Out of the numerous payment gateways available, you only need one.
This one payment gateway needs to be flexible, easy to use, affordable, and secure for your website.
More importantly, consumers need to trust it.
According to Shopify.com, 17% of people abandon their online shopping carts because they didn’t trust the site enough to hand over their credit card information.
Therefore, the payment gateway is the agreement with the consumer that their mode of payment is accepted and will not leave them vulnerable to information leaks.
Similarly, the chosen gateway must ensure that you are getting enough value for using them.
The fees and features of each payment gateway varies.
So, we compiled 8 payment gateways to consider in 2024.
First, let’s dive in to what a payment gateway is and how it is relevant for your business.
What Is A Payment Gateway And How Does It Work?
A payment gateway is a tool used to facilitate transactions between the shopper and the merchant.
Before online payment gateways, the risk of hackers stealing sensitive information was high.
They could simply monitor the customer putting in their card details and steal that basic information.
The payment gateway comes in to establish a secure link that hides (encrypts) the sensitive information going from the customer’s bank to the merchant.
Payment gateways work both online and offline.
Taking payments by phone for instance needs this established link so the details can go without worry.
Of course, the payment gateway charges a service fee for established link.
You may already be familiar with certain payment gateways like PayPal or Stripe.
How Payment Gateway Works on eCommerce Websites
Payment gateways usually follow this simple procedure:
- The customer inputs their card details after making an order.
- The website server receives the encrypted details
- Then the transaction details change hands multiple times as they are forwarded to the payment gateway, then to the merchant’s bank, and lastly to the Visa or MasterCard association.
- The customer’s bank then receives the authorization request and must approve (or decline) before sending a response code to the payment gateway.
- The gateway then forwards the approval (denial) to the website for the merchant and the cardholder to see before being deposited into the merchant’s account and the merchant now has to carry out the order.
All of this happens within the space of 5-10 seconds.
Most likely you are familiar with this process because point of sale machines in restaurants and grocery stores work the same way.
Important Features
Integration:
- Hosted
Online payment gateways that are hosted will send the customer to a third-party site to complete the payment and will return the customer to the website when finished.
- Non-Hosted
Payment gateways can be integrated into the website itself so that the customer doesn’t have to leave to complete their payment.
Security
Online payment gateways make it convenient for consumers to shop online.
They don’t have to go to the store to pick up their sought after item, it is but a click away.
However, the consumer is increasingly aware of security risks associated with putting their information online.
Therefore, online payment gateways provide measures to secure the information.
Such measures include:
- Secure Sockets Layer (SSL) Protocol
- Data Encryption
- Payment Card Industry Data Security Standard (PCI DSS) Certification
- Tokenization
Accepted Currencies
Online payment gateways can accept multiple currencies and be used from multiple countries.
For merchants in the international market, picking a payment platform that has the most accepted currencies will be vital.
Although not all payment gateways accept the same number of currencies as you will see.
Information Storage
Information storage is a handy feature to have so it can make shopping easier.
Having to input card details every time can be stressful and discourage shoppers from buying from you.
A payment gateway with good security should also have information storage so the shopper’s information is securely kept for future use.
Top 8 Payment Gateways To Consider in 2024
1. Stripe
If you are looking for a full service payment provider, it doesn’t get better than Stripe.
Stripe is a popular payment platform for online businesses.
Well renowned companies such as Uber, Reddit and Udemy use Stripe to facilitate their payments.
But they are among the few of an estimated 20,000 companies that use Stripe world-wide.
Stripe works as an integrated checkout for small businesses.
Start-ups as well use Stripe because of its easy plugin code documentations.
Through simple instructions the Application Programming Interface (API) can be built into any app or website.
These start-up businesses would use Stripe to build their own payment system while ecommerce stores can use it for online payments mostly.
What do we like about Stripe?
Among the other platforms here it simply has the lowest cost, if you live in Europe.
It has no monthly fee.
| Payment Method | Transaction Fee |
| EU cards | 1.4% plus 20p |
| Non-EU cards | 2.9% plus 20p |
This makes a big difference for your bottom line especially if selling high volume.
Additionally, the novelty of Stripe is how easy to use and plain simple it is.
It is used for any size business and for a wide range of industries adding to its reputation as a trustworthy payment gateway.
The other features of Stripe can be summed up as follows:
| Features | Description |
| Hosted or Non-Hosted | Both |
| Currencies accepted | 135+ currencies |
| Adoption rate | 20,000 companies globally |
| Security Rating | PCI Level 1 (Highest) |
| Recurrent Payment Option | Yes |
| Alternative Payment Methods | Yes |
2. PayPal
PayPal is arguably the most known payment gateway around.
It stands as an easy to use platform perfect for small businesses and individuals alike.
Year after year it tops lists for best payment gateways because it serves its purpose very well and has excellent customer support.
With Paypal you can use it either on your website or to accept in-person payments.
Paypal comes with flexibility.
Both individuals and businesses can send money using the app.
However, registered businesses, freelancers and self-employed users have to sign up for a PayPal business account.
Unlike the personal account, with the PayPal business account your customers can pay with credit or debit card without having a PayPal account themselves.
Of the over 300 million active accounts, 20 million of those accounts are Merchant accounts.
It is a very popular option.
Why do we like PayPal?
If there was a name synonymous with “safe payment gateway” we’d choose PayPal.
It has been around much longer than any other payment gateway on this list.
Due to its easy use it has gotten the highest adoption rate by far for digital payment solutions.
It’s pricing is competitive also with no monthly fees.
| Payment Method | Transaction Fee |
| PayPal Business Account | 2.9% plus 20p |
The other features of PayPal can be summed up as follows:
| Features | Description |
| Hosted or Non-Hosted | Hosted |
| Currencies accepted | 25 |
| Adoption rate | 20 million+ |
| Security Rating | PCI Level 1 (Highest) |
| Recurrent Payment Option | No |
| Alternative Payment Methods | Yes |
3. WorldPay
WorldPay is a huge payment processing company with online payments but a section of its payment package.
Along with online payments it also offers a card machine, POS system and virtual terminal.
Basically any mode of transaction can be done with WorldPay.
For your online business, you can benefit from using WorldPay by making a Merchant account with them that can simultaneously be used for your card machines and virtual terminal.
The virtual terminal is where the card details are inputted by the customer over the phone.
Extensive and versatile are the few adjectives we would use to describe WorldPay.
Why do we like WorldPay?
The appeal behind WorldPay lies in the fact that it is the complete payment system and not just a gateway.
Therefore it is quite flexible for use and we would recommend it for hybrid merchants (offline and online) as they will get the most out of it.
Also it has rare 24/7 UK support.
It’s not the cheapest however and does come with a monthly fee.
| Payment Method | Transaction Fee |
| Every Transaction | 2.75% + 0.20p |
| Fixed Monthly | £19 /month, plus 0.75%(debit cards) or 2.75%(credit cards) |
The other features of WorldPay can be summed up as follows
| Features | Description |
| Hosted or Non-Hosted | Both |
| Currencies accepted | 120 |
| Adoption rate | 1 million |
| Security Rating | PCI Level 1 (Highest) |
| Recurrent Payment Option | Yes |
| Alternative Payment Methods | Yes |
4. Amazon Pay
Amazon, the world’s largest marketplace has their own payment gateway.
By leveraging their robust customer base of over 300 million active customers, Amazon creates a platform where you can use the information that they already have.
Your customers are most likely their customers and your site can simply have them pay with their Amazon account at checkout.
The Amazon account already has the customer’s credit card details which could make your checkout process smoother.
All the customer has to do is login with their Amazon account which would already have their Visa or Mastercard details.
However, the card details will not be saved with you.
Ecommerce platfroms like Shopify, Magneto, BigCommerce and WooCommerce allow it to be activated too.
Why do we like Amazon Pay?
Amazon is convenient.
Nearly 90% of shoppers in the UK are using Amazon (Mintel).
Your customers are most likely connected already and you have the chance to save them checkout stress.
The fees look similar to PayPal but the fee can be negotiated lower if you sell over £50,000 monthly.
| Payment Method | Transaction Fee |
| Processing fee | 2.7% + 30p |
The other features of Amazon Pay can be summed up as follows:
| Features | Description |
| Hosted or Non-Hosted | Both |
| Currencies accepted | 12 |
| Adoption rate | 33 million+ |
| Security Rating | PCI Level 1 (Highest) |
| Recurrent Payment Option | Yes |
| Alternative Payment Methods | No |
5. Authorize.net
Authorize.net is a standard payment gateway used by over 430,000 merchants worldwide.
However the difference between the previous payment gateways above and this one is that Authorize.net is not a payment service provider.
That means you don’t have to create an Authorize.net specific merchant account.
Rather the platform can connect you to a reputable third-party for your merchant account creation.
It is one of the oldest payment gateways available and is quite standard in today’s businesses.
Authorize.net functions as an online payment gateway, virtual terminal, and POS card reader.
Why do we like Authorize.net?
The highlight of Authroize.net is its functionality.
A customer information manager (CIM) is built in and it has Advanced Fraud Detection Suite (AFDS) for an additional fee.
The pricing is standard but comes with a monthly fee.
| Payment Method | Transaction Fee |
| Gateway fee | 2.9% + $0.30 |
Some third-party merchant account creators can negotiate a lower overall fee if you sign up with them.
The other features of Authorize.net can be summed up as follows:
| Features | Description |
| Hosted or Non-Hosted | Hosted |
| Currencies accepted | 13 |
| Adoption rate | 430,000 |
| Security Rating | PCI Level 1 (Highest) |
| Recurrent Payment Option | Yes |
| Alternative Payment Methods | Yes |
6. Opayo
Opayo is another popular payment gateway in Europe especially.
It was formerly known as Sage Pay before a rebrand in 2020.
Opayo functions as a payment service provider for small to large businesses offering state of the art analytic tools and tracking.
Opayo pretty much offers everything you need for a payment platform.
In addition to the online payment gateway, they have a virtual terminal, EPOS, both countertop and portable card machines among others.
The security is top notch as they safely store customer card details for you.
Why do we like Opayo?
It’s unique.
Opayo processes transactions through “tokens”.
Every time your customer makes a payment, their details can be stored with Opayo through a token.
It significantly cuts down checkout time and makes customers loyal to your business.
The pricing reflects this convenient offering but is still affordable as compared to the others and has multiple packages available.
| Payment Method | Transaction Fee |
| Pay as you go | 2.5% (Best for < £500 per month) |
| Standard | 2.2% (Best for < £1000 pm) |
| Online Flex Monthly Fee | £25 (Up to 350 transactions per month) |
| Online Plus Monthly Fee | £45 (Up to 500 transactions per month) |
The other features of Opayo can be summed up as follows:
| Features | Description |
| Hosted or Non-Hosted | Both |
| Currencies accepted | 25+ currencies |
| Adoption rate | 55,000 |
| Security Rating | PCI Level 1 (Highest) |
| Recurrent Payment Option | Yes |
| Alternative Payment Methods | Yes |
7. CardStream
CardStream is an independent payment gateway provider made in UK.
Being independent, they can accept any acquirer available.
CardStream is a flexible payment gateway provider and processes payments in all worldwide currencies.
Additionally, they provide PDQ machines for face to face transactions.
Being based in UK you are bound to get the best customer service a payment gateway can provide.
While supporting the most popular eCommerce shopping carts it can be specifically tailored for any type of business and size.
Why do we like CardStream?
CardStream has a novel strategy, focusing more on white-label partners so that they can create tailored made solutions for them.
Having a custom built payment gateway that can accept every currency and payment method will help your brand to stand out more.
The pricing is also very competitive, arguably among the best we have listed here.
| Payment Method | Transaction Fee |
| Fixed Monthly | £18 per month up to 350 transactions and 9p for every transaction over 350 per month |
The other features of CardStream can be summed up as follows:
| Features | Description |
| Hosted or Non-Hosted | Both |
| Currencies accepted | 180 |
| Adoption rate | 18,000 |
| Security Rating | PCI Level 1 (Highest) |
| Recurrent Payment Option | Yes |
| Alternative Payment Methods | Yes |
8. Barclaycard Smartpay
Barclaycard is the trading name of Barclays PLC in UK.
They operate under Barclaycard International Payments Limited in Ireland which is the third largest merchant acquirer in Europe.
Since its inception is has grown to 372,000 customers and processed £160 billion in the first half of 2021.
Barclaycard is another full service payment platform.
They offer card readers and PDQ terminals, alongside online payment gateways and virtual terminals.
As expected, Barclaycard tailors to businesses of all sizes and offers a specific package for each size.
For instance their Smartpay Fuse offers increased security and allows clients to integrate their existing eCommerce systems.
Why do we like Barclaycard?
Among the most flexible plans available there is The Growing Plan which charges a fixed monthly fee of £20 for merchants making 5,000 transactions per month and a transaction fee of 10p for every transaction after 350.
| Payment Method | Transaction Fee |
| Transaction fee | 10p for every transaction over 350 |
| The Growing Plan monthly fee | £20 plus VAT (<5,000 monthly transactions) |
| The Established Plan monthly fee | Negotiable (>5,000 monthly transactions) |
The other features of Barclaycard Smartpay can be summed up as follows:
| Features | Description |
| Hosted or Non-Hosted | Both |
| Currencies accepted | 80+ |
| Adoption rate | 372,000 |
| Security Rating | PCI Level 1 (Highest) |
| Recurrent Payment Option | Yes |
| Alternative Payment Methods | Yes |
IN SUMMARY…
Just as every business has their unique value offering, they have their unique challenges as well.
Each of these payment gateways will be perfect to implement into your website depending on the specific requirements you need from them.
Contact us to schedule a free no-obligation chat for more information on the best payment gateway for you.
Thanks for reading!
