In the ever-evolving world of online commerce, choosing the right payment solution is crucial to eCommerce success. The continuous growth of e-commerce provides tremendous opportunities for entrepreneurs to build their online presence and reach a wider customer base.
Setting up an eCommerce Script business is not always easy, and one factor that affects success is the payment solution.
Apart from considering security and currency options, you must also evaluate whether to enable manual payment methods and decide between local or global payment solutions to best cater to your customers’ needs. Making the right choice can significantly impact your business’s efficiency and customer satisfaction.
In this article, we’ll talk about the manual payment solutions, global online payment methods, and the best payment gateways for specific locations.
Manual payment solutions
Manual payment methods are the ones that transactions happen outside of an online store. The most used manual payment method is cash on delivery which includes several payment options and types.
Cash on Delivery (COD)
COD is a widely used manual payment method, especially in regions where online payment adoption is still developing or traditional payment methods are preferred. Cash on delivery is a widely used payment model in India.
With COD payment method, customers have the option to pay in cash when the order is delivered to their doorstep. This method can help small businesses reach customers who are hesitant to provide their card details online or those without access to digital payment options.
With cash on delivery, retailers can collect payments in various types like:
- Cash payment
- Card payment
- Mobile payment
- Check payment
- Online bank transfer
- Digital wallet
- Partial deposit
One of the use cases of cash on delivery is for the orders with “Order on WhatsApp”.
Order on WhatsApp is a button that, depending on an eCommerce platform’s offers, is usually placed on the product page.
When a customer decides to order the product, he clicks on the order on the WhatsApp button. This redirects the customer to WhatsApp and opens a chat to concat with the seller.
Customer and seller communicate upon the delivery time and payment type, which is usually one of the options of cash on delivery mentioned above.
The process of paying and collecting payments for the orders with cash on delivery is simple:
- When placing an order at the checkout page, a customer chooses cash on delivery as a payment option.
- Once a retailer receives an order, he prepares, and ships an item to the customer’s address.
- In exchange for the goods at the time of delivery, the delivery personnel receives cash, a check, or a money order from the customer and then passes the payment back to the seller.
Best payment gateways based on geo-locations
For small businesses operating in specific regions or countries, integrating local payment solutions can significantly help their eCommerce businesses.
Local payment gateways are designed to cater specifically to the needs and preferences of the local market, offering a range of benefits that can significantly improve the payment experience for both the seller and the customer.
The key benefits of local payment solutions are:
- Customer convenience
- Faster settlements of funds
- Lower transaction costs
- Compliance and regulations
- Improved trust and credibility
- Localized features
Here are some examples of local payment solutions in different regions that you can use to accept payments in your online store.
Best Local Payment Solutions in United States
PayPal
PayPal is an online payment platform that allows businesses to receive money electronically.
It is one of the most popular and widely recognized online payment platforms globally. Many customers feel more secure using PayPal as it provides an additional layer of protection for their financial information during transactions.
PayPal operates in numerous countries and supports multiple currencies. By accepting PayPal, online businesses can easily cater to international customers and expand their reach to a broader audience.
PayPal’s fees begin at 3.49% + $0.49 per transaction. PayPal’s fees vary depending on your location and the type of transaction. Find more information about PayPal fees.
Stripe
Stripe is an online payment processing platform that helps businesses accept payments over the internet. It simplifies the process of handling online transactions and allows companies to securely receive payments from customers using various payment methods.
Stripe supports various payment methods, including credit cards, debit cards, digital wallets, and other online payment options.
Stripe supports multiple payment methods, including credit cards, debit cards, digital wallets (e.g., Apple Pay, Google Pay), and local payment methods. By offering diverse payment options, businesses can cater to a broader customer base and enhance the checkout experience for their users.
Stripe also operates in numerous countries and accepts multiple currencies, allowing businesses to accept payments from customers worldwide. This global presence makes it ideal for businesses with an international customer base.
Stripe charges fixed 2.9% + 30¢ per successful card charge. Learn more about Stripe pricing.
Authorize.net
Authorize.net is an online payment method that offers a versatile choice of plans for businesses of all sizes. It supports a wide range of currencies, as well as all major credit cards and digital wallets. Authorize.net accepts transactions from shoppers worldwide, making it a convenient option for businesses looking to accept payments from customers around the world.
One thing to keep in mind about Authorize.net is that to integrate it on your website, your business must be registered in Canada, Europe, Australia, the US, or the UK. This may limit its availability for some businesses.
Additionally, Authorize.net offers a merchant account and fast transfers, which can be useful for managing your finances and moving funds quickly.
Authorize.net’s pricing plans start at $25 per month with a fixed 2.9% + 30¢ per transaction fee.
Adyen
Adyen is a global payment service provider that offers a unified payment solution that enables merchants to accept a wide range of payment methods, including credit cards, debit cards, e-wallets, bank transfers, and more.
Adyen allows you to customize payment flows, layouts, advertising, languages, tax, tipping, receipts etc., and makes it easier to apply discounts, rewards and one-click payments using payment-linked data.
For each transaction, Adyen charges a fixed processing fee of €0.11 + a fee determined by the payment method. Other Adyen products, besides payment methods, are priced separately. Learn more about Adyen’s pricing.
Best Local Payment Solutions in Latin America
Mercado Pago
Mercado Pago is a popular local payment solution in LA, particularly in countries like Argentina, Brazil, Chile, Colombia, Mexico, Peru, and Uruguay, and it supports the local currency of each country. Mercado Pago is the largest Latin American fintech company operating in the region that has more than 1.5 million users in the country in Chile alone.
Mercado Pago offers a comprehensive platform that allows businesses to accept various payment methods, including credit cards, debit cards, bank transfers, and cash payments through affiliated locations.
Mercado Pago currently accepts local currencies. Businesses in Argentina, Brasil, Chile, Colombia, Mexica, Peru, and Uruguay can accepts payments in Argentine Peso (ARS), Brazilian Real (BRL), Chilean Peso (CLP), Colombian Peso (COP), Mexican Peso (MXN), Peruvian Sol (PEN), and Uruguayan Peso (UYU).
You can check out their costs with respective payment tools on Mercado Pago pricing page.
Best Local Payment Solutions in Europe
Vipps
Vipps is a popular local payment solution in Norway, catering to the needs of businesses and consumers alike. As of 2022, Vipps had 4.2 million users in Norway (total population: 5.4 million).
Vipps enables businesses to accept payments through the app, making it easier for them to connect with tech-savvy customers and offer a seamless checkout experience.
Vipps caters mainly to users residing in Norway and exclusively facilitates transactions in Norwegian Krone (NOK). To utilize Vipps, individuals typically need a Norwegian social security number, a Norwegian bank account, and a Norwegian mobile phone number.
Regarding the pricing, if your annual Vipps turnover is less than NOK 10 million:
- Transaction fee: 2.49% of the transaction amount
- Additional fixed fee: NOK 1 per transaction
And, if your annual Vipps turnover is more than NOK 10 million:
- Transaction fee: 1.99% of the transaction amount
- Additional fixed fee: NOK 1 per transaction
For more information, visit Vipps price list page.
Nets Easy
Nets Easy is a payment solution operating in Northern Europe, offering a user-friendly and secure online payment platform. It allows small businesses in the region to accept various payment methods, including credit cards and bank transfers, providing customers with a convenient and seamless checkout experience.
With its focus on simplicity and accessibility, Nets Easy enables businesses to reach a broader audience and enhance their e-commerce capabilities within the European market.
Nets Easy works in all European countries with the currencies Danish Krone, (DKK), Euro (EUR), Pound sterling (GBP), Norwegian Krone (NOK), Swedish Krona (SEK), United states Dollars (USD), Polish Zloty (PLN), Swiss Franc (CHF), and Czech Koruna (CZK).
Here is the pricing information for transactions made with Visa/Dankort and MasterCard/Visa Debit through Nets Easy payment gateway:
For Visa/Dankort transactions:
- Transaction fee: 0.31% of the transaction amount
- Additional fixed fee: DKK 0.54 per transaction
And, for MasterCard and Visa Debit transactions:
- Transaction fee: 0.70% of the transaction amount
- Additional fixed fee: DKK 0.50 per transaction
Mollie
Mollie is a leading payment service provider based in Europe, offering a seamless and reliable payment solution for businesses in the region. It supports various European payment methods, including iDEAL, SEPA Direct Debit, credit cards, and more.
With Mollie, businesses can easily integrate multiple payment options into their websites, providing customers with a smooth and localized checkout experience. Its user-friendly platform and competitive pricing make it an excellent choice for small businesses looking to accept payments from customers across Europe.
Mollie allows you to accept payments in Austria, Belgium, France, Germany, Italy, the Netherlands, and the United Kingdom.
You can check Mollie’s supported currencies and payment methods in its documentation.
Mollie’s pricing depends on the market (country) and payment method (Mastercard, Visa, American Express, etc.).
Best Local Payment Solutions in Africa
Flutterwave
Flutterwave is a prominent payment gateway based in Nigeria that operates across Africa, offering a seamless and secure platform for online payments. It enables businesses to accept payments from customers using various payment methods, including credit and debit cards, bank transfers, and mobile money.
Flutterwave’s extensive coverage across the continent makes it a valuable solution for businesses looking to tap into the African market and serve customers with diverse payment preferences.
Flutterwave allows businesses to accept payments in Nigeria, Ghana, Kenya, South Africa, Uganda, Tanzania, United States, United Kingdom, and the rest of Europe.
You can check out the latest list to know more about the currencies you can charge cards in Flutterwave.
Flutterwave’s pricing also depends on the country and regions. For instance, for the United States the cost of local (card) transactions is 2.9% per transaction whereas it’s 3.8% per international transaction.
Paystack
Paystack is a leading payment gateway in Africa, headquartered in Nigeria. It enables businesses to accept online payments seamlessly from customers across the continent. With support for various payment methods, including card payments, mobile money, and bank transfers, Paystack has played a crucial role in facilitating e-commerce growth in the region.
Its user-friendly interface, robust security measures, and dedicated customer support have made it a popular choice for businesses seeking to tap into the thriving African market. In 2020, Paystack was acquired by Stripe, further solidifying its position as a key player in the African fintech landscape.
In Paystack, by default international payments are charged and settled to you in your local currency. Paystack allows you to accept payments in Ghanaian Cedi (GHS), Nigerian Naira (NGN, USD), and South African Rand (ZAR).
To know more about receiving international payments in USD please read this article: Can I accept payments in USD?
Regarding the pricing, Paystack takes 1.5% + NGN100 for local and 3.9% + NGN100 for international transactions in Nigeria. For Ghana and South Africa, the pricing changes.
Yoco
Yoco is another popular payment solution in Africa, particularly in South Africa. It enables small businesses to accept card payments through mobile point-of-sale (mPOS) devices, making it convenient for both merchants and customers.
Yoco’s user-friendly platform and reliable transaction processing have made it a preferred choice for many businesses in the region, helping them expand their customer reach and boost sales. Additionally, Yoco offers valuable insights and analytics to help merchants make informed business decisions.
With Yoco, you can only accept payments in South African Rands (ZAR).
Yoco’s pricing model is straight and simple. As you sell more, the less your business is charged for the transaction fees. The transaction fees start form 2.95%
Best Local Payment Solutions in Asia:
Razorpay
Razorpay is a leading payment gateway in India, offering comprehensive payment solutions for businesses operating in the Asian market. It supports various payment methods, including credit and debit cards, net banking, UPI, and popular digital wallets like Paytm, Google Pay, and PhonePe.
With its user-friendly interface and seamless integration options, Razorpay enables businesses to accept payments online efficiently and securely. Its advanced features, such as smart routing and instant refunds, make it a preferred choice for small businesses looking to cater to the diverse payment preferences of Asian customers.
Razorpay allows you to accept payments from your customers in more than 100 foreign currencies using Razorpay’s Payment Gateway and other products such as Payment Pages, Payment Button, Payment Links and Invoices.
Currently, Razorpay supports a host of currencies, including Indian Rupee (INR), United States Dollar (USD), Euro (EUR), and Singapore Dollar (SGD).
You can check the latest list of supported currencies here: Razorpay supported currencies
With Razorpay, you can accept payments starting from 2%. For other payment methods and their respective costs, check Razorpay’s pricing.
Mamo Pay
Mamo Pay is a prominent local payment solution operating in the Middle East region. Based in the United Arab Emirates, Mamo Pay enables businesses and individuals to make peer-to-peer transfers and merchant payments with ease.
With a focus on providing a secure and convenient payment experience, Mamo Pay supports various local payment methods and currencies, making it an ideal choice for businesses looking to cater to customers in the Middle East. Its user-friendly platform and commitment to compliance have contributed to its popularity as a reliable payment option in the region.
Currently, Mamo Pay supports three currencies: United Arab Emirates Dirham (AED), United States Dollar (USD), and Euro (EUR). However, regardless of the currency used for the transaction, all payments will be settled in AED.
Mamo Pay has 3 pricing plans: Growth, Premium and Enterprise (custom).
Mamo Pay’s free Growth Plan charges 2.9% plus AED 1 for local UAE card transactions and 3.4% plus AED 1 for international card transactions.
How to choose payment solutions?
For global sellers
If you are selling internationally, the considerations for choosing a payment solution become a bit more critical.
Here are the key factors to consider when choosing a payment solution:
Multi-currency support: Ensure that the payment solution supports multiple currencies, as customers from different countries will be making purchases in their local currencies. This feature will eliminate any confusion about exchange rates and currency conversions.
Language and localization: The payment solution should be available in multiple languages to cater to customers who may not be proficient in English. Additionally, the checkout process should be localized and user-friendly for customers from different regions.
Global customer support: Since you’ll be dealing with customers from various time zones, having 24/7 global customer support from your payment provider can be extremely beneficial.
Settlement periods: Check the settlement periods for international transactions, as these can vary depending on the payment solution and the countries involved. Quick settlements can help with cash flow management.
Expansion capabilities: As your international sales grow, you might consider expanding to new markets. Ensure that the payment solution has coverage in the regions you plan to target in the future.
For local sellers
If you sell locally, there are several important factors to consider to ensure smooth and secure transactions.
Support for local currencies: If you’re selling locally, it’s essential that your payment solution supports the local currency to avoid any currency conversion issues and make the purchasing process smoother for your customers.
Payment processing time: Check the payment processing time for each solution. Fast payment processing can lead to better customer experience and quicker order fulfillment.
Compliance and regulations: Ensure that the payment solution complies with local and international regulations, especially regarding data protection and privacy laws.
Conclusion
In conclusion, finding the best eCommerce payment solutions for small businesses is a crucial step in establishing a successful online venture. The right payment solution can significantly impact customer satisfaction, security, and overall business performance.
The best eCommerce payment solution for a small business will be one that strikes the right balance between security, ease of use, affordability, and customer-centric features. By choosing wisely, small businesses can create a solid foundation for growth, foster customer loyalty, and unlock the full potential of their online ventures in the competitive world of e-commerce.
