Top eCommerce Payment Solutions & Providers in 2024

What is an eCommerce payment solution?

eCommerce payment solutions help online businesses accept payments.

A whopping 2.14 billion shoppers are now buying online – it doesn’t matter if you’re a growing global eCommerce brand or an online marketplace, you need reliable, efficient eCommerce payment software to stay in business. 

eCommerce payment providers sell a type of financial software that acts as a secure bridge between a customer buying a product or service and the funds being safely transferred to your bank (the merchant bank).

Let’s say you’re an online business owner selling software; when a customer purchases a subscription, your eCommerce payment software will encrypt their financial data and send it to the relevant payment processor to be authenticated and approved. If successful, the customer’s funds will then be transferred to your business account.

In this way, eCommerce payment service providers act like a payment gateway; but most modern suppliers offer much more. Additional features like funds management, supplier payments and detailed analytics are now commonplace.

The best eCommerce payment companies save online businesses time and money by boosting checkout conversions, reducing the risk of fraud and automating payments.

eCommerce payment software typically includes features such as:

• Secure payments

• Fraud prevention

• PCI compliance

• Business accounts

• Automated payment workflows

• Reporting and analytics

• Integration with other business systems.

A strong payments provider should act as your financial partner. It won’t just keep you in business; it’ll help you scale while protecting your bottom line.

In this article, we’re going to explore 5 of the top eCommerce payment solutions and providers to help you decide which is best suited to your business. 

Top eCommerce payment solution providers in 2024

In no particular order.

• Stripe for flexibility

• AmazonPay for Amazon sellers

• Airwallex for multi-currency payments

• PayPal for one-off sales

• GoCardless for memberships/subscriptions

Top providers of eCommerce payment solutions & providers

In alphabetical order.

How does an eCommerce payment processing system work?

If you’re selling online, eCommerce payment processing systems are an essential part of your payment process. They make sure your customers’ money gets safely from their credit or debit card, or digital wallet, to your bank.

But they’re also a useful tool for wider financial management and operational streamlining. eCommerce payment systems integrate several other functionalities that can help you slash admin hours, save on transaction and currency fees and manage your funds efficiently.

Here’s a breakdown of how eCommerce payment processing systems typically work:

• They process transactions safely: the core function of eCommerce payment software is to facilitate seamless and secure financial transactions. As customers purchase online, their payment information is encrypted and sent to the merchant's bank (acquiring bank), and in turn the issuing bank, for verification. After successful authorisation, the eCommerce payment system communicates confirmation to both the merchant and the customer.

• They help with fund management: beyond transactions, providers can help manage your earnings. Online businesses use this kind of software to access global accounts that allow them to hold multiple currencies and convert money at competitive rates, streamlining their financial infrastructure in a cost-effective way.

• They simplify supplier payments: automatic supplier payments is another feature offered by providers like Airwallex. Businesses can streamline outbound payments by setting up scheduled payments for recurring expenses and executing cross-border transactions with ease. This ensures timely supplier payments and can remove friction in procurement processes.

• They protect your business and your customers from fraud: good eCommerce payment providers have stringent security protocols, safeguarding sensitive customer information and ensuring all transactions comply with global standards like PCI DSS.

• They integrate with existing business systems: most suppliers integrate with major accounting softwares, eCommerce and CRM platforms, improving your operational efficiency by minimising manual administration and the potential for errors.

• They help you stay in control of your financial health: built-in reporting tools and analytics can offer critical insights into sales trends and customer behaviour, helping businesses make big decisions and refine their growth strategy.

• They help you grow across borders: some eCommerce payments providers like Airwallex help businesses expand internationally by supporting multi-currency transactions and simplifying international payments.

eCommerce payment processing systems are great for modern eCommerce businesses to accept payments from customers.

Beyond providing secure online transactions, modern payment gateway service providers and eCommerce payment providers are becoming increasing comprehensive and are evolving into more holistic payment providers and consolidating the payment processing chain.

Many eCommerce payment services play more than one role in the payment process

What payment methods are available for eCommerce services?

Letting your customers pay using their preferred method is important for maintaining good checkout conversion rates and avoiding cart abandonment; especially if you’re operating internationally.

Available payment methods vary between different eCommerce payment providers. At an absolute minimum, you want to ensure your eCommerce payment system accepts all major credit card brands, but the best providers will offer much more.

Here’s a breakdown of the most popular payment methods eCommerce services offer:

• Credit and debit cards: still the most widely used payment method globally, credit and debit cards are essential for any eCommerce platform. They offer convenience and familiarity to customers, with Visa, MasterCard, and American Express being the most popular.

• Digital wallets: digital or e-wallets like PayPal, Apple Pay and Google Pay allow users to store their payment information on mobile devices for quick and secure transactions.

• Bank transfers: direct bank transfers, including Automated Clearing House (ACH) in the US, or SEPA transfers in Europe, are a preferred method for larger transactions. They enable customers to transfer funds directly from their bank accounts to merchants without using a debit or credit card.

• Buy Now, Pay Later (BNPL): BNPL services like Afterpay and Klarna are becoming more popular as they offer customers the flexibility to purchase items and pay in instalments over time. This method has gained traction for its ability to make larger purchases more accessible.

• Invoice payments: used primarily in B2B transactions, this method involves sending an invoice to the customer, who makes the payment through traditional means. Some eCommerce payments providers automate this process for efficiency.

• Prepaid cards and gift cards: prepaid cards, which can be loaded with funds for future use, and gift cards from various retailers or services, offer another flexible payment option for eCommerce transactions.

By offering a diverse range of payment methods to your customers, you’ll make it easier for them to complete their purchase in a way that suits them.

As the digital payments landscape shifts, it’s important to stay up to date with buyer trends and find the eCommerce payment platform that’s best for your business. Your requirements will be different as you grow from a startup to global organisation. 

What questions to ask when selecting an eCommerce processing provider?

 Choosing the right eCommerce payments system to support your business isn’t always easy, but it is important. How you handle online payments can make or break your customer relationships.

The safety and efficiency of managing customer payments is the most important factor, but it’s also worth checking compliance, conversion fees, scalability, integration capability and much more.

Here’s a list of questions to ask your provider that will help you make an informed decision: 

1. What payment methods do you support? Understand the range of payment methods the provider supports, including credit/debit cards, digital wallets, bank transfers and any global region-specific options. Offering your customers local payment methods can boost checkout conversions.

2. What are your security measures and compliance standards? Ask about your potential new provider’s security protocols, such as how they conduct KYC/AML checks, their encryption and fraud detection capabilities, and ensure they comply with industry standards like PCI DSS.

3. Do you offer global payment support? If you have customers around the world, or you’re planning to launch in new markets soon, ask about multi-currency support and international payment capabilities. Avoid hidden fees by understanding exactly how the provider handles currency conversions and cross-border fees.

4. What are the fees and pricing structure? Find out all the potential costs associated with the service, including transaction fees, monthly fees, setup costs, conversion fees and any hidden charges. This will help your financial planning.

5. How easy is the integration process? Most eCommerce payment services integrate with major accounting, CRM and eCommerce platforms. Make sure you choose a provider that works with your existing software and assess the ease of integrating (no or low code plugin options are the most popular).

6. What level of customer support do you offer? Find out what kind of support is available to you if something goes wrong – ask about support hours, the type of support (email, phone, chatbot) and response times.

7. How do you handle refunds and chargebacks? Understanding the provider’s process for dealing with chargebacks and whether they offer any support or protection against could save you money in the future.

8. How do you support business growth? It’s worth discussing scalability options with your new provider because you don’t want to waste time switching services every couple of years. Your chosen solution should be able to handle increased transaction volumes and multiple overseas markets without significant disruptions.

9. What analytics and reporting tools are available? Detailed transaction data and analytics can streamline reconciliation and accounting processes and give you valuable insights into your financial performance. Ask what reports are available and how easy they are to generate.

Why choose Airwallex as an eCommerce payment services provider?

Hundreds of thousands of online companies partner with Airwallex to simplify their payments and financial operations, from fast-growing eCommerce startups to global online marketplaces.

We’re best known for our global reach. If you’re looking for an eCommerce payments service provider that makes selling across borders easy, safe and cost-effective, Airwallex is a smart choice. We can help you:

• Go global: tap into new markets and collect payments in 170+ currencies with local payment methods that cater to your customers’ preferences.

• Save money: protect your bottom line with low transaction and currency conversions fees, plus market-leading FX rates.

• Collect directly with eComm platforms: get local accounts for overseas customers with quick, simple integration with platforms like Klarna, PayPal, Shopify, Stripe, eBay and more.

• Simplify supplier payments: pay your suppliers on time with less hassle. Automated payments can help you save hours and strengthen relationships.

• Gain visibility over your finances: get a clear, real-time overview of your cash flow, manage multiple currencies effortlessly and move money between entities with just a few clicks.

• Scale quickly: no need to switch providers – Airwallex grows with you. It’s built to support global businesses of all sizes. 

Airwallex supports ambitious and multi-entity eCommerce businesses of all shapes and sizes automate payment collection, slash financial admin hours and move money across borders efficiently.

FAQs about eCommerce payment services 

What is eCommerce processing software?

A kind of financial software that connects an online store to payment processor systems. It helps online businesses accept payments by securely transferring customers’ funds to the merchant’s bank.

What important factors to choose when selecting an eCommerce payment processing solution?

The key factors to consider are security and compliance, fees and costs, integration capabilities, scalability, international payments support, customer service and which payment methods are supported.

How much does it cost to onboard an eCommerce payment service?

Pricing varies between providers; some offer subscription plans, while others operate on a per-transaction model. Don’t forget there are often hidden fees for international payments.

How safe are eCommerce payment processing services?

Most major suppliers are considered safe. Look for fraud prevention systems, end-to-end data encryption and compliance with PCI DSS (the global security standard for organisations that store sensitive data).

Sources & references

² https://pay.amazon.eu/help/5BDCWHCUC27485L

³ https://pay.amazon.co.uk/help/SKX7JCY3G3SP73U

⁴https://gocardless.com/blog/how-much-do-international-payments-really-cost/

⁵ https://www.paypal.com/uk/enterprise/payment-methods

⁶ https://www.paypal.com/uk/webapps/mpp/merchant-fees

⁷ https://stripe.com/payments/payment-methods

⁸ https://wise.com/us/blog/stripe-international

⁹ https://wise.com/us/blog/stripe-international

Disclaimer:  We wrote this article in Q1 2024. The information was based on our own online research and we were 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. If you would like to request an update, feel free to contact us at [email protected].