How to choose a suitable payment merchant for your business?

Forget heavy wallets and long lines! Mobile apps let us shop for anything from groceries to gadgets with a few taps. However, a smooth and secure way to handle payments within the app is key for businesses. That's where payment gateways come in. They're like secure bridges that move money from your customer's account to yours, making online shopping safe and smooth for everyone. With so many payment gateway options, picking the right one can feel overwhelming. This guide will help you navigate the world of mobile payment gateways and choose the perfect fit for your app.

What is a payment Gateway?

In online businesses, a payment gateway is like a super-safe bridge. It uses SSL encryption to protect customer payment details when sent to their bank for approval. The gateway also keeps an eye out to protect you from fraud. When everything's good, it speeds up the money transfer to your account, making sure your customers have a seamless checkout experience.

Why is a payment gateway needed?

A payment gateway is essential in businesses because it facilitates digital transactions whether it’s for products, services, or subscriptions, and expands the market reach since it accepts all types of payment methods. It ensures security and builds customer trust, also it automates the payment process and saves time. Not only that, a payment gateway enables businesses to comply with legal requirements related to handling payment data.

Common Challenges Businesses Encounter with Payment Gateway Integration

Here are some common issues businesses face:

Traditional Checkout

Traditional checkout tends to be slow and takes a lot of time, which makes buying online difficult. This issue leads to frustration and ultimately results in customers abandoning their shopping carts, causing a high bounce rate.

Account Hassle

The need to create an account and type all information during checkout can be a real hassle. It not only discourages customer engagement but may also deter future decisions.

Limited Payment Options

The limited payment methods at checkout can be frustrating and prevent purchasing action, especially if the payment process isn't user-friendly.

Generic Shopping Experience

Not understanding what customers like and sending irrelevant recommendations makes shopping unpleasant, resulting in inactivity. 

Benefits of Payment Gateways

A good payment gateway does more than handle money. It can improve your business in several ways. Here are some key benefits:

Customer Satisfaction

Think of your customers processing their favorite payment method through checkout with ease. That's what payment gateways do! They offer a quick and easy way to pay using credit cards, debit cards, or even digital wallets. Moreover, this keeps customers happy and coming back for more.

Increase Revenue

Payment gateways open the door to a wider audience. Since customers from anywhere can pay online, your business can reach more people and boost sales.

Instant Payment

Payment gateways process transactions in real-time, letting you know instantly if they're approved or declined. Moreover, It keeps things smooth for both you and your customers.

Less Work, More Time

Payment gateways automate many tasks, saving you precious time and resources. Besides, there is no more manual work—the gateway handles everything for you, letting you focus on running your business.

How PayPal is Innovating Mobile Payments

PayPal, a big name in online transactions, understands these challenges and is constantly innovating to provide a superior user experience. Here's how their latest offerings address these concerns:

• Lightning-Fast Checkout: No more waiting! PayPal's revamped checkout process prioritizes speed, getting your customers through checkouts in record time. It means fewer abandoned carts and a smoother shopping experience.
• Fastlane by PayPal: This revolutionary feature stops the need for customers to create an account or type in any personal information during checkout. Additionally, it caters to users who prefer a guest checkout option, potentially increasing your customer reach and reducing cart abandonment rates.
• PayPal Smart Receipts: Imagine receipts that go beyond just listing purchased items. PayPal Smart Receipts use AI technology to suggest interesting products from the same store based on past purchases. Additionally, they may offer cashback rewards for future purchases, creating a personalized and engaging post-purchase experience that drives repeat business.
• Reinvented PayPal App: PayPal's mobile app is getting a makeover, offering more reasons for users to engage with the platform and earn cashback rewards for everyday purchases. Furthermore, this benefits users and encourages them to utilize PayPal within your app, streamlining the payment process.
• Advanced Offers Platform: Understanding what customers like is important for keeping them happy. PayPal lets businesses create special deals for their customers based on what they've bought before. This can make shopping more interesting and might lead to more customers buying things.

By implementing these features, PayPal addresses businesses' core challenges in mobile payment integration. They prioritize speed, convenience, security, and a personalized user experience, ensuring a smooth and secure checkout process for both customers and businesses.

List of Major Payment Gateways

1. Stripe

Stripe is a payment gateway for mobile apps that accepts credit cards, digital wallets, and even some regional payment methods. It charges a fee of 2.9% per transaction, but there's no monthly fee. Stripe also offers tools to help you connect its system to your app, whether it's for Android or iPhone. Pros:

• Many payment methods (credit cards, wallets)
• Easy app connection
• No monthly fees

Cons:

• Transaction fee (2.9%)
• Complex setup

2. PayPal

People like to use PayPal to pay for things on apps. It's pretty cheap, usually around 1% for super fast transfers. For businesses, PayPal charges a fee that can be up to 2.9%, but there's no monthly cost. So it's good for small businesses. Plus, setting up a PayPal account is easy and you can use it to pay almost anywhere in the world!   Pros:

• Lightning-fast checkout
• Cashback rewards

  Cons:

• Transaction fees

3. Venmo

Venmo lets you pay friends or businesses with your phone. Send money to anyone with their phone number or scan a QR code - just like a digital wallet! Venmo charges businesses a small fee (around 2%) for each sale, but it's free to use for sending money between friends. This lets stores offer a quick and easy way to pay for customers.   Pros:

• Easy use (QR code)
• Instant pay

  Cons:

• Fees for business
• No international

4. Apple Pay

Forget your wallet? No problem! Apple Pay lets you pay with your iPhone, Apple Watch, iPad, or Mac. It's faster and more secure than using cash or cards. You can even split your bill into smaller payments over time. Stores love Apple Pay because it's easy and convenient for customers to use and there are no fees for using Apple Pay. Pros:

• Convenient payments
• Enhanced security

Cons:

• Requires apple device
• No rewards

5. Google Pay

Google Pay lets you ditch your wallet and pay with your phone!  Instead of swiping a card, you just tap your phone at stores that show the contactless payment symbol. It keeps your information safe and doesn't charge any fees to use it. For stores, Google Pay brings in customers with a quick and easy way to pay.   Pros:

• Pay easy
• Safe & free

  Cons:

• Not everywhere

6. Network International

Network International is a key payment gateway popular in the Middle East and Africa. They offer secure online and in-person payment options for businesses. Network International provides a variety of features to help businesses streamline their payment processing, including fraud prevention tools and data analytics.   Pros:

• Secure transactions
• Streamlined processing
• Fraud prevention tools

  Cons:

• Limited coverage
• Complex for beginners

Essentials to Consider Before Selecting a Suitable Payment Gateway

Choosing the right payment gateway is crucial for your online business. Additionally, it needs to be secure, affordable, and fit your specific needs. Here are some key factors to consider:

Merchant Account Types

Think of a merchant account as your online bank account for sales. It holds your money for a few days before transferring it to your main account. There are two options:

• Dedicated: This is like a personal account for your business, offering custom fees based on your sales. It's more expensive but gives you more control.

 

• Aggregated: This pool funds from multiple businesses, offering faster approval and easier setup. It's a good option for new businesses.

Goods and Services

Make sure the gateway handles what you sell. For example, if you offer subscriptions, you'll need a gateway that supports recurring billing. Choose a gateway that works well with your products and what your customers need.

Gateway Features

A good gateway offers several features to make things smooth:

• Easy Integration: It should connect easily with your app to avoid technical problems.
• Multiple Payment Methods: Let your customers pay with credit cards, debit cards, or other popular options.
• Reporting Tools: Track your sales and transactions with clear reports.
• Strong Security: Protect customer information with high-quality security measures.
• Customer Support: Get help when you need it with 24/7 support.

Safety

Security is a top priority! Choose a gateway that follows PCI compliance standards, which ensures your customers' payment data is protected. Furthermore, look for features like SSL certificates, tokenization, and multifactor authentication.

Cost

Payment gateways have different fees, including payment processing fees, setup costs, and monthly charges. Besides, some charge per transaction, while others have a flat monthly fee.

Customer Reviews

Checking what people say about different payment gateways can give a good idea of how they work in real life. You can learn about the features, how helpful the support is, and how easy they are to use.

Supported Regions

Make sure the gateway operates in the countries you sell to and supports commonly used currencies there. Avoid high currency conversion fees by choosing a gateway with competitive rates. While choosing a suitable payment gateway, keep these aspects in mind.

Conclusion

Selecting an online payment system for your business is like choosing a safe that takes money from your customers and puts it in yours. It should be easy to use, keep things safe, and fit your budget. Additionally, look around to see which ones work in your area, and don't charge too much in payment processing fees. Choose wisely to keep your online business running smoothly.

Frequently Asked Questions

Q: How do I choose a merchant?

A: Look for one that is available in your country and suits your business needs and offers secure, easy payment options.

Q: What is the best payment method for a business?

A: The best payment method depends on your customer's preferences, but options like credit cards, debit cards, and digital wallets are popular choices.

Q: What should I look for in a merchant service provider for small businesses?

A: When choosing the best merchant services for small businesses, prioritize providers with competitive transaction fees, robust security features, responsive customer support, and compatibility with your business needs and goals.

Q: What's the best payment processor for small businesses?

A: PayPal and Google Pay are good options because they have fair prices and easy-to-use interfaces. But the best one for you depends on what your business needs.