Which Payment Gateway to Consider for your Application

What is a Payment Gateway? 

A payment gateway acts as an intermediary between your business and the banks, managing transactions securely and efficiently. It enables payment processing without requiring your project to handle sensitive payment data directly, ensuring compliance with PCI DSS standards. This not only simplifies integration for developers but also reduces the risk associated with handling payment information. 

While all payment gateways serve the same fundamental purpose, their features, pricing, and support vary, making it essential to choose one that best fits your specific needs. When evaluating payment gateways, consider factors such as: 

•Project type 

•Ease of integration 

•Developer API and documentation quality 

•Payment facility support (e.g., cards, digital wallets) 

•Client portal capabilities 

•Mobile app support 

•Locality and currency support 

•Technical and commercial considerations 

Technical vs. Commercial Considerations

When choosing a payment gateway, weigh both technical and commercial aspects. From a technical perspective, the ideal gateway might be the one with the most developer-friendly API or the easiest integration process. However, it’s equally important to consider the user experience and the support services offered by the gateway, as these factors can impact the overall satisfaction and success of your project.  

Mobile and In-App Purchases 

If your project involves a mobile-friendly web app, a hybrid app, or a native mobile app, payment gateways that support mobile payments are crucial. In-app purchases are increasingly common and offer a seamless payment experience for users. While some payment gateways handle in-app payments directly, others may require you to integrate with app store payment systems (like Apple Pay or Google Pay) in addition to the gateway. 

Keep in mind that while integrating with app store payment systems is typically less complex than directly interfacing with banks, it can introduce higher transaction fees. For example, Apple and Google take up to 30% of each transaction processed through their platforms. 

Commercial Considerations 

While integrating a payment gateway often incurs no direct cost, transaction fees can vary significantly. These fees, usually a percentage of the transaction value plus a fixed amount, impact both the business and the customers. Here’s a quick look at some commonly used gateways and their 2024 pricing: 

eWay 

•Pricing: 1.5% + $0.25 per transaction. 

•Consideration: The hybrid fee model (percentage + flat rate) can be costly for small-value transactions. For instance, a $5 transaction would incur a 5% fee due to the $0.25 charge. 

Stripe 

•Pricing: 1.75% + $0.30 per transaction. 

•Consideration: While slightly more expensive than eWay, Stripe offers extensive features and flexibility. Its advanced functionality can save development time, potentially offsetting higher transaction costs. 

 

Pin Payments and Braintree 

•Pricing: 1.75% + $0.30 per transaction (same as Stripe). 

•Consideration: Depending on your transaction volume, there might be room for negotiation on fees with these gateways. 

Other Relevant Payment Types in 2024 

As of 2024, it’s crucial to consider alternative payment methods beyond traditional gateways to cater to diverse customer preferences: 

•Digital Wallets: (e.g., Apple Pay, Google Pay) for a seamless mobile payment experience. 

•Buy Now, Pay Later (BNPL): (e.g., Afterpay, Klarna) to offer flexible financing options. 

•Cryptocurrency Payments: For businesses looking to tap into decentralized and global payment options. 

•Open Banking and Real-Time Bank Transfers: Offering direct bank transfers through services like Plaid or Trustly. 

Don’t Leave It Until the Last Minute!

The approval process for payment gateways, especially for new businesses, can take time. Gateways need to conduct an approval process, similar to how banks assess loans. Therefore, it’s crucial to start this process at the beginning of your project to avoid delays when you’re ready to go live. 

 Finding the Right Payment Gateway 

There is no one-size-fits-all solution when it comes to payment gateways. The best approach is to create a list of requirements and expectations for your project, then use this guide as a starting point for research. Assess each gateway based on your project’s needs, considering both the technical ease of integration and the commercial impact on your business. 

Recommendations for 2024 

Choose payment gateways with a proven track record, robust customer and developer support, and the necessary features for your project. The ones mentioned here—eWay, Stripe, Pin Payments, and Braintree—have consistently provided reliable service and quality integration support. However, given the fast-paced evolution of payment solutions, it’s advisable to stay informed about new developments and offerings in the market to make the most informed choice.