How to set up online payments for your business

Key takeaways

• Setting up online payments means you can accept payments from customers anywhere, in the currency and payment method they prefer, which directly affects whether they go through with a purchase.

• Offering multiple payment options (cards, digital wallets, buy now, pay later) helps cut cart abandonment and increase conversions, with 33% of UK shoppers preferring digital wallets alone.

• Airwallex's payment gateway supports 160+ payment methods across 180+ countries, with integration options ranging from no-code Payment Links to full API control.

If your business wants to grow and scale at speed, you need to enable online payments. To do this, you need three things: a payment service provider, a way to connect payments to your website or platform, and the right mix of payment methods for your customers. Get those right, and you're ready to accept payments from almost anywhere.

Consumer preferences are shifting quickly towards digital payments and global online shopping. In fact, 93% of consumers say that seeing products priced in their local currency directly influences their purchasing decision.

In this article, we'll look at how online payments work, then walk through the steps to start accepting them.

What is online payment processing?

Online payment processing is the system that lets businesses accept digital payments from customers. Think of it like the online version of tapping a card at a shop counter, except instead of a physical terminal, the payment moves through software. When customers can pay in their preferred currency and payment method, you'll usually reach more of them and convert more sales.

Online payment processing works with the help of several components:

• Payment gateways: This is the secure front door of your checkout. The gateway sends payment details to the payment processor.

• Payment processors: This is the go-between that checks with the customer's bank. Processors handle the transaction between the customer's bank and yours.

• Merchant accounts: This is where approved payments land. It's the account that receives funds from the customer's bank after a transaction is authorised.

Now that you know the key players, here's how they work together when a customer hits "pay."

How do online payments work?

When a customer buys something on your site, their payment details move through several systems in seconds. Here's a breakdown of the process:

• Customer initiates payment: Your customer enters their card details or taps a digital wallet like Apple Pay or Google Pay to start the payment.

• Transmission: The payment gateway securely sends the customer's information to the payment processor.

• Verification: The payment processor checks the information with the customer's bank.

• Authorisation: The customer's bank authorises the transaction if the account has enough funds to complete the purchase.

• Settlement: After the transaction is authorised, the funds are transferred from the customer's bank to the merchant's account.

That's what happens behind the scenes. Next, here's how to set it all up for your business.

How to set up online payments

Setting up online payments comes down to choosing the right provider, connecting it to your website or platform, and setting up the payment methods your customers expect. Here's how to do it in six steps.

1. Choose a payment service provider

You'll need to choose a payment service provider (PSP) to start accepting online payments. A PSP handles online payment processing and usually bundles the payment gateway, processor, and merchant account into one service, so you don't have to manage multiple relationships.

With so many providers out there, it helps to compare them against a few key criteria:

• Payment method coverage: Does the provider support the payment methods your customers prefer (cards, digital wallets, buy now, pay later, local methods)?

• Integration options: Can you connect through no-code tools, plugins for your eCommerce platform, or a full API if you need custom control?

• Pricing transparency: Are fees clearly stated? Watch for hidden charges on currency conversion, chargebacks, or monthly minimums.

• Security certifications: Is the provider PCI DSS compliant? This is the industry standard for handling card data securely.

• Multi-currency support: If you're selling internationally, can you accept and settle in multiple currencies without excessive conversion fees?

• Platform compatibility: Does the provider integrate with your existing tools, like Shopify, WooCommerce, Magento, or your custom-built site?

2. Set up your account

Next, you'll want to set up your account. You'll need to provide the business information required, such as your company name, address, and tax identification number. Most providers will also ask you to complete a KYB (Know Your Business) application. KYB checks help the provider confirm that your business is legitimate, and they're a standard part of the onboarding process.

Many providers let you create a free account or start with a trial, so you can look around the platform before you commit.

3. Integrate with your website or platform

You'll need to connect your payment gateway to your platform so customers can enter their payment information. When the gateway is well integrated, the checkout process feels smooth and intuitive. Customers are much more likely to finish their purchase when they don't run into confusing or lengthy steps.

Most PSPs offer several ways to integrate, depending on your technical setup:

• Payment Links: No website? No problem. Generate a link and share it by email, social media, or messaging apps. It's ideal for freelancers, service businesses, or anyone selling without a full eCommerce site.

• Plugins: These are pre-built integrations for platforms like Shopify, WooCommerce, Magento, and BigCommerce. Install, configure, and you're live, with no coding required.

• Low-code Checkout: You can embed a hosted checkout page on your custom website with minimal development work. You get a polished payment experience without building it from scratch.

• Full API: For developers who want complete control over the payment flow, APIs let you build a fully customised checkout experience.

4. Set up your payment methods

Set up the payment methods you want to accept. This is one of the most important steps. If customers can't pay the way they prefer, they'll leave. In the UK, 33% of shoppers prefer to pay via global digital wallets, so offering only credit cards isn't enough anymore.

Here are the main payment method categories to think about:

• Credit and debit cards: Visa, Mastercard, and Amex are still the most widely used payment methods globally. They're essential for any online business.

• Digital wallets: Apple Pay, Google Pay, and PayPal let customers pay with a tap or click, which speeds up checkout and reduces friction.

• Buy now, pay later (BNPL): Options like Klarna and Clearpay let customers split payments into instalments. They're popular for higher-value purchases.

• Bank transfers and direct debit: These are useful for B2B transactions or subscription billing, where card fees can add up.

• Local payment methods: If you're selling internationally, local methods like iDEAL (Netherlands), Alipay and WeChat Pay (China), or Bancontact (Belgium) can significantly boost conversions in those markets.

If you plan to expand internationally, look for a provider that supports local payment methods and lets you show prices in local currencies. Customers are much more likely to complete a purchase when they see familiar payment options and pricing.

5. Test before you go live

Before you start accepting real payments, use your provider's test or sandbox environment to simulate transactions. That way, you can catch issues before customers do.

Run through this checklist:

• Complete a test purchase using different payment methods

• Check that the checkout flow works on both mobile and desktop

• Verify that confirmation emails and receipts are sent correctly

• Test what happens when a payment is declined

• Confirm that transactions appear correctly in your dashboard

6. Go live and monitor

Once testing is done, switch from test mode to live mode in your provider's dashboard. Then keep a close eye on your first few transactions. Check that funds are settling as expected, and review any declined payments or errors. Most providers offer real-time reporting, so you can spot issues quickly and keep your checkout running smoothly.

Keeping your online payments secure

Security is a top concern for any business accepting online payments, and for good reason. The good news is that your PSP handles most of the heavy lifting. Still, it helps to know what's protecting your transactions.

PCI DSS compliance

PCI DSS (Payment Card Industry Data Security Standard) is a set of security standards for handling card data. Think of it like a safety certification for a restaurant kitchen. It sets the baseline for how payment information should be stored, processed, and transmitted.

Most reputable PSPs are PCI DSS compliant, which means they take on the compliance burden for you. By using hosted payment pages or tokenization, where card details are replaced with a secure token, you avoid handling sensitive card data directly. That reduces your risk and makes compliance simpler.

Fraud prevention

Look for a provider that offers built-in fraud prevention tools. Key features include 3D Secure (3DS) authentication, which adds an extra verification step for card payments; address verification to check billing details; and machine learning-based fraud detection that flags suspicious transactions in real time.

Airwallex uses AI-driven fraud prevention to help protect your business without adding friction for legitimate customers.

Tips to improve your checkout conversion

Setting up online payments is only the start. The way you design your checkout experience directly affects how many customers finish their purchase. Here are a few practical ways to reduce drop-off:

• Offer guest checkout: Making customers create an account before buying is one of the top reasons for cart abandonment. Let them check out as a guest, then offer account creation after the purchase.

• Minimise form fields: Only ask for the information you need. Every extra field is another chance for the customer to give up.

• Display trust signals: Security badges, SSL indicators, and recognisable payment logos reassure customers that their data is safe.

• Show prices in local currency: As noted earlier, 93% of consumers say local currency pricing influences their decision. If you're selling internationally, display prices in the customer's currency.

• Offer multiple payment methods: The more options you offer, like cards, wallets, and BNPL, the more likely it is that customers can pay the way they prefer.

Accept online payments with Airwallex

Once you've mapped out your payment setup, the right provider makes execution simple. Airwallex Payments helps you accept payments from more than 180 countries in over 160 global and local payment methods, including major schemes like Visa, Mastercard, and Amex, plus digital wallets, BNPL, and region-specific options.

You can choose from several ways to integrate payments into your business:

• Payment Links: No coding required. Generate a link and share it by email, social media, or messaging.

• Payment Plugins: Integrate with Shopify, WooCommerce, Magento, or BigCommerce in minutes.

• Checkout: Embed a low-code checkout solution that's easy to customise.

• Payments API: Build a fully custom payment experience with complete control.

With local acquiring in 35+ markets, multi-currency settlement, and ML-powered optimisation for higher authorisation rates, Airwallex helps you convert more customers whilst keeping costs down. Explore our payment processing services and start accepting online payments today.

Frequently Asked Questions (FAQs)

What's the difference between a payment processor and a payment service provider?

A payment processor handles the transaction between the customer's bank and the merchant's bank. It verifies payment details and transfers funds. A payment service provider (PSP) offers a broader solution that usually includes the payment gateway, processor, and extra tools like fraud prevention, all in one package.

How do I create a payment link for online payment?

You can create a payment link through your PSP. Log in, go to the payment link tool, enter the amount, currency, and description, then generate the link. Share it with customers by email, social media, or your website. With Airwallex, you can create Payment Links directly from your dashboard in seconds.

What's the easiest way to accept online payments?

The easiest way is to use a payment service provider that offers no-code options like Payment Links or pre-built plugins for platforms like Shopify and WooCommerce. You don't need coding skills or a custom website to start accepting payments.

How do I keep my online payments secure?

Choose a PCI DSS-compliant payment provider, which handles most security requirements for you. Make sure your website uses HTTPS, and look for features like 3D Secure authentication and fraud detection.

How fast can my business receive funds from online payments?

Settlement times depend on your provider and payment method, but most providers deposit funds within one to three business days. Some offer same-day or next-day settlement for an additional fee. With Airwallex, about 95% of transfers arrive within a few hours or the same day.

Disclaimer: We wrote this article in May 2026. We based the information on our own online research and weren't 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. This research is reviewed every six months. If you'd like to request an update, feel free to contact us at [email protected].