The subject of online payments comes up often in conversations between entrepreneurs who are launching into e-commerce . It is indeed the main channel through which your customers will be able to pay for their purchases remotely. A few figures to start with: In 2019, it is estimated that at least 8 out of 10 online shoppers pay for their purchases using a bank card, that the average shopping basket of the French buyer exceeds 70 euros, and that more than a billion card transactions are carried out each year in France alone.

Another interesting and significant data, it is estimated that nearly 40% of orders are placed by means of a mobile phone. All these figures are increasing year by year and make the optimization of the online payment offer essential, in particular concerning the speed and security of transactions, key elements for both the seller and the customer. The manager of an online store must therefore keep in mind that suitable payment solutions help attract buyers and retain them.

The different online payment solutions, it is a subject that seems complex at first glance, because there are several ways to pay for your purchases online, and it is not always easy to understand the distinction and the relationships between “gateway payment “,” merchant account “and finally the” payment processor “, which we will discuss here in detail. In addition, we will see in this article which are the most efficient providers in this competitive sector of e-business.

Let’s see first of all what is included in the term “payment processors”.

By this term we mean any company that has been authorized to process card payments between a buyer and a seller. Most of the time, it is a third party designated and chosen by the merchant himself. The payment processor must simultaneously Latvia WhatsApp Number List connect to the seller’s account and to the payment gateway, maintaining an exchange of information which must be secure.

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To schematize, this processor acquires the information relating to the transaction at the level of the payment gateway. After validation and execution of the information, the processor deposits the money in the seller’s account. It also has an information role concerning the success or otherwise of the transaction.

What are the criteria for choosing among the payment solutions?

You should think about the needs of your e-commerce site before choosing a payment solution. A careful analysis of your customers and the market you are targeting is essential.

At the strategic level, for example, are you going to limit your business to the national territory or do you intend to export your goods? How many different currencies do you think you are working with? Depending on the answer, the selection of a particular payment processor will vary depending on your e-commerce requirements.

Then, online payment solutions are not the same depending on the type of merchandise you want to market. Indeed, luxury goods are not treated in the same way as conventional goods.

The price of your products will also influence your choice, as will the clientele and the market you are targeting.

Also think about the expectations of your customers. What do they expect from the payment solution offered in your e-store or on your online sales platform? The first element, without surprises, is to be able to pay for their purchases in complete security. This is what builds a high degree of trust between the customer and you. Afterwards, buyers want to be able to shop quickly, in several installments and with a clear and simple shopping cart system. The last thing is to have the possibility to pay in 1-click. When the customer has made their first purchase, they will give you their personal information relating to payment by credit card. Then, no more wasted time, just one click is enough to pay. It’s a super fast and secure solution that buyers love.

The most used payment solutions:

PayPal

Let’s start with the most famous payment provider and also one of the most used: PayPal. Contrary to popular belief, PayPal isn’t just for transferring money. Founded in 1998, the Californian firm offers an online payment solution worldwide and accepts processing over 25 different currencies. What makes PayPal successful is its ease of use and the automation of many processes such as monthly invoicing, for example. The advantage of the American giant is to be completely transparent about prices and costs. Plus, the termination fees are minimal.

Amazon Pay

Amazon Pay is also not a totally unknown company, as the name Amazon is familiar to millions of buyers and sellers across the globe. This inspires the confidence of both customers and traders. It is the largest online marketplace in the world. If you work on Amazon, then adopting Amazon Pay is a given. In addition, the Amazon Pay solution is easily incorporated and in just a few hours on popular e-commerce platforms, it is even preinstalled on Shopify, PrestaShop or even Magento. The payment processes are fast, simple and above all very secure. Online, mobile or voice payment, customers appreciate the solutions offered to them.

As for the tariffs, 1.4% of processing fees are levied which are added to 0.25 euro of authorization fees in France and in Europe. Obviously, these rates change depending on the flow of payments.

Stripe

Stripeis not yet the top-rated payment processor in France, but several of its features are remarkable. This payment solution specializing in online commerce offers your customers the possibility of paying for their purchases by credit card without having to call a bank. It is certainly for this reason that millions of e-merchants use this payment solution today. Stripe fits naturally into your e-store and we can say that this service provider is a good companion for your online business, because it knows how to adapt to any type of structure, whatever its size. Moreover, Stripe works closely with the developer community in order to bring the most flexibility to e-business companies:

Square

Square is another American company specializing in electronic payment. What makes it unique is its range of terminals that are easy to connect to your computer, tablet or mobile phone, such as miniature bank card readers that adapt to Android and IOS. Their checkout solution is perfect for a store that wants to sell both online and offline. Their slogan “Run your business anywhere – all in one place” really matches the reality of their service. Square also offers smart options that allow you to observe real-time sales analysis or even intuitive management of your inventory.

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