How to add a payment gateway to an ecommerce website
Nowadays, the inclination of people to fulfill their needs online is rapidly growing, hence the bright prospects for ecommerce website design. Simultaneously, as the popularity of online shopping continues to soar, more market participants find it enticing to either bring their existing businesses online or start new online ventures to leverage such a thriving market.
Online businesses streamline their services and focus on e-commerce website design to attract more users and convert them into loyal customers. They diligently work on various aspects to facilitate shopping, providing new and innovative features.
The Importance of Offering Multiple Payment Options in Ecommerce
In the realm of ecommerce, offering a variety of payment options is a crucial factor. The ability to facilitate seamless payment transactions is of utmost importance for an ecommerce platform. By providing users with multiple payment options, accompanied by a user-friendly process, businesses can enhance the overall user experience and improve SEO performance. You can contact us to inquire about SEO prices in Dubai.
When integrating a payment gateway into your ecommerce website, there are three primary methods to consider. However, before delving into those methods, let’s first clarify what a payment gateway entails.
What is a Payment Gateway?
A Payment gateway is a software application that makes a website process payments from major banks. After encrypting the information, it collects the customer’s information and makes contact with the relevant financial institution through an API (Application Programming Interface), shares the information with the bank, and asks for authorization. Once the approval is received from the bank, the payment gateway allows the website to take the customer to the next step.
To be more specific, the payment gateway secures the payment by getting authorization from a financial institution for a particular purchase.
The payment gateway uses API to get the whole process done.
What is the payment API?
API stands for Application Programming software. In digital payment, API is software that collects the customer’s required information, encrypts the data, and sends it to the relevant financial institutions to get approval for the payment that the customer intends to make for a purchase. In addition, the financial institution’s response to authorize or reject the payment is received by API, and it would allow or reject the purchase through the website accordingly.
How to add a payment gateway to my website?
As mentioned earlier, there are three methods to equip your website with a payment gateway, as explained below:
1- Hosted Payment Gateways
The hosted option entails utilizing an external payment platform where customers are redirected to a different website for processing their payments. The primary advantage of a hosted payment gateway is that you are relieved of safeguarding customers’ sensitive information since payment details are provided on an external platform rather than your website. However, this method can lead to a bad user experience, as redirecting customers from your website may appear unprofessional. Additionally, this approach often has a detrimental impact on conversion rates, as users are typically averse to being redirected to an external site for payment processing.
2- Integrated Payment Gateways
This option lets your customers make the payment right on your website. They will not be sent away to another website. This method is more user-friendly and would not harm your conversion rate.
Also read: “Conversion Ranking Cycle in SEO”
However, in addition to being more expensive in comparison with hosted methods, as you must hire some developers to do it for you, your website must comply with PCI DSS (The Payment Card Industry Data Security Standard) as you are responsible for the security of your customer’s private data.
Hence, an integrated option could improve your conversion rate but is associated with more cost, risk, and responsibility.
3- Custom Gateway
Even though this option is very expensive, it still can be an option for some online businesses, as this is the only option that fulfills their needs.
The cost of this option might be the biggest disadvantage. It costs you at least USD 150’000 to develop a custom payment gateway and would go up if additional features are needed. The beauty of this option is that the whole technology is in your hand to make changes as needed.
The other great thing is that you will avoid fees that integrated gateways would charge for every transaction.
In conclusion, a custom gateway would suit an online business with a large turnover.
Best Integrated Payment Gateway service providers
There are a few payment gateway service providers in the market. The number of such service providers is growing fast, and their technology is enhancing.
PayPal is the most well-known payment system in the market now.
The other reputable service provider is authroize.net, the oldest one, as it has operated since 1996.
Stripe is a new service provider that is very cutting-edge. Stripe is growing fast due to being highly customizable and providing advanced features to users.
Another service provider also acts regionally across the United Arab Emirates. TELR, as a Dubai-based financial service and payment gateway provider, is now growing fast by supporting 120 currencies and a reasonable pricing structure.
How to Select the Ideal Payment Gateway for Your Ecommerce Business
As mentioned earlier, all payment gateways are compatible and utilize similar technology, making them suitable options. However, when choosing the right payment gateway for your e-commerce, several factors need to be considered, including the nature of your business, the required customer support features, and the cost.
It is advisable to consult with a reputable SEO agency in Dubai and a professional website design company in Dubai. By collaborating with these experts, you can discuss your specific needs and benefit from their professional solutions tailored to your e-commerce requirements.
At Websima, a trusted SEO agency Dubai and a leading website design company, we are dedicated to assisting you. If you need help deciding which payment gateway to integrate into your e-commerce platform, we are happy to help. Don’t hesitate to reach out to us for a free consultation meeting, where you can discuss your needs and requirements. We will then provide you with a comprehensive solution that perfectly suits your business.
Contact us today to schedule your free consultation and take the first step toward selecting the ideal payment gateway for your e-commerce venture.