When you have got your e-commerce platform to sell the products and services to the customers, it is time to integrate a payment system into the business model. Payment gateways for e-commerce business stores have become a necessity. Without a payment gateway, it is impossible to do online transactions for your online store.

But, how to find the best payment gateway? What type of payment gateway should you use for your business? Which is the cheapest one? These are some questions that arise in our minds when we search for a payment gateway to be used for the business.

This post will give you answers to all these questions. We have curated a guide to give an insight into payment gateway comparison which you will surely find helpful. This will let you save time in picking the right one for your organization. Having dealt with multiple payment gateways, Indglobal, the leading e-commerce website design & development company in Bangalore will help you know about the most popular payment processors and their prices.

What are Payment Gateways?

A payment gateway or processor is a system that helps you accept payments at your online business store. When compared to traditional payment methods, payment gateways provide a smooth checkout experience to people. Payment processors act as a middleman between the business owner’s and the customer’s bank account.

As the middlemen, it is the job of payment gateways to check if the customer has sufficient amount, authorizing, and executing a safe transaction. It also ensures that the merchants receive payments securely. In today’s digital world, e-commerce business fully depends on payment gateways to ensure that the payment is passed securely from the customer to the business owner.

To get included in the payment gateway category, a product must-

  • Connect the website to a payment gateway portal for online transactions.
  • Support both B2B and B2C payments.
  • Accept online payments through all modes such as debit card, credit card, or mobile wallet.
  • Integrate financial system and retail sale solutions.

Types of Payment Gateways

There are three main types of payment gateways which are as follows-

1. Hosted Payment Gateways

Hosted payment gateways redirect the customers from the website to the payment portal to complete the business transaction. PayPal is an example of a hosted payment gateway. If you check out on a PayPal website, then you will be redirected to its payment page to complete the purchase. These gateways are easy to set up and do not need to design an entire payment portal to get the payment.

2.Self-hosted Payment Gateways 

Self-hosted payment gateways let the customers complete the business transaction on the website of the merchant. The best example of this type of payment processor is Stripe. If you use the Stripe payment gateway, then you can add the card details and checkout within the business store. There is no need to go to a different page. The self-hosted payment gateway helps the business to build a better user experience.

3.API-hosted Payment Gateways 

API-hosted payment gateways let the merchant’s website and payment gateway communicate with each other. The payment details are added and processed on the website using the API. This type of payment gateway is best when you need full control over the payment process or want to set up a mobile payment system. According to several sources, 3 trillion dollars would be the payment market size by 2024.

Best Payment Gateways in the Online Market
Now, let us see some of the top-rated payment gateways for e-commerce online businesses.


  • PayPal

If someone talks about choosing the best payment gateways, you cannot forget PayPal. It is one of the most popular and trusted payment methods in the online market. With a share of 60.18% in the market, PayPal rules the kingdom of payment processors.

PayPal is a hosted payment gateway type used across 200+ countries that supports all the major cards like Mastercard, Visa, American Express, Diners, and many more.

Transaction Processing Fee- 3.49% + Fixed Fee

Supported Platforms- BigCommerce, Magento, Shopify, and WooCommerce

Industries- Logistics, Supply Chain, Food and Beverages

Website- https://www.paypal.com/us/home

  • Stripe Connect

Stripe Connect is another choice among all payment gateways in the online world. The payment gateway has the second-largest share of the market. It is part of the self-hosted payment gateways where the customers can pay from the merchant’s website.

Stripe supports approximately 135 currencies and is available in around 47 countries. The payment gateway works well with major cards like JCB, Visa, Mastercard, and others.

Transaction Processing Fee- 2.9% + $0.30

Supported Platforms- Magento, WooCommerce, BigCommerce, and Shopify

Industries- Computer Software and Internet

  • Amazon Pay

Amazon Pay is a great digital wallet option that has a customer base of almost 300 million users. The payment gateway has a market share of 3.51% which is considered the third largest after Stripe Connect and PayPal. If you order any product from Amazon, then you can easily pay through the Amazon Pay wallet.

As it is a popular payment gateway, there are ample integrations available for Amazon Pay making it easy to connect the e-commerce business store with the payment gateway.

Transaction Processing Fee- 2.9% + $0.30

Supported Platforms- Magento, WooCommerce, BigCommerce, and Shopify

Industries- Retail and Food & Beverages

  • Authorize.net

Authorize.net is the most popular payment gateway available in the online market that supports many payments like a point of sale, mobile payments, e-commerce, e-check, and many more. The payment gateway has a share of 1.09% in the market. Authorize.net is owned by Visa which operates in almost 30 countries and supports currencies like EUR, USD, and many more.

Authorize.net is the oldest payment gateway that is available for people for a long period. The payment processor has set up a huge user base of around 430,000 business owners across the globe.

Transaction Processing Fee- 2.9% + $0.30

Supported Platforms- Shopify, Magento, BigCommerce, and WooCommerce

Industries- Information Technology & Services and Internet

  • Adyen

Adyen is another payment gateway available for the e-commerce business. The payment processor is used by various online business organizations such as Spotify, Uber, Wix, eBay, and others. It is also compatible with various payment methods.

There is no setup fee for Adyen and can integrate with several payment methods. You can get Adyen in almost 37 countries and support different payout currencies.

Transaction Processing Fee- $0.30 + payment method fee

Supported Platforms- WooCommerce, Shopify, Magento, SpreeCommerce, and WooCommerce

Industries- Internet

These are the five best e-commerce payment gateways to choose for your business transactions. Pick the one that suits you best and contact the leading e-commerce development company in Bangalore to guide you more about the payment gateway.

Things to Consider When Choosing a Payment Gateway

Before you pick a payment gateway for your e-commerce business, there are some essential points you should consider. Scroll down and let us talk about them.

  • Location of the users

The first thing to consider is the location of your target audience. For instance- if your business operates in a single country like India, then it is a great option to use UPI for your business. UPI is one of the most popular payment methods in the country.

  • Payout speed

The next thing that you can consider is the payout speed. After the payment is done, the processor takes time to deposit the money into the business owner’s account. This is known as payout speed or payout time. For instance- a bank account transfer using PayPal can take 1 to 4 business days, while debit cards can do it within minutes.

  • Payment option

As discussed earlier, there are three types of payment options- hosted, self-hosted, and API-hosted payment types. You need to choose which one is more convenient from the three options. If you want to redirect the customers to a secured payment page, you can use PayPal. And, for mobile and on-site payments, an API-hosted payment gateway is the right choice.


Choosing the best payment gateway for your e-commerce business is a hectic task. And, this can be a dilemma for every business. Selecting the right payment gateway requires a lot of brainstorming. Hence, it is essential to first understand the requirements and make the correct choice. Here are some points you can consider to choose the payment gateway for your online business.

  • If you do not want to handle payment-related activities, then choose a trusted payment processor like PayPal.
  • If you want to take full control over business transactions, then you can integrate the payment gateway using the APIs.
  • If you want to customize the payment process or the checkout experience, then choose a payment gateway like Stripe.

Now, this ends the search for the leading payment gateways to run your e-commerce business smoothly. And, as the recognized e-commerce website development in Bangalore, we suggest the clients choose the payment processor by themselves according to their business requirements.

Connect with the best e-commerce web developers in Bangalore.





What is Computer Software? Know Its Types, Cost, and Use in Business

Top Websites and Applications to Sell Used Clothes Online

Recent Blogs



Android app development company app development companies in Bangalore best mobile app design software best mobile app development best web design company in India best web development company in Bangalore best website development in bangalore best wordpress website development in bangalore Custom Website Development digital marketing agency in Bangalore ecommerce development company ecommerce web development ecommerce website design ecommerce website development ecommerce website development company Bangalore Go vs. Rust Which one to choose mobile app development company in Bangalore mobile app development software online mobile app development outsourcing software development Salesforce development company in Bangalore India seo company in bangalore SEO Services Top web design and development company in bangalore Top web design company in bangalore Top web development company in bangalore Top website design and development in bangalore Top website development company in bangalore web-design and development in Bangalore web design web design and development company in india web design company Web design company in India web development company web development company in Bangalore website design agency in India Website design Company in India website designers in Bangalore Website Development company in Bangalore Website Maintenance Website Maintenance company WordPress Themes WordPress website development Company in Bangalore WordPress website development in Bangalore WordPress website development in India


Request a quote or Talk to an expert

We guarantee a response in 6 hours or less. And the best bang for your buck.

Talk to an expert

Call-Indglobal Call-Indglobal