In fact, the international revenue generated by the e-commerce industry is expected to reach $6.9 trillion by the end of 2024. Multiple factors contribute to the success of online retail, including the availability of individual stores and common marketplaces, which allow users to browse different vendors at once.
Another factor increasing the popularity of marketplaces is the availability of multiple payment options enabled by payment gateways. Consequently, the ease of digital payments has grown the payment gateway market, which is expected to grow to $37.59 billion in 2024 at a CAGR of 17.3%.
Therefore, the payment gateway provider that you choose for your marketplace can determine its success. Apart from being an integral part of a marketplace’s functionality, payment gateways are vital for developing a customer’s trust and loyalty in the store.
Looking at the crucial role that payment gateway providers play, it is essential to understand the factors behind choosing the best payment gateway for the marketplace, knowing its popularity, and assessing its ease of use, which are further discussed in this article.
What Are Marketplace Payment Gateways?
A marketplace payment gateway is a dedicated software that enables easy payments on an e-commerce website by acting as a bridge between the client and the merchant. The payment gateway transfers the customer’s details to the provider of the payment mode, receives confirmation, and proceeds to transfer the said amount to the merchant’s account.
What makes payment gateways popular is the ease of use, efficiency, swiftness, and security they provide. By incorporating multiple payment method options and integrating security measures, these payment gateways are key to converting carts into orders.
Multiple payment gateway providers can help facilitate your marketplace transactions. With their ease of integration, you can choose any payment gateway provider upon assessing their security features and payment methods.
Why Do You Need A Payment Gateway Provider?
Payment gateways are undoubtedly the best payment solution for any marketplace due to their ease of use and facilities. To give you a better idea of their importance, listed below are the benefits of choosing the best payment gateway for your marketplace:
Improved Transactional Security
Payment gateways have strict security measures in place, including multiple encryption levels and industry-standard security protocols. This helps prevent payment fraud on both the client's and the merchant’s end.
In addition, all the data procured by payment gateways, especially the client’s payment method details, are safeguarded from hackers through encryption. Most payment gateways also have an in-built fraud detection tool.
Enhanced Customer Experience
Most customers prefer online shopping for a hassle-free experience, in which checkout plays a vital role. By enabling quick transactions, payment gateways help enhance the customer experience, which can contribute to increasing brand loyalty.
On the other hand, an insecure or inconvenient payment method might prevent them from going through the transaction, resulting in business loss.
Quick Payments
As mentioned above, payment gateways provide a quick transaction method and multiple payment modes' availability. All payment processes are automated with the use of payment gateways, therefore helping improve your sales cycle.
Global Reach
The best payment gateways for marketplaces are those available in multiple countries and able to accept different currencies. With this feature, you can expand your business globally and accept payments from anywhere worldwide without having to deal with conversion rates and calculations.
Easy Integration
Payment gateway providers ensure a quick and easy integration process for your marketplace that enables a seamless checkout experience.
Features Of Best Payment Gateway For The Marketplace
There are currently multiple marketplace payment gateways available. However, choosing the best payment gateway for the marketplace is vital to succeed and grow your business.
The payment gateway provider you choose will affect the speed, efficiency, and experience of checkout, which will greatly impact your customers. In addition, it will determine the security of your payment processes.
When choosing a payment gateway, checking its compatibility with your business type and marketplace platform is vital for seamless customer fund transfer. The following factors can help determine and choose the best payment gateway for the marketplace:
Security Measures
Like any other mode of payment, using payment gateways comes with the risk of fraud and data hacking. According to the Global Payment Fraud Report, payment fraud losses are expected to amount to more than $40 billion by 2027.
Therefore, selecting a payment gateway provider that prevents fraud and guards your consumer's data is crucial to maintaining reliability and brand image. Payment gateways should have multiple security layers, including:
PCI DSS Compliance
The Payment Card Industry Data Security Standard has set some rules and regulations that any company or gateway provider using credit and debit cards for transactions must meet. Therefore, any payment gateway provider that complies with all 12 key requirements of PCI DSS is reliable.
3D Secure
The 3D secure is an additional verification step for card payments through a payment gateway to help prevent fraud and authenticate payments. This can be provided through biometric identification, 2-factor authentication, and risk-based authentication.
SSL And TLS Protocols
Secure Sockets Layer (SSL) and Transport Layer Security (TLS) are encryption protocols that help secure the connection between the browser and server to prevent customer data leakage.
Penetration Testing
Any payment gateway provider that employs penetration testing ensures a higher security standard, as it involves hiring software specialists who perform ethical hacking.
This allows the team to identify any weak links in the security that may be exploited by a hacker. Once the team has identified points of improvement, it can work to strengthen the security.
Tokenization
Another method to safeguard customer data is that a payment gateway provider may use tokenization to help replace sensitive data with a string of randomly generated numbers.
Transaction Costs
Most payment gateways charge zero integration cost. However, they do charge transaction costs, which are generally a combination of a percentage fee and a fixed amount.
The different charges when using a payment gateway provider include transaction fees, fixed fees, fraud transaction fees, and interchange fees. In addition, a few providers may charge a set fee, which may be taken one-time or as a monthly subscription.
It is vital to select a payment gateway with low transaction costs, especially at the customer's end, as they would not prefer to pay extra. Moreover, the cost of integrating the payment gateway should not be high since that can reduce your profits.
Available Payment Modes
One of the most significant advantages of using payment gateway providers is the provision of multiple payment options in one place. The availability of different payment methods allows a larger number of customers to shop at your marketplace since they have the option of paying through the mode that is readily available to them.
Customers use a wide variety of payment methods, from cards to online banking and even crypto payments. Therefore, when selecting a payment gateway provider, you must choose one that covers all user preferences.
Global Reach
Marketplaces and ecommerce websites are growing popular since they allow small businesses to expand their horizons and serve customers worldwide. Therefore, if you plan to conduct business overseas, your payment gateway should not become a limitation.
The best payment gateways for the marketplace accept different currencies with the same level of security. While there may be a conversion fee or international fee, you will be saved from the hassle of handling conversion rates and facilitating easy payment for your customer.
Remember to scope out your target locations and select a payment gateway that covers these locations and their currencies, providing unlimited global outreach.
Ease Of Integration
The compatibility of the payment gateway provider with your marketplace is crucial for your business's success. Since many payment gateway providers only service a handful of business types, you should scope out one that suits your company.
Moreover, the payment gateway should easily integrate with your marketplace and provide consumers with a seamless transaction. In addition, it should have a dynamic view, which can be auto-adjusted to both desktop and mobile views.
User Reviews
While payment gateway providers offer multiple features and make hundreds of promises, their real-time usability can be checked with user reviews. Look for authentic reviews about the gateway's downtime, processing speed, and customer support.
Ideally, the gateway provider should have dedicated customer support for the merchant and the customer, available 24/7, to help maintain confidence and reliability.
In addition, choosing a payment gateway that your target customer is already familiar with or prefers over other gateways can contribute to the popularity of your marketplace and improve your brand image.
Scalability
With the multiple growth opportunities that come with an online marketplace, you should select a payment gateway that can grow with your business, facilitating a higher number of transactions with better security and performance.
User Interface
The ease of use and positive experience that the gateway provides to its users are a chief deciding factor in the success of any payment gateway and, therefore, a marketplace.
A payment gateway should have a simple user interface that works quickly and is intuitive. Providing a simple payment process, the payment gateway should have minimum steps.
Since the payment gateway is the last step to shopping, it can make or break the user’s experience with your marketplace, determining their loyalty and re-purchases with your brand.
Considering the above factors, you can easily choose the best payment gateway for your marketplace. To further help narrow down your choices, the top marketplace payment gateways with their features are discussed below.
Top Marketplace Payment Gateways
Multiple payment gateways support marketplace transactions worldwide. By offering different payment methods and merchant-support features such as invoice generation and inventory management, these payment gateways play a crucial role in determining the success and growth of a marketplace business.
You can choose from the following top nine marketplace payment gateways:
- PayPal
- Stripe
- Braintree
- MangoPay
- Dwolla
- Adyen
- Authorize.Net
- Exactly
- WorldPay
To give you a better insight and help you make an informed choice, listed below are the features, additional tools, pros, cons, and pricing details of the top nine marketplace payment gateways:
PayPal - The Pioneer For Online Payments
PayPal was co-founded by Elon Musk in 1998. It is one of the most popular payment gateways for business and personal transactions worldwide, with approximately 426 million active users.
PayPal is a giant in the payment gateway industry, holding about 40.52% of the global market share in the sector. It is a great marketplace payment gateway, serving over 200 countries and supporting more than 100 currencies.
Moreover, PayPal offers multiple payment methods, such as digital wallets, credit cards, bank payments, loans, deferred payments, and buy now pay later. The gateway is PCI-compliant and ideal for marketplace use with its multiple features, including split purchase transactions, invoicing, reporting tools, and express checkout.
PayPal is also a customer favorite due to its user-friendly mobile app. You can use PayPal's multiple API integration methods to integrate it into your marketplace.
Pricing
You can create a PayPal merchant account for free. However, it charges a transaction fee at
3.49% of every transaction + a fixed fee for domestic payments. On the other hand, you will have to pay an additional 1.5% and a currency exchange fee for international payments.
Pros
- Available in 200+ countries and supports 100+ currencies
- Quick, easy setup and integration with multiple modes
- PCI compliance and robust security setups
- Automated payment mode available for subscriptions and monthly bills
- Adaptive to different business models through additional tools
- Mobile-friendly website and application
- Integrated with e-commerce platforms such as Shopify and WooCommerce
- Dedicated customer support
Cons
- Per transaction cost, which is on the high end for international payments
- Sensitive in-built fraud detection can delay payments
- Currency conversion unavailable
Developer Help Links
Stripe - Flexible Payment Solutions
Stripe was started in 2010 by Patrick and John Collison in 2010. It is another big name in the payment gateway sector, having integrations with over 3.1 million websites worldwide. Stripe can be accessed by users in over 100 countries, incorporating a total of 135+ currencies.
Stripe is an API-based cloud payment gateway popular for its efficiency, intuitive mobile interface, and custom UI toolkit. Moreover, it is PCI-compliant and has multiple security measures. Its built-in fraud protection tool for merchants makes it stand out, helping prevent chargebacks and credit card fraud liabilities.
Customers can use e-wallets, cards, cash vouchers, bank redirects, and buy now pay later options with Stripe for marketplace payments. Stripe also offers dynamic scalability to marketplaces for uninterrupted growth.
Pricing
Stripe charges a 2.9% + 30¢ fee per successful domestic card transaction and a 3.9% + 30¢ fee for international transfers. For other modes of payment, the percentage cost varies.
Pros
- Can be used for 135+ currencies
- High-level security with PCI Service Provider Level 1 compliance
- Cloud-based API integration that makes it easier to use
- Built-in fraud detection and protection tool
- Quick fund withdrawal for merchants
- Plug-and-use UI components available
Cons
- No on-call customer support
- Instant withdrawals have a 1% charge
Developer Help Links
Braintree - Suited For E-Commerce Platforms
Braintree Marketplace is one of the leading payment gateway providers for e-commerce websites and marketplaces. It was acquired by PayPal in 2013 and is a merchant favorite, serving 45+ countries.
Having integrations with more than 45,000 websites, Braintree accepts multiple payment methods, including digital wallets, cards, direct banking, PayPal, and local payment options, along with the recent addition of BitCoin.
As for its security measures, Braintree is PCI Level 1 compliant and encrypts multiple other features, including data encryption, 3D security, and advanced fraud protection.
Pricing
The basic transaction cost of Braintree is 2.59% + $.49 per transaction. However, since it is a subsidiary of PayPal, you will need to pay PayPal’s charges when using the latter payment method.
Pros
- Accepts Bitcoin cryptocurrency as a payment method
- Available in over 45+ countries
- PCI level 1 compliance and anti-fraud measures
- Generates transaction reports for account management
- Recurring billing and subscriptions available
- Already integrated with top e-commerce websites
Cons
- Poor customer service rating
- Complex integration and setup
Developer Help Links
MangoPay - A Marketplace Tool
MangoPay was founded in 2013 as an end-to-end payment solution to assist marketplaces and crowdfunding platforms to help manage third-party transactions. Known for its white-label API, MangoPay enables merchants to set up custom payment flows that align with their business model.
Its open-source SDKs and developer-friendly API enable easy integration into your marketplace. Moreover, it has multiple security features, including PCI DSS Level 1 Certification and anti-fraud tools that comply with local European standards. It also follows KYC and AML regulations.
Customers can pay through multiple payment options, including e-wallet transactions, direct bank transfers, and credit cards. MangoPay is popular among merchants due to its tools, which enable account management and documentation, and its technical support team.
Pricing
The standard pricing plan for MangoPay includes a 1.4% + €0.25 transaction fee and a €249 monthly platform fee. You can contact the sales team for a custom plan for larger-sized businesses.
Pros
- Available in 31+ countries
- It can be used for recurring payment
- Split payments and user verification are available
- High-level security with PCI DSS Compliance
- Advanced fraud screening
- Can process around 15 currencies
Cons
- High transaction costs
- Limited number of currencies and countries
Developer Help Links
Dwolla - ACH-Based Payment Gateway
Explicitly developed for e-commerce marketplaces, Dwolla enables integration with the Automated Clearing House (ACH) network, enabling two-way transactions. This white-label service can be customized according to your business needs.
With developer-friendly documentation and API, it is easy to integrate Dwolla into your marketplace. While it functions only in the USA and accepts USD currency, it deserves mention in the list of best payment gateways for the marketplace, as it enables pay-ins and pay-outs on one platform.
Dwolla is PCI DSS compliant and integrates with business tools such as Slack notifications, QuickBooks accounting, and Sift Digital. It also enables the scheduling of recurring payments for ease of business.
Pricing
Dwolla doesn’t have an open pricing plan. However, it generally charges 0.5% per transaction.
Pros
- PCI DSS-compliant security
- Integrated with Slack, Quickbook, Sift Science, and Plaid
- Dedicated customer support team
- Configurable API
- Same-day and next-day transfers are available
- Low transaction costs
Cons
- Available only in USD
- No credit payment options
Developer Help Links
Adyen - End-to-End Payment Solutions
Popular among high-traffic marketplaces and e-commerce websites, Adyen is a Dutch payment processing company launched in 2006. It is available in most of Europe and a few Asian countries. Processing more than 180 currencies, Adyen shines with its 250+ payment options.
Adyen has advanced security features, including Revenue Protect Solution, anti-fraud measures, and KYC screening. It is currently being used in 25,000+ live websites as a payment gateway.
To add to its merchant-friendliness, Adyen provides the ability to create customized payment flows, recurring subscription payments, and checkout experiences. It also has an AI-powered risk system for fraud protection.
Pricing
Adyen charges a $0.12 processing fee + a payment method fee that depends on the payment mode.
Pros
- More than 180 currencies processed
- Highest payment modes across payment gateways
- Integrations with multiple business tools, such as SAP and Adobe Commerce
- Advanced reporting and customer insights
- Revenue optimization to prevent fraud and failed transactions
- Omnichannel platform that supports online, in-app, and offline customers
- No additional fees
Cons
- Complex pricing that varies with every payment mode
- Monthly invoice minimum condition
Developer Help Links
Authorize.Net - The Perfect Business Gateway
Another leading payment gateway, Authorize.net, was founded in 1996. Currently used by over 4 million merchants, Authorize.net facilitates over 1 billion transactions yearly in 11 currencies in countries like the USA, UK, Canada, Europe, and Australia.
While it is available in a limited number of countries, it doesn’t lack in its payment methods. Authorize.net accepts all major card providers with an inbuilt electronic check processor that quickens the transaction efficiency.
Moreover, as a business-oriented payment gateway, Authorize.net offers various merchant tools, including subscription billing, fraud detection, digital invoicing, customer information management, recurring payments, and business reports.
Authorize.net offers multiple integration options through developer-friendly APIs, ensuring a seamless process.
Pricing
Authorize.net has two different pricing plans - an all-in-one plan that includes a payment gateway, merchant account, and e-check acceptance, for which they charge a $25 monthly fee and 2.9% + 30¢ for every transaction and a payment gateway plan with a 10¢ + daily batch fee and a 10¢ processing fee on top of the $25 monthly fee.
Pros
- Highly robust security system
- Multiple business-friendly tools and features
- In-built fraud protection system
- One-of-its-kind account updater and e-check processor
- Monthly pricing fee and low per-transaction cost
- Customer information manager
Cons
- Limited worldwide availability
- Requires a merchant account setup
- No plug-and-use components
Developer Help Links
Exactly - Best-in-Class Security
Exactly is one of the most used e-commerce and marketplace payment gateways, and it can be easily integrated through its flexible APIs. Exactly supports more than 150 currencies and multiple payment methods, including digital wallets, cards, and bank transactions.
In addition, Exactly can stack on other systems like PayPal, Apple, and Amazon for convenience. Offering global coverage Exactly is one of those rare payment platforms that offer feeless transactions.
Exactly offers analytical insights, KPIs, invoicing, and a customizable user interface to enable business growth. The payment provider is PCI compliant and is equipped with anti-fraud and 3D Secure systems.
Pricing
There are no transparent pricing plans for Exactly. Instead, you can contact their sales team for a tailored solution.
Pros
- Flexible pricing plans
- Easy integration
- 150+ currencies
- High level of security with SSL data encryption
- Anti-fraud measures
- Invoice processing features
- Company-led integration
Cons
- No free trial
- Mobile applications not highly developed
Developer Help Links
Exactly promotes its integration through its developers and team.
WorldPay - User-Friendly Payments
WorldPay is a user-oriented payment gateway provider that presents an easy-to-use interface with multiple payment methods, including integration with various mobile wallets. It also has different tools for merchant ease, including inventory management and analytics reports.
In addition, this cloud-based payment processor provides card-to-crypto services. WorldPay is available in over 140+ countries and can process payments in more than 135 currencies. Currently, WorldPay is being used by 1 million+ merchants worldwide.
Pricing
WorldPay doesn’t have a transparent pricing plan and requires every business owner to contact their sales team for a tailored payment plan.
Pros
- Services 140+ countries and 135 currencies worldwide
- Already integrated with various e-commerce platforms
- Intuitive user interface
- Customizable payment solutions through APIs
- Customer support is available 24/7
Cons
- Payment and pricing details are not available
- Cost of additional services not available
Developer Help Links
Conclusion
Among the top contenders of online marketplace payment solutions, namely wire transfers, custom payment solutions, and payment gateways, the latter is undoubtedly the best for online businesses and their growth.
With a payment gateway provider, your customers have multiple payment mode options, quick processing time, and ease of use through their simple interface. In addition, these gateways ensure maximum security and fraud protection.
Choosing the best payment gateway for a marketplace requires critical thinking, as it plays a vital role in the business's success. When selecting the best option, you should consider multiple factors, including the processing fee, worldwide availability, security measures, ease of integration, scalability, etc.
Each payment gateway has pros and cons, which can be outweighed according to your marketplace type and needs. Surely, you will find a marketplace that is best suited for you in the list mentioned above.
Read More
https://scribblersden.com/article/best-payment-gateway-providers-in-india
Follow us on
Table of Contents
Leave a reply