What are integrated payments? A guide for businesses (2026)

Key takeaways:

• Integrated payments connect your checkout, payment processor, and business software into one system, so transactions move through automatically.

• When customers are sent off-site to pay, or can't find their preferred payment method, they leave. Integrated systems reduce that friction and improve conversions.

• Airwallex brings online and in-person payments together: Accept 160+ payment methods across 180+ countries, manage online and in-store payments from one platform, and connect your payment data with your accounting tools as you scale.

Integrated payments connect your checkout, payment processing, and back-end systems so payments can move through your business with fewer manual steps.

Instead of sending customers to a separate payment page or managing transaction data across different tools, everything works together in one flow.

This can make the payment experience easier for customers while reducing the operational work involved in managing transactions, settlements, and reconciliation.

In this guide, we'll explain how integrated payments work, why they matter, and what to look for when choosing an integrated payment solution for your business.

What are integrated payments?

Integrated payments connect your checkout, payment processing, and business software into one system that shares information automatically.

Instead of switching between separate tools for your checkout, your accounting, and your payment processor, everything communicates through one system, usually through APIs or pre-built plugins.

For example:

• eCommerce: Your eCommerce payment processing connects directly to your platform, so customers can complete transactions without leaving your website.

• Brick-and-mortar: Your point-of-sale (POS) system syncs with your payment processor and back-office tools in real time.

The result is a smoother experience on both sides. Customers can check out without unnecessary steps, while you spend less time on admin, with payments, reconciliation, and transaction data all managed in one place.

How do integrated payments work?

Integrated payments work by connecting different payment and financial services so they can share information with each other. Here's how a typical online transaction flows through an integrated payment system:

• The customer adds an item to their cart and enters payment details through an integrated checkout that keeps them on your site.

• The checkout shares payment information with a payment gateway, which encrypts the data and passes it to the payment processor. The processor then checks with the customer's bank to confirm the funds are available and the transaction is legitimate.

• The gateway receives approval (or rejection) from the customer's bank and passes that back to the checkout.

• The checkout confirms the transaction and completes the order.

With a non-integrated payment, the customer gets sent from your site to a third-party checkout to enter their details, then returned to your site to confirm the order. Those extra steps create friction, put customers off, and raise the risk of payment failures.

For in-person payments, the same principle applies.

An integrated POS system connects your payment terminal directly to your business software, so when a customer pays at the counter, the transaction is recorded, inventory is updated, and the data flows through to your accounting tools automatically, without any manual re-entry.

Integrated payments vs embedded payments

Integrated and embedded payments both connect payments to a digital product, but they differ in where the payment functionality lives.

Here’s a quick overview: 

Embedded payments are therefore less about connecting a payment provider and more about making payments part of the product itself.

For most businesses that simply want to accept payments through their website or app, integrated payments are the more relevant model.

Embedded payments make more sense when payments are a core feature of the product you're offering to your own customers or users.

6 types of integrated payment methods

One of the main advantages of an integrated payment system is the ability to support multiple payment methods through a single integration. Here are the main categories to know:

1. Credit and debit cards

Cards remain the most widely accepted payment method globally. Visa and Mastercard are accepted virtually everywhere, with American Express accepted at most major merchants.

Integrated payment systems typically handle card payments through tokenisation, replacing sensitive card details with a unique token so your systems never store raw card data. Learn more about how tokenisation works.

2. Digital wallets

Digital wallets let customers pay using stored card or bank details on their phone or device, without typing in their payment information at checkout. For merchants, wallet payments typically process at the same rate as card transactions, with no extra cost for offering them.

In Singapore, the most widely used wallets include Apple Pay, Google Pay, GrabPay, and DBS PayLah!. Customers paying via GrabPay or DBS PayLah! often do so through QR codes, which are standard across retail and F&B settings via the SGQR scheme.

3. Buy now, pay later (BNPL)

BNPL lets customers split a purchase into installments, usually interest-free if paid on time. Providers like Atome and Hoolah are widely used across Singapore retail.

For merchants, BNPL is settled in full upfront; the BNPL provider takes on the instalment arrangement with the customer.

4. Bank transfers and PayNow

Direct bank transfers are common for B2B payments and higher-value transactions.

In Singapore, PayNow is the dominant real-time bank transfer method, allowing customers to pay directly from their bank account using a phone number, NRIC, or UEN.

It's accepted across both online checkouts and in-person via QR code, and it's especially relevant for merchants whose customers are used to paying this way for everyday purchases.

5. Recurring payments

For businesses with subscription models, memberships, or repeat billing, integrated payment systems support recurring payments by saving a customer's payment details securely on file.

The system charges automatically on each billing cycle, reducing failed payments and the manual work of chasing renewals.

6. In-person and POS payments

POS payment systems connect your in-person payment terminal to your broader business tools, so when a customer pays at the counter, the sale is recorded, stock is updated, and transaction data flows through to your back office automatically.

This is particularly useful for businesses operating across both online and physical channels who need a single view of payment activity.

5 benefits of integrated payments

Integrated payments can make a noticeable difference to both the customer experience and the work happening behind the scenes. Here are the main benefits at a glance:

1. Better conversion at checkout

Integrated payments keep the payment experience within your website or app, so customers don't have to jump to another page or re-enter their details. You can also offer the payment methods they already use, whether that's GrabPay, PayNow, or Apple Pay.

2. Less manual work

Without an integrated payment system, someone may need to move payment data into your accounting, inventory, or customer relationship management (CRM) software manually. That's time-consuming and leaves more room for errors.

With an integration, transaction data flows into your other systems automatically. Your books stay up to date, reconciliation takes less time, and your team has fewer spreadsheets to maintain.

3. Better security

Integrated payment systems can use tokenisation and encryption to protect sensitive card data, so your systems don't need to handle raw card details directly. Many also support 3D Secure authentication, which adds another layer of verification for certain transactions.

Keeping payment data out of your own systems also reduces the number of places where sensitive information is stored or handled. This can make it easier to manage your PCI DSS obligations.

4. A clearer view of your payments

When your payment system sits separately from the rest of your business software, it can be difficult to get a complete picture of your sales and cash flow.

Integrated payments bring transaction data, settlements, and reporting together with your other business data. You can see what's been paid, what's still outstanding, and how your sales are performing without pulling information from several different systems.

This is particularly useful if you sell both online and in person. Instead of checking separate systems for your eCommerce store and physical locations, you can get a clearer view of your payment activity across both.

5. Easier cross-border payments

Selling internationally means dealing with different currencies and payment habits in each market.

Integrated payments can let you accept local payment methods and currencies without setting up a completely separate payment system for every country. This matters because customers often prefer to pay using methods they already know.

How to get started with integrated payments

Getting set up with an integrated payment provider typically involves a few key steps.

Step 1: Assess your payment needs

Start by mapping out how and where you accept payments today: online, in-store, or both.

Consider the payment methods your customers use most, whether you sell internationally, and what business tools (accounting software, eCommerce platform, ERP) you need your payment system to connect with.

Step 2: Choose a provider that fits your setup

Look for a provider that supports the payment methods relevant to your markets, offers the integration options your platform supports, and can scale with you if your business grows into new channels or countries.

If you accept both online and in-person payments, look for a provider who can handle both.

Step 3: Integrate with your existing tools

Most providers offer a range of integration options from no-code plugins for platforms like Shopify or WooCommerce, to pre-built checkout components, to full API access for businesses that need a custom setup.

Once connected, test your checkout flow end-to-end before going live.

Step 4: Review security and compliance requirements

Make sure your provider handles PCI DSS compliance, tokenisation, and fraud detection as part of their standard setup, so you're not managing these separately.

Connect every part of your payment flow with Airwallex

Integrated payments work best when your payment processing connects with the rest of your business, from your checkout and point-of-sale system to your accounting and reconciliation tools.

Airwallex brings these pieces together in one payments platform, so you can manage online and in-person payments and the data behind them without maintaining separate payment setups. Here's what you can do with Airwallex:

• Accept 160+ payment methods in 180+ countries: Accept cards, Apple Pay, Google Pay, GrabPay, PayNow, Atome, and more through a single integration.

• Online and in-person payments in one platform: Accept in-store payments through Airwallex POS terminals and manage them alongside your online payments, with sales, reconciliation, and reporting in one dashboard.

• Connect payments to your accounting: Integrate with Xero, QuickBooks, and NetSuite so payment data flows directly into your accounting system, reducing manual reconciliation.

• Built-in fraud prevention: Airwallex's AI-powered risk engine uses machine learning to detect and block suspicious transactions in real time, with customisable rules to help you manage payment risk.

Frequently asked questions (FAQs)

What is the difference between integrated payments and a payment gateway?

A payment gateway is one component of a payment system; it's the software that captures and encrypts a customer's payment details and passes them to the payment processor. Integrated payments describe how that gateway connects with the rest of your business tools: your checkout, your accounting software, your inventory system, and your POS. A payment gateway on its own processes transactions. An integrated payment system makes sure that data flows through your whole operation automatically.

Do integrated payments work for in-person as well as online sales?

Yes. Many integrated payment providers support both online checkout and in-person point-of-sale payments. When both channels run through the same platform, sales data, reconciliation, and reporting are unified, so you're not managing a separate system for your physical store and your online store. This is especially useful for businesses that sell across both channels and need a single view of payment activity.

What payment methods can I accept through an integrated payment system?

This depends on the provider, but most integrated payment systems support cards (Visa, Mastercard, American Express), digital wallets (Apple Pay, Google Pay), and local payment methods relevant to your market. In Singapore, that typically includes GrabPay, DBS PayLah!, and PayNow. Some providers also support buy now, pay later options and recurring billing. The broader the payment method coverage, the more flexibility you have to serve customers in different markets.

How do I choose an integrated payment provider?

Start with the markets you operate in and the payment methods your customers use. Check whether the provider supports local acquiring in those markets, which affects authorisation rates and cross-border fees. Look at how it integrates with your existing tools. Security and compliance support (PCI DSS, tokenisation, fraud detection) should come as standard. If you're scaling internationally, it's also worth checking whether the provider can handle multi-currency settlement so you're not converting funds unnecessarily on every transaction.

Is PCI DSS compliance handled by the payment provider?

It depends on how you integrate. With a fully hosted checkout or a pre-built checkout component, the payment provider handles PCI DSS compliance on your behalf, because sensitive card data never touches your systems directly. If you build a custom integration via API, more of the compliance responsibility sits with you. Most providers, including Airwallex, offer integration options across both approaches, so you can choose the level of control that fits your technical setup.