There are hundreds of online payment systems for web-based and retail small businesses. We analyze the top 5 in terms of volume and user ratings.
Old payment systems consisted of credit cards and mail-in checks, these systems are still widely used but for eCommerce transactions, they fall short in providing the business with efficient and timing payment collection.
Of the current payment processing providers, 5 stand out as the best in terms of speed, user-friendliness, and cost. These are Paypal, Stripe, Square, Amazon, and Woo.
Let’s Look At Each
Easy to use. Oldest of the eCommerce systems. Paypal is NOT a bank. Most widely used of all providers.
Quick payment processing. Easy setup and use. Works very well, with very few glitches. Offers Test Mode which is very good for potential users. Worldwide availability.
First to use mobile devices for credit card payments. Great for in-store or out-of-state transactions. Not the best option for online use.
Solid. Great for international transactions. Can use a single button for payment. Must trust them with YOUR customer’s information and purchase data.
One of the newest, but most innovative providers. Not an easy install. Big plus: offer Woo Extensions which accept payments from other payment providers so you can better accommodate customers.
Which Is The BEST
All of these systems can accommodate subscription (membership) processing from services like
Paid Membership Pro. There transactions fees and percentage charges vary slightly. See chart.
For any site, the payment mechanism if of utmost importance. This is how you get paid.
Given its ease of setup and use. Its widespread base of customers, its efficiency, and near error-free processing the 4MP choice (at this time) is Stripe. With all of the new innovations in payment processing rankings can change very quickly. Stripe now offers customers other provider extensions, ala Woo.
Before leaving I wanted to mention the growth occurring in In-vehicle Payment Systems. Used for fast-food transactions, at cafes and coffee houses, for parking services, and other applications, In-vehicle payments are expected to grow over 1,000% by 2028. Apple has teamed up with auto manufacturers for button placement in vehicles using Apple Wallet.