Payment gateways are the front-to-end technology that needs payment cards. They send customer information to the merchants by acquiring banks for processing. In this article, we are going to discuss multiple payment gateways and their pros and cons as well.
Payment gateways are the ultimate way for B2C and B2B companies.
Ensure that the company gets the benefit of the collection process of online payment. But we know very well, all the payment gateway are not up to customer satisfaction as they don’t work all the time.
Various payment gateways, help customers choose the best one for their perfect transactions. Payment gateways are essential, but they are also in need of improvement. Since they have both advantages and disadvantages of their own.
Before we go to the pros and cons of payment gateways, let’s discuss what are payment gateways & why to use them?
What exactly are multiple payment gateways?
Payment gateways are the technology that helps in transferring and collecting payments. Multiple payment gateways refer to site owners who offer a variety of online payment options on a single website. After integrating several payment gateways, they provide higher customer satisfaction and instant settlements.
Relatable Article: “Payment Gateways: Everything you need to know”
Why is it necessary to use several payment gateways?
Payment gateways act like a backup plan or act as an assurance. If one of the payment gateways experiences low success, customers can try any other payment gateway. As a result, your company’s rate of payment approval will rise.
In other words, they act as the alternative payment method. As we mentioned before having many payment gateways has its pros and cons.
Let us take a look at those points!
What are the pros and cons of having multiple gateways on your website
It’s time for you now to take a deep dive into the pros and cons. Stay connected and it’s walk thru it together.
Pros Of Having Multiple Payment Gateways
- Boosts customer satisfaction
Achieving customer satisfaction is the primary focus of any type of business. Many payment gateways in hand lead to a strong trust between business and customer.
No customer will ever fill in their bank details on any unknown payment gateway. When a customer sees more than one payment gateway during the payment process, they choose the most reliable one. If you need to refund a client, you can do so in just a few taps. You can use only the recipient’s contact information like email address and phone number.
- Increases sales
By making small changes, a business can take a lead to the global marketplace. Research shows that on average, 68.84% of online shopping carts are deserted before completing the purchase. It also shows that 63% of those carts are recoverable by giving the right pair of offerings.
Enabling various payment gateways on the website is one of them.
Location-based shopping is not a problem for well-known and popular e-commerce websites. Customers can pick the products according to their wish and have the delivery on the date and time of their own choice.
But a single payment gateway is not enough for processing from different regions. To collect payments from their customers, merchants provide several payment gateways.
- Smoothens the payment
In today’s era, we are surrounded by advanced technology almost in every possible way. Technology has become influential and we all are dependant on it now. There is no doubt that technology is the most important part of our life. Therefore, we should have an alternate solution to overcome technical or network glitches.
Payment gateways can experience downtimes too. If one of the payment gateways fails, there is another gateway to handle the situation. As a result, it helps in increasing the conversion rate as well as happy clients. If the payment journey is smooth and hassle-free then you have conquered long-term clients.
- Administrates data analysis
Each payment gateway provides the vender with its database. Because the relevant data varies, firms use it for different purposes. It aids merchants in making more informed judgements and increasing sales.
Cons Of Multiple Payment Gateways
- More processes of more payment gateways
Multiple payment gateways are indeed better for businesses but include a certain level of integration. And you know exactly what this means, right? This is a time-consuming process and can cause issues after integrations.
Merchants set up payment gateways on the website, as the documentation is substantial.
- It is costly!
Setting up multiple payment gateways costs a lot. The figure of expense keeps on increasing depending on the amount business spends on tracking or the processing fees.
It is easy to avoid such situations by enabling the combined payment services. It is the best means of payment for customers to pay in part cash and part credit.
- Needs a collector failover plan
Having multiple payment gateways means being ready for collector failover anytime. Let us assume there is a failure of gateway 1 while processing a payment. What will be the next step? Merchant will have to look at the process of how to redirect the customers.
Do businesses redirect customers to other gateways?
The process takes some definite research because of its effect on conversion rates. This shows how much businesses have to think to decide the best redirection source to decrease the number of failed transactions.
- Has more active challenges and resources
The presence of various payment gateways has so many hidden operational challenges. Let us take a common scenario. It is very common for people to have their debit card debited but not have their transactions processed.
It includes back and forth, and that is where a business must have a strong mindset. To see thru the operations, more IT development resources are a necessity.
And as you are very well aware, having the complicated integration process of gateways there may be more chances for failures than usual. It makes businesses use more people to make sure of the good functioning of the gateways.
- Includes substantial analytical data
This depends on the reach to bandwidths and resources. As the business grows, multiple payments gateways seem like the best option for smart payments.
In addition, the report requires a separate system, leading to a lack of analysis of the data.
Relatable Article: Challenges faced by businesses in switching between payment gateways
What features are a must for Multiple payment gateways
Payment gateways that you use frequently should have:
- Different modes for payment
- Allows international payments
- Less failing rate
No one wants a payment failure and a waste of time over a refund from customer support. Payment gateways are the most important component of the customer’s shopping experience.
It all depends on the user’s experience, the better the experience, the higher the conversion rate will be. A merchant should never use an unknown payment gateway. It increases the chances of a failed transaction.
Customer trust depends on a good payment gateway which helps in building the brand. Gateways should be compatible with the website. In this article, we discussed the pros and cons of having multiple payment gateways. It will be beneficial to consider all of them and to research before putting a gateway on websites.
Payomatix makes your life much easier and smooth. In order to integrate multiple payment gateways, Payomatix offers you a single platform. You can deal with the payments both domestically and internationally. Be it PayPal or Bitcoin, Payomatix covers you from all aspects.