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The 7 Best eCommerce Payment Methods You Should Offer Customers
If you own an eCommerce business, you’ll know first-hand that there are a lot of moving parts. It’s so much more than simply stocking your store and getting to sell; to do just that, you need a secure payment gateway for your customers.
If you don’t have a safe, reliable, and—most importantly—secure eCommerce payment method on your website, you leave your business open to fraud. Individuals may be able to access the card data processed through your online storefront, which can lead to fraudulent activity and a damaged reputation.
But with so many payment processing options out there, how do you know which is best for your business? And why does it matter which one you choose?
This article will break down the seven best online payment processors we recommend to eCommerce businesses every day so that you can find the best solution for your online store.
But First, What Do We Mean By ‘Payment Gateway’?
In the eCommerce space, there’s a whole lot of terminology that gets thrown around, and it’s easy to become overwhelmed (especially if you’re relatively new to the space), but we’re here to help!
Essentially, a payment gateway is a type of technology that works by communicating transaction information between the customer and your business (the merchant).
The payment gateway is pretty much the online version of a point-of-sale (POS) system at a brick-and-mortar location. They make sure that your customer’s details are secure and that the funds are available so that you can get paid.
Whilst your customers aren’t physically swiping a card like they might do in a shop, entering their information means the payment gateway can make sure everything is correct and that the funds can be delivered to your business.
The customer is then taken to the payment processor to finalise the transaction. Payment gateways stop customers from being able to purchase goods without funds or on expired cards whilst also protecting you (the merchant) from fraud.
What Kind Of Things Should I Look For When It Comes To Payment Options?
When it comes to exploring the different payment processing options out there, there are a few different things you should be looking for to ensure you’re making the best choice for your business. These are some of the most important factors to remember when looking for a payment processor for your eCommerce store.
Security
Look for payment processing companies that have a track record of being safe and secure for customers and merchants alike. This will help to ensure your checkout process is secure and your reputation doesn’t get impacted by fraudulent transactions.
The Kinds Of Payment Methods It Accepts
Being able to offer a wide range of payment options means that your eCommerce store is more attractive to potential customers. Try to choose a solution that accepts at least most major credit and debit cards, as well as PayPal, to ensure most people can shop your brand online.
Extra Fees
Some payment processing companies have more fees included than others, so it’s important to know exactly what you’re signing up for. Double-check all the listed fees and make sure there are no hidden costs you may incur before you decide exactly what payment method to choose for your eCommerce store.
So, What Are The Best Payment Online Payment Processors?
With so many eCommerce payment methods out there, it’s hard to know which is going to be best for you. Luckily, we’ve taken all the guesswork out of it and chosen our top 7 companies to make your life that little bit easier.
1. PayPal
PayPal is arguably one of the most recognisable payment methods available for eCommerce stores. It was eBay’s default payment method back in the early 2000s, making it an incredibly well-known and secure payment gateway.
PayPal’s online payment system is flexible and intuitive, so it’s incredibly easy for small businesses to understand and integrate into their eCommerce site. The only potential drawback of opting for PayPal is that it tends to have higher chargeback fees than other solutions, so it’s worth doing your research and knowing your budget before committing.
2. Google Pay
Google Pay is another hugely popular choice for eCommerce stores across the globe as it allows customers to pay for goods and services quickly using their Google account and their saved card details.
Google Pay integrates across a range of devices, but it is particularly popular with Android users. It’s incredibly quick and convenient, making it super simple for your customers to check out in a matter of seconds. Having Google Pay allows you to offer quick and seamless payment solutions for a range of individuals.
3. Apple Pay
Similarly to Google Pay, Apple Pay is the iPhone’s answer to the former. Apple Pay is the go-to payment method for individuals with iPhones or Apple Watches, making it an essential payment processor for eCommerce stores. Apple Pay is an incredibly secure payment processor as it requires facial recognition or fingerprint to verify transactions.
Apple Pay is known for being another incredibly quick way to check out, which helps to reduce abandoned carts and makes it easy for users to select products and purchase them in a flash.
4. Klarna
If you don’t offer Klarna, you might be missing out on a number of customers. As a “buy now, pay later” payment processor, it allows customers to make purchases and pay in a series of interest-free instalments, making it a popular choice for customers looking to better manage their finances.
For merchants, Klarna makes it easy to ensure increased order value by offering flexible payment options. The one potential downside here is that you might have to pay a fee if you choose to integrate Klarna into your eCommerce store, so it’s important to weigh all the pros and cons.
5. Clearpay
Clearpay (sometimes known as Afterpay in other regions) is another “buy now, pay later” payment processor that’s becoming more and more popular for online stores. Just like Klarna, it allows customers to pay for their items in interest-free instalments, making it appealing to shoppers who don’t want to spend too much money in one go.
Again, “buy now, pay later” payment processors can increase the average order value on your eCommerce store by allowing customers to pay in instalments, hence making it more “affordable” for individuals to make larger purchases. It’s important to note, though, that there is a fee for merchants, so make sure you check and understand the terms and conditions before deciding to include Clearpay in your eCommerce store.
6. Worldpay
Worldpay is an incredibly trusted payment processing platform within the UK as it’s incredibly popular with small businesses and can offer flexible plans no matter your business size. The fees are based on a sliding scale, which is dependent on your store’s turnover, which is also incredibly appealing to smaller businesses.
Worldpay is also incredibly secure, offering advanced fraud protection and the ability to integrate with various eCommerce platforms. Whilst it may not be the cheapest solution on the market, it is a trusted brand with a great reputation, so it’s important to consider when looking for payment processors.
7. Stripe
Last but certainly not least is Stripe. You may have heard of Stripe, as it’s one of the most popular payment gateway platforms in the world, especially in the US. It allows you to accept credit card payments, wallets and international currencies, so it’s great for customised payment processes for your business.
ASOS and Deliveroo both use Stripe, solidifying its spot as one of the most trusted payment gateways around. Larger businesses tend to benefit more from Stripe as they have the ability (and the funds) to use more extensive features, but it’s important to do your own research and decide what’s best for a business of your unique size.
The Choice Is Yours
When it comes to what’s going to work best for your business, the choice really is yours. It’s important to do your research, though, and working with a team of experts like our eCommerce marketing agency team can help make your decision a whole lot easier.
Do your research and chat with the experts to find the safest, most secure, and most simple payment method that will result in more customers checking out of your eCommerce storefront. If you’ve got any questions about the eCommerce space or how you can best optimise your payment options, you can contact us today for advice.