To be successful in your e-Commerce business, you first have to sell your products. To sell these products, you need available changing hands for your customer, which will require you to have multiple ways of accepting payments. That’s where the ease and convenience of payment getaways are for, which allows your business to take payments quickly and keep your customer’s money and details secure. In that regard, selecting the right payment gateway is critical as it largely affects your business, and when implemented correctly, has the ability to gain the trust of your customers. To that end, here are the key factors you need to consider when choosing the right payment gateway for you.
What is a Payment Gateway?
In essence, a payment gateway is what connects your shopping cart to a credit card company, which facilitates the processing of credit cards for online payments. Popular examples include PayPal, Stripe, Amazon Payments, Moneris, Google Wallet, Apple Pay, and the more. Think of it as a digital armoured truck that delivers payment from the customer’s wallet down to the cash storage facility of your e-Commerce business. However, rather than travelling through a truck, it is passed along inside an armoured code to prevent any hackers from sabotaging the transaction.
Consider #1: Does the Payment Methods Suit Your Customer Base?
Before choosing your payment gateway, take the time to analyze the needs of your target audience and figure out what mode of payment your specific customers tend to use. For instance, older generations tend to avoid risks and prefer to stick to their tried and tested methods, while millennials are more up-to-date with the various gateways available and are comfortable with innovative payment methods. Either way, be sure to have something for everybody as nothing matters more than choosing the payment gateway that supports your customer’s wants and needs.
Consider #2: Does the Payment Method Suit Your Business Needs?
There are two types of the gateway – the classic and the modern ones. While both essentially do the same job, the main difference lies in whether or not they need a merchant account. A merchant account is a line of credit that enables the processing of transactions and the deposit of funds into your business’s bank account, though modern payment gateways don’t require these anymore. This is because modern gateways can draw funds directly from the customer’s bank account or credit cards into your account, allowing for convenience and ease of transaction. However, many customers still prefer the classic gateway as it is believed to be safer and more secure. Not to mention, modern gateways charge larger transaction fees and brings customers to a new webpage for making the payment, which can be a turn-off for many and lead to lesser conversion rates.
Consider #3: Which Payment Modes and Currencies Do You Want to Support?
As mentioned above, choosing the right payment gateway should also largely involve the needs of your customers. In that regard, that should include supporting different currencies to cater to your overseas customers. That means you also have to observe which countries your business is reaching so that you can widen your target audience and have the means the properly and safely support the payment methods they are most comfortable with.
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