Ecommerce
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Today’s e-commerce businesses are doing their best to make online shopping easy. Fast page loading, easy product browsing, and frictionless checkout — we, customers, don’t settle for less. Convenient and secure payments are a piece of the puzzle.
In our post, we’ll guide you on the payment gateway integration in your store. You will gain insights into the best payment gateway solutions every online business should keep on their radar. Learn what payment gateways are, their types, and integration methods to see which solution fits you best.
A payment gateway is like a digital cashier in an e-commerce store. It does literally what its name stands for — it provides a secure path to process payment online by connecting the merchant's website or app with the customer's bank or credit card network.
Among ecommerce integrations, payment gateway is one of the most important ones. It enhances the checkout process within your store by enabling diverse, secure, and convenient payment options for your customers. So, let's see how the process looks under the hood.
The payment gateway operation represents a structured data exchange flow between the merchant's site and the financial institution (bank). Basically, the process looks as follows.
This is a general concept of payment gateway operation. However, the process may look different for end customers depending on the types of payment gateways. Let's see what they are and how each one works.
Payment gateways vary based on their functionality and integration method. The choice of a particular type of payment gateway depends on the use case scenario and business needs.
With hosted payment gateways, your customers are redirected to a separate page where the provider processes and completes their payments. Hosted payment gateways are secure — all the customer data is encrypted. They are quick to set up and require minimal development effort on the merchant's end.
While hosted payment gateways are generally easy to set up, they also have their drawbacks. The redirecting process can be confusing for customers, and the checkout process may take longer, potentially leading to cart abandonment.
Examples: PayPal Standard, 2Checkout (now Verifone), and PayU.
With integrated payment gateways, you can accept payments right on your website. This method is convenient for customers, as they stay on the same page, and the checkout is usually smooth and fast. Plus, APIs give you more freedom with customization — you can build checkout experiences that match your needs.
Among the cons, it has higher security risks, as you handle and store sensitive payment data on your website. With integrated payment gateways, adhering to strict security standards, such as PCI DSS (Payment Card Industry Data Security Standard), is a must. Besides, its implementation requires technical expertise.
Examples: Stripe, Authorize.Net.
Mobile payment gateways are made specifically for mobile apps. The integration is handled via SDKs (Software Development Kits). If you want to let your users make purchases through the app and allow for in-app payments, mobile payment SDK is the way to go. The use cases are commonly e-commerce apps or gaming where you can purchase digital content.
Examples: Braintree Mobile SDK, Stripe Mobile SDK, Square SDK.
Many global stores incorporate multiple payment gateway integration. By using more than one integration solution on a website, you can offer your customers various payment options and increase payment success rates. For example, a European customer might prefer to use PayPal, while a customer from the United States might opt for Stripe.
As payment gateways differ by type, so does their integration process. You can integrate payment gateways either via API, by adding a hosted page, or with direct POS integration. In some cases, the integration methods are combined and involve writing custom code. Below, we describe the common ones with real-life examples of sites using different methods.
The most common method. The API sets up the serve-to-serve connection between the gateway and your website to process payments.
The payment gateway API integration process may be as easy as adding a few lines of code. Most providers have documentation to help you out. If you need a high level of customization and implementing security measures, NEKLO provides payment gateway integration services end-to-end.
Case in Point:
First, to integrate a Hosted Payment Page on your site, obtain the necessary API credentials from your payment gateway provider. Then, embed the provided HTML code snippet within your website's checkout page, ensuring it's configured to redirect users to the hosted payment page when purchasing.
Case in Point:
Direct post integration method, also known as silent post or server-to-server integration, involves posting payment data directly from the merchant's server to the payment gateway's server. The customer completes the form on the merchant's website. Once submitted, the data goes to the payment gateway for processing.
Case in Point:
You can embed payment gateway functionality into your site using JavaScript code. The payment fields are dynamically generated and displayed on the website without requiring page reloads. The method is often combined with API integration at large global sites for a seamless checkout experience.
Case in point:
Each integration method has pros and potential pitfalls. So, how do you choose one that will work best for your store? Consider factors such as the level of customization required, security considerations, development resources, and the business's specific needs.
If DIY is not an option, consider a trusted E-commerce Software Development Company for payment gateway integration services.
If you have unique checkout flows, sell specific products, or need advanced features, custom payment integration is the way to go. The scope of service varies. It may include direct API integration or writing custom code. We help you handle multi-currency and multi-language integrations, sync it with other backend systems (ERP, CRM), or enable advanced analytics.
Best For: medium to large enterprises, retailers or marketplaces with complex structure, legacy systems or specific compliance requirements.
We work with all popular e-commerce platforms. Magento, Shopify, WooCommerce, and BigCommerce are our comfort zones. If you don’t have an in-house team to integrate payment modules or have a tricky question on how to do it right, no worries. We’ll ensure seamless integration with your platforms.
Best For: small to medium businesses with no/limited technical expertise.
Selling multiple channels? We can connect your online store, mobile app, and social media platform and integrate POS (Point of Sale) systems. Thus, wherever your customers are, you will be able to seamlessly accept their payments.
Best For: businesses with diverse sales channels, online stores, brick-and-mortar locations, marketplaces.
The payment gateway integration service may cost a few hundred to several thousand dollars. It all depends on the complexity level and customization requirements. To keep it transparent, we estimate work hours and cooperate using the most client-friendly model, providing you with a dedicated team or developer. Ongoing maintenance and support are included.
Now that we’ve defined the common types of payment gateways and their integration methods, it’s time to examine the best payment gateway solutions on the market.
Stripe supports online payments and handles everything from subscriptions to complex payment scenarios. One of its key advantages is its user-friendly interface and extensive documentation. As a business owner, you can relatively integrate it as it is. Customization, however, requires technical expertise. Additionally, Stripe provides features such as real-time data analytics and fraud prevention tools.
A widely recognized payment gateway, PayPal offers easy integration, supports multiple currencies, and provides buyer protection services. Among its advantages is its wide acceptance. For merchants selling globally, PayPal lets you enable multiple payment options in your store — credit cards, bank transfers, and PayPal balance. Rigid buyer and seller protection policies are in place, too.
Authorize.Net is a secure payment gateway that supports credit card and eCheck (ACH) transactions, with features for fraud prevention and recurring billing. The solution is quite popular among e-commerce businesses, online retailers, subscription services and nonprofits.
Square provides a range of payment solutions for ecommerce, including an API for online payments, in-person payments, and point-of-sale systems. It’s also a feasible choice for the retail, hospitality, and service industries, particularly those focusing on in-person transactions.
Owned by PayPal, Braintree offers a payment SDK with support for credit/debit cards, PayPal, Venmo, and other digital wallets. It’s the top choice for businesses with a high priority for mobile in-app payments and mobile commerce.
2Checkout (now Verifone) is a global payment gateway that supports multiple payment methods, including credit/debit cards and alternative payment options. It stands out with its extensive support for international payments, letting you accept payments in multiple currencies and languages.
Worldpay offers a variety of payment processing solutions for e-commerce, including online payments, in-store payments, and omnichannel payment integration. You will find advanced fraud detection and prevention tools, PCI compliance, and secure payment processing infrastructure.
Adyen is a global payment company that provides a unified platform for accepting payments across online, mobile, and in-store channels. A wide range of payment methods is supported, too. Among its advanced features are revenue optimization tools, dynamic routing, and risk management. You can optimize payment acceptance rates, reduce processing costs, and mitigate fraud risks.
Amazon Pay is a payment gateway integration provided by Amazon, allowing customers to use their existing Amazon accounts to make purchases on third-party websites and applications.
Shopify Payments is a built-in payment gateway for Shopify users. It provides built-in fraud detection tools, PCI compliance, and secure payment processing infrastructure.
Choosing the best payment gateway for your store requires some homework. The basic principle involves understanding your business needs, technical infrastructure, and priorities. Here's a quick checklist to help you get started.
In today’s digital world, it’s almost impossible to imagine a non-physical payment alternative. The entire concept of e-commerce builds on online product discovery and payment, too. With global e-commerce sales reaching $5.8 trillion in 2023 (Statista reports), safe and reliable online transactions become more important than ever before.
Consumers favor online payments, leaving traditional cash and cards behind. In 2023, mobile wallets accounted for roughly half of global e-commerce payment transactions, meaning the digital wallet is the top choice for paying online. For businesses, ignoring this demand is like losing every second of your customer. So, what are the practical benefits of payment gateway integrations? Basically it all goes to increased sales and better customer service.
For customers, it’s the ability to pay quickly and conveniently when shopping online. For businesses, payment gateways provide an opportunity to
Payment gateways allow you to cater to the diverse payment preferences of your customers, whether they use a credit/debit card, digital wallet, bank transfer, or an alternative method. This not only boosts your conversion rates but also significantly reduces the instances of incomplete purchases and abandoned carts, leading to improved business performance.
If you sell globally, with payment gateway integrations, your customers can choose among multiple currencies and payment methods. With payment gateway integrations, you can strengthen your presence in the global markets and make your product or service accessible to more customers.
Integrating a payment gateway into your business strategy is a smart move. Consider NEKLO, as a trusted ecommerce software development provider for adding payment gateways to your store.
US-based and operating globally, NEKLO spearheads digital transformation initiatives for businesses worldwide. We deliver software solutions complying with your market and legislation.
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