The demand for online shopping is witnessing unprecedented growth. It has boosted the need for online payment processing solutions to enable quick, secure, and easy payments across the globe.
According to Statista, over $5 trillion was generated via digital payments globally in 2020. Another survey also found that 27% of US customers used online processing solutions like PayPal and Amazon. And this demand is going to increase in the future.
So, if you have an online business, you must include an online payment solution to meet your customers’ expectations. It will help you make transactions faster, offer convenience, and help boost your sales.
Let’s discuss it in detail and find some of the best online payment solutions.
What do you mean by online payment solutions?
Online payment means paying for products or services online, i.e., through electronic modes. And a payment solution is a service or software that enables online payment. It receives buyer payment requests via a web page, authenticates payment details and transactions, and transfers the funds to the online merchant’s account.
The most famous online payment solutions are PayPal, Stripe, Amazon Pay, etc.
For instance, you visit an online store like Amazon to buy some products you have in your cart for so long. You will be asked to confirm your address when you proceed to buy. Next, you will be directed to a page where you need to choose a payment method like credit or debit card, Amazon Pay, internet banking, etc., to pay from your computer or smartphone. This is how online payments happen.
Although it may look simple, something is going on behind the scenes, making your payments successful, and you can place an order or shop online. Here comes the role of payment processing companies.
What are payment processing companies?
Payment processing companies or payment processors are the intermediaries between a business and its customers to process payments and enable a smooth and secure online purchase.
Payment processors validate the transactions and transfer funds from the buyer’s account, whatever electronic payment mode they choose. They connect merchants to virtual terminals that can accept online payments. They manage the complete online transaction process through all the nodes – customers, online merchants, banks/financial institutions, and card networks.
How do payment processing solutions work?
When a payment processing solution receives a request from a buyer via a merchant’s website, it starts authenticating the buyer’s payment details. And when everything looks great, and the buyer has sufficient funds in the account, it authenticates the transaction. Finally, it transfers funds from the buyer’s account to the merchant’s account and completes the online payment.
Let’s understand how all the nodes interact.
Payment processing needs:
- A merchant account to enable the fund transfer
- A web page including a payment button to initiate transactions
- An account on the payment solution
So, when visitors come to your website, they can choose products and services by clicking the “buy now” button. It will direct them to the payments page that’s already connected to a payment solution.
When they proceed to pay online and choose their mode, they will be asked for details or redirected to the payment provider’s site. The service provider will take on the request and authenticate the payment details. It happens securely through encrypted data so that no one can view the buyer’s account or personal information.
When the buyer’s credentials are verified, the service provider initiates a fund transfer. When the transfer is successful, both the buyer and the merchant will be notified, and the required funds will be deducted from the buyer’s account to go to the merchant’s. This notification will help update the status of the transaction. But if the transaction fails due to insufficient funds or invalid buyer credentials, the same reflects.
Why does your business need it?
If you run an online business, setting up an online payment solution can be rewarding. This digital age has made virtual currency valuable and convenient for everyone, from individuals to companies. It can offer a lot of advantages over collecting cash payments, such as:
Online payments make it convenient for buyers to make payments with a few clicks to order products and services, register in a webinar, make donations, and so on.
Suppose if someone wants to donate without an online payment solution in place. They will have to rush to their bank and withdraw the amount if they don’t have enough cash at hand (which people don’t keep much these days). It kills their time that no one wants.
But with only online payments, they can do it quickly within the comfort of their homes without any hassles. It saves not only their time but also effort. Besides, it’s beneficial for businesses as they can close sales quickly.
Faster transaction process
When you understand the transaction process, you may think of it as a lengthy process that touches a lot of nodes. However, the whole process takes only a few seconds to complete the entire payment process. It’s way faster than traditional payments involving cash. It doesn’t require you to stand in the queue and fill out your forms or wait for days for the check to be approved.
People can sideline you due to payment mode constraints even if your products or services are outstanding. So, if you operate globally, keeping an online payment solution to serve your customers worldwide is even more important. It makes them happy by offering a quick and convenient payment method and also helps you retain them.
So, if you want to avail all these benefits, check out some of the best online payment processing solutions for your business.
Choose a simplified payment process for your business – Authroize.net that can help you get your payments through credit cards, eChecks, and contactless payments. You can also offer your customers many other types of payments, such as Point of sale, mobile payments, phone payments, eCommerce, billing tools, and mobile card readers.
Authorize.net protects customer details from fraudsters and lets you customize with rule-based tools and filters to protect your business model. It also has an easy-to-use payment solution that allows you to accept payments anywhere and anytime.
Its Customer Information Manager saves your customers’ payment details so that when they come back, there is no need to re-enter the details again. You can accept monthly installments and recurring payments quickly, and it constantly updates the card information to lost sales and payment interruption.
In addition, send a digital invoice after completing the payment in their mail and add the “donate” or “buy now” button to your website to inform your customer where to pay.
Authorize.net does not charge you any setup fees. You will only pay monthly gateway fees of $25 and per-transaction fees of 2.9% of the invoice amount plus 30 cents.
An innovative payment system, Squareup, enables companies to collect payments in person, online, remotely and manually typed payments. It is quick, simple, and effective for both the customer and the merchant.
Payment choices from Squareup include credit and debit cards, Apple Pay, and Google Pay. Additionally, it provides services for dispute settlement, fraud protection, and payment tracking.
Due to the platform’s quick adaptation, security, and speedier transactions—all of which are validated, processed, and finished in a matter of seconds—millions of users trust it.
Its user-friendly platform makes connecting with consumers, sending invoices, keeping track of expenses, and other tasks simple.
To give business owners a picture of their finances, Squareup also provides extra reporting and analytics tools. Additionally, its customer service staff can assist with any inquiries or concerns.
Squareup is a desirable alternative for businesses just beginning to accept payments because of its transparent pricing structure and easy setup.
Grow and enhance your sales with Checkout.com’s payment processing solutions. It provides reliable and faster payments along with direct acquiring in major markets. It supports local payment methods, 150+ currencies, and 20+ settlement currencies.
You can enjoy powerful integrations and manage your payments with the payments APIs and tools. The tool will help you grow your revenue by optimizing each payment and creating innovative products quickly using instant insights and actionable data.
Give your customer the cutting-edge technology experience and stay ahead in your online business. Using local knowledge, you can tailor your solution to meet different markets and boost your sales performance. Checkout.com offers multiple payment options, including APMs, digital wallets, local cards, etc.
Optimize your growth with more granular, actionable, and accessible data. Its user-friendly and easy-to-use dashboard helps you assess every opportunity and go beyond user expectations with a wide range of payment interfaces, frictionless payments, and fraud defenses.
From PCI to SCA, Checkout.com has got you covered. It provides every single detail to check the cost of every transaction. They will charge you according to your business profile, from transparent card association fees to interchange fees.
Collect one-off and recurring payments directly from customers’ bank accounts with the GoCardless online payment processing solution. Small businesses can have benefits like improving cash flow, reducing costs, reducing failed payments, and allowing you to keep track of your payments.
It helps enterprises reduce churn, operational costs, international barriers, time to get paid, and conversion risks. You can also collect membership and subscription payments by Direct Debit across the world. GoCardless also eliminates the time-consuming invoice management process and tracks them easily.
GoCardless provides a RESTful API that enables simple integration to your business and requires less investment of resources. Its recurring payment intelligence manages and predicts payment failures as well. You can also embed customizable checkout flow in your website optimized for improved conversion for over 30 countries.
WePay provides robust APIs for online platforms powered by JPMorgan Chase. It offers integrated payments for POS systems, Online Marketplaces, and SMB SaaS systems. You can integrate it easily and quickly with open-source code samples and SDKs.
No matter what business model you have, WePay has a solution for you. Merchants with a Chase account can quickly receive same-day payouts at zero additional costs. It also supports pre-certified devices for card-present solutions.
WePay manages compliance, payouts, and risk so that you can build the best user experience, including customer communications, reporting, and onboarding. You will also get informed via WePay’s API. The software uses various payment methods and optimized cases for security, scalability, and efficiency.
Stripe provides you with a robust payment infrastructure for your website. You can use its APIs and software to send payments, manage your businesses online, and accept payments. Whether you are a startup or a large industry, Stripe offers you the same quality and service to businesses of all sizes.
Stripe is an entirely integrated suite that will help you build apps and websites to send payouts and accept payments globally. It gives you many products to power your payments for your subscription business, online retailers, in-person retailers, marketplaces, and software platforms.
Furthermore, Stripe can help you send invoices, get financing, issue physical and virtual cards, manage business spending, and beat fraud. You will find server and client libraries from PHP and React to iOS and .NET. It operates on every level of the financial stack.
Stripe guarantees 99.99%+ uptime and maintains its redundancy and scalability. It releases many improvements and features every year to always be on the top of your game. You can also leverage Stripe’s intelligent optimizations to gain knowledge on increasing revenue, fraud, revenue recovery, and more.
There are no monthly, hidden, or setup fees during subscriptions. Access the complete payment solution with s straightforward pay-as-you-go plan of 2.9% + 30 cents per successful transaction.
Reach more buyers and boost your revenue with Braintree’s payment platform that provides Venmo, PayPal, debit cards, and credit cards along with other popular digital wallets like Google Pay and Apple Pay in a seamless and single integration.
You will get benefit from Braintree’s innovation, experience, and scalable solutions. Use Braintree’s deep relationships with financial institutions and extensive knowledge to drive higher conversion. It will help you expand your market through next-gen technology and the PayPal network.
Automate backend processes and manage internal costs without losing revenue. You can also prevent fraudulent transactions by detecting them while approving orders. In addition, they will provide a payment gateway, merchant account, data encryption through Braintree Vault, essential fraud tools, data migration assistance, reporting, recurring billing, third-party integrations, advanced fraud tools, and more.
Pay as per the payment service you are using. For example, if you use cards and digital wallets, the price will be 2.59% of the invoice amount plus $0.49 per transaction.
Reduce costs and increase sales with BlueSnap’s all-in-one payment platform. It understands how your payments can impact your online business and offers solutions to increase authorization rates, decrease checkout abandonment, avoid cross-border fees, and reduce technical debt.
Get a single account to receive all the facilities you want. The entire solution is modular so that you can use the functionality as per your necessity. Accept payments differently with BlueSnap, including POS payments, mobile checkout, online checkout, subscriptions, virtual terminal, invoice payments, marketplaces, embedded payments, and AR automation.
Integrate it easily with software, such as ERP systems, CRM systems, shopping carts, and other business platforms, to work faster and better. With Chargebacks911 and Kount, protect your business from fraudsters and use built-in solutions for tax and regulatory compliance.
Get real-time data to take action quickly, access the payment solution anytime from anywhere, and receive accurate reports to enhance visibility and simplify reconciliation.
There are no setup fees, additional fees, or cancellation fees. Allow BlueSnap to design a pricing model according to your business needs.
You will get customized pricing solutions, including global processing with one account, interchange-plus pricing, flat-rate pricing, level 2 and 3 data processing rates, nonprofit payment processing rates, and accounts receivable automation.
One of the most used payment stations across the globe is undoubtedly PayPal which caters to businesses of any size, scale, and industry. It offers multiple tools to run your business and enhance your growth while providing your customers to pay as they wish from anywhere in the world.
PayPal’s extensive suite of features includes smart technologies for your daily needs. You can create a shareable link for payment or add a full-featured checkout to your website. Expand new channels by selling on social media, offering subscriptions, or charging for services.
As you grow, PayPal’s comprehensive commerce platform tool grows with you. Use the PayPal App to browse the complete solutions that fit your business needs. Use solutions such as accepting payments, making payments, generating invoices, managing risk, accelerating growth, and streamlining operations for your online business to grow faster.
Adyen provides every solution, from accepting payments online on any device or channel to adding payment methods to increase conversion rates. You can use almost all payment methods that your customers trust. It lets you optimize payments at each engagement point and enhance authorization rates.
Adyen dashboard brings testing, reporting, and performance into a single interface. It is designed to match your speed of delivery, development resources, and need for customization.
Protect from fraudsters with rule-based and AI-based risk ecosystems. Additionally, give your shoppers a fast and quality experience as they expect, build unique payment experiences, and increase conversions by rewarding loyal shoppers.
Customize payment flows, advertising, tipping, receipts, languages, and layouts. Make it easy to apply rewards, discount coupons, and one-click payments, and allow your customers a simple sign-up process so they will return for more.
Furthermore, protect your database from gaining the trust of your shoppers, and reduce reconciliation and bookkeeping issues with easy-to-use and flexible payment options for new vendors.
Adyen offers drop-in, components, and API-only ways to integrate payment solutions into your website. Besides, drop-in is the easiest and quickest way to add payment methods. You can also add components per payment and combine them with your form logic. The best part is you can build your UI for payment methods to have complete control.
Adyen only charges processing fees and transaction fees as per the payment method. There are no setup fees, and you can have multiple bank accounts.
How to select a good payment processing solution?
Every business has different needs in terms of size, audience base, budget, and other factors. But a few things remain common; you must get a secure, easy, and flexible solution. So, always choose a payment processing solution based on your unique needs and long-term goals. Consider some factors before you choose a payment service provider:
- Check how easy and quick the sign-up process is for you.
- Inquire about the success rate of the service provider. It will help you provide an easy payment process for your customers to boost their satisfaction and brand loyalty. Look for different payment options, easy checkouts, and smooth transaction flow with speed.
- Find out about the transaction fees and compare them with other providers to choose the best based on your budget.
- Ask them how secure their payment solution is and their compliance rules to safeguard the buyers’ accounts and data.
Conclusion: What’s the future of payment? 💰
The need for online payment solutions is rapidly expanding across the globe due to the increasing number of online shopping. And the latest trends show that it’s likely to increase in the future.
So, if you are an online business, make sure you incorporate the best payment processing solution in your business to provide an improved, faster, and more secure transaction process.
You may also be interested in Payment Solutions for Bloggers.