eCommerce payment processing: A guide for Singapore businesses (2026)

Key takeaways

• eCommerce payment processing involves several moving parts — payment gateways, processors, and merchant accounts — that work together to move funds from your customer's checkout to your bank account.

• Pricing models vary widely. Understanding the difference between flat-rate, interchange-plus, and tiered pricing helps you avoid overpaying on every transaction.

• Airwallex offers eCommerce payment processing with 160+ local payment methods, like-for-like settlement in 14 currencies, and no setup fees. This means you can accept payments globally while keeping more of what you earn.

eCommerce payment processing is the system that makes online sales possible.

Every time a customer pays on your website, a chain of steps runs in the background: verifying the payment, authorising the funds, and settling the money into your account.

This guide breaks down how eCommerce payment processing works, explains the pricing models you'll encounter, and compares six providers available in Singapore.

What is eCommerce payment processing?

eCommerce payment processing is the technology that lets online businesses accept and receive payments from customers. To do this, several systems work together behind the scenes:

• Payment gateway — captures and encrypts your customer's payment details at checkout

• Payment processor — routes the transaction through the card network to the customer's bank for authorisation

• Merchant account — a holding account where authorised funds sit before settlement to your bank account (most modern providers like Airwallex bundle this in)

• Card networks (Visa, Mastercard, American Express, UnionPay) — the infrastructure connecting issuing and acquiring banks, and the source of interchange fees

• Issuing bank and acquiring bank — the customer's bank (which approves or declines the transaction) and your bank (which receives the settled funds)

The provider you choose determines how much of this process is handled for you.

For example, Airwallex's payment gateway combines payment processing, multi-currency settlement, fraud protection, and local payment methods in a single platform, so you don't need to piece together separate providers.

Learn more about Airwallex Payments or sign up now.

How does eCommerce payment processing work?

Every online payment follows the same basic path: 

• The customer enters their details at checkout

• The payment gateway encrypts and transmits the data

• The payment processor routes it through the card network to the customer's bank

• The bank approves or declines

• The response travels back to your website in under two seconds.

If approved, the funds are reserved on the customer's account. But the money doesn't move immediately. Settlement — when the funds actually reach your business account, minus processing fees — happens separately, usually within one to three business days.

This flow applies whether your customer pays by credit card, debit card, or digital wallet. The key difference between providers isn't the flow itself, but how much each step costs you, how many payment methods are supported, and how quickly you get paid.

For a detailed step-by-step breakdown covering each party involved, read our guide on how payment processing works.

eCommerce payment processing pricing models

The pricing model your provider uses determines how predictable — and how expensive — each transaction is. Most providers in Singapore use one of three models below:

1. Flat-rate pricing

With flat-rate pricing, you pay the same percentage plus a fixed fee for every transaction, regardless of card type or customer location. For example: 3.4% + S$0.50 per transaction.

This is simple to forecast, but may be less economical for higher-volume businesses because all transactions are charged at the same rate, regardless of their underlying processing costs. Common among providers like Airwallex, Stripe and PayPal.

2. Interchange-plus pricing

You pay the actual interchange fee set by the card network, plus a fixed markup from your provider. The interchange portion varies by card type and geography, so your per-transaction cost fluctuates. More transparent and usually cheaper with volume, but harder to budget.

This is the model Adyen uses; Airwallex also offers interchange++ pricing upon request.

3. Tiered pricing

Transactions are grouped into categories (qualified, mid-qualified, non-qualified), each with a different rate. Your provider decides which tier applies. This model can look cheap at first glance, but most transactions tend to fall into the more expensive tiers.

Of the three models, tiered pricing is the least transparent and generally not recommended.

How to compare pricing across providers

When evaluating providers, don't stop at the transaction rate. The total cost of eCommerce payment processing includes several layers:

• Transaction fees — the per-transaction percentage + fixed fee

• Currency conversion fees — charged when your customer pays in a different currency from your settlement currency (typically 1–2% on top of the transaction fee)

• Chargeback fees — a flat fee per disputed transaction

• Monthly or platform fees — some providers charge these; others don't

A provider with a slightly higher transaction rate but no currency conversion fees can end up cheaper overall if you process a lot of international orders. The right comparison depends on your mix of domestic vs. cross-border transactions.

What to look for in an eCommerce payment processor

Not every payment processor is built for eCommerce. A processor that works well for in-person retail may lack the online-specific features your business needs. Here's what to prioritise when evaluating your options.

Payment method coverage

Your customers expect to pay the way they prefer. At a minimum, your processor should support major card networks (Visa, Mastercard, American Express), digital wallets (Apple Pay, Google Pay), and locally relevant methods like PayNow and GrabPay for Singapore customers.

If you sell cross-border, check whether the processor supports popular methods in your target markets — WeChat Pay and Alipay for China, Wero (formerly iDEAL) for the Netherlands, Bancontact for Belgium, and so on. The more relevant payment options you offer at checkout, the fewer customers you lose at the point of payment.

Buy Now, Pay Later (BNPL) options like Atome and Grab PayLater are also worth considering. BNPL can increase average order values and improve conversion rates for higher-priced items, since customers can split the cost over installments while you receive the full payment upfront.

Multi-currency settlement

Accepting payments in multiple currencies is standard. What matters more is whether you can settle in those currencies — meaning the funds stay in the currency they were paid in, rather than being automatically converted to SGD.

This is called like-for-like settlement, and it can save significant money on foreign exchange fees. If you sell in US dollars, euros, and pounds, a processor that settles in all three lets you hold, manage, and pay out in those currencies without forced conversions. Not all processors offer this — or they offer it for only a limited number of currencies.

Checkout experience

Your checkout page is where conversions happen or fall apart. A clunky or unfamiliar checkout flow increases cart abandonment. Look for processors that offer:

• Embedded checkout — the customer stays on your site throughout, rather than being redirected to a third-party page

• Guest checkout — no forced account creation

• Saved card details — returning customers can pay in one click

• Mobile-optimised payment flows — essential if a significant share of your traffic comes from mobile devices

Small improvements to checkout experience can meaningfully lift your conversion rate.

Security and compliance

eCommerce transactions carry higher fraud risk than in-person payments because the card isn't physically present. Your processor should handle the heavy lifting here. Three things to check:

• PCI DSS compliance — the Payment Card Industry Data Security Standard sets the baseline for how payment data is stored, processed, and transmitted. Your processor should be PCI DSS certified, and ideally reduce your own compliance burden by handling card data on their infrastructure.

• 3D Secure (3DS) — an additional authentication step (like an OTP or biometric check) that shifts fraud liability from you to the card issuer. 3DS2 is the current version and is designed to minimise friction for low-risk transactions while adding verification for higher-risk ones.

• Tokenisation — replaces sensitive card details with a unique token, so your systems never store actual card numbers. This reduces your exposure if your database is compromised.

Platform integrations

If you run your store on Shopify, WooCommerce, Magento, or another eCommerce platform, check how your processor integrates. A native plugin or pre-built integration is faster to set up and easier to maintain than a custom API build.

If your setup is more complex — or you run a marketplace — check whether the processor's API supports your specific requirements, such as split payments, custom checkout flows, or multi-party settlements.

Scalability

Your needs will change as your business grows. A processor that works well at S$10,000 per month in transactions may become expensive or limiting at S$500,000. Consider whether the provider offers volume-based pricing, higher processing limits, and support for new markets and currencies as you scale.

For a detailed checklist of features to evaluate, read our guide on what to look for in a payment processor. 

Top eCommerce payment processors in Singapore (2026)

Choosing the right processor depends on your transaction volume, customer base, and how many countries you sell into. The table below compares six providers available to Singapore businesses:

The information in this table has been reviewed to be accurate as of 4 June 2026.

A few things to note:

• PayPal's domestic rate of 3.9% is for its standard tier. Volume-based merchant rates are available, subject to approval.

• Adyen's total per-transaction cost varies because the interchange component changes with every card type and geography².

The sections below break down each provider in more detail.

1. Airwallex

Airwallex is best suited to businesses selling internationally that need payments infrastructure capable of supporting multiple markets, currencies, and sales channels as they grow.

Beyond payment acceptance, it is also a strong fit for SaaS and AI businesses that need recurring or usage-based billing, as well as larger merchants looking for enterprise-grade acquiring capabilities and developer tooling.

Airwallex combines local acquiring coverage, payment optimisation, and flexible integration options, making it suitable for businesses ranging from fast-growing online merchants to companies operating across multiple entities and regions.

Features

• Like-for-like settlement in 14 currencies

• Global Accounts with local bank details in 20+ countries

• 160+ local payment methods across 180+ countries

• Local acquiring in 35+ markets

• Optimize 360 for intelligent routing, retries, tokenisation, and 3DS optimisation

• APIs, SDKs, and native integrations for Shopify, WooCommerce, Salesforce Commerce Cloud, and Magento

• Support for recurring, subscription, and usage-based billing

• Omnichannel capabilities, including POS terminals 

• Multi-currency business accounts

• Corporate cards and spend management tools

• International transfers to 200+ countries

• Airi one-click checkout, with support for AI agent purchases coming soon

Learn more about Airwallex Global Accounts or sign up now.

2. Stripe

Stripe is best suited to businesses with in-house engineering resources that want significant control over the payment experience. It has become a popular choice among startups, SaaS companies, and developer-led businesses because of its APIs, documentation, and support for custom checkout experiences.

Beyond one-off payments, Stripe offers tools for recurring billing, subscriptions, and marketplaces, making it a common choice for software businesses that prioritise flexibility and extensibility over treasury or multi-currency infrastructure.

Features

• APIs and developer documentation for custom payment integrations

• 100+ payment methods across 195 countries

• Support for 135+ currencies

• Pre-built checkout, Payment Links, and plugins for Shopify and WooCommerce

• Stripe Billing for subscriptions and recurring payments

• Stripe Connect for marketplaces and platforms

• Radar fraud prevention powered by machine learning

• Like-for-like settlement in SGD and USD

• Support for PayNow, Alipay, WeChat Pay, and GrabPay

3. Adyen

Adyen is primarily designed for large businesses that operate across multiple markets and sales channels, particularly those looking to manage online, in-store, and mobile payments through a single payments infrastructure.

It is commonly used by enterprise merchants that process significant payment volumes and have the resources to support a more hands-on implementation.

Its interchange++ pricing model can also appeal to businesses with sufficient scale to benefit from underlying card cost transparency, rather than paying a blended flat rate.

Features

• Interchange++ pricing model

• Support for 200+ payment methods through a single integration

• Multi-currency settlement via multiple linked bank accounts

• Omnichannel capabilities spanning online, in-store, and mobile payments

• POS hardware and in-person payment acceptance

• Enterprise reporting and analytics tools

• Fraud prevention and risk management capabilities

• Multiple integration options, including APIs and pre-built connectors

• Global acquiring capabilities

4. PayPal

PayPal is best suited to businesses that prioritise customer familiarity and trust at checkout, particularly when selling to international consumers who may already have PayPal accounts. It is commonly used as an additional payment option alongside a primary processor to give customers more ways to pay and reduce hesitation during checkout.

Beyond payments, PayPal also provides buyer and seller protection mechanisms, making it popular among merchants selling to new customers or markets where brand recognition can influence purchasing behaviour.

Features:

• Accepted in 200+ countries

• Supports payments in 25+ currencies

• Volume-based pricing discounts for eligible merchants

• Buyer and seller protection programmes

• Hosted PayPal checkout experience

• Express checkout for returning PayPal users

• Fraud monitoring and dispute management tools

• APIs and integrations for eCommerce platforms and custom websites

5. HitPay

HitPay is best suited to SMEs and retail businesses operating primarily in Singapore and Southeast Asia that want access to local payment methods and in-person payment capabilities without a complex implementation process.

It is particularly relevant for merchants selling through both online and physical channels and those targeting customers who prefer alternative payment methods over cards.

The platform focuses on simplifying payment acceptance for smaller businesses, with strong coverage of popular payment options used across the region.

Features

• Support for PayNow, GrabPay, ShopeePay, Atome, WeChat Pay, and Alipay

• Online payment acceptance and integrated POS capabilities

• Card payments for domestic and international transactions

• Multi-channel payment acceptance for online and in-store businesses

• APIs and plugins for eCommerce integrations

6. 2Checkout (Verifone)

2Checkout (now part of Verifone) is designed primarily for software companies, SaaS businesses, and sellers of digital products that need subscription billing and support for selling into multiple countries.

Its strongest differentiator is its merchant-of-record capability, which can shift tax handling, invoicing, and certain compliance obligations to Verifone, making it appealing for businesses expanding internationally without building those processes in-house.

Pricing is usage-based, with different plans depending on whether you need one-time payments, subscriptions, or merchant-of-record services.

Features

• Merchant-of-record option available on selected plans

• Subscription billing with automated retries, dunning management, and churn reduction tools

• Supports 45+ payment methods

• Multi-currency settlement capabilities

• Tiered pricing for one-time sales, subscriptions, and merchant-of-record use cases

• APIs and integrations for custom subscription and digital commerce workflows

How to reduce eCommerce payment processing fees

Processing fees are unavoidable, but how much you pay is not fixed. Here are practical ways to reduce your total cost.

Settle in the currency you're paid in

Currency conversion fees — typically 1–4% per transaction — are one of the largest hidden costs for cross-border sellers. If a customer pays in US dollars and your processor converts it to SGD before settlement, you pay both the transaction fee and the conversion fee.

Choosing a processor that offers like-for-like settlement lets you avoid this entirely by keeping funds in the original currency.

Negotiate volume-based pricing

Most providers offer lower rates once you pass a certain transaction volume. If you're processing more than S$50,000 per month, ask your provider about custom or interchange-plus pricing. Even a 0.3% reduction across thousands of transactions adds up quickly.

Reduce chargebacks

Every chargeback costs you a flat fee (typically S$15–25) on top of the lost revenue. Clear product descriptions, responsive customer service, and visible refund policies reduce the likelihood of disputes. Some processors also offer chargeback protection tools that flag risky transactions before they're completed.

Offer lower-cost payment methods

Not all payment methods cost the same to process. Bank transfers and local payment methods like PayNow are significantly cheaper than credit card transactions. Presenting these options prominently at checkout can shift your payment mix toward lower-cost methods without removing card options.

Audit your fee stack regularly

Review your monthly processing statements at least once a quarter. Look for fees you didn't expect — PCI non-compliance fees, monthly minimums, or cross-border surcharges. If your transaction volume or customer mix has changed, you may qualify for a better rate or a different pricing model.

Reduce checkout drop-off and cross-border costs with Airwallex

In Southeast Asia, checkout conversion is directly tied to payment method coverage: shoppers who don't see their preferred option at checkout rarely complete the purchase.

Airwallex is built to handle the full scope of this, from local payment method coverage across SEA markets to multi-currency settlement, cross-border transfers, and team spend management. With Airwallex, you can:

• Accept payments online in 160+ local methods

• Settle in 14+ currencies through Global Accounts

• Transfer funds to 200+ countries, with 94% of transfers going through local rails with no SWIFT fees 

• Manage team spending with corporate cards

Frequently asked questions (FAQs)

How much does eCommerce payment processing cost in Singapore?

It depends on your provider and pricing model. Flat-rate providers typically charge 2.8%–3.9% plus a fixed fee per transaction. Interchange-plus pricing varies based on card type and geography but is usually cheaper at higher volumes. On top of the transaction fee, watch for currency conversion fees (1–4%), chargeback fees, and monthly platform fees. Airwallex charges from 2.8% + S$0.20 per transaction with no monthly or setup fees.

How long does it take to receive funds from eCommerce payments?

Most processors settle funds within one to three business days after a transaction is authorised. Some offer next-day or same-day settlement for an additional fee. Settlement timing also depends on the payment method — card payments typically settle faster than bank transfers. If you sell in multiple currencies, choosing a provider with like-for-like settlement — such as Airwallex — can speed things up by removing the currency conversion step.

Can I accept recurring or subscription payments through an eCommerce payment processor?

Yes. Most modern processors support recurring billing for subscription-based businesses. This includes SaaS, subscription boxes, memberships, and any model where customers pay on a regular schedule. Look for a processor that supports automatic retries for failed payments, card-on-file tokenisation, and dunning management to reduce involuntary churn. Airwallex Billing handles this natively, covering subscription management, usage-based billing, and automated payment retries within the same platform as your payment processing.

How do digital wallets affect eCommerce payment processing?

Digital wallets like Apple Pay, Google Pay, and GrabPay can improve your checkout conversion rate. They let customers pay with a single tap or biometric scan, which reduces the friction of typing in card details — especially on mobile. For merchants, digital wallet transactions are typically processed at the same rate as card payments, so there's no cost penalty for offering them.

How can I reduce cart abandonment caused by payment issues?

Payment-related friction is one of the top reasons shoppers abandon carts. To reduce it: offer multiple payment methods (cards, wallets, BNPL, local methods), enable guest checkout so customers aren't forced to create an account, use an embedded checkout that keeps customers on your site, and display trust signals like security badges. Small improvements to the payment experience can meaningfully lift conversion rates.

Sources:

1. https://stripe.com/en-sg/pricing

2. https://www.adyen.com/pricing

3. https://www.paypal.com/sg/business/paypal-business-fees

4. https://www.shopify.com/sg/pricing

5. https://hitpayapp.com/pricing

6. https://tekpon.com/software/2checkout-now-verifone/pricing/

7. https://hitpayapp.com/sg/blog/ecommerce-payment-solutions-southeast-asia

8. https://www.2checkout.com/avangate-monetization-platform/