When starting your business, it’s crucial to choose an online payment solution that’s secure, user-friendly and reliable.
Imagine, for a moment, that you’ve attracted a brand new customer to your website. After shopping, your customer heads to the checkout page with a few items in their cart. But they hesitate because your site only accepts Visa or Mastercard.
This triggers other questions.
Is your online payment processing secure? Can you be trusted with their credit card information?
It might sound improbable, but it happens. And as a business owner, it’s essential to remember that the checkout process has the power to make or break a sale.
In this article, we’ll run through some of the best payment solutions out there today. We’ll cover the expectations customers have during the final stages of ordering and how to build a checkout experience that puts your eCommerce customers at ease.
What is a payment gateway?
A payment gateway is a service that collects, authorizes and securely sends your customer’s payment information to the bank for processing. Think of it as your virtual cash register.
Why is choosing the right payment solution important?
There's plenty of evidence to say that the more flexible and streamlined your checkout process is, the more likely it is for your customers to follow through with their purchases.
According to Baymard Institute, nearly 70% of online shoppers routinely abandon their carts during checkout. When asked why:
24% said that they didn’t want to create an account
18% said that they didn’t trust sharing their credit card information with the store
17% said that the checkout process was too complex
9% said that the payment methods offered were insufficient
For sellers, this means a few things. For one, simplicity is key. Keep your checkout pages clean and straightforward, minimizing the number of steps it takes to complete a transaction.
Secondly, offer a variety of payment options. While some customers may choose to pay with credit cards, others may prefer to use a digital wallet like PayPal.
Lastly, regularly audit and analyze your checkout process. Customer expectations are constantly evolving—and aside from deciding how to pay, your customers may have high expectations around security, pickup options, and the overall user experience.
Pro tip: Choosing the right eCommerce platform can save you from a lot of heartache. Platforms like Wix already offer the highest level of PCI compliance, plus have native solutions (like Wix Payments) that allow you to accept secure online payments in various ways without having to hop between different channels.
Top 5 online payment methods you need at checkout
To start accepting online payments, you have to install at least one payment gateway on your site. This could mean activating Wix Payments, or choosing from more than 80 third-party payment gateways that integrate with Wix.
In any case, you’ll want to empower customers to select their preferred way to pay. At minimum, make sure to support these popular payment methods:
Credit and debit cards
Digital wallets
Buy now, pay later (BNPL) solutions
01. Credit and debit cards
Card payments are the bread and butter of every eCommerce business.
While dozens of payment gateways allow you to accept good-ole credit cards online, no two providers are exactly the same. Some may charge higher processing fees. Others may not support the credit cards that your customers prefer. And payout periods, supported transaction types, and other factors vary from company to company.
Below is a breakdown of some of the most popular providers to consider.
Wix Payments
Wix Payments offers one of the easiest ways to accept debit and credit card payments online, especially if you manage your store on Wix. By eliminating the need for external eCommerce payment processors, Wix Payments ensures that your customers enjoy seamless checkout. They can shop and pay as they wish—without being redirected to another site.
You can additionally use your Wix dashboard to manage all payments, sales, refunds, and payouts. Quickly respond to chargebacks with Wix’s built-in dispute tool, or unify your in-person transactions with your online orders using Wix Point of Sale (POS).
Wix Payments merchant fees:
Credit/debit cards: 2.9% of transaction amount + $0.30 (USA and Canada)
ApplePay: 2.9% of transaction amount + $0.30 (USA and Canada)
Wix Payments POS: 2.6% of transaction amount
No monthly fees for Payments or POS Retail Lite plan
Processing fees vary by region. Learn more.
Key benefits:
All-in-one business solution with an integrated payment dashboard
Supports various transaction types: credit/debit cards, POS, manual card entries, Apple Pay, online bank transfers, and more
Accepts payment in various currencies
Mobile-friendly payment interface
Advanced online encryption and fraud detection
Stripe
Like Wix Payments, Stripe is able to process one-time and recurring payments. It offers its own suite of integrated products, including global payment options, financial management features, and banking-as-a-service tools.
Stripe currently accepts payments in more than 135 currencies. It also supports in-person checkout via Stripe Terminal, which includes hardware for handheld and/or countertop use.
Stripe merchant fees:
Credit cards and digital wallets: 2.9% processing fee + $0.30
Digital wallets: 2.9% + $0.30
BNPL options: starting at 5.99% + $0.30
International payment methods: starting at $0.80
Stripe Terminal: 2.7% + $0.05
No monthly fees
Additional fees apply for international and manual transactions.
Key benefits:
Supports various transaction types: credit/debit cards, digital wallets, and BNPL solutions
Robust international support (30+ languages, 135+ currencies)
Mobile-friendly payment interface
Competitive payment processing fees
No setup or monthly fees for a standard Stripe Connect account
Advanced fraud and chargeback protection
Square
Many small business owners enjoy Square—which you can easily connect to your Wix site.
Square accepts multiple payment methods, including all major credit cards and digital wallets. You can additionally email customers one-time or recurring invoices, set up subscriptions, and use Square’s POS solution to support your brick-and-mortar business.
Fun fact: Not all payment gateways support the sale of alcohol, tobacco or similar products. But Square does.
Square merchant fees:
Online payments: 2.9% processing fee + $0.30
Stripe POS: 2.6% + $0.10
Manually entered in-person payments: 3.5% + $0.15
Afterpay (online): 6% + $0.30
No monthly fees
Learn more about Square processing fees and check out our guide on POS system costs.
Key benefits:
Complete business banking and payment solution with an intuitive dashboard
Supports various transaction types: credit/debit cards, digital wallets, and BNPL solutions
Mobile-friendly payment interface
Competitive payment processing fees
No setup or monthly fees for a standard account
Free basic card-swipe hardware for Square POS
Automatic, business-day balance transfers to your bank
Fewer seller restrictions
02. Digital wallets
It’s estimated that 60% of people are now comfortable leaving their homes without their wallets. One major reason why: digital wallets.
By allowing customers to store their credit or debit cards on their phones (alongside their computers and other compatible devices), digital wallets have simplified the payment process for both online and offline payments. Customers can now complete a purchase with a tap of a button, bypassing several steps of the normal process.
Here are several of the most popular digital wallets to be aware of. (Note: the payment gateways mentioned above are all compatible with one or several of these digital wallets, and/or you may have the option to add standalone buttons to your site, depending on your eCommerce platform.)
Apple Pay
Most of us are probably familiar with this one, if only because it’s pre-installed on our iPhones. Apple Pay is now accepted by an estimated 85% of retailers in the U.S., allowing customers to pay from a variety of devices: their iPhones, Apple Watch, Mac, or iPad.
Apple promises several benefits from using its app: safe, encrypted payments; contactless payments; and easy setup.
Today, Apple Pay accounts for nearly half (45.5%) of all in-store digital wallet purchases.
Apple Pay merchant fees:
No fees for accepting Apple Pay, however, you’ll have to pay the regular transaction fees required by credit card issuers
Key benefits:
Widely used by customers and merchants alike
Built-in privacy and security features
Free to offer online or in-person
Allows customers to pay via credit/debit card or Apple Cash
Google Pay
Google Pay is supported by both iOS and Android devices. It boasts flashy features that some of its competitors lack. For example, consumers can use Google Pay to store gift cards; earn cash-back rewards; and track spending habits by linking their bank accounts, Gmail, and Google Photos together. Similarly, businesses can accept payments, track sales, and earn special rewards using the Google Pay for Business app.
Google Pay has reportedly led to a 55% reduction in cart abandonment rate for one top global retail partner. And 35% of Google Pay users that previously relied on a different payment method now prefer to use Google Pay for repeat purchases, according to a top IR500 retailer interviewed by Google.
Google Pay merchant fees:
No fees for accepting Google Pay, however, you’ll have to pay the regular transaction fees required by credit card issuers
Key benefits:
Well-known and trusted by consumers worldwide
Fast and secure payment method with built-in fraud protection
Lower chargeback volume than standard credit card transactions
PayPal
With more than 426 million users worldwide, PayPal is considered one of the most popular digital wallets today.
Thanks to widespread brand trust, PayPal converts 28% higher at checkout when compared to other payment methods. According to the same study, PayPal is associated with a higher Net Promoter Score (NPS)—with PayPal increasing NPS by an average of eight points.
You can easily connect PayPal to your Wix store to offer your customers a variety of payment options. You have the ability to decide whether to show PayPal buttons on your product and/or cart pages. Your customers, in turn, can choose whether to pay via PayPal, PayPal Pay Later, and/or other supported methods.
PayPal merchant fees:
PayPal Checkout: 3.49% processing fee + fixed fee ($0.49 for U.S. transactions)
No monthly fees
Learn more about PayPal’s merchant fees.
Key benefits:
Well-known and trusted by consumers worldwide
Known to increase cart conversion rates and NPS
Offers various payment options: PayPal Checkout, Pay Later, and PayPal Credit
Supports cryptocurrency payments via its “Checkout with Crypto” feature
Amazon Pay
Amazon Pay references shipping and payment information stored in a shopper’s Amazon account. Any Amazon Pay purchases are protected by the company’s A-to-z Guarantee, which ensures that products are delivered in a timely and responsible manner.
Amazon Pay has been linked to higher conversion rates and order values, as well as a reduction in checkout time. Amazon Pay also supports several payment options, including deferred, split, recurring, and subscription payments.
Amazon Pay merchant fees:
Web/mobile transactions: 2.9% processing fee + $0.30 authorization fee
Cross-border web/mobile transactions: 3.9% + $0.30
No monthly fees
Amazon Pay fees vary by region.
Key benefits:
Well-known and trusted by consumers worldwide
Fast and secure payment method with built-in fraud protection
Amazon's A-to-z Guarantee protects Amazon Pay purchases
03. Buy now, pay later (BNPL) solutions
Whether you sell higher-ticket or low-ticket items, Buy now, pay later (BNPL) has proven to be a welcome addition to most checkout experiences. BNPL services saw “explosive” growth after the COVID-19 pandemic, according to The Washington Post, increasing as much as 200%.
Nowadays, fashion and beauty products make up 70% of pay-later transactions, The Washington Post reported. This underscores a shift towards credit-card alternatives, fueled by a growing distrust in traditional banks and credit card providers.
For merchants, offering BNPL comes at a higher cost than traditional credit cards. Transaction fees average out to around 6%. However, the long-term benefits may justify the costs; pay-later solutions have been attributed to higher AOVs and repeat purchases from empowered shoppers.
When deciding which BNPL services to offer, consider the appeal of each platform. Here’s a roundup of the top BNPL providers and their various benefits.
Klarna
Known for its customer service and user-friendly app interface, Klarna has amassed more than 150 million active users.
The app has been praised for offering more flexible payment terms than other services of its kind. Klarna users can choose to pay in four equal installments (interest-free), or pay in custom amounts within 30 days. No minimum credit score is required to qualify for Klarna financing.
Consumer terms of use:
APR: 0%
Amount due at time of purchase: 25%
“Pay later” payments: four installments, due every two weeks
“Slice it” payments: up to 36 equal payments, due monthly; or pay in 30 days without interest
Late fee: $7
Affirm
Ideal for more expensive purchases, Affirm offers loans from $50 to $17,500 and allows customers to space out their monthly payments for up to two years. Alternatively, users can choose Affirm's pay-in-four option to receive interest-free financing.
Like Klarna, Affirm provides an app that empowers users to use Affirm anywhere they shop. One big bonus: Affirm does not charge any late fees.
Consumer terms of use:
APR: 0% for the installment plan, up to 30% for certain loan types
Amount due at time of purchase: starts at $0
Pay-in-four payments: four installments, due every two weeks
Other financing options: up to 36 equal payments, due monthly; other repayment terms available depending on loan type
Late fee: None
Afterpay
Afterpay is another popular option for larger purchases, with interest-free financing on purchases from $200 to $2,000 (the latter being granted to users with good repayment histories). Afterpay allows consumers to split purchases into four installments, with the first installment due at checkout.
Unlike other services, Afterpay does not require a credit check to be approved for financing.
Consumer terms of use:
APR: 0%
Pay-in-four payments: 4 installments, due every 2 weeks
Monthly payment option: six- to 12-month interest-based payment options for purchases over $400
Late fee: $8
PayPal Credit and PayPal Pay Later
PayPal offers a couple of flexible payment options. PayPal Credit offers special deferred-interest financing for up to six months on purchases over $99. Minimum monthly payments must be maintained, and the purchase balance must be paid in full within six months to avoid accrued interest.
By comparison, PayPal's Pay Later option works similarly to other BNPL installment options by allowing shoppers to split payments into four biweekly installments.
Consumer terms of use:
APR: 0%
PayPal Pay Later: four installments, due every two weeks
PayPal Credit: interest-free financing on purchases over $99 if paid in full within six months
Late fee: None
Tips for selecting an online payment solution
At the end of the day, you’ll want to evaluate which payment options are must-haves for your unique audience. From there, crunch the numbers and keep close watch over the impact that your checkout experience has on total sales, AOV, and customer lifetime value. In summary, here are several factors to consider when picking the right payment solutions for your business:
Security: As many as 55% of consumers list security as the most critical aspect of their online shopping experience, while nearly half also wanted security measures more prominently displayed. For the most secure encryption, look for companies that strictly adhere to PCI-compliance standards.
Familiarity and reputation: Research your competitors or other sites that are popular among your target market to determine payment methods that they already use and expect. Select a reputable payment gateway to start offering those well-known options. The brand recognition will strengthen your credibility and ease your buyer’s safety concerns during checkout.
Integration: How easily does your payment gateway integrate with your eCommerce platform? A fully integrated payment gateway streamlines the checkout process, while a standalone payment gateway can disrupt and slow it down (i.e., require consumers to complete additional security checks or jump to separate payment windows).
Flexibility: Select a payment gateway that supports flexible payment options that align with current consumer trends and needs (e.g., following the pandemic, digital wallets and BNPL options surged in popularity).
Fees: Does the online payment solution charge additional fees to use their services or to access other security features? The lowest cost isn’t always the best if security is the trade-off.
Restrictions: Each payment gateway may have varying restrictions that limit the types of products or services your business can sell. Read the service agreement carefully to ensure your company operates within the provider’s guidelines.
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Online payment solutions FAQ
What are the different types of online payment solutions?
Payment gateways, payment processors, mobile wallets, digital currencies (cryptocurrencies), contactless payments and biometric authentication methods.