The Best Payment Gateway Providers for SaaS Business
Intro to Payment Gateway Providers for SaaS
Every business must have a way to accept payments online, and payment gateways are one option to do so.
Payment gateways are easy ways to allow successful online transactions on your webpage. Plus, they cover the security and legal side.
Here, we discuss them, talk about the leading providers, and tell you what you should know for your business.
In the end, we give our verdict of which one is best.
How Does a Payment Gateway Work?
It receives the order, encrypts the data, and connects with the payment processor of your bank. Then, the processor confirms the transaction with the customer’s bank and reaches back. Later, the gateway, after receiving the confirmation, seals the deal and ends the order.
You get the funds from your bank after the card issuer provides a partial settlement to your bank. The process depends on the procedures of your bank and takes around 3-7 days.
Is a Payment Gateway Free?
No, you will always have to pay for every transaction made and for extra features or the service monthly.
Payment Gateway PayPal
PayPal Payment Standards is of the best providers out there. It provides an accessible, secure, and complete service. Adding it to your business is very useful.
Remember, because the brand is famous, it increases your conversion rate!
Let’s talk about money. Prices depend on geographical zones. For example, for EU countries, domestic transactions fee can vary from 2.49-3.40 % + fixed fee. Inter-regional or international transactions have a fee of 0.50-3.00% + fixed fee. Note that for PayPal, not all countries in the EU count as part of the same group and thus have different fees.
For the US, you pay no other than a flat fee of 2.9% + 0.30 ¢ per domestic transaction, add 1% for international payments.
Because of this, we recommend to you, if you are outside the US, to confirm all the fees by yourself to avoid any problem.
Debit card payments, on-site checkout, and custom checkout designs are not included. If you want to have some of these features together with many others, you have to pay $30 per month.
Payment Gateway for WooCommerce
WooCommerce counts with support for several payment gateways, like Amazon Pay, PayPal. While also having its own free gateway called “WooCommerce Payments”.
This payment gateway features on-site checkouts, flexible customization, broad monitoring, and stats, etc.
For an annual fee of $199, you get a subscription option, which allows recurrent payments. This might be interesting if you provide courses, for example.
One convenient feature is that all information is accessible from your WordPress dashboard. Another advantage is that security and accessibility are entirely up to foreign standards.
When it comes to prices, it has the fees as PayPal’s, meaning 2.9% + 0.30 ¢ per domestic transaction and +1% for foreign cards.
One significant drawback is that as of Jan 2021, the service is only supported within the US.
Payment Gateway Stripe
Over the years, Stripe has become PayPal’s primary challenger as gateways, and there is no wonder why.
It counts with similar security and accessibility standards and offers way more.
Notable free features include subscription payments, on-site checkouts, card secure storage, among others.
Another useful free feature is an option that lets you decide if you want to accept the transaction or not.
Its payment method coverage, besides the traditional ones, is also of high value. In Europe, for example, it includes Google and Apple Pay, 3D Secure, SEPA Direct Debit, etc.
Another advantage is that its customer service is one of the best in the market. It might not sound so impressive, but it is useful when things go wrong!
On prices, the fees are straightforward. In the same European context, there is a 1.40% + fixed fee of €0.25. Stripe follows the standard of 2.9% + 30¢ for domestic payment and +1 % for foreign payments in the US.
Not everything is perfect. There are downsides. For example, receiving payment in installments only possible using a third party. The problem is that the feature is relatively new and is only available for a selected group of countries. Make sure to do your research before jumping to Sprite if that is one priority for you.
Payment Gateway for Shopify
Shopify counts with its own payment gateway, “Shopify Payments”, for over 20 countries. It keeps with all standards, accepts Google and Apple Pay, and 3D secure payments. As well as provide support for significant card networks such as Visa and Mastercard.
Its basic plan includes unlimited product listing and over 133 currencies support.
This plan’s fees are the usual 2.9% +30¢ for US domestic payments + 1% for international ones.
For those countries not supported yet, there are other gateways and methods available. Options vary depending on the region, but generally speaking, you will see PayPal, Visa, etc.
Note that transactions outside the “Shopify Payments” have an extra fee of 2.0%.
The limited global support and the extra fee represent two crucial drawbacks.
Integration with Payment Gateway
For WordPress, PayPal and Stripe are the most competent providers currently available. All type of business uses them because there are many plugins available.
If you use WooCommerce, PayPal has a slight advantage because it comes as one of the in-built options. This means that there is no extra effort needed on your part.
Spite has an official plugin that is more complete. Installing and configuring it can be a bit hard for the average person. This can be a real problem if you want to make some advanced tunning, and not so much if you stick to the usual blueprint.
You may want to check “WP Simple Pay Lite for Stripe” or “Gravity forms” if interested. They are great and might help you.
Which Payment Gateway is Best?
As you can tell from this article, the final decision will most likely be between PayPal or Stripe.
Stripe, thanks to its extensive free features, the overwhelming support of payment methods. Together with its significant fees and smooth design makes it arguably the best provider. All interested SaaS business owners should consider Stripe for any type of service.
The only reason why choosing it may not be a no-brainer is because of the installment issue. Of course, it will be a problem your country is not included, or the third party does not work for you. If you are one of them, choosing PayPal seems very accurate but perhaps only for the moment. Judging by Stripe’s history, it is likely that it will find a way to add that feature sooner rather than later.
We hope the information here helps you taking a great decision. Thanks for reading, and stay tuned for more content soon.