For all Magento ecommerce stores, utilizing a high-quality payment system, which brings about an easy and fast checkout experience for the customers, is crucial for their successes. Without it, the stores might have to face a high rate of cart abandonment and lack of customers’ trust.
Fortunately, Magento allows the merchants to easily integrate their stores with many reliable payment gateways to facilitate secure transactions.
In this blog post, we would like to mention the 5 best options of payment gateways that all Magento ecommerce stores should take into consideration. Let’s get started!
5 Recommended Payment Gateways For Your Magento Ecommerce Stores
As you might know, PayPal can be considered as one of the most preferable payment gateway between people and online businesses nowadays. There are a lot of benefits for making payment through PayPal for both stores and their buyers. For example:
- PayPal is very friendly and easy to use. Whether you are a new seller, or a new buyer, PayPal is the most convenient way to do trusted payments online.
- It’s free to create a basic PayPal account
- The stores don’t need a business license to receive money through PayPal but a valid email address and a bank account.
- The customers can make payments easily through PayPal by using their credit cards
- The buyers can make payments any time regardless of the devices they use
- PayPal allows fast checkout process
- It usually pays out very fast – within 1 business day
- It is available in more than 200 countries worldwide
Besides a variety of advantages, there are several things about PayPal that you should keep in mind:
Although PayPal lets you use its Standard or Express Checkout accounts for free, if you’ll want to provide the best experience for buyers, you should go for PayPal Payments Pro plan (costs $30/month).
For transaction fees, PayPal charges the standard 2.9% + $0.30 for transactions in US, and 3.9% + a standard fee for international payments.
There are 2 “big guys” in the e-commerce industry using PayPal now, which are Walmart and eBay.
As you might know, Braintree belongs to PayPal, so comparing these two payment gateways seems to be meaningless. However, PayPal and Braintree do provide different pricing models.
Some essential things that you need to know about Braintree before integrate it into your Magento ecommerce stores are:
- Braintree is a reliable name to employ easy payment for online stores, facilitating 130 currencies
- Its outstanding features include local payment proficiency, multiple outlines, settlement currencies and global fraud protection,…
- Its well-designed architecture is compatible with 3-D secure and payment methods across the globe
- It allows integration with PayPal, which means that you can accept PayPal payments with Braintree, and it works with Venmo, a digital wallet of PayPal
- For the transaction fees, Braintree charges you 2.9% + $0.30 per transaction for both US and international transactions
- It has been widely used in 44 countries
There are some famous companies utilizing Braintree now, for example: Airbnb, Uber, Adidas, Bestbuy, TaskRabbit,…
If PayPal is a trusted brand having a long history of processing payments on the web, Stripe is one of the hottest new payment processor on the block.
Some pros and cons of Stripe payment gateway are:
- Stripe provides a set of essential tools that prompts effortless handling of in-app payments and other transactions
- It supports over 100 currencies, available in more than 25 countries
- It integrates both iOS and Android for in-app payments and also gives flexibility for instant debit card transfers
- It works with AliPay, a famous Chinese payment platform. Therefore, if you’re targeting the Chinese market, then Stripe would be ideal for your Magento ecommerce store
- It accepts Automated Clearing House (ACH) payments (direct charges to bank accounts), which is unavailable from PayPal and Braintree
- For the transaction fees, Stripe charges you 2.9% + $0.30 per transaction for both US and international transactions
- It takes 2 day for transfers in the US and Australia, and 7 day transfers in other countries
The fourth payment gateway that we want to suggest for your Magento ecommerce stores is Authorize.net. This payment gateway would perfectly suit your business when you have less time to spend on check out. Its CIM (customer information manager) system allows you to store all payment details of the customers so that they don’t need to re-enter their credit card information many times. Besides, Authorize.net payment gateway has some strong points as the followings:
- It’s very easy to integrate to your Magento ecommerce stores. There’s just a little testing that needs to be done with this payment gateway
- It comes packed with the top-notch fraud protection systems. It’s up to you to choose to just get warnings when fraud is suspected or hole the transactions in that case.
- It brings about high customer satisfaction owing to quality and timely support.
- It ensures that your customers’ card information will be secure. Alll of the data will be kept on Authorize.net servers instead of on store server, which makes getting PCI compliance much easier
- For the transaction fees, Stripe charges you 2.9% + $0.30 per transaction, which equals to the rate of the first three payment gateways
The final recommended payment gateway for your Magento ecommerce store is Amazon Payments. However, it’s worth noting that while PayPal is available for a great deal of countries, Amazon Payments can be used in just the US and the UK. Hence, if you’re an international e-business outside the US/UK, this payment gateway may be not appropriate.
Here are some reasons why many people praise this payment gateway:
- By using Amazon Payments, millions of Amazon purchasers can pay on your Magento ecommerce stores with the information already stored in their Amazon accounts
- It’s fast, easy and secure and helps both merchants and the customers reduce fraud costs. In other words, it helps to leverage the trust of Amazon to grow your business and protect your business with the same sophisticated fraud detection technology used by Amazon at no cost
- It’s able to enhance your shoppers’ confidence and encourage them to buy on your site regularly
- For the transaction fees, Amazon Payments charges you 2.9% + $0.30 per transaction
All things considered, each payment gateway has its own pros and cons, you should take all into consideration and finally opt to the most proper one for your Magento ecommerce stores. The 3 most fundamental element when selecting a payment gateway are security, capabilities, and cost. Moreover, you can use only 1 or combine more than 1 payment gateways into your store.
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