Which Payment Gateway Should You Choose For Your Startup?

Which Payment Gateway Should You Choose For Your Startup?

If you’re the owner of a startup, you’re probably considering launching an e-commerce site. So many new entrepreneurs are choosing to sell their products and services online, instead of opening a physical shop and accepting payments face-to-face. After all, it comes with none of the overhead costs, and websites are surprisingly cheap.

But how do you accept payments on your site? There are many different payment gateways available for commercial use, all with different fees and features. We’ll take you through 7 of the most popular options for startups.

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PayPal Payment Gateway

PayPal is a household name the world over. The benefit of using PayPal for your startup is that it’s inherently trusted. The vast majority of your customers will be comfortable using it, and already have a PayPal account linked to their bank account.

Of course, the bonus is that you don’t actually need an account purchase through the PayPal gateway. The option to checkout as a guest is always there, because PayPal accepts debit and credit cards too.

It’s simple to integrate, you don’t need a merchant account, and you don’t really need to know much about payment gateways. PayPal takes a percentage of all of your sales, but it’s staggered based on how many transactions your site processes. The more sales, the lower the rate.

Payment Gateway – Stripe

Stripe has been around for many years in the US, but it’s only just been launched here in the UK. It’s enjoyed a lot of success so far because of its ease of use, and simplicity.

Like PayPal, Stripe accepts various different payment methods including Visa, MasterCard, American Express and Diners Club. It also supports Bitcoin, Apple Pay and Android Pay and many more. Stripe accepts payments in many different currencies the world over.

With Stripe, there’s a flat rate of 1.4% of any transaction (2.9% for non-European cards), plus 20p. It’s much simpler than PayPal as there is no sliding scale depending on the size of your business. The downside is that it can end up more expensive if your business eventually reaches a larger size.

The SagePay Payment Gateway

SagePay is another popular choice for startups. It’s a little different from PayPal and Stripe, in that they don’t charge a percentage of each of your sales. Rather, there’s a flat charge of 10 – 12p per transaction, depending on which sort of account you have.

You do need an additional merchant account in order to have a SagePay payment gate on your site. This comes with a monthly fee – though there are different levels depending on how large your company is. Their cheapest account is £20.90 per month and offers 350 free transactions every month.

SagePay offers 24/7 free telephone and email support, and integration with PayPal – so your customers can use SagePay with their PayPal account. It’s a well respected, established company, and a popular choice for payment gateways.

Braintree Payment Gateway System

Braintree Payments is not as big a company as the previous three. It’s actually still in beta in the UK. But there’s no risk – as with Stripe, it originated in the US, where it’s used and trusted by hundreds of businesses. Braintree accepts payments in around 130 different currencies and various different payment methods.

Unlike PayPal and the like, the fees for using a Braintree payment gateway are completely personalised for your company. They assess your company depending on how many transactions you’ll likely be looking at, plus risk factors and more, then decide on a suitable rate.

This means you’ll be getting a fairer deal for the size of your business, but it also means it’s a bit more long-winded to set up.

WorldPay – Payment Gateways

WorldPay was actually one of the world’s first online payment services. Granted, they never quite achieved the same popularity as PayPal, but they’re still a great choice for payment gateways.

The main benefit of WorldPay is that they accept more payment methods than most of the other companies. Customers can pay by credit and debit cards, their PayPal account, but also by direct debit straight from their bank account.

Unfortunately, there is one drawback – it’s a more expensive choice than the others. Along with a fee per transaction, there’s also an initial setup fee and a monthly usage fee. However, the price does vary for every business. And if you run a charity or non-profit, most of the fees don’t apply.

Amazon Pay – Payment Gateway

Everybody knows Amazon – they’ve been a big name brand for many years, and offer competitive prices on pretty much any kind of product money can buy. The Amazon Payment Gateway System is a more recent development, but like PayPal, it’s a name that people feel they can trust.

It’s very simple to set up. You simply create an Amazon Payments Merchant account, activate a plug in, and insert a checkout button right on your website. This allows your customers to pay for your products using the payment and postage information already stored on their Amazon account.

Of course, it does come with fees – 3.4% plus 20p per transaction. However, you are able to apply for a discount if your monthly payment volume is more than £1,500.

Wirecard Payment Gateway

Wirecard is another very popular payment gateway, with over 12,000 customers worldwide. Merchants from practically every country in the world can choose Wirecard for their e-commerce site, as they’re supported internationally.

All major methods of payment are accepted. Prices vary wildly depending on your business – like WorldPay and Braintree, you have to contact the company directly to get a quote. This does mean it’s a bit more complicated to set up; however, once you have an account, integration into your site is simple and easy.

One benefit of Wirecard is that you can personally choose which payment methods you allow your customers to use.

Of course, this list is by no means exhaustive – there are many more payment gateway businesses out there. But this list is of the absolute top seven, the gateways where you’ll get the best rates and the best service. Don’t forget to keep checking back as your business grows, to make sure you’re still using the most suitable payment gateway for your sales volume.