The growing popularity of e-commerce or virtual stores has caused business owners and
entrepreneurs who manage these businesses to rethink the payment methods they offer their
customers in order to provide greater convenience when closing their sales and, of course, generate a
better user experience.
To do this, knowing the best payment gateways that exist is almost an obligation and in this post we
will tell you which are the most relevant.
Considering that the average shopping cart abandonment rate is around 70%, according to Baymard ,
it is imperative that online stores can establish reliable platforms that allow users to complete their
purchases easily and accept multiple payment methods.
In this article, we will explain what a payment gateway is, how it works, its types and, of course, an
extensive list of alternatives that exist for the Latin American market.
Are you ready? Read to the end!
What is a payment gateway?
In short, a payment gateway is uganda phone number list a portal or website that
provides the connection between the customer’s bank and the corresponding payment
processor. Its function is to transmit banking and financial information to virtual payment services,
APIs or a payment terminal.
From it, you can execute different transactions with online services , credit cards, unified payment interfaces or UPI, and even virtual wallets.
How do payment gateways work?
For a payment gateway to transmit and receive authorization from the banking institution, there are four factors involved:
- bank issuing the funds;
- bank receiving the funds;
- the client;
- trade.
And even though there are multiple steps to transactions, they are usually executed in a matter of
seconds. How? Here we explain.
Once the purchase is made, the website directs the user to the payment gateway where they will enter
their banking or financial information.
Data is encrypted to ensure confidentiality and checks are made to prevent fraud through TLS
protocols.
Once this process is complete, the issuing bank checks whether there is sufficient balance to authorize
the purchase. If so, the bank receives payment and the balance is debited from the buyer’s account.
But as we already mentioned, this type of platform can be found on the market with various
functionalities, according to the needs and interests of the business.
Do you want to know what they are? Learn about the types of payment gateways!
Types of payment gateways
As it is evident the importance 2024 japan telegram data of having a payment gateway in any business, especially virtual stores , knowing the types, their advantages and weaknesses is crucial to begin the process of choosing the right one.
Redirection
This is perhaps the most common asb directory and simplest, as it involves redirecting the merchant’s website to an independent page to complete the transaction, even allowing your brand’s logo to remain throughout the process to give the user greater peace of mind.
It is the most used option by small businesses and startups , since the heaviest work of this task is outsourced, from the implementation of protocols to privacy compliance .
However, this also has a disadvantage and that is that in this case your business will have little or no control over operations, and it can also cause a slight interruption in the shopping experience , since the user must leave your store to make the payment.
Buy inside, pay outside
This other type offers the possibility of making the purchase within your website without having to redirect the user; however, to complete the process, customers must leave the site.
To be secure, your organization must use PCI regulations that are essential to safeguard financial information, which forces your company to invest in more resources.
This is the payment gateway method most commonly used by large e-commerce companies that have a large sales volume on their own. In this method, users will complete the entire purchasing process from the same website.
However, there is a small temporary redirection by the payment gateway, but it is very unlikely that the user will notice it, since the banking platform used will look the same as the rest of the site.
This is definitely the type that offers the most control and flexibility, as you can run special offers and sales whenever you need to and take advantage of plugins to encourage buyers to purchase more products.
Now yes! If you have arrived here, you are more than ready to learn about the most popular payment gateways in e-commerce throughout its history .
6 main payment gateways in Latin America
Considering the importance of this tool for the operational and financial health of your business , it is essential that you know the available options that exist in the market so that you can be able to choose the best one for your organization.
1. Stripe
Stripe is a highly recommended payment gateway , widely used by other technology companies such as Lyft or Slack. It is ideal for processing purchases with debit and credit cards, especially those made in person.
With it you can access:
- one-click purchases and save card information;
- visualize metrics through reports to improve your processes;
- Supports most cards in over 135 currencies.
The only weak point we can mention is the delay of 7 to 14 business days to receive payments if you are a retailer.
2. Authorize.Net
This platform accepts, at any time and device, online payments, physical payments or through mobile devices .
By not requiring SSL or PCI certification to use, it allows small businesses to incorporate a payment gateway into their e-commerce platform and start generating sales quickly .
3. Square
The reputation that precedes Square generates great confidence in the market and makes it an ideal choice for many companies, especially those looking to incorporate NFC into their businesses.
In addition, it provides:
- efficient payment terminals, which can even be configured to work offline;
- support different payment methods;
- no monthly fees.
However, this service cannot scale over time, so if sales volume increases it would be an insufficient tool.
4. Apple Pay
Apple Pay’s mobile payments infrastructure provides a secure platform for users and businesses through its Face ID and Touch ID services.
If your business has an NFC-enabled terminal, you can accept credit cards and online payments using this service.
This option offers a lot of security , simplified payment processes, and a quick initial setup. However, it should be noted that for now it is not a well-known payment gateway in the market.
5. Amazon Pay
When it comes to e-commerce trends , Amazon should always be in the conversation. Through its payment platform, you can generate all online transaction processes from your site, with the only condition that your customers log in to the Amazon portal.
With this you will access:
- a large portfolio of clients;
- customization capabilities to match the look and feel of your site;
- adaptation to different types of screens and compatibility with multiple platforms.
Its only Achilles heel is that it is only available in 17 countries, including, of course, Mexico.
6. Market Payment
This tool, designed especially for the Latin American market, presents a very reliable and secure alternative for processing payments.
In addition, it provides technical support, commercial support and no withdrawal fees, giving its users the possibility of adding e-commerce plugins such as Woocommerce or Shopify.
