September 13, 2021 | 4-minute read (640 words)
Accepting digital payments is almost a prerequisite for business survival in today's market. If you're interested in introducing digital payments or switching systems at your business, here is an overview of three of the most popular digital payment solutions.
PayPal is perhaps the best-known example of a digital payment solution. The platform works with most website systems, including WordPress and Wix, to make setup a breeze. PayPal also lets sellers offer customizable payment options, such as recurring payments, subscriptions and installments. This is especially advantageous for delivery services, businesses that provide ongoing services and firms that sell high-ticket items like furniture or jewelry.
Customers typically choose PayPal because they can pay with their own credit or debit card, bank account, Apple Pay or others. Additionally, PayPal accepts over 100 different currencies, allowing you to extend your business internationally.
This flexibility comes at a cost, though. PayPal charges more significant transaction fees than many of its competitors. Its transaction fee is 2.7% for mobile and card swipe sales and 2.9% + $0.30 for online and billed transactions. In addition, any purchases under $10 are charged a 5% fee by PayPal. For some enterprises with frequent, low-cost transactions, other payment processing services may be more cost-effective.
Stripe can be a dependable payment option for organizations with a high volume of transactions that require a fail-proof system. Today, Stripe is now used to manage millions of daily and monthly transactions by some of the world's largest brands and companies, including Amazon, Instacart, Shopify and Lyft. Stripe’s business-to-business and consumer-to-business transactions offer robust fraud protection and assist companies with cash flow and revenue management. Stripe also permits international transactions, making overseas sales seamless and straightforward.
The main drawback of Stripe is that it takes substantial technical skills to integrate. For small businesses that don’t have an IT department, Stripe integration may be cost-prohibitive. Stripe is also an online-only payment solution, meaning brick-and-mortar businesses will require a separate payment solution to process in-person purchases.
Square is a straightforward, innovative digital payment alternative designed to function as a one-stop shop.
Square enables you to create a personalized website for your products or services for free. It offers capabilities such as accepting online bookings, collecting orders for restaurants or artworks, offering egift cards, managing employee payroll and even sending free marketing emails to your customers. Square can be incorporated into your website, or a point-of-sale terminal can be purchased to accept contactless payments in person.
While Square is a viable alternative for many small businesses, larger organizations that receive more than $10,000 in digital payments per month may be able to save money by using another payment system. Additionally, companies with frequent return or refund requests, such as travel agencies, dating services and international firms, may be ineligible for a Square account.
How do you know which service fits you best?
PayPal, Stripe, and Square are just three of the many digital payment alternatives accessible. When deciding on the appropriate digital payment solution for your business, you should take the following factors into account:
The optimal digital payment solution for you will minimize transaction fees for your most frequent transaction types while allowing many of your clients to pay using their preferred method. As with any significant company decision, do your research before making a change or beginning something new. Whichever solution you select, you can ensure that accepting digital payments is rapidly becoming a requirement for businesses looking to expand in the following years.
- Your projected monthly transaction fees.
- Whether you require the ability to accept several currencies.
- Whether you need the flexibility to accept a variety of payment methods, such as subscriptions.
- How complex the integration will be if you don’t have an IT team.
- How many transactions you estimate every month, and in what amounts.