10 Key factors when choosing a Payment Service Provider (PSP) for your Business

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Over time, the continued rise of e-commerce has opened doors for the growth of efficient and seamless payment methods available to clients.

The driving forces behind the evolution of the e-commerce industry are access to extensive customization, the application of adaptive technology, and the innovative integration of advanced technology.
With the industry’s continuous growth, owners of e-commerce businesses need to match the industry’s pace to provide customers with a smooth service experience.

One of the significant decisions for business owners in this field is selecting the best payment gateway platform that guarantees a personalized experience for their clientele. The concept of a payment gateway applies not only to e-commerce transactions but also to Sacco societies.

Payment Gateway services

A payment gateway is a secure interface software between an e-commerce website and a customer’s preferential payment mode. These include a credit or debit card, a gift card, a bank account, and a mobile wallet.

Payment gateways support a range of payment service providers, from online mobile service providers such as M-Pesa & Airtel money in Kenya to mobile money banking and mobile money cards.

Payment gateways are an important pillar for e-commerce solutions because they facilitate the payment of goods and services.
Online retailers should consider the factors below before choosing a good platform for their customers.

Factors to consider when selecting a payment gateway provider

A suitable payment flow

With the growth of a business, the e-commerce payment gateway should also scale along smoothly. Before adding a payment gateway to a website, retailers ought to choose a suitable payment flow for their business and be secure and favourable to their customers.

Efficiency

Selling products and services online requires a payment gateway provider on every website. To select the most accurate product, vendors should figure out the adaptability of the payment solution and security. The platform should allow clients to purchase services and goods while business owners receive payments with no hassle. Choose an online payment method that works well for you and your customers.

Safety and security

One of the elements of e-commerce transactions is ensuring customer safety. Big corporations have taken the online shopping experience to a new level, one that raises customer expectations when dealing with e-commerce websites.

Even when transacting on websites run by small businesses, shoppers expect a quality website that operates on secure payment methods. Ensure you get a certified payment gateway provider and work with security standards that meet your needs.

Fees and service agreement requirements

The basis of pricing in payment gateways depends on the type of transactions a business makes, the market, the frequency of transactions, revenue consistency, and business sales.

It is essential to compare how the business structure accords with the payment gateway’s fee structure. Some service providers require setup fees and transaction charges if a particular order or transaction volume is not met, while others operate based on a contract.

Ease of use

A payment gateway should allow retailers to eliminate unwanted procedural fields and redundancies in the shopping and billing information for an easier checkout process.

According to studies, more than 25% of customers tend to abandon a purchase when compelled to register for an account or if a third-party shopping cart is attached to an enrollment procedure for the users. For the speed of the transactions, the platform should let retailers make certain factors optional and let guests check out.

Availability of multiple features

Payment gateway service providers offer several features depending on the business’s needs. For instance, if retailers deliver their goods and services globally, the payment gateway providers should offer global payment solutions and accept different currencies as well as credit and debit cards.

Furthermore, check if the payment gateway supports all payment types, electronic invoicing, chargeback management, and customer email/text reminders to ensure website efficiency.

Easy integration process

The incorporation of a payment gateway is not a DIY process. Most payment gateway providers give comprehensive guidelines on integration with popular e-commerce platforms.

An ideal platform should be easy and beneficial to the customers by selecting a payment method of their choice and making the payments. The system should be set up in a way that doesn’t mess up the website’s user experience with a slow payment procedure.

Merchant account

A merchant account is required when a client makes a payment through a payment gateway. The money is temporarily transferred to a different vendor account that isn’t the owner’s actual bank account.
Cash remains in the merchant account till approval of the client’s processing bank, after which transfer to the owner’s bank takes place.

A merchant’s account provides fund management and security for both parties in the transaction. Some providers do not need a merchant’s account and, in such instances, have a higher processing fee.

Recurring billing

A recurring billing system allows for an automatic billing cycle for companies with a monthly payment plan. For this system, the retailer needs to integrate their invoicing software and the payment gateway using several programs to save you time & money and ensure consumers have the best user experience.

Mobile payments

Soon, mobile payments will take over the use of credit cards, either online or in-person. Moreover, many online purchases are made via smartphones for ease of use and convenience. Some payment gateway providers have incorporated mobile payment systems in liaison with payment service providers and top branded apps.

Payment gateways support mobile digital wallets like Google Pay and Samsung Pay, optimizing mobile devices for transactions. Therefore, the payment gateway option should accommodate various mobile devices and networks.

Customer support

Most payment gateways offer 24/7 customer support through emails and tickets that require users to follow manual guidelines to fix an issue. Suppose the website owners prefer talking to their customers instead of sending emails.

In that case, they should enquire if the providers offer live technical support, especially during working hours, for quicker resolution of technical issues.

Conclusion

It is clear that the best payment gateway for your online store should consider three critical factors; security, business needs, and customer requirements.

A proper payment platform goes a long way in promoting your brand’s growth, creating customer trust and satisfaction, and ensuring the durability of your business in this digital era. Grow your e-commerce business by selecting the appropriate payment gateway.