7 best payment systems for small business transactions in 2025

Key takeaways

• The core elements of a payment system are a payment gateway, a payment processer, and a merchant acquirer.payments

• Payment systems, or payment gateways, allow you to accept payment from customers. Payment systems are tools that work together to move money securely from the customer to the merchant (your business).

• There are several payment gateways available for small businesses in Australia, including Airwallex. This guide will take you through everything you need to know before making your decision.

For small businesses in 2025, cash is no longer king, which means an effective digital payment system is a must-have. Payment systems help your business convert more sales online and in person and speed up the process. In fact, FinTech Weekly found that embedded payments (one-click purchases in apps and on social media, for example) are projected to triple by 2026.¹

There are plenty of international payment platforms that can simplify transactions, improve consumer convenience, remove conversion barriers, and drive growth. We've compared the best payment solutions for small businesses in Australia, analysing costs, scalability, and other features so you can choose the one that’s right for you.ss.

What are payment gateways for small businesses?

Payment gateways, or payment systems, are tools that let your business accept monetary compensation in exchange for goods or services. They handle money transfers through payment processing and settle payments by delivering the compensation to the destination account. Modern payment systems also offer additional features, such as fraud protection and analytics, to help businesses understand their customers’ buying habits.

There are many different types of payment systems, but it helps to look for end-to-end processing systems, also known as payment service providers (PSPs), which cover all these tasks.

Fintechs like Airwallex (that’s us!) provide cost-effective solutions for cross-border payments, helping your small business grow into international markets.

The core elements of a payment system

Whenever you send or receive payments, several systems work together to move this money securely. A payment solution usually has three main parts: the gateway, processor, and merchant acquirer. Here’s how each works:

Payment gateway

A payment gateway is a tech service that securely transmits online payment data from a customer to a merchant. 

Payment gateways encrypt payment information and include tools to detect fraud. Once the payment gateway receives the transaction information, it sends the data to the payment processor for verification.

Payment processor

A payment processor is a tool that initiates and completes financial transactions. Once the payment gateway sends the data, the processor forwards it to the financial institution for approval. The processor will contact the relevant institution, depending on the payment method used (debit or credit cards, digital wallets, virtual cards, or bank transfers, etc.).

The payment processor’s primary functions are to make sure the customer’s account has sufficient funds and to validate the payment. Once the request is approved, the processor notifies the customer’s bank to send the payment to the merchant bank.

Merchant acquirer

A merchant acquirer is a financial institution that helps small businesses process payments. The acquirer manages the merchant’s bank account and authorises transactions. It also handles transaction issues, including chargebacks, fraud, and payment disputes.

How does payment processing work for small businesses?

While it might seem like a simple tap or click, there’s a full system working behind the scenes to process every payment securely and efficiently. Here’s how the best payment systems for a small business typically work:

1. Transaction begins: The customer enters their card details or pays using a digital wallet. These details are securely captured through a payment gateway, plugin, point-of-sale (POS) system, or payment link.

2. Authorisation request: The payment processor forwards the payment request to the customer’s bank or card provider to confirm there are enough funds. If approved, the transaction can move ahead.

3. Funds are transferred: Once authorised, the money is moved into the business’s account, with the processing fees deducted.

Throughout each step, security protocols such as PCI DSS (Payment Card Industry Data Security Standard) compliance and tokenisation protect sensitive data and prevent fraud.

Top payment systems features to look for

If your business sells online or accepts virtual payments, the right eCommerce payment gateway can make a big difference. It can help you deliver a better customer experience, reduce legal risks, and make day-to-day trading with global businesses easier.

But how do you know which solution actually fits your needs? Here are 10 factors to keep in mind when comparing payment systems:

• Multi-currency support: Choose a solution that accepts local payments in Australian dollars and offers competitive foreign exchange (FX) rates on global transactions – helping you grow at home and abroad.

• Costs and fees: Most providers charge between 0.6% and 2% on domestic transfers, plus a small per-transaction fee (usually A$0.10–A$0.30). International payments often include an FX fee of 1.5–3.5% on top of a similar transaction fee. 

• Integration: Pick a system that connects easily with tools you already use, such as Shopify or WooCommerce. Good integrations save time, reduce tech issues, and make sure everything runs more efficiently.

• Security and compliance: Any provider you consider must meet basic security and compliance standards. In Australia, that means complying with the Payment Card Industry Data Security Standard (PCI DSS) to protect customer data and following rules set by the Australian Prudential Regulation Authority (APRA), which helps keep financial institutions stable and services fair for customers.

• Payment method availability: Look for providers that offer a mix of payment options – cards, digital wallets, bank transfers, etc. – so customers can pay however they like.

• Customer support: Ideally, find a payment provider with several strong support options, including phone, live chat, and email. 24/7 support is great (it helps reduce anxiety during after-hours emergencies), but at a minimum, look for quick, reliable support during Australian business hours.

• Implementation speed: Check how long setup takes and whether the provider offers onboarding guides, templates, or ready-to-use integrations that let you get started more quickly.

• User experience: Look for a system with a clean, intuitive interface and a mobile-friendly checkout that doesn’t make customers jump between screens. These features help create a smooth, simple experience that prevents abandoned purchases.

• Scalability: Pick a payment gateway that can grow with you. That might mean support for more currencies, additional payment methods, or bigger transaction volumes. Or it could mean more advanced features like payment acceptance, expense management, multi-currency cards, and application programming interface (API) integrations.

• Spending controls: Lastly, look for platforms that offer live expense tracking, approval workflows, card management tools, accounting integrations, and policy-based compliance. These features can help you stay organised and scale safely.

What online payment methods are available for small businesses?

There isn’t a one-size-fits-all way to manage payments. Small businesses can choose from several options:

• Payment links: These let you send customers a secure URL via email, SMS, or social media. When clicked, the link opens a page where the user can pay instantly – ideal for regular invoices and one-off transactions.

• Checkouts (no-code or code): A hosted checkout page is arguably the easiest way to take payments online. It’s essentially a ready-made page that your provider handles. You can use a no-code version to drop straight onto your website, or a professional developer can create a coded page based on your brand. 

• Payment plugins: These small add-ons let you accept payments directly through your website. They connect your online checkout to a payment provider, so customers can pay by card or digital wallet without leaving your site.

• Payment APIs: Application programming interfaces let different systems communicate, which means your website or app can connect directly to your payment provider. This gives you control over how payments work – for example, you could add a customised checkout with your company’s logo.

7 best payment gateways for small businesses in Australia

Here are the best online payment systems for small businesses in Australia, including Airwallex, and how they stack up in terms of features, scalability, and speed.

• Airwallex: an all-in-one fintech platform for financial operations.

• Shopify: an eCommerce platform with built-in payment systems.

• Stripe: a payment system with business management tools and eCommerce integrations.

• Square: a plug-and-play payment system with accounting integrations.

• Adyen: a payment platform for online and in-person payments.

• Clover: a POS system with built-in payment and commerce features.

• PayPal: a digital payment system with individual and business capabilities.

Comparison chart: Top gateways at a glance

For small businesses, costs are often top of mind. Find the best payment system for your needs with this breakdown of costs and fees:

Airwallex 

• Key Features: Global payment acceptance, multi-currency accounts, FX and transfers, Yield (our high-rate business saver), multi-currency cards, expense management, and more!

• Cost: 1.65%–3.4% +A$0.30 per transaction.

Airwallex is a global solution that helps your business grow without borders. We offer no-code and fully customisable payment integrations, including Checkout Solutions, Payment Links, and Payment Plugins that work with eCommerce platforms like Shopify, Magento, and WooCommerce. Not only do we offer simplified payment processing for small businesses, but we also provide a suite of services that make handling transactions easier.

Airwallex Payments are integrated with our Global Accounts, which lets you accept payments in multiple currencies from international customers without forced currency conversions. You can then use the same balances to pay international suppliers, saving on unnecessary foreign exchange fees.

As an end-to-end financial solutions platform, we can help you stay on top of your small business costs with added features such as our Expense Management, multi-currency corporate and employee cards, and Bill Pay. Use these features to manage and track business expenses.

Shopify

• Key features: Multiple payment methods, third-party payment gateway integration, payment analytics

• Cost: 1.4%–1.75% + AU $0.30 per transaction³

Shopify is a payment system that lets businesses accept various payment methods, such as credit cards and digital wallets. Businesses that use the Shopify platform automatically get Shopify Payments. This seamless integration streamlines the checkout process, leading to a better customer experience. By using Shopify Payments, it’s easy to manage your sales, payments, and payouts all within one simple dashboard.

Like most payment systems, Shopify offers peace of mind with PCI-compliant servers, encrypted data, and secure checkouts for all payment transactions. Businesses will enjoy the convenience of accepting multiple payment methods, although the coverage may not be as wide as other providers.

Setup is instant, so you can start processing payments immediately after creating your account. Shopify Payments offers several different pricing tiers to meet the budget needs of small businesses. Basic analytics and reporting offer insights into transactions and cash flow.

→ Did you know? The Airwallex Payment Plugin works with Shopify to give you a wider reach than with Shopify alone. The plugin supports multiple currencies, so you can serve customers around the world and hold funds in those currencies to minimise the impact of exchange rate fluctuations.

Stripe

• Key features: Offline payments, mobile payments, fraud prevention, global payments

• Cost: No monthly fee; 1.7%–3.5% plus $0.30 per transaction.⁴

Stripe is a global payment system well known for its widespread use in accepting payments, managing subscriptions, and handling online transactions. It supports payments in more than 135 currencies and holds regulatory licences worldwide.

The system offers more than 400 integrations, so businesses can build custom integrations with existing tools. Built-in reporting tools offer insights into company transactions and cashflows for simplified budgeting. 

Overall, Stripe provides comprehensive payment processing with a wide range of features and developer tools. But Airwallex may be a better fit if you’re also looking for robust cross-border solutions, including competitive FX and transfers.

Square

• Key features: Offline payments, payment dispute management, POS systems

• Cost: No monthly fee; 2.2% per online transaction; 1.6% per in-person transaction⁵

Square is a payment processing system that lets businesses accept both online and in-person payments. Beyond processing transactions, it handles payment disputes on your behalf and has active fraud prevention measures to protect your business.

While you can accept foreign transactions through the platform, Square doesn't offer multi-currency support. This means that if you receive payments from your customers in a different currency than yours, Square will charge you an FX fee to settle in your home currency.

Like other providers, Square includes PCI DSS compliance and 3D secure verification, which adds an extra identity check, such as a one-time passcode, to prevent fraud. Plus, if someone makes a payment when your servers are down, Square will automatically process the transaction within 24 hours once you’re back online.

Adyen

• Key features: Global payments, cross-channel insights

• Cost: Processing fee of €$0.11 plus payment method fee⁶

Adyen offers end-to-end payment processing, including both online and in-person transactions. While the tool is relatively easy to navigate, it lacks small-business features such as onboarding tools and invoicing.

Like Airwallex, Adyen supports various payment methods, including Pay by Link, in-app, and recurring payments. Similarly, it offers three checkout integration options: a completely customised framework, drop-in elements for easy payment page building, and components for a simplified approach. 

But unlike Airwallex, Adyen doesn’t offer multi-currency wallets.

Clover 

• Key features: POS hardware and software, custom integrations

• Cost: Monthly fees start at A$13; processing fees start at 2.3% plus A$0.10 per transaction⁶

Clover specialises in customised POS systems for in-person payments and inventory management. Its range of hardware and software solutions includes POS terminals, mobile payment devices, and business management tools, such as employee management, customer loyalty programs, and reporting features.

Clover also integrates with major eCommerce platforms, so you can track payments across channels. Plus, its developer tools help businesses connect custom-built websites. 

The downside is that Clover’s online payment features and global coverage aren’t as strong as Airwallex’s.

PayPal 

• Key features: Invoicing, manual billing, eCommerce integrations, online checkout

• Cost: 2.6% plus fixed fee per transaction (international transactions incur a 1% add-on fee)⁸

PayPal is a payment system that processes transactions using various payment methods, including credit cards, debit cards, and PayPal itself. Small businesses typically use PayPal to collect payments, even if they don’t have a website or a payment page.

Like Airwallex, PayPal lets you easily send invoices with QR payment codes and payment links that you can share on social platforms. It also supports manual payments for sales made over the phone and via email. 

PayPal offers financing options as well, but it lacks the additional services – such as virtual cards and expense management – that Airwallex provides to simplify day-to-day financial operations.

Business benefits of a powerful payment processing system

Using payment processing services offers many benefits, whether you’re just starting out or you’re a small business with years of experience. Here are the benefits of a strong payment system:

Enhanced security

• Fraud protection: Advanced security measures, such as encryption, tokenisation, and multi-factor authentication, help protect sensitive financial information and reduce the risk of fraud.

• Compliance: Ensures adherence to industry standards like PCI-DSS, which is crucial for maintaining customer trust and avoiding penalties.

Improved customer experience

• Seamless transactions: Provides a smooth and efficient checkout process, reducing cart abandonment and increasing customer satisfaction.

• Multiple payment options: Supports a variety of payment methods, including credit cards, debit cards, digital wallets, and bank transfers, catering to diverse customer preferences.

Increased efficiency

• Automated processes: Handles tasks like invoicing, recurring billing, and payment reconciliation, saving time and reducing manual errors.

• Real-time data and analytics: Offers real-time transaction data and analytics, letting businesses make informed decisions quickly.

Global reach

• Multi-currency support: Facilitates transactions in multiple currencies, making it easier for businesses to expand into international markets. It lets you accept payments from customers in the regions where you operate and to collect and settle foreign currencies with multi-currency accounts.

• Cross-border payments: Simplifies the process of accepting and making payments across borders, opening up new revenue streams.

Cost savings:

• Competitive rates: Payment systems often provide competitive domestic and foreign transaction fees and exchange rates, helping businesses save on payment processing costs.

• Reduced operational costs: Automation and streamlined processes can lead to lower overheads and increased profitability.

Scalability

• Flexible solutions: Scales with the business, accommodating growth and increased transaction volumes without requiring significant changes to the system.

• Integration capabilities: Easily integrates with other business systems, such as accounting, customer relationship management (CRM), and enterprise resource planning (ERP) software, ensuring a cohesive operational environment.

Grow your business with our next-generation payment system

As a small business, it’s important to choose a payment system that can grow with your business. Having one end-to-end financial operations platform cuts down on the time and cost involved in managing fragmented systems.

Airwallex is an Aussie-born business, yet we also have an extensive global network that empowers you to accept payments in 180+ countries via local payment methods, with competitive processing fees for both domestic and international payments. No-code and low-code options make it easy to accept payments across your social media platforms, website, or eCommerce platform.

As an end-to-end financial operations system, Airwallex's platform also offers Business Accounts and Spend Management tools. It really is a one-stop shop for business finances.

Payment systems for small businesses: FAQs

What is the best payment system for a small business?

The best payment system for your small business will depend on your unique needs. We encourage you to do your research to find the system that fits your goals and requirements. Our platform, Airwallex, offers small businesses the most comprehensive, end-to-end financial operations system with global reach. We offer multi-currency accounts that make it quicker and more cost-efficient to help you accept, hold, and make payments internationally.

How can small businesses take card payments?

Small businesses need a merchant account and payment processing service to process digital payments, like card payments. You’ll also need a payment gateway to initiate and verify ‌transactions.

How do you set up an online payment system for a small business?

To set up an online payment system for your small business, partner with a payment system provider for end-to-end support. Make sure the provider you choose includes a merchant account, payment gateway, and payment processor. If you plan on accepting payments online on your website, build a payment form or payment page, and ensure that your provider meets compliance regulations.

What are the top-rated spend management platforms for global teams?

Some of the top-rated spend management platforms available for teams operating globally include Airwallex, SAP Concur, and Expensify. These platforms offer multi-currency transaction management, global compliance tools, cross-border approvals, and various platform integrations that make them very usable for distributed teams.

Which payment gateway is best in Australia?

If you're running a small business in Australia, the right payment gateway can make a real difference. Airwallex lets you settle payments locally in over 130 countries, helping to reduce conversion costs and accelerate settlement times. With direct Shopify and WooCommerce integrations, strong security, and local support, it’s built to give your business the reach and control it needs, without the extra admin.

What is the best way to accept payments for small businesses?

Offering flexibility is key. Most customers expect to pay using cards, bank transfers, or digital wallets. Airwallex makes this simple with hosted checkouts, payment links, and plugins. You can accept local and international payments without needing multiple systems or complicated setups

What is one possible benefit to a small business of using electronic payment systems?

Electronic payments cut down manual work and reduce errors. They also let you track what’s coming in and going out more clearly, helping you stay in control of your cash flow.

Sources:

1. https://www.fintechweekly.com/magazine/articles/the-growing-foothold-of-embedded-payments

2. https://www.shopify.com/au/payments

3. https://stripe.com/au/payments

4. https://squareup.com/au/en/payments

5. https://www.adyen.com/en_AU/

6. https://www.clover.com/

7. https://www.paypal.com/au/business/accept-payments

Disclaimer: The information in this article is based on our own online research. Airwallex was not able to manually test each tool or provider. The information is provided for educational purposes only and a reader should consider the specific requirements of their business when evaluating providers. This research is reviewed annually. If you would like to request an update, feel free to contact us at [[email protected]].

This information doesn’t take into account your objectives, financial situation, or needs. If you are a customer of Airwallex Pty Ltd (AFSL No. 487221) read the Product Disclosure Statement (PDS) for the Direct Services available here.