Today the world is led by the internet and mobile computing technologies. Surging internet connectivity correspondingly driving the eCommerce industry across the globe, establishing new benchmarks in terms of revenue and customer engagement. Running a successful eCommerce business relies on various factors, but payment gateway is a critical aspect of any eCommerce business to carryout hassle-free transactions. If you are running an eCommerce business, you can’t process payments online without a payment gateway. A payment gateway is mandatory to enable secure payment authorization for your eCommerce site.

To increase your conversions and increase sales on your eCommerce stores, you need to have proper integration of the Payment gateway with your eCommerce store. Without a payment gateway integration, your sales will dwindle because customers will only have the option of paying for products via cash on delivery, which many people don’t prefer. Instead of opting for COD, many customers prefer to pay for online products with their debit cards, credit cards, online wallets, or net banking.

So, in this post, you will get detailed answers to many questions, such as what are payment gateways? How they can be integrated into your eCommerce store and what are the criteria to select an excellent payment gateway for your eCommerce store.

What Is A Payment Gateway?

A payment gateway is a software application that acts as a middleman for the online e-commerce store and the payment processor (receives the payment from the customer of the e-commerce store).

In simple words, it can be understood in a way as soon as a customer enters the payment details on the e-commerce website, here, the payment gateway is responsible for sending the captures payment details with utmost security to the payment processor.

Payment works

The authorization of the payment and to ensure that the entered data is enough to finalize the payment is taken care of by the payment gateway. In order to protect the details of the credit card, the gateway uses encryption for all the sensitive information which it holds. Therefore this process makes sure that private and personal details are exchanged securely between the customer and the merchant.

Whenever a transaction takes place on the website, magic that occurs in the background is because of the payment gateway. The primary component which enables e-commerce stores to function is the payment gateway as it sends the information related to the payment details from the website to the payment processor and then returns back the transaction details back to the website.

Moreover, if you are owning an e-commerce marketplace and want to accept payments online via debit/credit cards, net banking, UPI transfers, e-wallets, etc. A payment gateway is an effective bridge that is used between product sales and customers.

Also Read: How To Develop An eCommerce Website?

Functionality Of Payment Gateway For An eCommerce Store

Being an e-commerce store owner, you generally don’t have to understand the entire working of the payment gateway. Usually, you need to select the payment gateway and integrate the same with your online eCommerce store, which can be done simply from a user-friendly setup wizard. After the successful setup, it permits you to collect the payments from your customers.

Moreover, to share a brief idea about the working of the payment gateway, here is a quick look at the steps that usually takes place:

  • The customer selects the product on the e-commerce website, fills in the cart, and proceeds to the checkout by filling in the payment details.
  • The payment information is received by the payment gateway, and the encryption process is completed, and then it transmits the details to the payment processor via a secure channel.
  • Once the details are received by the payment processor, the customer gets redirected to it.
  • The customer is taken through the steps to finalize the payment by the payment processor.
  • Verification of the successful payment is done by the payment processor, and a message is displayed to the customer.
  • The customer is redirected back to the online store.
functionality of the Payment Gateway

Criteria To Select A Payment Gateway For An eCommerce Store

Points that you should consider while selecting the payment gateway are as follows:

  • Identify the popular payment gateway in the country where you are targeting your products.
  • Ensure that the payment gateway has minimum transaction fees.
  • In order to increase your e-commerce marketplace worldwide, try finding the payment gateway that provides multi-currency support.
  • Read the terms and conditions of the top payment gateways so that you can get a complete understanding of the products that you can sell (digital or physical). There might be situations that some payment gateways may only permit the selling of physical goods.
  • Check whether the payment gateway accepts the payments from PayPal, Master, or Visa Cards.
  • Ensure that the payment gateway offers a good shopping experience to the customers.

Statistics Of Most Used Payment Gateway For eCommerce Businesses

Payment Gateways
Source: Statista

Payment Gateways That Are Used Extensively For eCommerce Businesses



Stripe being a relatively new e-commerce payment gateway, gut has quickly gained popularity in the market. In the online business industry Stripe is a leading payment processing organization. The payment API for your business can easily be developed with Stripe. The user interface of Stripe is a bit tough for non-technical customers. The major advantage of Stripe is that while the payment process clients are not redirected to another site and allow them to stay on the same page. The API can be utilized to give a positive user experience to the customers and customize the workflow. For credit card processing systems, Stripe is well suitable. As of now, 31 countries like Australia, Canada, United Kingdom, and the USA are supported by Stripe with 24 currencies.

Processing fees of Stripe are 2.9% + $0.30 per domestic transaction.

Brands that are utilizing this payment gateway are Spotify, GitHub, Shopify.

Advantages Of Stripe Payment Gateway

  • Customization over the site is simple and easy because of the accessible documentation resources.
  • Perfect choice of the merchants who have their business reach internationally.

Disadvantages Of Stripe Payment Gateway

  • For high-risk industries, this gateway is not suitable.
  • There are various issues of account stability.



Braintree was established in 2012, and currently, it is topping the mobile payment gateway platform. The programming of Braintree is different, and its code can be particularly into a merchant’s online e-commerce site.

A secure checkout experience is offered to the customers just like PayPal and encourages them to return to the website. For e

Commerce businesses that are looking forward to processing the payments accurately and improve their order management, Braintree is the optimal choice.

The processing fees charged by Braintree is standard 2.9% + $0.30 fees for every transaction that is processed from it. Brands that use this payment gateway are Dropbox, Uber, Yelp.

Advantages Of Braintree Payment Gateway

  • It offers flat-rate pricing.
  • Various extensive integrations are available.
  • Availability of integrating multi-currency options.

Disadvantages Of Braintree Payment Gateway

  • The API of Braintree can not be used by businesses without developer resources.
  • Long duration of time is required for account setup.
  • There is no online and offline integrated solution.



PayPal needs no introduction, and it is one of the most popular online payment gateways. Talking about its acceptance, it is being used by millions of brands in almost every single country and is accepted worldwide. Also, PayPal is the most reliable and secure payment gateway.

There are no transition fees for buyers and is free to use, but merchants have to pay some transition fees if they are using PayPal for Visa payments, payments from Mastercard and credit card are easily acknowledged. There are no charges like setup expenses, gateway fees, or monthly charges in PayPal.

The processing fee is 2.9% per transaction with no monthly charges. Top brands that use this payment gateway are Disney, Adidas, and ASOS.

Advantages of PayPal Payment Gateway

  • It is the best choice for merchants who have their business flow in low-volume.
  • Possess all payment solutions in one.

Disadvantages of PayPal Payment Gateway

  • Not an appropriate choice for the industries which have a high-risk business.
  • Customer support is not provided consistently.
Get your own eCommerce website



It is a UK-based e-commerce payment gateway that was designed, keeping in mind the needs of both businesses and consumers. Skrill provides a platform where international transactions can be done easily. Therefore by utilizing its dedicated mobile application, you can make payments for the products and services irrespective of the location.

The connectivity to any bank account globally is simple with Skrill, and it ensures complete security of the payment data. While creating an account on Skrill there are no charges but there is a fixed percentage charged on the transaction that is being made. The processing fees charged by Skrill is 1.9%

Advantages Of Skrill Payment Gateway

  • In-app payments are fully supported by the payment gateway.
  • Integration with third-party shopping carts is easily done.

Disadvantages Of Skrill Payment Gateway

  • The fees charged are really expensive. Also, possess a currency conversion fee of 3.99%
  • There are issues with account stability.

Google Checkout

Google Checkout

One of the great payment options for all the e-commerce store owners present in the western region is Google Pay. Google wallet is being utilized by many people in the Europe and US markets for storing money. For online shoppers, the Google checkout option is used for easy payments. In comparison with other leading payment gateways, it is more reliable and faster too. The transaction fee charged is very less in comparison to other payment gateways.

Advantages Of Google Checkout Payment Gateway

  • The account setup and integration with an online e-commerce store can be done easily.
  • The processing fee is less than the other payment gateways.
  • It possesses integration with AdSense.

Disadvantages Of Google Checkout Payment Gateway

  • Acceptance of payments is limited only to debit and credit cards. No other method of payments like net banking, UPI, etc.
  • Not accepted worldwide like PayPal.

Apple Pay

Apple Pay

The contactless payment gateway that is used widely is Apple Pay. It is easy to use and works with Apple devices. Moreover, it is utilized for making purchases securely in-store, in apps, and also over the web. The transfer of money can also be completed easily. This payment gateway accepts payments from all the cards like American Express, Master and Visa card, Suica, and Quick Pay.

Advantages of Apple Pay

  • This payment system is compatible with most of the banks and credit cards offered by Visa, MasterCard, American Express are supported by Apple Pay
  • Apple pay uses a device account number to ensure that the credit card details are transmitted securely.
  • In order to prevent fraudulent activities, Apple pay uses NFC technology.

Disadvantages Of Apple Pay

  • Apple pay is limited only to iOS users who have iPhone 6 or above versions. Moreover, in iPads, it is available with iPad 2 or higher versions.
  • It is not necessary that every retailer uses a mobile payment terminal.
  • There can be issues related to software that may affect the payment gateway functionality, and transactions can be at hold.

Amazon Payment

Amazon Payment

One of the secured and simplified payment services can be provided to the customers by utilizing an e-commerce payment gateway like Amazon Payment. Both merchants and customers get the service in order to facilitate online buying. For completing check-ins and checkout, Amazon Payments completely works on the data which is entered by the customer. For assisting international audiences, Amazon payments can be integrated into several languages and support all currencies.

The processing fee of Amazon payments is 2.9% on domestic transactions, with an additional $0.30 per transaction. Whereas the international fee may range near around 3.9%. Top brands that are utilizing Amazon payment gateway are Rothys, Lootcrate, and MVMT Watches.

Advantages Of Amazon Payment Gateway

  • There are no additional charges for its guarantee, thus ensures that the transaction is 100% secure.
  • It can easily be customized into the current e-commerce website.

Disadvantages of Amazon Payment Gateway

  • Merchants who experienced high volume on the website, for them it is really expensive.
  • Businesses that are looking for handling both online and in-person transactions this payment gateway is not recommended.



Authorize.Net is one of the most popular payment gateways, which is widely used for the e-commerce business. Since its establishment in 1996 till now, it has 4,00,000 merchants using this payment gateway via electronic checks and credit cards. Moreover, the funds can be transferred immediately into the bank account, which saves a lot of time and money for all medium and small-sized businesses.

Merchants have their own dedicated interface for dealing with their accounts. Also, experts suggest that it is a good fit for e-commerce and Magento stores. It is an all-in-one payment provider option, which has a processing fee of 2.9% on transactions with an additional $0.30 per transaction.

Advantages of Authorize.Net Payment Gateway

  • It supports various currencies.
  • Features like anti-fraud and robust security are available.
  • There are no long-term contracts.

Disadvantages of Authorize.Net Payment Gateway

  • Prices for merchant accounts are high.
  • The customers may get confused with the all-in-one option.



This payment gateway focuses on eliminating all the complexities which come while working with a payment provider. It offers a smooth and enriched payment experience for its customers. The pricing and the products offered by this payment gateway are specifically designed to match the business needs.



Alipay was introduced by the founder of Alibaba to provide the safest payment processing for all the clients. Alipay is an e-wallet similar to Google Pay and Amazon Pay, which contains amazing features.

Also Read: How To Develop A Mobile App For eCommerce?


The future of the B2B e-commerce business is Payment Gateway. They play a significant role in building a secured link between the website and the payment processor, therefore encrypting entire payment data for every transaction. The popular payment gateways that we have shared offers quick, seamless, secure, and easy transactions. Therefore with the various gateway options that we have shared with you, it would be easy to decide which payment gateway fits as per your e-commerce platform.

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CTO at Emizentech and a member of the Forbes technology council, Amit Samsukha, is acknowledged by the Indian tech world as an innovator and community builder. He has a well-established vocation with 12+ years of progressive experience in the technology industry. He directs all product initiatives, worldwide sales and marketing, and business enablement. He has spearheaded the journey in the e-commerce landscape for various businesses in India and the U.S.