Which Payment Gateway is the Best Payment Process Solution For You?

Providing a clear payment path for customers is an obvious necessity for businesses and organizations. However, building that path isn’t straightforward. To overcome payment process challenges, many turn to payment gateways. These are digital products that facilitate financial transactions. Which option is best? This payment gateway comparison will help you find out.

When considering different payment gateways, it’s important to remember they need to do more than just enable customer and client payment methods. There are payment gateway cost comparisons’ to consider, how a solution impacts security, their ease of use, and more.

“When assessing a payment gateway, be sure to evaluate all aspects of the service and how it delivers a competitive advantage – in addition to seamless, cost-effective payment processes. The right solution should make customer interactions easier and avoid adding layers of complexity and compliance to your financial infrastructure.” Lee Cocking, Chief Product Officer. Cybrid 

What you’ll find in this article:

• What is a payment gateway?
• Who uses payment gateways?
• Leading payment gateways of 2024
• Payment gateway comparison chart
• Limitations of payment gateways

What is a Payment Gateway?

A payment gateway is a solution that enables businesses to process payments and financial transactions. It acts as a secure bridge between the customer's bank and the business's bank, ensuring that sensitive financial information, like credit card details, is safely transmitted and authorized. 

Payment gateways can be for in person transactions, such as paying for a restaurant bill or paying a bill at a bank, or to facilitate online transactions. For instance, when a customer makes a purchase online using a credit card, the payment gateway serves to encrypt the payment data, send it to the bank for approval, and relay if the transaction is approved or rejected.

Common online payment gateway comparisons are PayPal, Stripe, and digital wallets like ApplePay – each with their own unique features and benefits.

Some gateways can facilitate distribution of funds and outgoing payments, however, the primary capability of most gateways is so a business can accept incoming payments and customer purchases.

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Who Uses Payment Gateways and Why?

Payment gateways are used by any business, organization, or entity that conducts financial transactions outside of handling cash. In 2024, this means pretty much every business – excluding perhaps a neighborhood lemonade stand or the few cash-only storefront hold-outs. 

For most however, payment gateways make managing and processing financial transactions easy and seamless - especially when it comes to online and digital payments. They are often used as the best online payment method for businesses of all sizes and industries.

Moreover, payment gateways can offer additional benefits beyond enabling easy purchase processes. For instance, consumers are increasingly expecting diverse payment methods to be accommodated, those with a payment gateway that meets this demand may have a competitive edge over those without the same capabilities. 

Unfortunately, if you don’t offer the payment method a customer prefers, you risk losing their business altogether. This is one of the reasons why the global payment gateway market has a CAGR of 17.3% and is set to be worth over $71 billion by 2028.

Here's a closer look at who typically uses payment gateways:

• E-commerce Businesses: Online stores that need to accept credit card payments, debit cards, and digital wallets for purchases.
• Retail Stores: Physical shops that use point-of-sale (POS) systems to process in-store transactions.
• Service Providers: Professionals like consultants, freelancers, and agencies that require online payment solutions for their services.
• Subscription-Based Businesses: Companies offering subscription services, such as streaming platforms or membership sites, that need to manage recurring payments.
• Educational Institutions: Schools and universities that accept online payments for tuition, fees, and other services.
• Healthcare Providers: Medical offices and hospitals that need to process payments for services and treatments online or in person.

Leading Payment Gateways of 2024

With dozens of payment gateways to choose from, it’s not instantly clear which one may be the best online payment gateway for your company or organization. To help demystify the selection process, we’ve rounded up six of the leading solutions for 2024, including:

• PayPal
• Stripe
• Adyen
• AmazonPay
• Authorize.net
• Square

PayPal

PayPal is a globally recognized payment gateway that supports a wide range of payment methods, including credit cards, debit cards, and digital wallets. It is known for its ease of use and extensive consumer and business adoption.

Pros:

• Wide acceptance among consumers and businesses.
• Easy to set up and use.
• Strong security features.

Cons:

• Higher fees for international transactions.
• Customer service can be slow to respond.

Stripe

Stripe is a developer-friendly payment gateway known for its powerful API and extensive customization options. It supports a variety of payment methods, including credit cards, digital wallets, and recurring billing, making it ideal for businesses needing tailored payment solutions.

Pros:

• Excellent customization options.
• Supports a wide range of payment methods.
• Transparent pricing.

Cons:

• Requires some technical expertise to set up.
• Limited support for in-person transactions compared to other gateways.
• Recent data breaches may be a concern.

Adyen

Adyen offers a comprehensive payment solution for businesses looking to integrate online and offline payment channels. Known for its robust integration capabilities, Adyen supports various payment methods and provides detailed data insights, making it a strong choice for omnichannel commerce.

Pros:

• Excellent integration with multiple sales channels.
• Competitive pricing for large volumes.
• Comprehensive data insights.

Cons:

• Complex pricing structure.
• Minimum transaction requirements.

Amazon Pay

Amazon Pay leverages Amazon’s trusted infrastructure, allowing customers to use their Amazon account information for payments. This simplifies the checkout process and enhances security, making it a convenient option for both businesses and consumers.

Pros:

• Easy to integrate.
• Streamlined checkout process.
• No monthly fees.

Cons:

• Limited support for in-person payments.
• Higher fees for cross-border transactions.

Authorize.Net

Authorize.Net is a versatile payment gateway supporting a wide range of payment methods, both online and in-store. It is renowned for its reliability and extensive customer support, making it a popular choice among businesses.

Pros:

• Reliable and widely used.
• Excellent customer support.
• Flexible integration options.

Cons:

• Monthly fees and setup costs can be high.
• Interface is less modern compared to competitors.

Square

Square is a popular payment gateway known for its comprehensive POS system for in-person transactions. It also supports online payments, making it a versatile solution for various business types.

Pros:

• Comprehensive POS features.
• No monthly fees for basic services.
• Easy to use and set up.

Cons:

• Limited advanced features for online businesses.
• Higher transaction fees for high-volume businesses.

Payment Gateway Comparison Chart

Limitations of Payment Gateways

Despite the extensive features and functions of today's best online payment gateways, there’s a lot of financial transactions they simply can’t handle. The majority of these products can accommodate and optimize the receiving of funds, typically from the most used payment methods, however it’s often not enough.

For managing transactions beyond this scope, such as wire transfers, crypto transactions, or complex payment routing, additional solutions are often required.

For instance, a non-profit organization receiving donations online via a payment gateway like PayPal may face challenges when trying to distribute these funds directly to beneficiaries in different countries. 

Or, consider a business with complex financial workflows, such as a law or accounting firm or large-scale retailer. 

A payment gateway will not be able to handle the intricate payment requirements involved, such as managing escrow accounts, processing bulk payments, cryptocurrency, or facilitating multi-currency transactions seamlessly.

Notable limitations of payment gateways include:

• Limited transaction types. Wire transfers, cryptocurrency, FBO accounts, international payments, and other options are often not possible with a payment gateway.
• Use of multiple payment gateways. Businesses may use multiple payment gateways to meet their payment needs and navigate each platform's weaknesses; this creates a costly and overly complex financial infrastructure.
• Fractured risk management. With a payment gateway, security and fraud risk management does not extend beyond the solution's functionality. This means businesses must have the in-house resources to manage risk internally.
• Complex Financial Workflows: Handling sophisticated payment needs like escrow accounts, bulk payments, or multi-currency transactions is often beyond the capability of standard payment gateways.
• Poor customer experiences. A payment gateway that is slow, looks different than what the customer expects, requires multiple steps to complete the transaction, or has limited payment options can lower customer satisfaction rates.
• Not aligned with current payment trends. 42% of US consumers have digital wallets, 23% make purchases directly from a social media platform, and the number of crypto payments is growing. Payment gateways' ability to keep up with these trends is limited.

Think You Need More Than a Payment Gateway? Consider a Payment Orchestration Platform

At the end of the day, your payment process solution needs to meet your needs, business goals and budgets. For many online businesses and retailers, a standard payment gateway, such as the ones listed above, is enough. However, for those with more complex financial landscapes a better option may be to consider a payment orchestration platform.

A payment orchestration platform can execute everything a payment gateway can do and more. Wire transfers, account services, crypto ramps, and other payment rails can be enabled and managed from a single platform. Moreover, a payment orchestration platform can be embedded directly into an organization's interface for easy usability and customizations.

To learn what you can do with a payment orchestration platform, visit the Cybrid website.

Lee Cocking, Head of Product @ Cybrid