Online shopping has become the order of the day with users making frequent mobile payments for businesses of all types. More people are taking their business online, as well as people are making online purchases, therefore digital payment has become a necessary part of every type of business operation. According to Statista Market Insights data prediction, the value of digital payments are expected to grow at an average rate of 9.52% in the next four years.
It is important that businesses of all types begin to adapt to these trends by making provision for cashless transactions through different digital payments options, especially those that are popular amongst their target audience.
However, it might not be exactly possible for every business to adopt a wide range of digital payment options at the same time. Each payment option is unique in its own way and affects the way your business operates, as well as how your customers interact with your business. The right payment gateway can help enhance your customer experience and build your digital transformation, thereby propelling your business growth in this digital age overtime. Nonetheless, it might be quite tasking for businesses to identify the best gateway that suits their business and customer type.
In this article, we’ll discuss factors to consider when choosing a payment gateway for your online business and how to adopt a payment gateway.
4 Important Factors to Consider When Choosing a Payment Gateway
This is a breakdown of four factors necessary for a business to consider before choosing a payment gateway.
- Fee structure and hidden fees
There are several fees that online payment gateway providers charge; from transactional fees to maintenance and set-up fees. Sometimes these extra fees are usually hidden by providers during marketing and online promotions. Hence, it’s not always very possible to be certain about the total cost/ expenses of a payment gateway at first glance, as they’re deliberately withheld by providers.
This is why you must not be very quick to select the cheapest or Free payment gateway provider.
While they’re a number of popular Free/affordable payment gateways, most payment gateways charge particular fees for several purposes. These different styles and formats of charging are called Fee Structure. The fee structure includes; type of fees and nature of fees.
While Some providers charge percentage – based fees; that’s the percentage of every transaction, meaning higher transactions which cross a particular threshold will attract higher charge and vis-a-vis. Other providers offer a fixed fee per transaction, regardless of the volume of your transaction.
Finding the best fee structure for your business requires that you do lots of research to find the cost components of your chosen payment provider, as well as the conditions for adopting the system. Also, you need to assess your current transaction volume and estimate the measure of increase in the number of transactions you plan to process in the future. This means, if you’ve projected a large volume of transactions, it would make sense to opt for a payment gateway with a volume-based fee structure for cost-efficiency reasons.
- Sustainable Infrastructure
Infrastructure simply refers to capacity of the payment gateways to process payment per time.
The infrastructure must be reliable and strong enough to last a longer period of time as well as to process large volumes of transactions. Observe to ensure you select the right platforms with solid infrastructure which ensure that payments are processed with speed and regardless of her volume.
Even if you are yet to get to a particular level, you want to ensure that your chosen payment gateway can meet your current business performance and expected future performance. It’ll be best to read online reviews and ask other entities before you conclude, at least to help you build a level of certainty and confidence in my decision.
At the extent to which the infrastructure can stand, the platform will definitely you must avoid glitches, system downtime and total shutdown.
You can enquire from providers how likely their platform will glitch and suffer hindrances. Most platforms offer automated payments and can be oily safe. Do the payment gateways automate all payment transactions? Do they also offer APIs that can be integrated into your website to ensure smart payment?
- Quality of customer service
Financial solutions and customer support is one thing. You want to ensure that you choose a payment gateway that has a high level provision for customer support. This is because tech solutions are likely to experience a glitch every now and again. And when it happens to involve transfer of funds, individuals need to be careful to ensure that operations run smoothly. And every glitch is treated with emergency so that financial transactions are clearly accounted for your funds
Select a payment gateway that is easily adaptive across different platforms and organizations. Some platforms have terrible testimonials like they could ignore your complaints for a long time.You need to confirm that the payment gateway has proactive customer care services that can identify your issues and resolve them as quickly as they occur.
The more proactive the customer service is, the less likely you are to experience financial losses.
- Various Payment Methods
There are several payment gateways options that are popular amongst different types of people. So, every customer has particular payment methods they are used to and preferred. For example, some customers might prefer bank to bank transfer while others might prefer credit card or electronic wallets.
As your business begins to expand, you need to consider adding all types of payment gateway. Primarily, a gateway that accepts all payment methods is most ideal. This will not only make your customer experience upgraded but attract more potential customers.
Visit official websites of payment gateway providers to compare different wallets provided.
Conclusion
Payment gateways are an interesting trend as they have the capacity to grow your business significantly or drown your business if the experience passed down to your customers is slow, unpleasant and simply terrible. Build smart payment gateways with BariumTech by contacting us through the details on our website now.
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