Payment Gateways: What are They & the Best Options in the Market
By
ChicMic Studios
November 15, 2023
A payment gateway has transformed the way we interact with services and products. With each passing day, we use less cash and more credit cards or online wallets. Payment gateways assist customers in safely filling in their payment information and making payments. These gateways encrypt the customer details and transmit them to verify that the transaction is legit. As the world goes cashless, payment gateways are helping businesses and customers build a new trust level through a digital window. Join ChicMic, and let’s find out how payment gateways work and the ones we have used for our clients.
Payment Gateway: What is it?
A payment gateway is software businesses use to accept customer payments through credit cards, digital wallets, or other electronic payment methods. These gateways exist online and in brick-and-mortar stores and serve as a channel between the merchant and the financial institution.
How does it work?
As described above, a payment gateway is a channel between the merchant and financial institutions. It is often integrated with a POS to authorize transactions and record payment history in physical stores. The software collects customers’ payment information to authorize and transfer to the merchant’s bank in real-time, which will process the transaction.
Different types of Payment Gateways
Depending on the type of business you’re running, there are precisely three types of payment gateways:
On-site payments: Large enterprises execute and handle on-site payments on their servers. This enables them to offer customers a customized experience while processing payments through their system.
Off-site payments: These are the most popular type of payment gateway. In this scenario, the front-end checkout occurs on your site while the payment processing happens on the gateway’s backend. These gateways often boast secure servers and simplify the payment process for users.
Redirects: This type offers multiple payment methods to accommodate customers and employs third parties like PayPal. When a customer enters the transaction details, the gateway redirects them to the PayPal payment screen to complete the transaction. Small businesses often rely on redirect payment gateways because they offer convenience and security at minimum subscription rates.
Why use a payment gateway?
A payment gateway makes transaction processing a hassle-free affair for the merchants and the customers. Let’s take a better look at other benefits of using a payment gateway:
Security: Payment gateways offer secure platforms for safe transactions. They protect against fraud and data breaches to safeguard merchant and customer information. These platforms can encrypt and tokenize data and prevent misuse in case of a misplacement.
Customer trust: A payment gateway provides a sense of security to the customer — This helps build customer trust, boosting the business. The customer can count on the business to carry out secure and hassle-free transactions and thus only worry about the service or product quality.
Lightning-fast transactions: This is among the most significant benefits of going cashless. Payment gateways carry out swift payment and settlement transactions, resulting in faster conversions.
International transactions: Local merchants are now more open to the global market, as they can easily reach national and international customers. Today, payment gateways provide features that allow businesses to accept international payments. And since transactions on these gateways are swift, they create the same sense of trust among distant customers.
Multi-payment methods: Payment gateways accept all cashless payment methods, namely debit/ credit cards, net banking, UPI, and digital wallets. This enables the customers to pay however they like without any worries.
List of Payment Gateways that ChicMic has Used for Our Clients
While the market is full of all payment gateways, our developers at ChicMic rely only on the best for our clients. Here is a list of the payment gateways that we have used:
Stripe
It is a hugely successful payment gateway famous for its seamless integration, robust features, and developer-friendly approach. Stripe offers merchants a flexible and secure infrastructure, supports mainstream payment methods, and can execute international transactions. One of its standout features is a highly adaptable application programming interface (API) that allows developers to customize payment flows. They can also easily integrate it across diverse platforms and programming languages.
Key Notes:
-API Flexibility: It offers a highly flexible and developer-friendly API that supports different programming languages.
-Payment Options: It supports all the popular and global payment methods.
-Security: Relies on advanced encryption and tokenization for secure transactions.
-Integrations: It seamlessly integrates with popular e-commerce platforms and mobile apps.
PayPal
It is the oldest name among the online payment platforms that revolutionized digital transactions worldwide. PayPal has gained enormous trust among merchants and customers, making it a definitive choice. It has a user-friendly interface with a global reach and supports all types of payment options, offering excellent payment flexibility to users. The platform is available through a mobile application, making transactions convenient for users.
Key Notes:
-API Coverage: It offers API coverage encompassing various payment services, including invoicing and mass payouts.
-Payment Options: PayPal supports all the mainstream payment methods worldwide.
-Security: The gateway has robust fraud protection and customer dispute resolution protocols.
-Integration: It seamlessly integrates with popular e-commerce platforms and mobile apps.
Zimpler
Zimpler is a mobile payment solution developed in Sweden that offers a simplified and secure platform for online transactions. The app primarily facilitates mobile payments and allows users to link their bank accounts or cards to the service. It successfully streamlines payments through a highly user-friendly and engaging interface. Zimpler strongly emphasizes security and provides a straightforward integration process for businesses.
Key Notes:
-API Coverage: It covers a comprehensive range of payment services.
-Payment Options: It offers robust support for different payment methods, including credit/debit cards and bank transfers.
-Security: Zimpler developers have strongly emphasized security with effective fraud protection measures.
-Integration: It seamlessly integrates with all the major e-commerce systems.
Braintree
It is a PayPal subsidiary offering a robust and versatile payment gateway to simplify online business transactions. The platform is famous for its advanced security measures and employs tokenization and fraud detection tools to safeguard sensitive payment information. As part of the PayPal ecosystem, Braintree benefits from a global reach and supports multiple currencies and international transactions. The highly reliable platform offers user-friendly features and streamlines the complete payment process. These reasons make Braintree a highly sought-after choice for businesses of all sizes.
Key Notes:
-API Flexibility: It offers a highly flexible and robust API like Stripe.
-Payment Options: Braintree accepts payment methods, including PayPal, credit/debit cards, and digital wallets.
-Security: It has advanced fraud protection tools and secure data storage practices.
-Customization: Braintree is a highly customizable platform with several custom options to enhance the checkout experience.
Sticpay
Sticpay is a digital payment platform offering international financial services and specializing in cross-border transactions. The platform boasts secure and efficient fund transfers and serves individuals and businesses worldwide. Sticpay supports all the primary payment methods, including credit/debit cards and bank transfers, providing flexibility for users engaging in global transactions. Since it emphasizes international transactions, Sticpay enables users to transact in multiple currencies, streamlining cross-border commerce.
Key Notes:
-API Flexibility: Sticpay API lacks flexibility but is functional and serves its purpose.
-Payment Options: Sticpay accepts major payment methods while focusing on cross-border transactions.
-Security: The platform offers standard security measures to curb transaction fraud and failures.
-Global Reach: Tailored for international transactions, Sticpay has an immense global reach.
Interkassa
It is a successful payment aggregator that connects businesses to different payment methods and facilitates online transactions. Due to its versatility, Interkassa is a popular choice among a diverse clientele, providing its services to companies seeking a convenient and secure means of collecting payments in multiple currencies. Interkassa is particularly flourishing in Eastern European markets despite its popularity worldwide to facilitate multi-currency transactions. It prioritizes security and provides standard measures for secure transactions and compliance with financial regulations.
Key Notes:
-API Capabilities: Interkassa offers API for payment integration with varying details.
-Payment Options: The aggregator supports all major payment methods, primarily focusing on the Eastern European market.
-Security: It offers standard measures for secure transactions.
-Global Reach: It is designed to authorize multi-currency transactions across countries.
Hello Clever
This is an instant payment solution with a region-specific focus and powered by the New Payments Platform while supporting PayID and PayTo. Hello Clever also supports credit/debit cards at competitive rates. The platform allows you to create and monitor payment requests using robust AI-powered insights, real-time enrichment, detailed classification, and accurate and latest transaction information. The Hello Clever Payment API is developer-friendly and based on REST.
Key Notes:
-API Flexibility: API-specific details and information for Hello Clever is limited.
-Payment Options: Hello Clever accepts major credit/debit cards and offers region-specific payment options.
-Security: The platform complies with financial regulations and offers standard industry practices for secure transactions.
-Global Reach: Hello Clever is an Australia-specific platform.
Payment Gateway comparison and their effectiveness in specific domains
Each payment gateway offers a specific advantage over the rest, and the ultimate choice comes down to the business. Let’s determine which platform suits the market demands according to each domain.
Developer-Friendly and Customization:
Stripe and Braintree are two platforms that offer robust APIs with high flexibility, making them developer-friendly and highly customizable.
Global Reach and Diverse Payment Options:
Businesses and merchants that intend to exploit the global market and demand diverse payment options should look into Stripe and PayPal. Both platforms provide extensive support for international transactions and major payment methods.
Security:
PayPal, Stripe, and Zimpler employ strong security measures, including advanced encryption, tokenization, and fraud protection.
Cross-Border Transactions:
Sticpay will be the right choice for your business if you intend to execute cross-border transactions.
Region-specific or Niche Solutions:
If your business operates in specific regions or requires unique payment options, ZImpler, Interkassa, and Hello Clever may offer solutions tailored to these needs.
Existing User Base:
PayPal is an existing market champion with a large user base. Businesses can easily target the consumers already using the platform.
Integration Ease:
Stripe, PayPal, Zimpler, and Braintree are generally praised for their easy integration with popular e-commerce platforms and systems.
End Note
Today, payment gateways offer plenty of features to serve businesses of all sizes. They are technologically advanced and focus on user experience and security to help merchants gain customer trust. Remember, the suitability of a payment integrator hinges on your business’s specific needs and scale. Whether you prioritize developer-friendliness, global reach, or niche solutions, ChicMic can assist you in gateway customization, integration, and deployment. With a decade of experience in the field, we can help you technologically boost your business.
