Ultimate Payment Gateway Guide for Singapore Ecommerce Businesses
What is an eCommerce Payment Gateway?
An eCommerce payment gateway is a payment method that authenticates and authorises payment between your customers and your eCommerce site. It uses front-end technology to send customer information to the merchant acquiring bank where the transaction will be processed. In addition, these gateways allow automatic processing of credit cards, debit cards or other forms of payment.
Ecommerce payment gateways process payment by encrypting your credit card details, allowing data to be transferred securely. Then, a payment gateway requests authorisation from the customer’s credit card issuer. After receiving authorisation, the customer can proceed to the next checkout process step on your site.
What to Consider When Choosing a Payment Gateway in Singapore?
There are many important factors that come into consideration when choosing your business’ payment gateway for eCommerce.
Payment gateways usually come with several fees. These include transaction fees, monthly fees and setup fees. While the difference per transaction fee is relatively small (less than 1%), the goal is usually the cheapest option. This is optimal especially if your business is part of the luxury and premium goods sector.
The payment gateway for eCommerce’s integration ultimately depends on what your business needs. Namely, a simple integration via plugin/extension/app or a more complex customised system which requires an API web service layer connection. Moreover, when starting your business, you can opt for a simple and easy integration first so you can save time and effort and dedicate more of your time to launching your product.
Understanding how your customers shop using card types for online payments is vital. Finding out your customers’ preferred method is crucial. So is making sure your payment gateway for eCommerce supports different ones. Furthermore, some options that are viable for your local audience may not be for international customers. With that, this is something you need to consider as well.
Choosing a reputable payment gateway for eCommerce is essential for increasing trust and credibility for your website. Ensuring a smooth and hassle-free process for your customers is a must for your eCommerce business. With that, it’s important to note that payment gateways that redirect customers to a different screen or environment can hurt your conversion rate. It is always recommended to choose a payment gateway that has on-page checkout capabilities.
One-time vs recurring payments
Some payment gateways offer the feature of collecting recurring payments. This not only saves your customers a lot of time but gives them a sense of security and loyalty. Additionally, not having to manually input one’s details every transaction is a huge plus for online shoppers as such a tedious process will hurt conversion rates. Additionally, billing information can be securely stored. With that, automated payments can be a massive boon for your business, as it makes shopping more convenient for your customers.
10 Payment Gateway Options for Your eCommerce Website
Now that we know what payment gateways are and how they work, it’s now time to find the best one for you. Here are seven payment gateway options for your eCommerce website.
Paypal is the most popular and well-trusted payment platform with over 224 million users worldwide. They accept payment via debit and credit cards such as Mastercard, Visa, American Express etc. Furthermore, they also do alternatives such as Paypal Credit, iDeal (Europe) and Mercado Pago (Latin America).
With Paypal, transactions go through 24/7 fraud monitoring, offering extra layers of protection. Additionally, seller protection and built-in support of two-factor authentication are provided by cards (3D Secure). They also provide reporting and analytics of sales performance and dispute resolutions.
Since PayPal is already so big and trusted, it adds a sense of credibility and safety to any eCommerce site. With that, customers’ personal information remains confidential.
PayPal also supports 25 currencies and is available in over 200 countries. However, they are one of the most expensive payment gateways for Singapore due to their high transaction fees. with that, PayPal charges 3.9% plus a $0.50 fixed transaction fee, for monthly sales of up to $5,000. International sales will have a 4.4% incurred, plus a fixed fee.
Stripe is one of the fastest-growing payment platforms globally. Customising your checkout process is hassle-free because of their developer-friendly setup. With Stripe, you get a deeper feature-set allowing for the easy data import from Stripe into different types of software. Through financial reporting, there is accelerated reconciliation of transactions. Additionally, Stripe has a broad focus on mobile eCommerce, SaaS, non-profits and platform-based options.
They accept payment via all major debit and credit cards. These include Visa, Mastercard, Maestro, American Express and mobile payments i.e. iOS and Android SDK. Apple Pay and Android Pay are also included.
Moreover, Stripe also supports recurring payments and instant payouts and provides insight into different payment types. Stripe offers 3.4% + SGD $0.50 (credit and debit cards), 2.2% + SGD$0.35 (digital wallets such as Alipay and WeChat Pay) and 3.3% (GrabPay, Apple Pay and Google Pay).
3. DBS PayLah!
DBS PayLah! is a payment gateway commonly used in Singapore. It works by debiting money directly from their DBS accounts, which most Singaporeans have. Additionally, PayLah! makes online checkout for eCommerce businesses seamless and simplifies the reconciliation processes. PayLah! also provides exclusivity by allowing consumers to transact via DBS PayLah! and enjoy faster processing with PayLah! Express Checkout.
PayLah!’s service fee is 3.00% (credit and debit cards) and 2% to 4% (for instalment plans). There is also a one-time setup fee of SGD$800 (subject to GST) and an annual fee of SGD$1,000 (subject to GST).
Omise a Thailand startup, made its way to Singapore in 2016, offering multi-currency payments such as AUD, CAD, EUR, GBP, SGB, and more. With that, they accept payments via debit and credit cards i.e. Visa, Mastercard, JCB and American Express, and mobile payment, PayNow. They also support plugins that help with easy integration with Magento, Shopify, WooCommerce, etc. In addition, setup is also made easy for recurring payments by your customers. Service fees are at 3.3% + SGD$0.30 for credit and debit cards, and 1% for PayNow.
HitPay is an emerging payment gateway option in Singapore. This is perfect for small eCommerce businesses. HitPay accepts payments via PayNow, credit and debit cards, WeChat and Alipay. HitPay offers recurring billing/subscription functions with service fees of 0.8% + SGD$0.30 (PayNow), 2.9% + SGD$0.60 (domestic card payments), 3.65% + SGD$0.50 (international card payments) and 2.7% + SGD$0.35 (WeChat & AliPay).
A Singaporean “buy now pay later” brand established in 2019, atome has since spread its wings and expanded its recurring payment gateways all across Asia. For “buy now pay later”, customers only need to pay one-third of the full sum upfront and pay the remaining sum over a period of three months, free from interest.
This payment method is best suited for businesses selling items that cost in the hundreds. This is because it requires customers to fork out less money during the checkout phase, which can significantly reduce dropout. atome is also perfect for businesses catered toward Gen Z youths, as their weaker spending power makes the platform appear more attractive to them.
atome can integrate flawlessly with leading CMS such as Magento, WooCommerce and Shopify, making it a solid choice for eCommerce websites.
Hoolah is another homegrown startup that offers “buy now, pay later.”. As with atome, this payment gateway option is helpful to businesses who are looking to reduce friction during the customer journey by reducing the “shock” they face when checking out.
If you would like to use the Hoolah payment gateway, you can also benefit from easy integration with CMS such as Shopify, WooCommerce and Magento.
Adyen is a global multichannel payment company certified with PSD2, SCA, and PCI. Equipped with revenue optimisation, you can use data and machine learning to optimise payment for more revenues. Furthermore, Ayden can optimise all payments, access data-rich insights, and customise layouts, all through helpful dashboards in one interface. You are assured of fraud protection with Ayden’s risk management, using a data-driven approach. In addition, you’ll be able to block fraud with a unique risk management engine.
Ayden offers multiple payment methods globally, ideal for entrepreneurs and startups who aim to provide services internationally. However, this may not be suitable for merchants who are just starting. Additionally, merchants who do a low volume of monthly business as its fees may be on the high side.
Grab has over 115 million consumers across South East Asia, many of whom have a GrabPay wallet. Hence, when you implement the GrabPay payment gateway onto your website, you are opening a gateway for millions of users as it integrates seamlessly with their preexisting wallets.
As checking out only requires one tap, customers are less likely to drop out. When they complete a transaction, customers receive Grab Reward Points as an award upon checkout with GrabPay, further incentivising them to shop at your eCommerce store. At the end of each working day, payments go directly to your bank account.
Grab has also introduced a recurring payment model with PayLater, where customers can choose to either make their purchase across a period of four months or pay in full the next month. There are also no interest rates or hidden fees.
Boasting both convenience and attractiveness, the GrabPay payment gateway is a worthwhile option to consider, especially if you have many customers in the Southeast Asian Region.
According to a survey conducted in December 2021, about 15.8 per cent of Singaporeans own cryptocurrency. As Singapore becomes a major crypto player in the region, why not consider a cryptocurrency payment gateway for your eCommerce website?
Countless headlines cover TripleA because it is the first cryptocurrency payment company to be licenced by the MAS. The service provider prides itself on empowering businesses to accept cryptocurrency from everywhere seamlessly by being compatible with all crypto wallets.
When customers check out with the cryptocurrency payment option on your website, it will present them with a QR code that they can scan with their crypto wallet. Upon sale, funds are converted into fiat currency and placed in your TripleA account. TripleA does not take a percentage of transactions; instead, TripleA charges you a 0.8% fee when you withdraw transactions in local currency. This fee is waived if you operate a non-profit business.
If you would like to jump onto the cryptocurrency trend, TripleA is one of the most reliable options out there, effectively backed by their MAS license. You can learn more about TripleA as well as other cryptocurrency payment gateways at this link here.
Let Verz Design Help You Find the Perfect Payment Gateway!
With new payment models such as “buy now pay later” and cryptocurrency constantly emerging, finding the best payment gateway that suits your specific can seem daunting. However, with Verz Design, a Singaporean company that excels in eCommerce web design, our team can help you make an informed choice. Equipped with cutting-edge technologies and a dedicated team of skilled professionals, we will take your business to greater heights. Contact us for a free consultation today!