offers a payment gateway, point-of-sale systems, and integration for various payment methods, including credit and debit cards, digital wallets, and direct debits.
Adyen has some drawbacks, including a complex interchange-plus pricing model that varies by geographic location and payment method, making it less straightforward than competitors' flat-rate models. This complexity, coupled with a monthly invoice minimum, can make it less affordable for low-volume merchants.
The Global Payment Gateway - Verifone (2Checkout)
Supporting 200 countries, 45+ local payment methods and 100+ currencies, 2Checkout is one if not the best solution for online eCommerce selling physical goods or digital products internationally. Additionally, it offers multiple checkout languages and manages international regulatory changes and tax rules, simplifying cross-border transactions for customers. However, it may have a higher cost for a cross border fee of 2% and 3% for high fraud-risk countries.
Cryptocurrency Gateway - Coinbase
Coinbase is the largest cryptocurrency exchange in the United States and the second-largest globally. Although Coinbase discloses fees before completing a transaction, some competitors offer lower fees, which may deter first-time users who are sensitive to costs. Coinbase Commerce is the payment gateway that enables businesses to accept cryptocurrencies like Bitcoin and Ethereum as payments. It allows businesses to open merchant accounts, streamline cryptocurrency checkouts, and integrate account information on their platforms. Merchants receive payments directly into their accounts and can easily withdraw funds. This service benefits service providers, online merchants, and organizations by allowing them to accept cryptocurrency payments without the need for personal accounts or manual listings on websites or applications.
