Cashing in: 7 payment gateways for small businesses


By Sahil Chugh

The right payment gateway makes it easier for your customers to pay for services/goods they like. However, most businesses struggle with deciding the payment gateway for their businesses. Up until when the business is local, there are a lot of options. But when you start getting attraction from foreign countries, it becomes too difficult to decide on an efficient and centralized payment gateway system.

This article will cover how payment gateways work, mistakes you should avoid and the options available in India.

How Payment Gateways Work

A payment gateway is an application that allows you to securely request payments from customers. After the customer clicks “Order”, your payment gateway will handle the following steps:

  • Verify each customer’s billing information
  • Verify funds for payment method
  • Approves requests
  • Gets you paid

3 Mistakes You Should Avoid

Setting up everything by yourself
If you want to make your work easier, go for an option where you don’t have to bang your head with setting things up. A good payment gateway will have integrations and other processes set.

Going for a low-cost
Low price always catches our attention. But weigh it against the benefit it provides. Are they going to improve business productivity? Also, pay close attention to hidden costs. Do a thorough calculation to exclude any chance of misconception.

Ignoring security and fraud-protection
If you’re online, your business is at risk if your website isn’t backed by reliable products and services. Go for a secure and proactive fraud prevention company.

Payment Options Available In India

1. RazorPay

It is a payment solution allowing businesses to accept, process, and disburse payments. They have clients like Nykaa, Hotstar, Grofers, Zoho, Udacity, Mercedes-Benz, and more.

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Features

  • Instant Activation
  • Easy Integration
  • Dashboard Reporting
  • 100+ Payment Options
  • API Drive

Fee per transaction: 2%-3%

2.
CCAvenue

They offer zero setup fee for startups so you can start off easily. It allows multilingual payment page in 18 major Indian and international languages. Their customer list features ClearTrip, Starbucks Coffee, MakeMyTrip, Myntra, Airtel, and more.

Features

  • 200+ Payment Options
  • iFrame integrations
  • CCAvenue Checkout
  • Multiple Currency Processing
  • Mobile Payments
  • Intuitive Analytics

Fee per transaction: 2%-3%

3. PayU Money

It is the largest payment gateway in India assuring lowest prices. They have zero setup and maintenance fees.

Features

  • Secure Sockets Layer (SSL) secured and two-factor authentication
  • Integrated payment system
  • Large Payment Options (Cards, Netbanking, wallets, UPI)
  • Transaction management

Fee per transaction: 2%

4. MobiKwik

MobiKwik has gained immense popularity in India due to its flexibility. They offer solutions to both individual user and business.

Features

  • Mobile-friendly
  • Accepts payments through Net Banking, UPI, popular Wallets, EMI and all Indian and international Mastercard, Visa, Discover, American Express, Diners card.
  • Developer first integrations
  • Analytics Dashboard

Fee per Transaction: Custom, negotiable

5. Instamojo
It is one of the fastest growing platforms for SMEs. The platform is a full-stack transactional platform empowering merchants with simpler processes. You can simply create payment links, share with customers, and receive payments.

Features

  • Embed payment buttons
  • Direct link sharing options
  • Visual charts of payments
  • Offer free tools for small businesses

Fee per Transaction: Flat fee @ 2% + Rs 3

6. Cashfree Payment

It is a bulk payouts and payment gateway company. It provides a wide range of payment options (cards, wallets, Netbanking, UPI, NEFT, IMPS, Paypal).

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Features

  • Easiest payment gateway integration
  • Pre-authorization: Instant refund is paid without paying any charges
  • Auto-debit funds for periodic payments
  • Customizable checkout page

Fee per transaction: @1.95%

7. PayPal India

It is a global payment platform supporting over 200 countries. If you have to deal with international clients, PayPal is a good option. They enable merchants to receive money in 100+ currencies. Their offerings include web payments, apps, online invoicing, business loan, and more.


Features

  • Send customized invoices to customers to get faster payments
  • PayPal Here Card & App helps in securely processing credit card payments, create invoices, track sales, and more from a smartphone
  • Live customer support whenever you need assistance

Fee per transaction: 4.4% + US$0.30 + Currency conversions charges

Final Remarks
What you should look for in a payment gateway:

  • Integration options: Go for a payment gateway that invests in innovation and technology so that integrations with your CMS, marketing and sales tools is easier.
  • Multiple currencies: If you have international clients, charging them in their currency boosts transparency.
  • Easy setup: A good payment gateway will have all the processes set already without you having to invest any time.
  • Low transaction fee: More sales and lower transaction fee will boost your business growth

Finalizing a payment gateway for your business depends on various factors like integrations, currency support, proactive customer support and more. In fact, we struggled for quite a while to find out the best fit for our SMB. You can find the one that suits your business by listing your company requirements, the integration options they offer, transactional fees charged by them, and talking to their customer support if you’re stuck somewhere.

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(The writer is the founder and CEO of MageHost.com, a premium eCommerce Hosting company. He can be contacted at sahil@magehost.com and his twitter handle is sahil_chugh_)





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