Best Online Payment Gateways and Payment Providers in 2022
Do you need to explore the present and future state of online payment gateways and payment providers in 2022? Good, because we’re going to take a quick dive into how various types of payment gateways and payment providers currently in existence change the way of business.
Online payments and the customer experience are changing rapidly. We estimate that in 2022, there will be more than 100 payment providers available for retailers to choose from. Payment gateway providers are also expanding their services and features to meet these changes.
Online Payment gateways are online services that organize payment transactions. For example, you need an online payment gateway to accept credit card payments. Payment providers are third-party companies that provide these gateways.
What is a Payment Gateway?
An online payment gateway is an internet service to process your customers’ payments and transfers the funds to you or the merchant account of your choice. If you are looking for one, chances are very slim that you have yet to hear about PayPal or Stripe. Online Payment Gateway acts as an intermediate between businesses and customers. It securely delivers funds from the business to the customer through their bank account. They serve as an intermediary between customers who want their money quickly and securely and businesses that need time to process debit or credit card transactions.
A product must meet the following requirements to be included in the online payment Gateways category:
- Accept credit and debit card payments online, as well as mobile wallets and BNPL services.
- Connect the e-commerce website to a payment processor to accept online payments.
- Securely transmit payment information from buyers to payment processors.
- Payments from business to consumer (B2C) and business to business (B2B) are supported.
- Connect to financial systems and retail point of sale (POS) solutions.
- Support for a variety of use cases, such as e-commerce, POS, and cross-border transactions
How do online payment gateways work?
A payment gateway is a service that allows any merchant who accepts credit and debit cards to accept payments online. The transaction is processed through the merchant’s online payment gateway when a customer pays by credit or debit card. The transaction details are displayed to the customer on their issuer website or app, usually via a window with an image of the front of their card.
Banks and other organizations service payment gateways like Visa, MasterCard, and American Express to allow merchants to accept payments without having to worry about security concerns.
Step 1: The gateway comes into play when a customer places an online order. They have the option of paying by COD (Cash on Delivery) or online. The process begins when a customer chooses to pay online.
Step 2: The payment gateway begins by determining whether sufficient funds are available from the issuing bank. It ensures that the transaction does not exceed the credit limit or bank account balance.
Step 3: The payment gateway then encrypts the card information and securely transmits it to the card schemes to ensure the transaction is completed.
Step 4: The payment gateway is returned to the merchant website once the card scheme has approved the transaction. The location where the transaction will be completed.
Step 5: The payment gateway sends the information to the acquiring bank. Where the bank processes the transfer request from the customer’s account to the merchant’s account.
Top online payment gateways and payment providers
Despite being a newcomer to the payment scene, Amazon Pay is still a great option for merchants looking for an international payment gateway with low fees and a simple interface. Furthermore, it has extensive multi-currency capabilities, making it the ideal platform for your company to expand internationally.
PayPal is a household name and one of the most trusted options for online sales. PayPal is very simple to set up (making it an excellent choice for small businesses and start-ups), and its high level of brand recognition can help your business inspire confidence in potential buyers. It is available in over 200 countries/regions and supports 25 currencies, making it a truly global business option.
Google has its online payment method, Google Pay. According to Google, hundreds of millions of their users already have their credit card information saved in their Google accounts, so adding a Google Pay option provides additional convenience for a large number of people. They, too, promise an easy-to-use process (both on desktop and mobile) and top-tier security through encryption. It also enables retailers to create customer loyalty programs, digital gift cards, and deals, allowing everyone to avoid using paper and plastic cards.
When Apple users are out, the payment gateway app Apple Pay acts as a mobile wallet, and a one-click payment option on websites accepts payments. Customers using mobile devices can even check out with Apple Pay by using their touch identification—it doesn’t get any easier than that.
People who are interested in an American Express checkout option are likely to be among your top visitors. The company guarantees fraud protection, 24-hour customer service, the ability to work with multiple payment processors, and the ability to consider various add-on features. They also accept over 120 currencies, which is a significant advantage if you want to attract international customers.
Stripe provides a robust payment processing platform that makes accepting payments from various sources simple (credit cards, digital wallets, ACH transfers, and different currencies). They also provide several checkout options. You can also use their custom UI toolkit to design a more distinctive payment form.
As the eCommerce economy grows, it is critical to integrate your eCommerce business with emerging technology. Along with managing your payments digitally, you should also keep track of your multiple online orders from various platforms. Your preferred online payment gateway option will be the one that best meets your specific business needs. However, keep in mind that you can provide more than just a single payment option. Indeed, it is advantageous for businesses to provide multiple payment options to satisfy the preferences of various customers.