Last updated - November 20, 2023
Customers expect inconvenience at every touchpoint, and the payment process is no exception. One survey finds that customers prefer frictionless payment options and experiences.
Any obstacles encountered during the payment method can frustrate customers, causing them to seek other suppliers. With that in mind, improving customers’ online payment experience is crucial for every company’s success.
Unfortunately, many small businesses may feel like it’s irrelevant to their operations. But offering a convenient payment option is more important than ever to remain competitive and expand your customer base. Otherwise, you may lose valuable customers.
The good news is that seamless payment gateways exist to boost customer experience with more flexible payment options. However, choosing the right payment system for your business can be overwhelming with so many options available.
We’ve compiled a list of the top payment solutions suitable for small businesses. But first, let’s delve further into why delivering a seamless payment experience should be a priority.
The Importance of a Seamless Payment Experience
Payments are a critical touchpoint in customer interactions. Every time a customer reaches the checkout page, they consider the effort necessary to make a payment.
Suppose the process is complex and time-consuming. Customers may hesitate to proceed and go to your competitors. Likewise, long lines at the checkout counter can prompt them to abandon their carts. Your point-of-sale or POS systems should be flawless, so your clients will go through the checkout process until the end.
A payment experience without hassle or confusion is crucial to prevent cart abandonment. Furthermore, ensuring a seamless payment experience can give your small business the following advantages:
Foster customer loyalty
Customers are inclined to buy from brands they trust. Besides consistent product or service value, you can cultivate customer loyalty by providing positive experiences. An easy and convenient payment process is an effective way to make that possible.
Customers with a seamless payment experience are more likely to return and regularly make purchases. One report shows that the probability of repeating purchases is 82 percent after receiving a positive service experience. That’s even when presented with an opportunity to switch.
Attract new customers
Repeat purchases are a crucial part of every successful business strategy. But with a seamless payment experience, your business can effectively retain existing customers and attract new ones.
Customers are more likely to spread the word about your brand after a positive experience. They will either share it through personal recommendations or online reviews. This can help enhance brand awareness, letting you acquire new customers without spending on costly advertising campaigns.
Suppose you work for a bank that caters to landlords or real estate professionals. If you have a convenient payment system, it will be easier to offer your bank’s services to clients who will also be handling payments for their own businesses.
Boost revenue and growth
A seamless payment process ultimately boosts revenue and growth. There will be fewer abandoned transactions, which, in turn, will result in more sales and revenue. The likelihood of referrals and resells increases as customers become frequent buyers and loyal brand advocates.
That contributes to a company’s growth and bottom line. With all these benefits in mind, prioritizing your payment process is paramount.
Remember that there are numerous areas worth considering when it comes to payments. But finding out which payment solution works best for your small business is an excellent starter.
5 Best Payment Solutions You Can Use for Your Small Business
How can you ensure a positive customer experience in your payment process?
A wide selection of convenient and secure payment methods ensures customer satisfaction at every stage. However, the challenge is determining the best payment system that will suit your business and customer needs.
It can be tempting to search for a specific payment solution right away. But before spending your resources on anything, take a step back and evaluate what you need to resolve.
To help you make a well-informed decision, here are some of the best payment solutions available for small businesses:
1. PayPal
With more than 430 million active PayPal accounts in the first quarter of 2023, it’s undeniably the most used platform for processing payments worldwide. But what makes this payment system an ideal solution for small business owners?
One significant advantage of PayPal is its ease and convenience. It operates in more than 200 global markets and supports 25 currencies, making sending and receiving payments over borders effortless.
PayPal also offers online and in-person payment methods. So whether you’re running an online or brick-and-mortar store, it’s an excellent choice for small businesses to get paid. You can decide how you want to collect payments, whether via check, direct deposit, or electronic fund transfer.
That way, you can give customers the freedom to make payments in their preferred method. Likewise, customers can have seamless transactions and pay you promptly with PayPal’s mobile-friendly feature.
Moreover, PayPal has a built-in feature for invoicing, eliminating the need to manually create invoices for every transaction. With PayPal’s invoicing functionality, you can easily send, monitor, and handle invoices in a single location.
When it comes to cost, PayPal is free to set up. It also allows your small business to receive payments without monthly and equipment fees securely. But there are charge fees for every amount you receive from a purchase or outside the country.
PayPal charges a fee of 2.9 percent of the transaction amount for payments received within the US, plus a $0.30 fixed price. At the same time, international payments have different rates depending on the currency.
This payment platform also uses data encryption to secure all financial details like bank accounts or credit card numbers.
2. Square
Square is another popular payment solution among small and mid-sized businesses. Over 2 million active sellers are using this payment processing platform.
Meanwhile, its point-of-sale (POS) app has earned more than 33 million downloads. But why should you choose Square as a payment option for your small business?
Customers want flexible payment options. With Square hardware and software solutions, small companies can easily and securely accept almost all in-person and online payment methods. It enables businesses to receive various forms of payments, including credit cards and mobile wallets like Apple Pay and Android Pay.
You can also implement this payment solution directly through your website, an app, a mobile card reader, or a computer interface. Suppose you don’t have a reliable signal. Square also supports offline payment processing.
That kind of seamless integration helps you give customers the flexibility to pay in their preferred payment method. But besides processing payments online and offline, Square allows you to track payment status, monitor invoices, and schedule recurring ones.
In terms of costs, there are no setup fees or monthly payments. However, it has rates and fees per transaction, depending on the payment method you receive. For instance, the processing fee for in-person payments is 2.6 percent plus $0.10 per transaction.
Whether you swipe, tap, dip, or manually enter payment transactions, Square is protected with end-to-end encryption. This also means customers’ payment data never reaches your servers or devices, making Square payments relatively secure.
3. Stripe
Over 3 million websites are using Stripe to accept payments from customers. It’s undoubtedly a top choice for many business owners. But what makes this payment processing system an excellent option for small businesses?
Stripe is accessible to businesses in 47 countries. Although its unique features are primarily designed to accommodate online sales, it supports a wide selection of integrated payment methods. It allows you to receive payments online, in person, or through your platform.
For instance, using its prebuilt checkout solution, you can do custom integration or utilize simple payment links to collect money from customers. It also has a POS system that lets you accept in-person payments.
Additionally, Stripe has a tool for manually creating payments. That’s beneficial when your business has to collect payments over the phone. Another benefit of using Stripe is its invoicing feature. Besides accepting on-time e-commerce payments, you can generate invoices and manage recurring transactions.
You have the option to use Stripe as an independent online payment processor or an invoicing solution for your small business. But a certain level of technical expertise is required when integrating a merchant services solution into a site’s shopping cart.
Stripe doesn’t impose any monthly fees. However, it charges fees for every successful transaction, depending on the mode of payment. Its standard online transaction fee typically starts at 2.7 percent plus $0.30.
Regarding the level of security, Stripe uses data encryption. Furthermore, a PCI compliance Level 1 service provider audited and certified this payment platform. Stripe must go through a compliance report, routine security checks, and tests.
4. Shopify POS
Shopify is a popular platform used by approximately 28 percent of e-commerce websites in the US. But why is Shopify Payments a highly regarded payment processing solution for small businesses?
Without the hassle of setting up a merchant account or third-party payment provider, Shopify Payments is a convenient method to get paid online. It’s specifically designed for companies yearning for simplicity in their online store operations.
However, it’s worth noting that this integrated payment service is best suited for companies that use Shopify for an e-commerce platform or POS. Additionally, this is not accessible in all countries and may not be compatible with businesses in specific high-risk industries.
Shopify Payments enables your business to utilize various modes of payment, from credit cards to mobile payments. Since it’s integrated into Shopify stores, customers can have a seamless checkout experience. Plus, you can monitor orders and payments and track payout schedules.
It also offers the flexibility to receive payments in any desired amount through deposits or layaways. With Shopify POS, accepting different payment types in a single transaction is possible. You can activate cash payments and gift cards as payment methods.
Likewise, its interface is straightforward for both store owners and customers. Concerning the cost, Shopify doesn’t charge you any additional fees to set up Shopify payments. However, you will be charged for regular store subscriptions, card managing expenses, and other associated costs.
There’s also card testing protection for businesses that use Shopify payments. It helps prevent credit card fraud during the checkout process.
5. Authorize.net
Authorize.net is a widely used online payment platform available on mobile phones. Over 445,000 merchants trust this payment gateway service.
But how can it help your online or physical store improve customers’ payment experience? With Authorize.net, you can provide customers with various payment options, from phone transactions and local mobile card readers to online payments.
Expressly, you can accept all major credit and debit cards with Authorize.net. It also enables you to receive international payments from anywhere worldwide, provided your business is in the US, Canada, or Australia.
Authorize.net has a customer information manager, letting customers save payment and shipping details. This is a great way to provide a seamless payment experience for repeat customers, as they don’t have to re-enter their information.
Moreover, you can offer installment payment options and enable automatic monthly billing for recurring payments or subscription-based services. Authorize.net also has invoicing features allowing you to email personalized invoices to customers.
Your small business can also benefit from its price transparency. Unlike other payment gateway services, Authorize.net is upfront with its pricing. Fees per transaction are at 2.9 percent plus $0.30. However, it’s worth noting that there’s a $25 service fee for the payment gateway every month.
Boost Customer Experience With the Right Payment Solution
Deciding on the right payment solution for your business depends on several factors. But if your main goal is to boost customer experience, their location and preferred mode of interaction are worth considering. Do they prefer to do business online or in your physical store?
Ultimately, the best choice for a payment solution will be guided by how your business operates and your customers’ preferences. Moreover, the total cost of ownership is another significant factor when evaluating payment solutions.
Remember that there’s no one-size-fits-all payment solution for every small business. It takes time and effort to find the best fit for your company. But assessing your budget and needs and comparing the features and reviews of seamless payment gateways can help you make the most informed choice.
