Top 5 payment gateway providers and services in the US

Key takeaways

• Approximately 70% of online shopping carts are abandoned, underscoring the importance of a frictionless payment gateway for capturing revenue.¹

• A payment gateway encrypts and securely transmits customer payment details to a processor, facilitating verification and approval before funds settle into a merchant account.

• Airwallex Payments provides a unified global infrastructure for payment acceptance, multi-currency treasury, and spend management, allowing businesses to settle in the currencies their customers pay in.

When a potential buyer is ready to purchase, a robust payment gateway ensures the transaction processes successfully. With numerous options available, determining the optimal payment gateway presents a challenge for scaling companies. This article explores five leading payment gateway providers to facilitate an informed decision.

What is a payment gateway provider or service?

A payment gateway provider offers technology that enables merchants to accept and securely process customer payments made via credit card, debit card, digital wallet, or other electronic methods.

Payment gateways handle the behind-the-scenes payment processing that occurs after a customer completes a transaction. They encrypt and transmit sensitive financial information to the appropriate parties, helping ensure the transaction is verified, approved, and settled securely. While the term is most often used for eCommerce payments, payment gateways can also support in-person transactions through point-of-sale (POS) systems.

Regardless of company size, a reliable payment gateway is crucial for providing a secure checkout experience and ensuring timely payments. Selecting the right payment provider goes beyond basic payment acceptance: the right partner reduces costs, facilitates global expansion, and simplifies operations by consolidating payment, treasury, foreign exchange, and reporting into one unified platform.

How does a payment gateway provider work?

A payment gateway provider ensures that customer funds transfer safely from a credit card, debit card, or digital wallet to a merchant bank account.

The provider's payment gateway encrypts and securely transmits customer payment information to the payment processor. The payment processor then facilitates the verification and approval of the transaction, ensuring funds are transferred to the merchant account. Many gateways also handle fraud detection and chargeback processing, protecting both the merchant and the consumer.

Here is how payment gateways function behind the scenes after a customer initiates a payment:

1. The customer submits payment by entering card details or selecting a local payment method, such as iDEAL or Alipay. The gateway collects this information and encrypts it for security purposes.

2. The gateway requests authorization: The payment data routes through the payment processor's network, which contacts the customer's bank or card issuer to check the details and confirm funds are available.

3. The transaction is approved or declined: The customer's bank responds. If approved, the transaction is confirmed in real time, and the customer receives notification that the payment succeeded.

4. Funds are settled to the account: Once approved, the funds move from the customer's account to the merchant account. Depending on the gateway and setup, this takes a few hours or days.

The top 5 payment gateway providers

Here are the top payment gateway providers and current go-to options for US businesses:

• Airwallex: Global financial infrastructure that offers global treasury, payment acceptance, payouts, and spend management, all from one platform.

• Adyen: A global payments platform for enterprises that supports unified commerce, meaning merchants can accept payments across in-store, mobile, and online channels.

• PayPal: A traditional payment platform that offers eCommerce integrations and supports a full range of payment options, including credit card payments and payment links.

• Shopify: An eCommerce platform that offers integrated payment gateway functionality through Shopify Payments. While not a standalone gateway provider, Shopify enables online and in-person payments for merchants using its platform.

• Square: A payment platform combining POS software, hardware, and other tools to accept a wide range of payment types, both in-person and online.

Top features to look for in a payment gateway provider

Comparing digital payment providers requires examining specific functionality. The most important features to evaluate include:

• Processing location: Some gateways process transactions directly on the merchant website, while others redirect customers to a separate payment page. For the smoothest checkout experience, gateways with on-site transactions perform best.

• Security: The gateway must be PCI DSS compliant and use the latest end-to-end encryption technology and fraud prevention tools to protect your data.

• Integrations: The gateway should integrate easily (no code required) with existing systems, such as accounting software or eCommerce platforms.

• Cost: Pricing varies across different platforms. Businesses must evaluate setup fees, transaction fees, and any long-term contracts associated with the service. The top payment gateways offer flexible pricing plans and transparent costs.

• Reporting: Software that offers insights into transaction data and customer behavior helps optimize sales strategy and forecasts.

• Breadth of service: Some providers offer only a basic payment gateway, while others bundle additional financial tools, such as multi-currency accounts, cross-border transfers, expense management, and payout capabilities. Choosing a platform with these built-in features reduces reliance on multiple systems, centralizes financial operations, and lowers costs.

• Global reach and LFL settlement: For international sales, gateways with broad global coverage and support for like-for-like (LFL) settlement are critical. This allows merchants to collect payments in a local currency and settle into domestic accounts in that same currency, avoiding forced conversions and reducing foreign exchange costs.

Compare the top 5 payment gateway providers

Key features of the top 5 payment gateway providers

Airwallex Payments

Airwallex Payments is an end-to-end cross-border financial platform offering global treasury, foreign exchange and transfer solutions, and spend management tools, with competitive interbank fees. It helps businesses accept payments with major card schemes and over 160 local payment methods across over 180 countries.

Airwallex is a financial technology company, not a bank. U.S. customer funds are held with FDIC-insured partner banks, including Evolve Bank & Trust, and are eligible for FDIC pass-through insurance of up to US$250,000 per qualified customer account and banking institution.

Pros 

• Unified global infrastructure for payments, FX, treasury, and spend

• Like-for-like settlement across over 20 currencies

• Automatic Currency Conversion (ACC) allows customers to see prices in their local currency

• Interbank FX rates with no hidden markups or forced conversion

• Dedicated local support and onboarding

Cons

• Fully digital platform with no physical branches, but it remains ideal for digital-first companies

Adyen

Adyen is a global payment gateway service provider known for its comprehensive platform and global reach. It offers solutions for online, in-app, and in-store payments in over 200 countries.

Pros

• Full POS suite to support in-person payments

• Real-time transaction monitoring and detailed analytics

• Direct acquirer in key markets, including the US, EU, UK, Brazil, Australia, and major APAC hubs

Cons

• Embedded business accounts are primarily designed for platforms and marketplaces, and standard direct merchants may need external bank accounts for settlement

• Like-for-like settlement is limited to certain currencies and regions and often requires a local bank account

• The platform primarily serves mid-market and enterprise businesses, with limited focus on smaller companies

PayPal

PayPal supports a variety of payment methods, including credit and debit cards, bank transfers, and PayPal balances. The platform also offers invoicing, subscription payments, and mobile payments.

Pros

• Instant access to funds for eligible merchants through PayPal balance

• Extensive marketplace and platform integrations (e.g., eBay, Shopify, WooCommerce)

Cons

• Account holds and sudden freezes occur frequently, especially for new or high-risk businesses, often without prior notice

• Disputes and chargebacks frequently resolve in favor of buyers, creating challenges for sellers

Shopify Payments

Shopify Payments is the built-in payment gateway for Shopify stores, supporting checkout both online and in person. It supports multiple payment options, including credit card payments and digital wallets, with flexible plans.

Pros 

• Supports in-person payments with POS hardware

• Transparent pricing and easy setup

Cons

• Only available to Shopify store owners

• Additional fees apply when using external payment gateways

Square

Square provides POS software supporting a full range of payment options, including in-person payments and alternative payment methods. It suits small to medium-sized businesses seeking straightforward setup and flexible payment acceptance.

Pros

• Free POS software with inventory and invoicing features

• No monthly fees with competitive transaction fees

Cons

• Limited advanced features compared to competitors

• Transaction fees may be higher for specific payment types

Questions to ask when onboarding a payment gateway provider

Evaluating providers requires asking specific questions before finalizing an agreement:

Does the provider support preferred payment methods?

Merchants must determine if the gateway accepts the payment methods customers prefer, including credit cards, Apple Pay, or Klarna.

What currencies and countries are supported?

Multi-currency support, cross-border payment capabilities, and currency conversion fees are vital considerations for companies operating or expanding internationally.

What is the full fee structure?

Requesting a comprehensive breakdown of all possible fees, including transaction fees, monthly fees, and foreign transaction fees, provides transparency and helps prevent hidden costs.

How well does the gateway integrate with existing architecture?

The payment gateway should connect directly with the company website, shopping cart, and accounting software to streamline operations and reduce manual workflows.

Can the system scale with business growth?

Choosing a provider equipped to support growth ensures the business will not need to switch platforms or renegotiate contracts during expansion phases.

Does the platform support like-for-like (LFL) settlement?

For companies collecting payments in multiple currencies, settling funds in the received currency is highly advantageous. LFL settlement reduces forced conversions and lowers foreign exchange costs.

What additional features or services exist?

Beyond basic payment acceptance, leading providers offer end-to-end financial tools, including foreign exchange, international transfers, same-day settlement, and spend management. These features centralize financial operations, reduce costs, and streamline the flow of money. Fraud protection, analytics, and financial reporting tools also represent essential value-adds.

What security measures and certifications are in place?

The provider must meet industry standards, such as PCI DSS, utilizing robust fraud prevention tools and data protection protocols.

Why choose Airwallex as an online payment gateway solution for cross-border businesses

Selling internationally shouldn't mean losing margin to forced conversions or losing customers at checkout. Airwallex provides one global financial infrastructure to accept, hold, convert, and spend money in multiple currencies.

Let customers pay with over 160 local payment methods they already use, through no-code Payment Links, eCommerce plugins, or a fully customizable API. Optimize 360, the platform’s AI-powered payment optimization engine, works across fraud prevention, smart retries, and routing, and can deliver up to 2.6% higher approval rates.

Spend less time stitching together payment, FX, and treasury tools, and more time growing your business globally.

Frequently asked questions about top payment gateway providers and services

What is a payment gateway provider?

A payment gateway provider facilitates safe and secure online transactions. It provides the technology that encrypts and transmits payment data from a customer to a merchant and their associated bank. 

What factors should be considered when selecting a payment gateway solution?

It’s worth considering security credentials, supported payment methods, fees, currency support, integration with your current systems, transaction success rates, scalability, and the quality of customer support available. 

How much does it cost to onboard a payment gateway solution?

Pricing varies widely across providers. Factors such as setup fees, monthly subscription charges, transaction fees, and currency conversion fees will impact the overall cost. 

How safe are payment gateway services?

Most payment gateway services are safe. The best use advanced end-to-end encryption tools and are compliant with security standards like PCI DSS to prevent unauthorized access or fraud.

Sources 

1. https://baymard.com/lists/cart-abandonment-rate

2. https://www.adyen.com/payment-methods-guides

3. https://www.adyen.com/pricing 

4. https://www.paypal.com/us/business/accept-payments/payment-methods 

5. https://www.paypal.com/us/webapps/mpp/merchant-fees 

6. https://help.shopify.com/en/manual/payments/shopify-payments/local-payment-methods 

7. https://www.shopify.com/pricing

8. https://squareup.com/help/ca/en/article/4956-international-availability 

9. https://squareup.com/us/en/payments/our-fees

10. https://stripe.com/payments/payment-methods

11. https://stripe.com/pricing 

12. https://www.paypal.com/us/brc/article/funds-availability 

13. https://www.paypal.com/us/webapps/mpp/security/seller-protection