5 payment systems for your ecommerce

(Photo by Blake Wisz on Unsplash)


Starting an ecommerce, one of the key requirements is payment collection. Using the right integrated payment application on your platform is key to the value of customer checkout experience.

It is a known fact that many ecommerce start up struggle at deciding what payment system they will need based on their market segment and customer acquisition model. Many simply go with what they feel others in the same industry are using. However, this goes a long way in determining the customer checkout experience.


Payment Integration

A payment integration can vary from those whereby customers enter their card details via your payment interface or are directed to a third party payment system where they either have an account or will have to create one.

1. Stripe

Stripe is a payment gateway focused on creating a robust system for ensuring that customers have a direct interaction at your checkout without any third party input. Customers pay by entering their card details. It is fast and seamless making the user experience exciting.

      "Collect your customers' payment information easily and securely on web or mobile and create payments in 135+ currencies."   

Stripe also supports a range of additional payment methods, including 3D Secure, ACH debit, Apple Pay, and Google Pay.

According to Stripe, there is no set up fee for Stripe. However, charges vary depending on the payment card location. Your European customers can expect to pay 1.4% + 20p per transaction while non European cards will pay 2.9% + 20p per transaction.

Along with its card payment service, Stripe also offers services ranging from account management, volume discounts, migration assistance and dedicated support depending on your ecommerce need.

2. Paypal

Paypal unlike stripe is a payment application program interface(API) whereby your customers will be redirected to their digital wallet on the Paypal website to fulfil their payment agreement. For this to be possible, your customer is expected to have a Paypal account of which they will be required to log into when they select Paypal as their payment option.

      "And if you’re a charity, you pay a reduced standard percentage-based and fixed fee for each donation received."      

With Paypal, "the more you sell, the less you pay". Charges vary from 3.4% to as low as 1.9% + 20p per transaction depending on total sales volume. However, there is no monthly fee.

However, Paypal also have a service whereby your customers can pay using their cards. This allows you to accept debit and credit card payments on your website. There are two(2) fee structures for this, which includes the Blended fee structure and the Interchange Plus fee structure.

Cost of the blended fee structure is 3.4% + 20p for each transaction which is available immediately for withdrawal to you bank account. Interchange Plus fee structure involves three(3) components which is the interchange fee(set by Mastercard or Visa), a set percentage, plus a fixed fee on each transaction. Charges depend on the card type(Mastercard or Visa) and the location of the customer. You can expect to be charged an interchange fee + 2.9% + 20p for each transaction.


3. Google pay

Google pay is a digital wallet and online payment platform designed by Google. It supports a host of services which include in-app and tap-to-pay purchases on mobile devices, enabling users to make payments with Android phones, tablets or watches.

According to google play website, "Google Payment Corp. charges merchants no fees for accepting".

Google pay is simply Google's own Android pay with newly updated changes. Your customers are expected to interact with google's own API via your ecommerce website.

4. Venmo

Venmo allows your customers to make card payment into your Venmo digital wallet which you can then transfer or withdraw via ATM. Venmo doesn't charge for basic services like: Sending money from a linked bank account, debit card or your Venmo balance. Venmo also has no monthly or annual fees.

However, there are some fees for premium features and other services. Fees for using Venmo is 1.9% + £0.20 per transaction plus an extra 1% for cards issued outside of the EU/EEA. Venmo supports 3D Secure.

Venmo accounts are issued by Paypal.

5. Square

Square is a card processing payment system whereby your customers will enter their card details to make payment on your website. There is no monthly fee and charges is 2.5% per transaction.

According to Square, "They can create custom pricing packages for some businesses that process over £204.55K of card transactions annually."


How to decide

Deciding which payment system to use can be based on three(3) considerations, which are:

1. The popularity of the payment method.

2. How much of the cost will you like your customers to bear.

3. Ease of use inline with your customer checkout experience.

Remember, a happy customer is a buying customer. To ensure a happy customer, ensure a seamless payment system. Happy selling.