Digital payment is a savior! The ability to connect digital payment gateways to your bank account has eliminated the need to retrieve money from a check or ATM. Moreover, the feature to pay for anything by a 'digital wallet' including bank transfer, virtual debit/card processing, cryptocurrency payment (Bitcoin), and e-banking, has vastly narrowed the distance between the buyers and sellers.
Thanks to digital payment gateways, now you can shop for anything in the comfort of your home. The COVID-19 pandemic has only helped to grow digital payments. For example, the popular OTT platform Netflix got 16 million new subscribers within the first four months of lockdown. If digital payment were not available, hitting the 16 million mark wouldn't have been possible within four months.
Digital payment has been a boon to B2B transactions because it has virtually eliminated paper-based payment, which was a hassle for both businesses and customers. Along with costing a hefty processing fee, it took about two weeks to clear a check.
Some of the other disadvantages of paper-based payments were;
- paper check slowed down the payment cycle
- Correcting small typo or errors caused tremendous delays in payment
- Reconciliation was too time-intensive.
- Customers could put stop payment or close the account before the payment was processed.
B2B payment today has become quicker, safer, and easier thanks to digital payment gateways.
Like these, there are many benefits to using digital payment gateways for both business-to-customers and business-to-business transactions.
So, what are the benefits of adopting digital payments?
Convenience and accessibility
Convenience and accessibility are the keys to digital payments. The ability to shop for anything from the comfort of the home has bridged the gap between buyers and sellers. In addition, the accessibility to different forms of digital payments and shopping sites has made shopping accessible to customers speaking different languages and living in different parts of the world.
A virtual transaction has zero risks mainly because there is no exchange of hard cash. Digital payment is secure than traditional ones because you can rely on an encrypted protocol to transfer payments. Digital platforms are heavily regulated and protected to keep your money safe.
Every virtual transaction made is traceable. The digital payment gateway keeps a record of every transaction in its database that allows for regulation. This avoids ambiguity and confusion.
Digital payment is processed within seconds, which means quicker payments. In addition, with a multitude of digital gateways available, paying and getting money has become faster and reliable.
Saves processing fee
Sending and receiving checks exchanges a lot of hands, which costs a hefty processing fee. By going paperless, you're saving on hefty fees. Some digital payment platforms even forgo transaction fees, encouraging users to use digital wallets over checks and cash.
Low labor cost
Since online payments are usually automatic, they have lower labor costs than manual payment methods, such as checks, money orders, cash, and EFTPOS. As a result, businesses can take advantage of this feature by reducing the workforce and their salaries.
Growth of Online Services
The quicker and convenient e-payment means the growth of online services, including banking, shopping, home deliveries, Over-The-Top platforms, and utilities. The growth of online services will only help to bring customers and buyers together.
Eight Most Reliable Digital Payment Services
Here is the list of the eight most reliable digital payment services.
Authorize.net is a popular digital payment gateway used by businesses and customers. Established in 1996, it started working with small merchants and customers. Today, it has over 430,000 merchants and manages over one billion transactions every year.
It's chosen as the best overall because it's easy to set up and use and works with nearly any merchant account worldwide.
Businesses registered with Authorize.net can receive payments from major credit cards, debit cards, and e-checks.
It also offers an all-in-one package that includes both a merchant account and a payment gateway. In addition, both options offer users a host of other features, including recurring payments, invoicing, fraud prevention filters, customer information management, mobile payments, a virtual point-of-sale (POS) system, and an optional card reader.
Learn more about Authorize.net and its fees.
Stripe is another reliable digital payment gateway introduced in 2011 with a strong focus on technology and development.
According to them, almost 90% of online shoppers in the US have brought from a business using Stripe.
Users most use Stripe because it offers customizable payment solutions at competitive rates. Users can also access the UI toolkit, embeddable checkout, and consolidated reports for better accessibility.
You can use Stripe from any part of the world. It supports over 135 currencies and payment types. Some of the unique features of Stripe include;
- Mobile customer interface
- Multi-currency payouts
- Clean canvas
- Collaboration notes
- Payment options
- Embeddable checkout
- Custom UI toolkit
- Dispute handling
- Open-source plugin
- Consolidated reports
- Accounting integrations
- Unified payout
- Financial reporting
- Roles and permissions
Learn more about Stripe and its fees.
Paypal is undoubtedly one of the most popular digital payment gateways enabling people and companies to send and receive payments without providing financial information. Many people use Paypal because it allows them to send or receive payments across the globe with just an email address instantly.
Created in 1999, PayPal features basic and advanced payments and checkout features. With a PayPal payment Pro, users can accept American Express, Visa, Mastercard, Discovered, and PayPal Credit.
Almost every central e-commerce platform, including Shopify, Squarespace, and BigCommerce, uses PayPal as a reliable payment solution.
Some of the features of PayPal include;
- PCI compliance
- Inventory tracking
- Shopping cart
- Virtual terminal
- Credit card reader
- Express checkout
- Mobile card reader
- Barcode scanning
- Online invoicing
- Bill me later
Learn more about PayPal and its fees.
Amazon Pay is an exclusive payment gateway designed for Amazon merchants and shoppers. It features an easy and secure payment solution that is available in eight countries as of now.
Anyone using Amazon can log in and pay, including retailers and sellers. In addition, it is loaded with great features and tools that attract customers and encourage them to shop more.
Some of the Features of Amazon Pay include;
- Automatic payments
- Merchant website integration
- Inline checkout
- Customer identity
- Fraud protection
Learn more about Amazon Pay and its fees.
Square or Square financial services is American financial services and digital payments company founded in 2009.
It provided an online payment solution that could be used on smart devices rather than bulky and expensive POS hardware. Many retailers started using it because it allowed businesses to accept payment by website, invoice, and over the phone without using any setup or startup costs.
Users can download the software accessible on any iOS and Android device and take payments using a mobile credit card reader plugin.
Learn more about Square and its fees.
2Checkout is a popular payment gateway system used worldwide by over 20,000 clients. It is mainly chosen because it offers localized buying experiences for over 200 countries and territories and supports nearly 100 currencies.
2Checkout offers a payment gateway called 2Sell that accepts all major credit cards and payments, including MasterCard, Visa, American Express, JCB, and PayPal. It also supports payments in 15 languages and 100 different currencies.
Some of the features of 2Checkout include;
- Level 1 PCI data security standard
- Multiple payment options
- Recurring billing
- Customized checkout options
- Integration with 100+ online carts and systems
- Create customized subscription plans
- Support – 87 currencies
- Support – 15 languages
- Account updater
Learn more about 2Checkout and its fees.
Likewise, many other digital payment gateways are used by customers and businesses for varying purposes, including WePay, Braintree, Payza, SecurionPay, etc.
As customers always look for easier ways to pay and businesses seek more accessible ways to sell, digital payment gateways will provide the security and opportunities both need.
Check this infographic for more information.
Get in touch with Searchable Design LLC, the best web development agency in the US, to learn more about using payment gateways for your business.