The global pandemic has forever transformed the way businesses work. Almost every business across the world has sped its digital transformation process to create a more remotely accessible experience. One of the leading sectors in this respect is the e-commerce industry.
With consumerism growing exponentially every year, new e-commerce platforms were coming up every month. In the new normal, this number shot up as retailers scrambled to meet the rising demand and loss of footfall. This rush to digitise retail experiences and commerce has resulted in a 25% increase in contactless transactions in countries that imposed lockdowns.
To help more consumers make the switch to online retail, and retain the ones that are already there, payment gateway providers must understand that social distancing and safer virtual transactions are two sides of the same coin. To provide contactless, safe and efficient transactions by the minute, organisations need a payment gateway that can meet a checklist of needs. This will not only provide a more secure contactless customer experience, but also make it easier for secure transactions to be carried out quickly and easily.
Things to Remember While Selecting a Payment Gateway:
Appropriate payment flow
Your business will grow over time; hence you need a payment gateway that will grow with you. You need to select the correct payment flow for your business, which is fundamental for a payment gateway to be put in place for your website. The leading payment gateway companies include the following options:
- A website with an integrated payment form: This form has all the necessary data which is sent to the gateway provider through API calls. This form is highly secure but might need additional programming which costs extra.
- Payment redirection or iFrame: Customers are either redirected to a secure payment page or share their information on an embedded iFrame on the site.
- Escrow system: Funds are withheld until the platform admin authorises it.
Location and incorporation
You will need to be incorporated into the place where you carry out business operations. Most often you would live in that area, but that is not always true. There are two types of payment providers: US payment providers and European payment providers. A US incorporation usually links you to a bank or payment provider in the US. In the same way, European incorporation will let you be a contractual payment provider and also the acquiring bank behind it.
Some payment providers operate in both Europe and the USA. This allows you to use both payment gateway services in both continents.
Many payment getaways specialise in detecting fraud. Online portals use this to uncover any suspicious activity that might take place. Majority of customers have genuine problems during transactions. But some will try to scam you by using invalid or blocked credit cards, returning products after damage etc. You need a payment gateway company that secures transaction information using fraud management tools and end-to-end encryption.
Average transaction amounts
Payment gateway providers will give you tiered pricing. This defines the number of transactions to be done and the value of those transactions within a given period. Choose a pricing plan that aligns with your customer base, otherwise, you might incur additional charges that will reduce the profitability of your business.
Fees and service agreement
The pricing plans that gateway providers offer depends on the types of transactions taking place on your site. Therefore, you must evaluate your business model and ensure that it fits the payment structure you opt for.
There might also be transactions that need an additional set-up or carry extra transaction fees. Make sure you know exactly what you are paying for.
In 2021, over 53% of all online transactions will take place on mobile devices. This will require more stable connections, higher security, and accessibility via different devices. Make sure the payment gateway you choose is compatible with all mobile devices. With the help of mobile payments, payment gateway providers allow buyers to transfer funds and complete transactions using a mobile-optimised website or platform.
In case something goes wrong with a transaction, you need to get prompt customer support. Failure to do so might cause your customers to drop off and perhaps not return to your platform. You will be surprised to see how many platforms offer no customer support. Make sure your payment gateway company offers customer service at least during your average traffic hours and preferably 24/7.
Customer Satisfaction is the Goal
Evaluate your business goals and make sure you choose a payment gateway provider that matches your needs. Secure and fast transactions will keep your customers happy which translates to better business and more customers over time.