The different methods that startups can use to collect online payments.
In the early days, online payment was used as a strategy to make businesses stand out compared to their competitors. Today, online payments are not merely a PR stunt or a unique selling point. Instead, online payments have become a necessity for any kind of venture in all industries.
How Startups can Accept Online Payments
Online payments have branched out into different methods and modes. Entrepreneurs need to integrate the online payment method that meets the needs of their customers. It is important to choose the method that caters to your business and customers’ requirements.
Factors to consider when choosing a mode of online payment for your startup includes the following:
Quality support team - Your preferred mode of payment should have a quality backend support team that is both responsive and available on request.
Existing and available technology - Consider the technology at your disposal and what’s within reach of your customers. Questions to ask include, what percentage of your customers have smartphones
Pricing - What are the rate arrangements between your business and the payment provider. Compare the quality and service charge for providers. Weigh your options and choose what’s within your budget.
Now that you have an idea of choosing your startup’s mode of payment, here is a checklist of what you need to know on accepting online payments.
Bank Payment Gateway Integration
Bank payment gateways are also called second party gateways. They allow ecommerce businesses to accept payment through net banking, credit and debit cards. The first step to integrating a second-party payment gateway is clearing an initial setup fee and meeting transaction fees.
Meanwhile, you will encounter barrels of paperwork and submissions to the bank when integrating a bank payment gateway.
Third-party payment gateway
Integrating eCommerce businesses with a third-party payment gateway is a cost-effective, easy, and reliable means of accepting payments. Through this method, merchants will explore several options such as prepaid digital wallets, net banking, credit and debit cards. This gives customers plenty of flexibility when transacting with your business. Although third-party payment gateways might look similar to the bank payment gateway, they are more user-friendly, easy to use, and easy to integrate with an existing business. In most cases, third-party payments do not charge maintenance costs or any kind of hidden fees. Another advantage is the options of payment availed to a user, such as Quick Response (QR) codes, UPI, and wallets.
XanPay offers the best payment gateway solution for all verticals - a small business to service providers, merchants, freelancers, and businesses of all sizes to accept payments online on a secure and instantaneous network with reduced transaction fee. Any online business can integrate XanPay's infrastructure within their website to start receiving international payments from cross-borders. It provides an easy onboarding process that facilitates an eCommerce or any online store to collect international payments through XanPay.
Differences Between Second Party and Third-Party Payment Gateways
Second-party payments have charge high setup fees while it is not costly to set up a third-party payment gateway.
Second-party payment gateways have a lengthy application process that might take a cycle of up to 90-days to gain approval. Third party payment gateways are easy to get onboarded, the approval time is quick, taking between 5-10 days.
Second-party payment gateways are associated with lots of paperwork submissions, while third-party payments are easy and paperless.
Second-party payment gateways are difficult and lengthy to integrate and might require technical expertise,while third-party payment gateways are easy to integrate and do not demand coding experience.
Little to no scope of merchant customization on the user experience of second party gateways, while third-party payment gateways have a user-friendly and high intuitive user experience that allows merchants to interact and customize the payment checkout.
Second-party gateways limit any form of branding or customization while third-party payment gateways allow a level of freedom when customizing and branding the checkout feature of their payments page.
There are payment gateways that will allow you to set up custom payment links and send them to customers either via messengers, email, chatbots, or SMS. The payment link is customized with your customer’s amount to pay your business and takes them directly to their digital wallet. Well, seems like a smart way to streamline your business and accept payments.
Custom Payment Pages
Businesses can create custom-branded checkout pages where customers can make payments. Most of these pages require no technical coding experience, and a drag-&-drop page builder such as Elementor could come in handy. Through such pages, you can easily track down your payments in a flexible manner. The majority of businesses create custom-branded payment forms to collect ticket sales, fees, and donations.
Businesses can exploit the power of digital wallets to accept payments from customers. Digital wallets can be loaded with either fiat or crypto. This mode of payment provides customers with lots of flexibility. Furthermore, they are also secure, convenient and user friendly. Meanwhile, the business should ensure its average customer has access and can use a digital wallet.