How to Choose the Right Payment Partner for Your Online Store
The right payment partner does more than just process payments: it increases conversions, protects sensitive customer data, and improves your business operations. If you’re running an online store, taking the time to choose the right payment partner can position your business for long-term growth and success. But what should you be looking for?
In this deep dive, we share why it’s so important to choose the right payment partner, things to consider when comparing payment providers, and how to choose the right payment partner for your online business.
Why it’s important to choose the right payment provider
Choosing a payment partner for your online store isn’t a simple decision. Why? Because not all payment providers are built the same.
The right payment gateway will do more for your online store than just processing transactions. It will support the entire customer journey, improve your operations, and help drive growth and success. Below are some ways that the right payment provider can benefit online retailers:
Enhanced customer experience
Today’s customers expect a smooth and intuitive checkout experience. The right payment gateway will allow your customers to make transactions quickly and easily, while also supporting a wide range of payment methods, including credit cards, debit cards, and digital wallets. Giving customers the options to pay in the way they prefer can improve satisfaction and encourage repeat business.
Increased security
It goes without saying that security is essential when handling sensitive payment data. Trusted payment providers will offer advanced encryption and fraud prevention measures to protect both your customers and your business, reducing the risk of chargebacks and security breaches.
Read More: Chargebacks – the bane of online store owners – what are they and how to avoid them?
Higher conversion rates
Payment gateways with a streamlined checkout process can help reduce cart abandonment and boost conversion rates, meaning more sales for your business. A good payment gateway will also offer payment methods that appeal to customers from a range of different locations, which is another way to expand your reach and increase sales.
Real-time payment processing
Payment gateways process payments in real time, giving instant transaction approval or decline notifications. This speeds up the shopping experience and makes it easier for your business to manage orders efficiently.
Simplified integration and management
The best payment partners will integrate easily with a range of e-commerce platforms, accounting systems, and customer relationship management (CRM) tools. This makes it easier for you to manage online transactions and streamlines overall business processes.
Automated payment workflows
Payment gateways automate the payment process, saving you time and resources that you can then allocate towards other areas of your business.
Built-in fraud detection
Good payment gateways will offer smart fraud detection tools that flag and prevent suspicious activities. This adds another extra layer of protection for your business and customers.
Keep Reading: What is a Payment Gateway and How Does it Work?
Things to consider when choosing an online payment partner
Now that you know the benefits of choosing the right payment partner, let’s look at things to consider when comparing your options.
1. Security and compliance
Security is essential when you’re handling sensitive customer information. At a minimum, you must make sure your payment partner is fully compliant with industry standards and regulations, including the Payment Card Industry Data Security Standard (PCI DSS).
Look for providers that offer:
- Encryption: Encryption protects your transaction data by converting it into a secure code
- Tokenisation: Tokenisation replaces sensitive information with unique identifiers to minimise risk
- Advanced fraud detection tools: These can help identify suspicious activity and protect against fraud and chargebacks.
Making security a priority builds trust with your customers and protects your business against financial losses and reputational damage.
2. Integration and compatibility
Your payment partner should integrate smoothly with your existing systems, including e-commerce platforms, CRM tools, accounting software, and inventory management systems. Look for payment gateways with plugins as well as developer-friendly API with complete documentation for easy integration without the need for advanced expertise.
This not only makes it easier to set up and get started, but will also optimise your business operations and create a better customer experience by ensuring minimal disruptions at checkout.
When it comes to integration, it’s also worth checking that your payment provider supports a wide range of payment methods and acquiring banks. This allows you to offer greater flexibility to your customers and helps support future growth.
3. Costs and fee structures
At the end of the day, you’re running a business, and taking the time to understand the true cost of a payment solution is essential. Some fees to consider when comparing payment providers are:
- Transaction fees: Usually a percentage charged per sale
- Monthly or annual fees: Regular charges for using the service
- Set up fees: One-time charges for account activation.
These costs can vary significantly and sometimes change depending on your sales volume. For example, payment providers with tiered or volume-based pricing might charge lower fees for companies with high transaction volumes. Look for payment solutions with transparent pricing and no hidden fees to better forecast expenses and understand the impact on your revenue.
4. Customer experience
Customers want an intuitive and frictionless checkout experience or else they might abandon their purchase – which is the last thing you want as an online store owner. To improve the customer checkout experience, look for a payment partner that offers:
- Minimal redirects
- Mobile-friendly checkout
- Fast processing times
- Saved card data.
5. Global capabilities
If you plan to sell internationally, then it’s essential to choose a payment gateway that supports multiple currencies and international payment options.
6. Customer support
In case any issues come up, you want your payment partner to offer reliable and responsive customer support. Look for a provider with a reputation for timely service so they can resolve any potential issues quickly.
What payment options should you accept for your online store?
Making sure your payment partner accepts a wide range of payments is crucial, that’s why we’ve given this consideration its own section. Below is a list of payment options your payment gateway should support:
Credit and debit cards
Credit and debit cards are one of the most widely used payment methods around the world, making it fast, easy, and convenient for customers to check out both online and in-person. It goes without saying that your payment gateway should support card payments.
Some key card networks you might want to support include:
- Visa and Mastercard: Globally accepted cards with strong fraud protection
- American Express (Amex): Operates on a three-party model (unlike the four-party model seen with Visa and Mastercard), which makes it less accepted
- China UnionPay (CUP): Popular in Asia, especially China, and increasingly used in e-commerce
- Japan Credit Bureau (JCB): Strong presence in Japan and becoming more accepted globally.
Digital wallets
Digital wallets are a modern solution to credit and debit cards, and they’ve become increasingly popular thanks to their security and ease of use. These allow customers to store several payment methods in a single app, such as with Apple Pay or Google Pay.
Some of the benefits of digital wallets include:
- Security: Transactions are encrypted without needing to share card details
- Speed: Payments are instantaneous, making checkout faster
- Convenience: Using digital wallets allows for quick and contactless transactions, meaning customers can check out without needing to grab their card details.
These days, digital wallets are an essential part of offering a mobile-first shopping experience for your customers and clients.
See: Best Payment Methods for Small Businesses to Accept
Bank transfers
Depending on your business, bank transfers might be an appropriate payment solution. These offer a secure and reliable way to make large transactions or pay invoices, although at a much slower pace than digital payments.
Some things to know about bank transfers include:
- Security: Transfers are processed directly between financial institutions, making them highly secure
- Fees: Fees can vary depending on the transfer size and destination (i.e. international or domestic)
- Processing time: Bank transfers can take 0 to 3 business days to settle domestically, and longer for international payments.
Note that for businesses making international payments, bank transfers are not as fast as cross-border payment platforms. Learn more here: Cross-Border Payments: Challenges and Opportunities for Businesses
Buy Now, Pay Later (BNPL) solutions
BNPL services allow customers to split their purchases into interest-free installments, making large purchases more affordable and helping increase conversion rates. Some examples of popular BNPL providers include Afterpay, Klarna, and Affirm.
Here are some things to know about BNPL solutions:
- Security: Most BNPL providers have strong fraud detection and monitoring systems
- Fees: Fees for BNPL payments are often covered by the merchant (that’s you)
- Processing time: Purchases are immediately approved and installments billed later.
If your online store is selling high value items or targeting younger demographics, offering a BNPL option can help boost conversion rates.
E-wallets
Not to be confused with digital wallets, e-wallets store digital cash, cards, and payment information for fast and easy online payments. Two examples of e-wallets are PayPal and Alipay, both of which provide the convenience of stored payment information and one-click checkout.
Here are a few things to know about e-wallets:
- Security: E-wallets have high security, with encryption and multi-factor authentication
- Fees: Some e-wallets charge merchants transaction fees
- Processing time: Payments are processed instantly.
How to choose the right payment partner for your online store
Now we’ve covered essential features your payment provider should have, let’s look at how to choose the right payment partner for your online store.
Step 1: Assess your business needs
The first step in choosing a payment partner is having a clear understanding of your own business goals and requirements. Consider things like the size of your business, volume of transactions, and whether you operate locally or internationally. These factors will help you understand which payment solution is the best fit for your needs.
Things to consider:
- Business size: Is your business small, medium, or large?
- Transaction volume: Would you classify your transaction volume as being low, medium, or high? Remember, some payment providers offer reduced fees for businesses with high transaction volumes.
- Operation: Do you operate locally, nationally, or internationally? Do you plan on expanding into new markets in the future? If you operate across borders, it’s essential to choose a payment gateway that accepts multiple currencies and international payment methods.
Step 2: Match your payment options to geography
Customer payment preferences vary by demographic as well as region. Take the time to understand your target audience and consider their preferred method of payment, then use that to guide your payment provider decision. Some examples of local payment preferences include:
- PIX in Brazil
- iDEAL in Netherlands
- Alipay and WeChat in China
- Przelewy24 (P24) in Poland
- M-Pesa in Kenya
- Efecty in Colombia
- Fawry in Egypt
- Simpl in India
- Tabby in Qatar
- GrabPay in Singapore.
Making sure your payment partner supports locally preferred methods of payment can help improve the checkout experience for your customers, improve acceptance rates, and boost customer satisfaction. It also reduces friction, helping minimise the risk of cart abandonment and increasing sales.
Step 3: Implement a seamless payment experience
We’ve said it once and we’ll say it again – a smooth payment experience is crucial to customer satisfaction and loyalty. When comparing potential partners, look for ones that offer:
- User-friendly interfaces: You want easy-to-navigate, modern, and intuitive payment flows that minimise friction
- Conversion-optimised checkouts: This means storing customer payment data or offering fallback methods if a transaction fails
- Security features: Always choose a provider that complies with PCI DSS and has strong encryption measures to protect customer information
- Flexible integration: Look for easy integration with e-commerce platforms, CRMs, accounting software, and other systems
- Customised integration: Bonus points if your payment gateway can be customised to match your brand colours and identity.
ZEN.COM payment gateway ticks all the boxes
If you’re looking for a payment partner that ticks all the boxes, you’re already here. ZEN.COM payment gateway is designed with your business and its customers in mind, offering seamless transactions that cater to the diverse preferences of today’s consumers.
But we won’t just tell you, we’ll show you:
- Seamless integration: Easily integrate with major e-commerce platforms and customise your checkout with developer-friendly APIs
- Global payments: Let customers choose from nearly 100 payment options, both local and international
- Multicurrencies support: Accept payments in 25+ currencies for smooth international payments
- Instant settlement: Access your funds immediately, for better cash flow and operational efficiency
- Advanced security: PCI DSS compliant with advanced encryption and fraud detection tools.
Explore ZEN’s payment gateway and discover how we can help your business grow and succeed online.
