eCommerce payment processing: 2026 guide for Singapore businesses

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 20+ currencies, and no setup or monthly fees — so 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 seven 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) and your bank (which receives the settled funds)

The provider you choose determines how much of this process is handled for you — and how much you pay at each step. Read our guide for a deeper look at how gateways and processors differ.

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.

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 tends to cost more at higher volumes because you're overpaying on cheaper transactions to subsidise expensive ones. Common among providers like 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 at volume, but harder to budget. This is the model Adyen uses.

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, 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 seven providers available to Singapore businesses:

The information in this table has been reviewed to be accurate as of 15 April 2026.

A few things to note:

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

• Shopify Payments' card rate depends on your subscription plan — the table shows the range from Advanced (3.0%) to Basic (3.2%)⁴.

• 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 built for businesses that sell across borders and want to keep more of what they earn.

Its standout feature is like-for-like settlement in 20+ currencies — when a customer pays in USD, Euros, or any of the other 20 currencies, the funds settle in that currency rather than being auto-converted to SGD (and incurring FX fees).

Combined with Global Accounts that give you local bank details in 20+ countries, you can collect, hold, and pay out in the same currency without unnecessary FX costs.

Airwallex supports 160+ local payment methods across 180+ countries and uses its Optimize 360 engine to route payments through the best path in real time — improving authorisation rates through smart retries and local acquiring in 35+ markets.

Integrations include native plugins for Shopify, WooCommerce, and Magento, plus a full Payments API for custom builds. There are no monthly fees, no setup fees, and no minimum transaction requirements.

The information in this table has been reviewed to be accurate as of 15 April 2026.

2. Stripe

Stripe is the default choice for developer-led businesses: its API is widely regarded as one of the best in the industry, and its documentation makes it straightforward for engineering teams to build custom payment flows.

In Singapore, Stripe charges 3.4% + S$0.50 per domestic card transaction¹, with an additional 0.5% for international cards and 2% for currency conversions¹. There are no monthly or setup fees¹.

Stripe supports 100+ payment methods across 195 countries and 135+ currencies¹, including PayNow (1.3% per transfer)¹, Alipay, WeChat Pay, and GrabPay. It offers like-for-like settlement only in SGD and USD, and USD payouts to a local bank account cost 1% of payout volume (minimum US$5).

The information in this table has been reviewed to be accurate as of 15 April 2026.

3. Adyen

Adyen is built for enterprise and high-volume businesses. It uses an interchange++ pricing model, which separates the interchange fee (set by the card network), the scheme fee, and Adyen's own acquirer markup.

On top of this, Adyen charges a fixed processing fee per transaction. Adyen does not publicly list the processing fee amount — you'll need to contact them for a quote.

Where Adyen stands out is payment method coverage. It supports 250+ payment methods through a single integration, and lets you settle in multiple currencies by linking multiple bank accounts².

It's a strong fit for businesses processing high volumes across multiple countries, where interchange++ pricing typically works out cheaper than flat-rate models. However, Adyen's enterprise focus means it's less accessible for smaller businesses.

The information in this table has been reviewed to be accurate as of 15 April 2026.

4. PayPal

PayPal's biggest strength is brand recognition. Customers know and trust it, which can reduce checkout hesitation — especially for cross-border transactions. In Singapore, PayPal charges 3.9% + S$0.50 per domestic transaction and 4.4% + S$0.50 for international payments³. Volume-based merchant rates are available for businesses processing above S$5,000 per month, bringing domestic rates as low as 2.7% + S$0.50³.

The trade-off is cost. PayPal's standard rates are among the highest of any provider on this list, and its currency conversion fee — 3% to 4% above the base exchange rate³ — is significantly more expensive than competitors.

Settlement is in SGD only, so there's no option for like-for-like settlement. PayPal works best as a supplementary payment method alongside a primary processor, rather than as your sole eCommerce payment processing solution.

The information in this table has been reviewed to be accurate as of 15 April 2026.

5. Shopify Payments

Shopify Payments is the built-in payment processor for Shopify stores. If you already run your eCommerce business on Shopify, it's the most natural choice — there's no third-party integration to set up, and you avoid the additional transaction fees Shopify charges when using external payment providers (0.6%–2% depending on your plan)⁴.

Card rates depend on your Shopify subscription plan: 3.2% + S$0.50 on Basic (S$29/month), 3.1% + S$0.50 on Grow (S$99/month), and 3.0% + S$0.50 on Advanced (S$399/month)⁴. There are no setup fees⁴.

Shopify Payments supports major cards, Apple Pay, and Google Pay, and the platform is PCI DSS Level 1 certified⁴. The main limitation is that it's tied to the Shopify ecosystem — if you don't use Shopify as your eCommerce platform, it's not an option.

The information in this table has been reviewed to be accurate as of 15 April 2026.

6. HitPay

HitPay is a Singapore-headquartered payment platform built for SMEs and retail businesses in Southeast Asia. It charges 2.8% + S$0.50 per domestic card transaction online and 3.65% + S$0.50 for international cards⁷. Where HitPay particularly stands out is local payment method pricing: PayNow transactions cost just 0.65% + S$0.30 for amounts of S$100 and above⁷. There are no monthly fees, no setup fees, and no PCI compliance fees⁷.

HitPay supports PayNow, GrabPay (3%)⁷, ShopeePay (3%)⁷, Atome (5.5%)⁷, WeChat Pay, and Alipay, making it one of the strongest options for local payment coverage. It also offers an integrated POS system that syncs with the same dashboard used for online payments — useful for businesses that sell both online and in-store.

The main limitation is that it settles in SGD only, with no multi-currency settlement option.

The information in this table has been reviewed to be accurate as of 15 April 2026.

7. 2Checkout (Verifone)

2Checkout, now part of Verifone, is a global digital commerce platform designed for businesses selling software, SaaS subscriptions, and digital goods. It offers different pricing tiers: 2Sell at 3.5% + US$0.35 per sale and 2Subscribe at 4.5% + US$0.45. There are no monthly fees — you only pay when you process a transaction⁸.

The platform supports 45+ payment methods across 100+ currencies⁸ and can act as a merchant of record on the 2Monetize plan, handling global tax compliance, invoicing, and regulatory requirements on your behalf. This makes it particularly useful for SaaS businesses selling to customers in multiple countries.

The trade-off is cost: even the entry-level 2Sell rate (3.5% + US$0.35) is higher than most competitors on this list, and the 2Monetize plan at 6% is one of the most expensive options available. 2Checkout is not the strongest fit for physical goods eCommerce or businesses focused primarily on the Singapore market.

The information in this table has been reviewed to be accurate as of 15 April 2026.

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.

Manage your payments and finances in one place with Airwallex

Most eCommerce businesses use one provider for payments, another for multi-currency accounts, and yet another for FX and transfers. Each system charges its own fees, and moving money between them costs time and money.

Airwallex brings all of this into a single platform. With Airwallex, you can accept payments online in 160+ local methods, settle in 20+ currencies through Global Accounts, transfer funds to 200+ countries, and manage team spending with corporate cards — all from one dashboard, with no monthly fees.

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.

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/

This publication does not constitute legal, tax, or professional advice from Airwallex, nor does it substitute seeking such advice, and makes no express or implied representations / warranties / guarantees regarding content accuracy, completeness, or currency. If you would like to request an update, feel free to contact us at [[email protected]]. Airwallex (Singapore) Pte. Ltd. (201626561Z) is licensed as a Major Payment Institution and regulated by the Monetary Authority of Singapore.