Top 5 payment providers to watch in 2022
Payment processing gateways have made it possible for businesses to accept electronic money using many different channels. Companies can set up non-cash payment methods like debit and credit cards and digital wallets with just a few clicks. However, the companies that carry out payment processing have gone much further. In addition to just accepting payments in different ways, you can open debit cards, develop customised payment solutions with API and even establish your own financial institution using the infrastructure of the payment processing provider. In this article, we will show you the top five payment gateways to make your business grow without stress.
What is a payment gateway, and how does it work?
A payment gateway is a complex end-to-end solution that allows businesses to accept payments from customers using mainly credit cards or e-wallets. It processes the information on a customer’s card to enable secure and fast payments. A payment gateway can also be called a payment processor, payment service, or payment provider.
In addition to helping businesses to provide secure transmission of payment information, some payment gateways also offer other services. Some of the additional services are account updating, sales reporting, fraud protection, and integration with e-commerce platforms of third parties.
Most payment gateways deliver their jobs in four easy steps, which are as follows:
- The payment information, such as debit or credit card details, has to be entered into the system by the customer or cardholder.
- The customer will place an order for payment and the website of the online business will send information from the card through the payment gateway.
- The payment gateway will now send the customer’s request to the bank or financial institution that issued the card to verify the funds’ transfer and authorise it.
- Finally, the payment gateway will transfer the money for the items purchased to the seller’s account. Note that if the credit card company does not authorise the funds’ transfer, the payment will be declined.
So, based on how the payment gateway provider collects the buyer’s money and deposits it in the account of the seller, it can be said that it plays the role of a cashier in a physical store or a middleman. That is how a payment gateway works.
Best payment gateways of 2022
The payments industry is constantly evolving, and new payment providers are emerging all the time. To stay ahead of the curve, it’s important to know which payment providers are worth watching. Here are the top 5 payments providers to watch in 2022:
Intergiro is a Swedish-based payment service provider that is quickly becoming one of the most prominent Nordic fintech companies this year. It offers international money transfers, payment processing, and other financial services. Intergiro is the ideal choice if you're looking for a speedy and effortless way to receive your money immediately. With a unique bundled package that includes a merchant account and bank account, Intergiro provides instant settlements - unlike most other providers who can take days to process transactions. This is a great way to save on transaction fees and get access to working capital quickly, which can be beneficial for businesses with tight cash flows.
ConnectPay is an online banking service provider for internet-based companies, offering a wide range of payment solutions, including SEPA and SWIFT payments, IBAN multi-currency accounts, Corporate Cards, Merchant Accounts, and BaaS. All processes are operated via a fully automated fraud prevention and compliance management ecosystem. The smooth onboarding process and customized client solutions enable businesses to utilize innovative payment solutions to meet the needs of their digital customers. ConnectPay holds an EMI license, issued by the bank of Lithuania, and is a member of the monetary authority of the Eurozone.
Connectum was established in 2014 to enable merchants of all sizes to accept online payments through its easy and affordable e-commerce services. It is a UK-based payment processing company that is regulated by the Financial Conduct Authority. It is a principal member (partner) of Visa, Mastercard, UnionPay, and MIR. It is certified PCI DSS Level 1, which is the highest grade of certification for secure payment processing companies. Connectum processes card payments in single and multiple currencies speedily. The company also offers 24/7 support to its customers, rendering friendly and helpful services that make them feel valued.
Adyen is a leading international payment provider that enables businesses to accept and process payments in more than 150 currencies. The company offers a wide range of payment methods, including credit and debit cards, bank transfers, digital wallets, mobile payments, and local checkout options – on any device or channel.
Adyen is a major player in the global payments industry and is one of the most popular payment providers among large businesses.
Stripe is a US-based technology company that provides payment processing and other financial services for businesses of all sizes. Stripe has been a major player in the payments industry for years and is one of the most popular payment providers among small businesses.
Top things to consider when choosing a provider
“When looking for a payment gateway provider, one should carefully consider the following aspects:
Firstly, security and protection against fraud. Even if the payment gateway claims to be PCI-DSS compliant, many things can go wrong within the payment processing organization and client funds can be misplaced or even lost. Do a due diligence check and ensure the company is well established and their license has not been suspended or revoked. Also, look for any adverse media.
Secondly, ease of integration. Many processors offer off the shelf solutions for most popular platforms such as Woocommerce, Shopify, Prestashop, Magento, etc. If you need a payment solution for a custom platform, speak to a few processors first and see whether they have a dedicated team that can help you set that up.
Thirdly, consider the payment methods the processor is offering. Research what are the most popular payment methods in the countries you are planning to target. More is not always better, especially when considering account-to-account or open banking payments.
Ask for the percentage of banks connected in particular countries. Request conversion rates, as even though they might have most or even all banks integrated, banks keep changing their APIs and payment processor needs to keep updating theirs to ensure customers continue to have the best experience possible.
Ask for a demo account and go through the flow yourself. There are many places where user experience can turn sour, so test yourself and eliminate those that have a clumsy user journey.
Finally, look for attractive pricing for the services and the volume you are planning. Larger organizations usually have tiered pricing, which means that the more volume your turnover, the better the price. Don't always look for the cheapest price as this might come at the cost of all of the above.”
How much does a payment gateway provider cost?
There is no fixed amount to pay a payment gateway provider - pricing is competitive. The cost varies and generally depends on no less than three factors, which include:
- The mode of payment, that is, whether both in-person and online or only online
- What it would cost to process different credit/debit card payments
- The volume of transactions that your business needs to process
“The pricing of a payment gateway provider (PGP) can vary depending on the provider, type of service, and other factors. However, there are several common pricing models that PGPs use:
- Transaction-based pricing: under this pricing model, the provider charges a fee for each transaction processed. This fee is typically a percentage of the total transaction amount, plus a fixed fee.
- Fixed-rate pricing: this model provides a fixed commission for each transaction, for example, 0.25% for each transaction.
- Tiered pricing: This type of pricing provides floating rates for different types of transactions. According to the payment category (which also may depend on the transaction amount, the method and the complexity of the payment process), the merchant is charged a higher or lower percentage. For example, the cost of a transaction conducted online, in this case, will be lower than the cost of payment with a physical card at the salespoint.”
When looking for the best pricing on a payment gateway provider, it’s important to compare models and fees from multiple providers. You should also ask about discounts if your business will be processing high volumes of transactions.
Monetising payments with Banking-as-a-Service (BaaS)
"If you’re looking for a way to reduce costs associated with payment gateway providers, try integrating payments into your platform", says Jelle van Schaick. "This is a strategy that many Software-as-a-Service (SaaS) platforms such as Shopify, Xero and Jobber are using to diversify their income streams and create new lines of business. By monetising payment features, they are able to bring in additional revenue that can be used to invest in other areas of their business.
Banking-as-a-Service providers offer the technology and infrastructure needed to process payments. This includes access to the latest payment processing technologies, fraud detection and prevention tools, and support from a team of experts. BaaS providers also offer white-label solutions that allow you to brand the payment experience as your own and settle on a revenue-sharing agreement."
The Bottom Line
The use of payment gateways is a noteworthy trend in local and international business transactions today. Both small and large e-commerce businesses need reliable payment gateways to accept online and in-person card payments as well as withdraw funds without difficulties. In this post, we have shown you the top five payment processing companies that can be used to manage payments efficiently. We encourage you to try any of them if you want to take your business online or speedily expand your e-commerce company.
Payment gateways are end-to-end solutions that businesses use to accept payments from their customers. They may include physical card-reading devices in offline retail stores or carts on online shopping websites.
You can integrate payments into your platform using Banking-as-a-Service (BaaS). You can diversify income streams and create new lines of business. By monetising payment features, you can have additional revenue that can be used to invest in other areas of your business.
In addition to accepting payments and processing refunds efficiently, some payment gateways provide shopping cart integration, sales reporting, and fraud protection.
Completely free services in companies offering payment gateways do not exist. However, many of them offer free installation and configuration of the system. Depending on the provider and the services they offer, there may be a fixed or variable transaction fee, or a combination of both.