Many of the best online payment service providers are available. Before proceeding further, let us understand how payment service providers work. While buying things online, the customer adds products or services to the cart that they want to buy and continues to the payment page.
The customer is then asked to present the details of the credit card, debit card, UPI ID, or net banking credentials. Depending on how the merchant integrates the gateway, the payment info may be collected via a hosted payment page, server-to-server API, or client-side encrypted tokenization.
The gateway encrypts the transaction data and forwards it to the acquiring bank (merchant’s bank) or processor, which then routes the payment via the card network to the issuing bank. The acquiring bank securely routes the data through the card networks, such as Visa, Mastercard, or other supported schemes.
The card schemes (such as Visa and MasterCard) apply further security/fraud checks (e.g., tokenization and 3-D Secure) and route the authorization request to the issuing bank. After a thorough security and fraud check, the issuing bank authorizes the transaction.
The authorization outcome flows back through the card network to the acquiring bank, then to the payment gateway, and ultimately to the merchant/consumer. This is a typical card-based payment flow; other methods (wallets, bank transfers, local ACH systems) may vary.
Top Online Payment Service Providers
1. PayPal
PayPal is the world’s most widely used and one of the best online payment service providers, processing billions of transactions annually across more than 400 million active accounts. Payments can be made using a PayPal account, a linked credit or debit card, a bank account, and, in some markets, other funding sources or wallets.
Payment can be sent directly to some email address, prompting users to register for a new PayPal account. In addition to taking payments, PayPal also lets its users send payments through the service, which is a service that only a handful of online payment solutions offer.
2. Amazon Pay
Amazon Pay is available to merchants in many countries (for example, around 20 in Europe and others globally) and allows consumers to pay using their Amazon account credentials. Amazon Pay allows shoppers to use the payment and shipping info stored in their Amazon account to check out on merchant sites, thus speeding up the process.
This payment gateway is designed to offer a smooth shopping experience for online shoppers, retailers, and sellers. Amazon Pay includes tools that streamline checkout and improve customer engagement through saved payment and shipping details.
3. Google Pay
Google Pay is Google’s digital wallet and payment method that lets users pay for goods & services using their Google account (or stored payment methods) and in some markets also enables peer-to-peer transfers and in-store payments. A significant advantage of Google Pay over the competition is that millions of Internet users use Google for various other services, making a payment through Google Pay a simpler process.
The latest version of Google Pay provides a significant leap for Android users who don’t have Samsung Pay, but the app’s wide variety of features doesn’t offer as much value as stand-alone budgeting, cash-back, and P2P (person-to-person) payment services.
4. Worldpay
Worldpay is one of the UK’s leading payment service providers, with solutions covering online and in-person payments and support for many payment methods and currencies. Dealing with Worldpay is like dealing with any prominent provider.
Some users have reported that merchant support and onboarding may require more technical expertise compared to fully online providers. Instead, the Worldpay payment gateway has to be built into the user’s website’s backend as an API (Application Programming Interface). Integrating or customizing the code requires some software expertise.
5. Skrill
It is undoubtedly one of the most well-known payment gateways worldwide. Skrill recognizes modern payment demands when it comes to payment processing and money transferring. Now, Skrill has many significant companies as their customers using their innovative solutions in their businesses.
Skrill is a UK-based online wallet and payment service provider, supporting 40+ currencies and over 100 local payment options for international transactions.
6. Stripe
Stripe is a cloud-based payment gateway that helps users to accept and manage online transactions anywhere in the world. It offers complete solutions to process online payments and also provides excellent features like a custom UI toolkit, embeddable checkout, combined reports, and many more.
Stripe is a robust payment gateway that ensures a smooth movement of funds in your business while connecting with the application that facilitates you to avoid fraud with excellent security, manage revenue, and drive sales worldwide. It also offers an open API (Application Programming Interface) that helps integrate with your business ecosystem.
Read More: 7 Advantages of Electronic Payments For Your Business
7. Authorize.net
Authorize.Net, a Visa solution founded in 1996, supports hundreds of thousands of merchants and processes billions of transactions annually. Many broadly used e-commerce platforms, like Magento, Volusion, and X-Cart, combine effortlessly with Authorize.net.
8. SecurionPay
SecurionPay is a payment gateway that offers secure online and mobile payment solutions that are compatible with multiple operating systems like Windows, Mac, Linux, Android, and iOS. It is an individual payment gateway solution that offers fast and secure incorporation into your business ecosystem, like embedded payment forms.
Its advanced checkout enables quick and secure payment authorization, helping increase conversion rates. It also offers a flexible API so that you can combine your business network with it and have complete control from your side.
What is a Payment Gateway?
A payment gateway is an application merchants use to accept credit/debit cards and other types of electronic payments. Payment gateways are encryption systems that protect sensitive and essential information, like numbers, CVV (Card Verification Value) numbers, or OTP (One Time Password), as it passes from customer to merchant.
These gateways then pass the transaction information to the customer’s bank and to the merchant’s partner bank. The payment gateway is responsible for authorizing the credit/debit card transaction and ensuring that the funds are transferred correctly from the customer’s account to the merchant’s account.
Payment gateways typically charge per transaction, and some may also include monthly or setup fees depending on the plan. Here are the names of some of the best online payment service providers you can consider.
