Online retail is booming, and today customers have options of various payment modes like debit cards, credit cards, e-wallets, and net banking. However, you need to ensure the payment facilitator not only offers convenience but also provides safety and security for online transactions that encourage people to buy more. Here we have discussed steps to choose the right payment gateway for your e-commerce platform.
Before you learn how to identify the right payment gateway, you need to understand what payment gateway is all about.
What Is a Payment Gateway?
A payment gateway is a service linked with a merchant account provided by the e-commerce service provider. Here, the merchant authorizes transaction information for online retailers and brick and mortar stores too. The payment facilitator acts as a mediator between the payment portal and the acquiring bank.
Here are the crucial aspects to focus on while selecting a payment gateway.
Types of Payment Gateway
There are mainly two types of payment gateways- hosted payment gateways and integrated payment gateways. In the Hosted Gateway, the customer is directed to the payment service provider’s platform to enter the payment-related information.
The Integrated Payment gateway is the most popular option used by e-commerce platforms. In this setup, the e-commerce stores connect to the payment service provider through an API.
The integrated payment gateways eliminate the need to send the customer outside the store site, which enhances user experience.
An e-commerce platform is used by millennials as well as older generations whose preferences are different. Millennials prefer hosted payment services while older generations like to use their credit cards and debit cards for online payments. It will help if you consider your audience preferences when selecting any payment facilitator. If you are not sure about your audience preferences, you can run a survey to find out your audience preferences regarding digital payments.
The payment gateway should also meet your business needs. For example, if your e-commerce platform serves international destinations, you need to ensure the payment solution works at all locations. Besides, the platform should not have limitations related to the type of currencies, digital payments, and also accept cards.
Trust and Security are the essential aspects of online business. You need to ensure the payment solution you adopt is GDPR compliant. Lack of trust and concerns related to entering financial information is one of the big reasons behind abandoned carts. Hence, you need to select a payment solution that uses industry-standard security technologies to protect the sensitive financial information of the customers.
Performance and Reliability
The speed of online transactions and the checkout user experience can have a direct impact on sales. Hence, it will help if you look at the processing speed of the payment facilitator. Choose the gateway that offers high SLA guarantees and ensures minimal downtime.
Another important aspect is the success/failure rate. The payment platform should be able to give information about the success/failure rate that will help the business to devise new strategies to prevent loss of business opportunity.
These are some of the guidelines to follow when choosing a payment gateway for your e-commerce platform.