Comparing Top 5 Online Payment Platforms for Small Businesses
In today’s digital age, accepting online payments is crucial for small businesses to stay competitive and attract customers. With numerous online payment platforms available, it can be overwhelming for small business owners to choose the right one. Each platform offers different features, fees, and security measures. In this article, we will compare the top 5 online payment platforms for small businesses and help you make an educated decision.
PayPal
PayPal is the most well-known and widely used online payment platform, with over 361 million active accounts worldwide. It offers a user-friendly interface, making it easy for both businesses and customers to use. The platform allows customers to make payments using their PayPal balance, linked bank account, or credit/debit card. PayPal also offers fraud protection and dispute resolution for both buyers and sellers.
However, PayPal charges a transaction fee of 2.9% + $0.30 for domestic payments and 4.4% + fixed fee for international payments. This can eat into small businesses’ profits, especially for high-volume transactions. Another downside is that PayPal holds a portion of the total transaction amount for a set period as a security measure, which can be inconvenient for businesses with limited cash flow.
Square
Square is a popular online payment platform for small businesses. It offers a free magstripe reader, allowing businesses to accept payments directly from their phone or tablet. Square also offers features such as inventory management, invoicing, and online appointment scheduling, making it a one-stop solution for small businesses. Square also has lower transaction fees compared to PayPal, with a flat rate of 2.90% + $0.30 per transaction.
However, Square has a more stringent approval process, with the risk of account holds if the platform detects any suspicious activity. This can be troublesome for businesses that heavily rely on online payments. Square also does not offer the option for customers to pay using their PayPal account, which may be a deterrent for some customers.
Stripe
Stripe is gaining popularity among small businesses due to its developer-friendly features. It offers easy integration with popular e-commerce platforms such as Shopify, WooCommerce, and Squarespace. Stripe also offers customizable features, such as subscription-based payments and support for multiple languages and currencies. The platform has competitive transaction fees of 2.9% + $0.30 per transaction.
Like Square, Stripe also has a strict account approval process, which may result in a long wait time before businesses can start accepting payments. Stripe’s dashboard can be overwhelming for non-tech savvy individuals, making it challenging to navigate and use.
Authorize.Net
Authorize.Net is a trusted online payment platform that has been around for over 25 years. It offers a robust suite of features such as fraud detection, recurring billing, and integration with various shopping carts and e-commerce platforms. The platform also offers secure payment processing and data storage, ensuring customers’ sensitive information is protected.
However, Authorize.Net has a more complex fee structure, with a monthly gateway fee of $25 and a $0.10 per-transaction fee on top of the standard 2.9% + $0.30. This can be expensive for small businesses, especially for those with low transaction volumes. Its user interface may also be outdated and complicated for beginners to use.
Braintree
Braintree is a fast-growing online payment platform owned by PayPal. It offers a variety of features for small businesses, including customized checkout pages, fraud protection, and multiple currency support. Braintree also offers competitive transaction fees of 2.9% + $0.30 per transaction and no monthly fees of any kind.
However, Braintree’s support is not as robust as other platforms, with no phone support available and only email support during business hours. Its dashboard can also be challenging to use, especially for beginners.
After comparing the top 5 online payment platforms for small businesses, it is clear that each platform offers different features, fees, and user experience. To choose the right one for your business, consider your business needs, size, and budget. We recommend trying out different platforms through their free trials to see which one fits your business best. With the right online payment platform, your small business can thrive and grow in the digital world.
Leave a Reply