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 authorizes 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 then be processed. In addition, these gateways allow automatic processing of credit cards, debit cards or other forms of payment.
Payment is processed first as your credit card details are encrypted, 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 step of the checkout process 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, setup fees. While the difference per transaction fee is relatively small (less than 1%), the goal is to get the cheapest option. With that, this works 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 hosted gateway or a more complex customized system. Moreover, when just starting your business, you can opt for a simple and easy integration first. This is so you can dedicate more of your time to launching your product.
Understanding how your customers’ shop is vital, specifically with card types for online payments. Finding out what 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 to increase 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 platform can hurt your conversion rate.
One-time vs recurring payments
Some payment gateways offer the useful feature of collecting recurring payments. This not only saves your customers a lot of time but it gives them a sense of security and loyalty. Not manually inputting one’s details every transaction is a huge plus for online shoppers. With such a tedious process, conversion rates will suffer. Additionally, billing information can be securely stored. With that, automated payments can be done, making it more convenient for your customers.
9 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 are protected through 24/7 fraud monitoring. Additionally, seller protection and built-in support of two-factor authentication 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, your customers’ personal information will be kept 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 its high transaction fees. with that, PayPal charges at 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 easiest data import from Stripe into different types of software. You’re also assured of accelerated reconciliation of transactions through financial reporting. 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 one of the most used payment gateways in Singapore. This works by debiting money directly from their DBS accounts. Additionally, PayLah! makes online checkout for ecommerce businesses seamless and simplifies the reconciliation processes. The payment process goes as follows: PayLah! debits the money for quick, seamless payments. 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 installment 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).
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).
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.
Hoolah is a startup homegrown in Singapore. They offer features like “buy now, pay later.” This is where only one-third of the payment is to be given upfront. With that, the rest of the cost is divided into three installments, interest-free. Moreover, this payment gateway option is helpful to businesses who are looking to reduce friction during the customer journey. This feature is best for ecommerce sites selling items at high prices, offering customers a more convenient payment method.
With Hoolah, you can also benefit from easy integration with CMS such as Shopify, WooCommerce and Magento. Not only does it help online consumers, but it is also relatively popular with many offline merchants in Singapore.
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, 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.
SmoovPay offers free setup with no maintenance fee included. They also have a “pay only when you sell” feature, which can be a huge advantage for businesses. This is because, for SmoovPay, it doesn’t make sense to pay if their services aren’t being used. With that, they charge a small fee only for every transaction. These rates go from 2.9% for the first SGD$10,000, with an additional fixed fee of SGD$0.25 per transaction.
Along with that, you are assured your earnings are safe. SmoovPay securely transfers this to you every first Friday of the month, no additional fees included. Your customers’ transactions will also be safe with 3D authentication, secured by Visa and MasterCard. These will only be processed upon input of a One-Time Password (OTP). With that, their sensitive data will also not be stored.
With Worldpay, you can enjoy real-time data displayed on their live dashboard. You can also export reports. Order updates are also available instantly, and order management is made simple. Additionally, you can get instant order updates using webhook notifications.
Webhook notifications help ensure your app or service updates automatically on the Worldpay Online Payment account. Notifications will be sent when you’ve received a new order or a recurring billing that will expire.
In addition, you can enjoy fast payouts with bank transfers twice a week, as well as set up recurring billing for your customers easily. They operate in 40 countries around the world and support over 120 currencies. Worldpay values customers’ trust, which is why merchants are required to be PCI compliant.
With Worldpay, you can avail of a monthly subscription of SGD$35/month for a Gateway Standard account or at SGD$83/month for an Advanced Gateway account. Another option is a pay-as-you-go plan at 2.75% (credit and debit cards) plus $0.37 fixed transaction fee.
Let Verz Design Help You Find the Perfect Payment Gateway!
Finding the best payment gateway that suits your specific needs is essential for your success. However, this process can be a bit daunting. With Verz Design, a Singaporean company that excels in ecommerce web design, our team can help find the perfect one for you. Equipped with cutting-edge technologies and a dedicated team of skilled professionals, we will take your business to greater heights. In addition, Verz Design is an approved vendor of the ecommerce psg grant, allowing you to avail of up to 80% funding for your website design! Get in touch with us today to make your website ideas come to reality! Call us at 6841 1680 or email us at [email protected] for a free consultation today!