14 Best Payment Gateways for Startups and SMEs

Having a reliable and efficient payment gateway is crucial for startups and small to medium-sized enterprises (SMEs) aiming to provide seamless transaction experiences for their customers. Payment gateways serve as the backbone of online commerce, enabling businesses to accept and process payments from various channels, including credit cards, bank transfers, and alternative payment methods.  

The right payment gateway can significantly enhance customer satisfaction, streamline operations, and open global market opportunities. With a myriad of options available, choosing the best payment gateway requires a careful consideration of factors such as transaction fees, payment methods supported, integration capabilities, security measures, and customer service quality. This guide highlights 14 of the best payment gateways tailored for the needs of startups and SMEs, aiming to help you make an informed decision that aligns with your business strategy and growth objectives.

What are the best Payments Gateways for Startups and SMEs?

1. PayPal: A global leader in online payment solutions, allowing users to make payments and transfers with ease. Pricing/Fees: Standard transactions incur a fee of 2.9% + $0.30 per transaction for sales within the US. International transactions have additional fees.

2. Stripe: Offers easy-to-use payment solutions, supporting credit card, ACH, and Apple Pay transactions. A versatile payment platform supporting a wide array of payment methods with a focus on technology and integration. Pricing/Fees: Charges 2.9% + $0.30 for each successful card charge. Additional fees for international cards and currency conversion may apply.

3. Adyen: A global payment platform offering a broad spectrum of payment methods, catering to businesses looking for international growth. Pricing/Fees: Adyen's pricing is custom and varies by transaction volume and services used. They charge an interchange fee plus a percentage of the transaction amount and a small fixed fee.

4. Payoneer: Geared towards businesses and professionals, offering cross-border payments and market-specific solutions. Specializes in cross-border payments, providing businesses with the ability to receive and withdraw funds in multiple currencies. Pricing/Fees: No fee for receiving payments via Payoneer account. Withdrawal fees to bank accounts vary by currency. Fees for receiving payments via credit card stand at 3%.

5. Authorize.Net: Popular in the US, it supports credit card, ACH, and eCheck payments for businesses. Offers payment processing services for online, in-person, and mobile transactions, widely used in the US. Pricing/Fees: A gateway monthly fee of $25 and a per-transaction fee of 2.9% + $0.30. Additional fees for value-added services.

6. Braintree: A comprehensive payment solution providing businesses with the ability to accept payments online and in-app. Pricing/Fees: Standard pricing is 2.9% + $0.30 per transaction for most payment methods. Additional charges for currency conversion and international cards may apply.
   
   

7. Worldpay: One of the largest payment processing companies globally, offering a wide range of payment services to businesses of all sizes. Pricing/Fees: Pricing is customized based on business needs and transaction volume. It typically involves a percentage of the transaction amount plus a fixed fee.
   
   

8. 2Checkout: Focuses on providing online payment processing for global businesses with a wide range of payment methods. Pricing/Fees: Offers several pricing plans, including a 3.5% + $0.35 per transaction on their 2Sell plan. Rates vary by plan.
   

9. Square: Ideal for small businesses, it offers credit card, ACH, and mobile payments. A user-friendly payment solution ideal for small businesses, offering a range of point-of-sale options and online payment solutions. Pricing/Fees: In-person transactions have a fee of 2.6% + $0.10 per swipe, dip, or tap. Online transactions are charged at 2.9% + $0.30.

10. Amazon Pay: Allows Amazon users to use their account for external website purchases, providing a familiar and streamlined checkout process. Pricing/Fees: Typically charges 2.9% + $0.30 per transaction for web and mobile transactions within the US, with additional fees for international transactions.
    

11. WePay: Tailored for platform businesses like marketplaces, crowdfunding sites, and software providers, offering integrated payment solutions. Pricing/Fees: Custom pricing model based on the platform's needs. Typically involves a percentage of the transaction amount plus a fixed fee.
    
    

12. PayU: Provides a wide variety of local payment methods across growth markets, ideal for businesses looking to expand internationally. Pricing/Fees: Fees are customized based on the business model, market, and payment methods used.

13. Mollie: Offers straightforward payment solutions with easy integration, supporting various payment methods. Pricing/Fees: No monthly fees. Charges per transaction, with rates starting from 1.8% + €0.25 for European cards. Rates vary by payment method.
    

14. Klarna: Provides payment solutions that allow customers to pay later or in instalments, aiming to improve the shopping experience. Pricing/Fees: Fees are negotiated individually with merchants, typically including a percentage of the transaction value plus a fixed fee per transaction.

How do I choose the right payment gateway for my business?

Choosing the right payment gateway involves evaluating several factors:

• Transaction Fees: Compare the transaction fees and any hidden costs.
• Payment Methods Supported: Ensure it supports a wide range of payment methods preferred by your target customers.
• Integration: Check how easily it integrates with your current website and shopping cart system.

• Security: Look for features like PCI DSS compliance to ensure customer data is protected.
• Customer Support: Consider the level of customer support provided.
• Global Reach: If you plan to sell internationally, make sure the gateway supports multiple currencies and international payments.

Closing Thoughts on best Payments Gateways for Startups and SMEs?

While the 14 payment gateways discussed offer a range of features and pricing models suitable for various business needs, it's essential to thoroughly assess each option against your specific requirements. Consider factors like transaction costs, payment options, integration ease, scalability, and security features. Remember, the best payment gateway for your business not only fits your current needs but also supports your growth ambitions by adapting to evolving market demands and customer expectations.

Frequently Asked Questions on Payment Gateways

Are payment gateway transactions secure?

Yes, payment gateway transactions are secure. Reputable payment gateways comply with the Payment Card Industry Data Security Standard (PCI DSS) and use encryption and other security measures to protect sensitive data during transmission. However, businesses should also follow best practices for security to protect against fraud and breaches.

Can I use multiple payment gateways for my business?

Yes, many businesses opt to use multiple payment gateways to provide their customers with more payment options, improve success rates for transactions, and have backup options in case of downtime with one gateway. However, managing multiple gateways can increase complexity and integration costs, so it's important to weigh these factors.

What is the difference between a payment gateway and a merchant account?

A payment gateway is a service that processes credit card transactions, transmitting data between the merchant's website and the acquiring bank.  

A merchant account is a type of bank account that allows businesses to accept payments in credit and debit cards. The merchant account acts as an intermediary, holding funds from credit card sales before transferring them to the business's bank account. While some payment gateway providers offer integrated merchant account services, others require you to set up a merchant account separately.

How do payment gateways handle security and fraud prevention?

Payment gateways employ various security measures to protect sensitive financial information and prevent fraud. These measures include encryption, PCI DSS compliance (Payment Card Industry Data Security Standard), tokenization, fraud detection algorithms, and secure socket layer (SSL) certificates. These technologies and protocols help ensure that transaction data is securely transmitted and stored, reducing the risk of data breaches and fraudulent activities.

How long does it take to integrate a payment gateway and start accepting payments?

The integration time for a payment gateway can vary depending on the complexity of your existing systems, the specific gateway you choose, and the level of customization required. Some payment gateways offer plug-and-play solutions that can be set up within a few hours or days, while others may require more extensive integration efforts that can take weeks. It's essential to work closely with the payment gateway provider and possibly a web developer to ensure a smooth integration process.

‍