If you have an online store in the Philippines, you’re probably always on the lookout for new ways to make your customer’s experience better.
One of the ways you can do this is by having a reliable and convenient payment gateway for your online store.
There are tons of payment gateways available in the country, so it can be overwhelming to choose the perfect one for your business.
To help you, we’ve compiled a list of the top payment gateways you can try.
What is an E-commerce Payment Gateway?
An e-commerce payment gateway is a technology that allows online businesses to process payments made by customers through their websites.
It serves as the intermediary between the website and the payment processor, ensuring that the customer’s payment information is securely transmitted and processed.
Payment gateways also help to reduce the risk of fraud and chargebacks, making them an essential part of any e-commerce business.
Types of E-commerce Payment Gateways
Here are the various types of e-payment gateways you can try.
Fully hosted payment gateway
A fully hosted payment gateway service is the most common choice of business owners today since it’s the most convenient and affordable.
When this payment gateway is integrated into your website, it redirects the customers to the payment service provider (PSP) when they make a purchase.
This is a separate website where they fill out their payment details before they get redirected back to your website to complete the sale.
This type of payment gateway is very secure and complies with security standards. It also offers fraud protection. More importantly, it’s straightforward to set up.
Self-hosted payment gateway
Those who want to have more control over their customer’s experience may be more interested in hosting a self-hosted gateway.
Because it is self-hosted, the details of customers are collected directly on the website.
This ensures that the information is encrypted before it is submitted to the third-party payment gateway for authorization.
One of the upsides of this payment gateway is it enables a quicker checkout process since the transaction is completed on the website itself. Therefore, there’s no redirection to another site.
Unfortunately, you won’t have full access to a support team compared to a hosted service.
API-Hostel payment gateway
This is the ultimate option for business owners who want to have full control of their website design.
Both the information of the customer and the processing are done directly on the merchant’s website using an application programming interface or API. This offers a customizable checkout process, such as mobile integration.
Despite all its benefits, you must ensure that you are protecting the information of your customer. This may mean having to pay extra for security standardization.
Local bank integration
This gateway will redirect the customer to the bank’s website, where they will input their information. They will receive a payment notification once their payment has been confirmed.
This is an entry-level solution with only a basic feature set. However, many business owners still like it because it’s affordable and easy to set up.
Benefits of E-commerce Payment Gateways
Here are the advantages you can experience when you use an e-commerce payment gateway for your online store.
It gives your customers a sense of security
One of the best things about e-commerce payment gateways is that it provides your customers with a sense of security.
With fraud and identity theft becoming increasingly common today, customers are becoming more cautious about giving away their payment details online.
A payment gateway ensures that their data is encrypted and transmitted securely, reducing the risk of fraud and giving them peace of mind.
It increases your customer retention rate
Another benefit of a payment gateway is that it can help increase your customer retention rate.
When customers feel secure and confident in making purchases on your website, they are more likely to return and make additional purchases in the future.
This can lead to increased customer loyalty and improve overall revenue for your business.
It simplifies your payment processing
Having an e-commerce payment gateway simplifies your payment processing, making it easier for you to manage and track payments.
You won’t have to worry about manually processing payments or dealing with chargebacks, as the payment gateway takes care of all of that for you.
It’s so easy to set up
With payment gateways, you just need a few hours to set it up. Even if you’re not a tech expert, you can still easily integrate a payment gateway into your website.
Most payment gateways even provide step-by-step instructions and a support team to guide you through the process.
This means you can start accepting payments from your customers in no time, without having to hire a professional.
It’s more attractive to impulse buyers
If your target audience includes impulse buyers, good news awaits you. With a payment gateway, they can quickly and securely make their purchase before they change their mind.
This means that you can capture more sales from these types of customers.
You can decrease your cart abandonment rate
Cart abandonment is a significant problem for e-commerce stores, with many customers abandoning their shopping carts before completing their purchases.
This can be due to several reasons, such as a complicated checkout process.
By using an e-commerce payment gateway, you can simplify your checkout process and provide customers with the peace of mind they need to complete their purchases.
This can help reduce your cart abandonment rate and increase your overall revenue.
It improves your customer experience
Lastly, an e-commerce payment gateway can significantly improve your customer experience.
With a streamlined and secure payment process, customers are more likely to have a positive experience on your website.
This can lead to increased customer satisfaction and loyalty, as well as positive word-of-mouth marketing for your business.
Top E-commerce Payment Gateways in the Philippines
In the competitive world of e-commerce, providing a secure and convenient payment method can make all the difference in the success of your online store.
To help you maximize your store’s potential, we’ve rounded up the top e-commerce payment gateways in the country.
Gcash
Currently, GCash doesn’t offer an in-house e-commerce payment gateway.
However, you can easily integrate GCash into your API payment gateway, or any other hosted payment gateway that includes GCash as an e-wallet option.
Once you integrate GCash into your online store, your customers can easily pay for their purchases by using their account.
With GCash’s hassle-free checkout process, customers can complete their transactions quickly and safely.
Keep in mind that GCash is the most popular e-wallet in the country so having it on your website is a non-negotiable.
Maya
With the Maya Payment Gateway, you can give your customers a better online checkout experience.
Maya Checkout allows your website to directly accept credit and debit cards, e-wallets, and other emerging payment solutions.
Whether you have a self-hosted website, or your website is hosted on WooCommerce or Shopify, integration will be a breeze.
With Maya, you can also ask for a customized package for your business, especially for high payment volume. Your perks can include:
- Volume discounts
- Multi-product discounts
- Flexible payment processing
- Competitive acquiring rates
Price:
- Visa, Master Card: 3.0% MDR + Php7 per transaction
- JCB, Amex: 3.25% MDR + Php7 per transaction
- Maya: 1.5% per transaction
- QR PH: 1.6% per transaction
- WeChatPay: 1.75% per transaction
- Shopee Pay: 1.85% per transaction
- GCash: 2% per transaction
PayPal
Payflow Payment Gateway is a must-have especially if you’re dealing with international customers.
For the Payflow Link with the checkout hosted by PayPal, your customers only need to enter their payment details on a secure, PCI-compliant template.
You may also integrate Paypal’s embedded template or choose your own customizable full-page template. All the templates include PayPal and PayPal Credit which will give your customers more options to pay.
With Payflow Pro, you can benefit from unlimited checkout customization. This is fully customizable so businesses can build their own checkout experience in a way that is unique to their needs.
Everything is on the table, whether you want to add more languages, or change the layout and page sequence.
This also offers PCI compliance options. You may even add a PayPal button to help drive more sales, or use Paypal’s hosted pages and offer PayPal Credit.
Price:
- Payflow Link: $0.00/month
- Payflow Pro: $25.00/month
Payo
The Philippines is home to many unbanked individuals, which makes Cash on Delivery an essential payment method for many businesses.
Payo takes care of the entire COD process for online sellers, from cash collection to remittance, making it easier for businesses to focus on their core operations.
DragonPay
Anyone who has ever shopped online in the Philippines is probably familiar with DragonPay since it pioneered alternative payments in the Philippines.
DragonPay was established in 2010 and since then, it has become the top choice for e-commerce businesses of all sizes. This platform also offers zero setup fees for Philippine-based merchants.
Price:
- Online Banking: Php10 (BPI, BDO, Unionbank, and more)
- Over-the-Counter Banking: Php15 (BPI, BDO, Metrobank, and more)
- Payment Centers: Php20 (Bayad, Cebuana Lhuillier, , and more)
Optional Channel Fees
- E-Wallets: Fees may vary (AliPay, Coins.ph, Gcash, GrabPay, Maya, Moneygment, Paypal, ShopeePay, and Wechatpay)
- Credit Cards: Fees may vary based on the evaluation)
- Crypto Payments: Php10 (international payments through crypto or global virtual currencies (Bitcoin, Ethereum, and Tether)
- Installments: 2% (Billease & Tendopay)
- 7-11: Php20
- Education, Insurance, Financing: Php15 +2.5%
- Digital Goods : Php 15 +1%
- Donations: Php15 +4%
Standard E-commerce:
- Recurring Payments: Php20 per transaction
- Mass Payout: Php20
Factors to Consider When Choosing a Payment Gateway
Here are some key factors to consider when choosing a payment gateway for your business.
Security and fraud prevention
As a small business owner, security and fraud prevention should be one of your top priorities when choosing a payment gateway.
After all, your customers are entrusting you with sensitive information, so it’s important to work with a provider that has a solid track record in safeguarding data.
Transaction fees
Depending on your business model and the volume of transactions you process, these fees can add up quickly and eat into your profits.
It’s important to do your research and choose a provider that offers competitive rates and transparent pricing.
Payment methods supported
It’s important to ensure that the payment gateway you choose supports the payment methods your customers prefer to use.
This includes major credit and debit cards, as well as alternative payment methods like e-wallets, bank transfers, and mobile payments.
User experience
A seamless user experience is crucial to ensure customers complete their transactions with ease.
Look for a payment gateway that offers a simple, intuitive checkout process with minimal steps.
Customer support
In the end, what sets payment gateways apart is the level of customer support they provide. As a business owner, you want to work with a provider that offers reliable and responsive support whenever you need it.
Whether you’re dealing with a technical issue or simply have a question about your account setup, you should be able to reach out and get the help you need promptly.
Ultimately, choosing the right payment gateway for your business can have a major impact on your success in the online marketplace.
By taking the time to evaluate your options and consider the factors that matter most to your business, you can find a payment gateway that will help you streamline your operations, boost customer satisfaction, and drive growth.
Author Bio:
Jason Acidre is the Co-founder & Publisher of Grit PH – one of the fastest-growing online publications on business & finance space in the Philippines.
