A Price & Feature Comparison of Popular eCommerce Platforms
With the number of existing eCommerce solutions available on the market today, choosing the most suitable platform can be challenging.
Launching an eCommerce business comes with many important decisions.
Launching an eCommerce business comes with many important decisions. In addition to determining which platform you will host your store on, you must figure out the logistics behind how your customers will pay. That is where payment gateways come in.
Online payment gateway software processes payments from customers so the funds can be released to merchants. A major function of payment gateways is encrypting sensitive credit card details to ensure security as they move between the customer, merchant and bank.
Think of a payment gateway as a virtual middleman.
While it may sound like a complex process, all steps are completed in a matter of seconds.
Online merchants are not limited to choosing one payment gateway. In fact, data shows that providing multiple options increases the perceived security of an eCommerce website. According to YouGov, 40% of online shoppers feel more comfortable buying from a store that offers a variety of payment gateways.
Another aspect to consider is the safety net multiple gateways offer. If you only use PayPal, for example, there is no alternative if the platform experiences technical issues (meaning lost sales).
While a merchant may be tempted to partner with a single payment gateway that offers the lowest processing rates, this strategy may compromise profits. Imagine a scenario where a shopper visits your website and fills their cart with your goods or services. During the checkout process, they realize your store is not compatible with their preferred payment method. Now what?
Chances are that would-have-been customer is taking their business elsewhere.
On the other hand, multiple software systems require more administrative time, so sticking to one eliminates that.
Additionally, some payment gateways offer bulk discounts after a certain number of transactions are made. The chances of your business meeting those quotas go down when customers have multiple gateway options to choose from.
There are many reasons customers become loyal to certain payment gateways. Your business may not be able to accommodate everyone, but you still want to be strategic. So, where do you begin?
Whether you opt to use a single Magento payment gateway or multiple, it is important to consider how they differ.
Here are three important questions to ask regarding payment gateways.
Every transaction that is completed through a Magento payment gateway will come with a cost. Does your business sell a low volume of high-cost items or a high volume of low-cost items? Does the software charge monthly or setup fees?
How old is your target audience? Millennials and Gen Z shoppers have their own set of preferences when it comes to making online purchases. Where do your shoppers live? Are you aiming to sell to customers in other countries?
Many eCommerce businesses operate on a subscription model. Even if yours doesn’t, is it something you may incorporate in the future? Keep in mind that not all payment gateways accommodate automatic recurring billing.
Payment card industry (PCI) compliance is something all online merchants are responsible for. The expectation of PCI compliance with online purchases is one reason brand names matter when it comes to payment gateways.
There are many well-known integrated payment gateway options available for Magento. With the above information considered, let’s take a look at four of the most common.
The mobile wallet is the latest wave of digital payment options to take hold. Mobile wallets are also referred to as e-wallets and digital wallets.
As more online and brick-and-mortar businesses embrace mobile wallets, carrying around physical payment cards is becoming a thing of the past. Apple Pay and Google Pay are among the most well-known digital wallets. They are mobile apps that store payment information from a debit or credit card so shoppers can pay directly from their smartphones.
Modern eCommerce merchants should take mobile wallet capabilities into consideration when choosing a Magento payment gateway.
Stripe provides a UI element called the Payment Request Button to help merchants quickly add support for Apple Pay, Google Pay and Microsoft Pay.
Merchants who use Authorize.Net as their payment gateway will be able to accept Apple Pay, PayPal, Chase Pay and Visa Checkout.
Although PayPal only accepts PayPal, Venmo, PayPal Credit and major debit and credit cards, its Braintree service is equipped to take Apple Pay, Google Pay, Samsung Pay, Visa Checkout, Masterpass and AMEX Express Checkout.
Simplicity during checkout is what mobile shoppers care about, so incorporating instant purchase buttons is also a smart move for Magento merchants.
While the ability to route payments is another expense your business must account for, payment gateways offer many benefits. They eliminate risks associated with insecure payment processing and allow merchants to accept many different forms of payments.
With the number of existing eCommerce solutions available on the market today, choosing the most suitable platform can be challenging.
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