How to Choose a Payment Provider

Variety is definitely a benefit, but sometimes it makes very difficult to choose. Payment providers (or payment gateways) are legion, so it is really easy to fall a victim to analysis paralysis while trying to chose the one that will power up your business. As always, there is not a universal solution for every problem. You should decide which payment provider to use based on the type of service you provide and a market you want to target. 

 

However, always consider:

 

-The location of your company. The providers are limited to their partners and licenses for geographic regions.   So, not all providers will be able to provide in your country;

-Payment methods you require. Not all providers support all methods;

-The currencies you want to operate with. Remember, people prefer using their domestic currencies

-Whether a provider is PCI compliant. If no, the providers are not secure for a business

-Whether a provider is GDPR compliant. if you want to work with the EU market, is a must. 

 

Moreover, there are things you should avoid, choosing a payment provider:

 

-Complicated integration or setup (it is not that difficult to create easy-to-install service today. If a provider       failed to do so, be ready for further unnecessary complications)
-Lack of transparency
-Unapparent fees (if a payment provider  makes it difficult to determine the exact price of its services, it does   not consider its price a competitive one) 
-Lack of flexibility regarding adaptation to your service and/or programming language
-Reliable and easily-accessible support

 

Considering the mentioned above, we decided to put into a tight package key features of the top payment providers so you can read and pick the one and only that will suit your needs.

 

 

Stripe 

 

 

Prices: 

-2.9% + $0.30 per transaction
-3.9% + $0.30 per transaction
-$2 per active account per month + 0.25% of account volume
-2% per transaction - currency conversion
-$15 for each chargeback incident
-0.8% - $5 cap per ACH payment transaction

 

Key Advantages: 

-Customized UX. Provides a UI toolkit that can be used to create unique Stripe payment forms. 
-Quick and easy to setup or integration into an existing website. 
-Sigma service allows to view data and analytics in real team, providing constant insights. 
-Has feature that allows customer to divide payments between themselves and persons who use their service   to sell stuff. 
-Accepts ACH (Automated Clearing House) payments, which are direct charges to bank accounts. 
-Covers 26 countries and works with 135 currencies.
-Works with AliPay, which allows to target Chinese market. 

 

Key Disadvantages: 

-Does not provide integration with PayPal
-Stripe holds platform owners responsible for any charges.  

 

Conclusion: Stripe is best for accepting payments of any types. 

 

Prominent Customers: Lyft, Slack, Kickstarter, Pinterest.

 

Braintree

Prices: 

-2.9% + $0.30 per transaction
-3.9% + $0.30 for international transactions
-1% per transaction - currency conversion
-$15 for each chargeback incident

 

Key Advantages: 

-Complete drop-in UI offers a quick and simple way of accepting payments.
-Covers 40 countries and 130 currencies. 
-Provides smooth and quick integration with PayPal
-Fast to response and easily-available support
-Braintree provides Vault for keeping sensitive data on a secure platform to ensure that a business stays PCI-   compliant

 

Key Disadvantages: 

-Requires an additional server request that can delay loading by 1-2 seconds

 

Conclusion: Braintree is best for accepting payments directly in international currencies. 

 

Prominent Customers: Uber, Airbnb, GitHub, SkyScanner 

 

PayPal

Prices: 

-2.9% + $0.30 for US transactions
-4.4% + fixed fee for international transactions
-1-4% per transaction - currency conversion
-$30 per month for PayPal Payments Pro plan
-$15 for each chargeback incident

 

Key Advantages (including Payments Pro plan): 

-Complete drop-in UI offers a quick and simple way of accepting payments.
-Works in 200+ countries and regions
-Custom checkout
-Once a payment is sent and processed, it will available to you in minutes
 

Key Disadvantages: 

-Payments Pro plan is required for fully customized experience
-Only 26 currencies are available

 

Conclusion: Best for simple online payments 

 

Prominent Customers: ebay, Google Play, Cineplex, IKEA. 

 

Amazon Payments

Prices: 

-2.9% + $0.30 for US transactions
-3.9% + $0.30 for international transactions
-1-4% per transaction - currency conversion
-$30 per month for PayPal Payments Pro plan
-$20 for each chargeback incident

 

Key Advantages: 

-Allows clients to use their Amazon login information
-A-to-z guarantee and protection plan include fraud detection and merchant protection with a possible refund
-Featured eCommerce suite helps to promote and sell products

 

Key Disadvantages: 

-Sometimes, integration requires additional development 
-Narrow. Created for eCommerce retailers, 

 

Conclusion: Amazon Payments service is created for online retailers and sellers. Ideal for accepting payments from Amazon accounts. 

 

Prominent Customers: Dyson, Midwest Sports, Lulus, Nine West

 

PayU

Prices: 

-2% + GST (goods and services tax) per transaction 

 

Key Advantages: 

-Offers more than 250 local payment methods
-Direct connections to local acquirers, which results in higher clients’ approval rates 
-Functional of the application is easy to extend even without coding knowledge

 

Key Disadvantages: 

-17 countries and 20+ currencies only

 

Conclusion: a simple payment solution that fills in the gaps left by the other payment providers

 

Prominent Customers: TUI, Amway, goibibo, Groupon