GiudittaWe might think that as the supply of a good increases, the choice becomes easier for the consumer, because the choice increases. In a certain sense, this is true, but when it comes to payment systems for e-commerce, those who do business must learn to navigate a labyrinth of hidden costs, integration difficulties, and risks for the slowness of their site.
Better Stripe or Nexi? Paypal is expensive, can it be avoided?
Is installment payments for e-commerce worth it?
To answer these questions, we have collected what we believe to be the best new online payment methods, weighing various factors such as ease of use, reliability, and costs. But above all, we have considered in our top 10 the popularity that the payment systems have among consumers.
DISCLAIMER
We are not registered with any affiliate programs and We do not receive compensation for our opinions. The review will therefore be impartial and will also contain some negative opinions.
Top 10 Ecommerce Payment Systems (Last Updated 12/2021)
1) Paypal
You can't do without Paypal, because it is currently one of the most popular and secure payment systems online.
Benefits
In addition to being extremely popular, fast and reliable, Paypal is also easy to use and configure on the various e-commerce platforms, and it is quite immediate to open an account (both for the owner of the e-commerce and for the customers).
Cost
The main disadvantage is the cost of payments. For each domestic commercial transaction, 0.35€ is added + a percentage of 3,4% applied to the transaction amount.
2) Stripe
Stripe is an optimal payment system for those who want to accept credit cards on their e-commerce without too much effort. While in the United States and other European countries it is very popular, in Italy its diffusion is growing only in recent years.
Benefits
One advantage of Stripe is that it adapts very well to international markets. Payments are displayed to the user directly in their own currency, without the need for conversions.
It is a payment system that integrates very well with other tools, such as digital wallets such as Alipay, Amex Express Checkout and Apple Pay. any type of e-commerce and requires little maintenance. Finally, it allows great customization and great control over e-commerce payments, which can for example be refunded directly from the Stripe dashboard.
Cost
For European payments 1,4% + €0,25 flat rate. For non-European payments 2,9% + €0,25 flat rate.
3) nexi (Xpay)
This is an increasingly widespread solution, adopted as a secure and professional e-commerce payment system.
Benefits
It has excellent security standards for accepting payments with credit cards and with all major payment systems (PayPal, Amazon Pay, etc.). It is also very simple to use for the e-commerce user: just click on the checkout button at the end of the online shopping.
It can be integrated with Shopify and other e-commerce sites, and with a Plug and Play service that allows you to receive payments via social networks.
Cost
Nexi/Xpay is a rather expensive solution: the basic plan usage fee is €14,90 per month, plus 2,4% and a fixed fee of €0,34 applicable to each transaction.
4) Satispay
The recent success of the Italian Satispay has prompted us to include it in this top 10. Today, more and more consumers are choosing it as a payment card on smartphones, because it does not apply commissions on small transactions, and it allows you to manage a monthly or weekly budget.
For e-commerce you can add it as a payment system via plugin, psp or API (setup is made easier if you are using Shopify). The only disadvantage that you hear about in some online reviews is the slowness of the crediting.
Benefits
It is becoming increasingly popular in recent years, due to the convenience of free top-ups and the possibility of cashback (for end users). There are also other systems that allow you to integrate Satispay into your own - for example Axerve, which we will discuss in the next paragraph.
The latter might be a better solution if you want to manage all your payment platforms in one place without multiple configurations.
Cost
1% commission for orders under €10.
1% commission + €0,20 fixed cost for orders over €10.
5) axerve
Previously called Gestpay (Banca Sella). It is a reliable and fast online payment system, which allows you to integrate different payment systems into your e-commerce.
Benefits
It integrates with 250 e-commerce payment systems, and is extremely secure (compliant with PSD2 regulations). These two factors make it a good ally for those who have little time to dedicate to configuring payments in their e-commerce, also considering the fact that Axerve has official plugins for Magento, Prestashop Salesforce and Woocommerce (unfortunately not for Shopify).
Cost
Axerve has a fixed commission of €0,35 on each transaction, combined with a percentage of 3%. A free plan is also available, with no additional monthly costs for the merchant.
6) Payoneer
A payment system for e-commerce that do business mainly with foreign countries and want to be sure to manage each currency with a safe and reliable tool.
Benefits
Payoneer offers 100 different currencies for your customer to choose from for purchases. It is very popular with travelers, especially in third world countries with a currency included in Payoneer that is excluded from other payment systems.
It is also a very fast system with low currency conversion fees.
Cost
There is a 3% commission for each transaction.
To this is added a percentage of 2% for the credit to the current account, if the money is in foreign currency.
One disadvantage of Payoneer, in addition to other costs, is that you also pay for unsuccessful transfers (1€).
7) Bank transfer
Old but gold: bank transfer is a very widespread, reliable and advisable system when the goods for sale have a high cost.
Benefits
Security is the first advantage of bank transfer. It is a system that allows you to accept payments for large amounts.
It does not involve any additional commission, but it is better to be careful: it often happens that malicious users show false receipts, saying they have paid and thus making you ship the goods.
So, the advice is to ship only when the customer's money is in your account.
Cost
None, except those provided by your bank for crediting money in foreign currency.
8) Cryptocurrencies
We hear about it both in online stores and in physical stores: the cryptocurrency trend, led by bitcoin, is also infecting e-commerce payment systems.
Is this a viable system for all e-commerce? How can we deal with the extreme volatility that characterizes this currency?
If you want to have a complete picture of this online payment method we invite you to read our article which explains whether it is worth accepting bitcoin in e-commerce and what risks are involved.
Installment payment for e-commerce
Along with the bank transfer mentioned above, there are other systems that allow you to spread payments into convenient installments. A useful system, especially if you are dealing with large payments.
To the two options mentioned below we also add Paypal, which since 2020 allows the option of payment in 3 installments.
9) scalapay
This method allows your e-commerce customer to pay in 3 interest-free installments, with Scalapay assuming the risk itself.
Benefits
It is managed by Stripe, a fairly important international payment circuit, which should therefore guarantee its safety and reliability. Installment payments in themselves could be a competitive advantage for your online store, because customers who can pay in installments could be more encouraged to increase the average amount of their cart. This is why those who offer the service speak of a general increase in online conversion.
The user must create an account, but the operation does not take more than two minutes. The integration and configuration with your e-commerce can also be managed directly by the Scalapay team.
Cost
Costs are variable and require a personalized quote.
10) Klarna
Klarna also allows users to pay in installments on e-commerce.
Benefits
The user can pay in 3 installments (one every 30 days) without any interest applied. The service is reliable and fast in charging, and according to the suppliers it generates an average increase in the cart and a significant increase in online conversions. In fact, as generally happens with installment payments, customers feel more comfortable making large purchases, because they can spread them out over time.
It is easily integrated with a Magento module, with SFCC integration on Salesforce, and as an integrated payment on Prestashop and Shopify. For convenience, it can also be integrated into Stripe.
Cost
To find out the costs, you need to contact the Klarna sales office, which will create a personalized rate.
Conclusion: The payment method for your e-commerce
So, what should you choose?
As you can see, there are many possibilities, and they depend largely on your target customer and your budget. In general, you don't need to invest to integrate more than 2-3 different payment systems, because often an additional module or plugin for a single system that offers different payment solutions within it is enough (this is also the lightest solution and keeps your site fast).
Pizero Design remains at your disposal for a personalized and valuable consultancy for your e-commerce.
With over 10 years of consulting in the e-commerce world, we can help you distinguish the solutions with real added value, and those that are instead just a passing trend.
Contact us and get it off your mind!
