COMPARE BEST 5 PAYMENT SYSTEMS FOR YOUR E-COMMERCE SITE 2020

COMPARE BEST 5 PAYMENT SYSTEMS FOR YOUR E-COMMERCE SITE 2020

When setting up a business selling products online, it’s essential to choose the right payment system for you and your customers. 

When doing this, there are several things to consider, such as how much it will cost you to implement the payment system, how secure the payments are, and any other payment options – such as buy now, pay later – that you wish to offer to your clientele. 

To help you ensure you make the right choice for your business, here’s a rundown of five of the most popular e-commerce payment systems, and the things that you may consider when deciding which is the best for you.

CONTENTS


WorldPay

WorldPay Payment

WorldPay is the UK’s most popular e-commerce payment systems with merchants, handling around 40% of all UK e-commerce transactions. 

WorldPay accepts payments in 116 currencies from all popular credit and debit cards, as well as payments through PayPal. 

You can take payments via a link, which means you don’t need to have a business website (for instance, if your business operates through social media such as Facebook or Instagram). 

With this system, payments get sent to your bank account via your WorldPay online merchant account.

Features: 

  • Recurring Payments
  • Fast Payouts
  • Webhooks notification
  • Many Card Payments
  • Multi-Channel Payments
  • Real-Time Data
  • Simple Order Management
  • POS App
  • Virtual Terminal 
  • Shopping Carts

Trustpilot Rating for Worldpay

Trustpilot Rating for Worldpay
Trustpilot Overall Rating For Worldpay 2020 – AVERAGE

Site Reviewed: www.worldpay.com

Worldpay has an average overall consumer review rating on trust pilot website. With 2,328 reviews as of 26/06/20:

  • 38% Stated as Excellent
  • 6% Stated as Great
  • 3% Stated as Average
  • 3% Stated as Poor
  • 49% Stated as Bad
Trustpilot Breakdown of Worldpay
Trustpilot Break Down of Worldpay rating 2020

Fee Structure:

Difficulty in Understanding Fee Structure: EASY

There are several payment plans if you would like to implement Worldpay for your business. 

These include: 

Pay As You Go, with which you’ll pay 2.75% + 20p fee per transaction made via WorldPay, their Standard Plan, which costs £19.95 per month plus 2.75% (credit cards) & 0.75% (debit cards).

PLANSET UP FEEMONTHLY FEEPER TRANSACTION COST
PAY AS YOU GON/AN/A2.75% + £0.20
PAY MONTHLYN/A£19.952.75% (credit cards) & 0.75% (debit cards)
WORLD PAY FEE STRUCTURE – Other fees may apply, please contact provider

Source: https://online.worldpay.com/pricing

Fraud Prevention for Sellers:

This is what worldpay has to say about fraud protection:

When a customer puts a payment through your website, our Risk Management Mechanism (RMM) automatically runs a series of checks on their card and other order details, and will decline the transaction if there is a high likelihood that it is fraudulent. These checks are set by Worldpay, based on our extensive knowledge and experience of fraud attempts.

https://developer.worldpay.com/docs/wpop/faqs/security-and-fraud-prevention

PayPal

PayPal Payment System

PayPal is, of course, the front-runner in online payments globally – in their most recent sales report, PayPal reported they had handled over 12.4 billion payments across the world. 

How would your business benefit from implementing PayPal as your payment system? Many customers trust PayPal, as it is a secure and recognisable payment method, and offers customers the option to pay from a linked bank account, or directly from their PayPal account. 

They also allow you to accept international payments, include built-in fraud protection, and you can implement PayPal into your business without any advanced technical knowledge.

Some useful stats on Paypal:

  • Annual Revenue $17.7 Billion 2019
  • Net Income $2.46 Billion 2019
  • Transaction growth in 2018 19%
  • 325 Million active Paypal accounts, the first quarter of 2020
  • Most used payment method in the UK 2019

Source: https://www.statista.com/topics/2411/paypal/

Source: https://www.statista.com/statistics/218493/paypals-total-active-registered-accounts-from-2010/

Features:

  • Mobile Card Reader
  • Inventory Tracking
  • Online Invoicing
  • Barcode Scanning
  • Credit Card Machine
  • Virtual Terminal
  • Pay Later
  • Shopping Cart
  • Express Checkout

Trustpilot Rating for Paypal

Trustpilot Rating forPaypal
Trustpilot Overall Rating For Worldpay 2020 – BAD

Site Reviewed: www.paypal.co.uk

Paypal has a Bad overall consumer review rating on trust pilot website. With 3,008 reviews as of 26/06/20:

  • 31% Stated as Excellent
  • 4% Stated as Great
  • 3% Stated as Average
  • 3% Stated as Poor
  • 58% Stated as Bad
Trustpilot Breakdown of Paypal
Trustpilot Break Down of Paypal rating 2020

Note: The reviews are on the, UK extension. The .com extension has an overall Bad rating also with 11,027 reviews as of 26/06/20. With 13% giving a rating of Excellent, 3% rated as Great, 2% gave it as Average, 3% as Poor and 79% as Bad.

Fee Structure:

Difficulty in Understanding Fee Structure: HARD

PayPal’s transaction fees cost from 1.9% of the overall transaction, plus an extra from 20p per transaction, but can cost up to 3.4%, plus 20p per transaction if your sales volume falls under £1,500 per month. 

There are no monthly fees with Web Payments Standard or Express Checkout, and the cost for their Web Payments Pro package is just £20 per month.

PLANSET UP FEEMONTHLY FEEPER TRANSACTION COST
STANDARDN/AN/A2.90% + £0.30
PRON/A£20.002.90% + £0.20
MICROPAYMENTS UNDER £5.00N/AN/A5% + £0.05
PAYPAL FEE STRUCTURE – Other fees may apply, please contact provider

Source: https://www.paypal.com/uk/webapps/mpp/merchant-fees
Source: https://www.paypal.com/uk/webapps/mpp/merchant-fees#fixedfee

Fraud Prevention for Sellers:

This is what Paypal has to say about fraud protection:

If you are sent an unauthorised payment – for example, from a hacked account – or a buyer claims they didn’t receive their item, our Seller Protection policy covers you for the full amount of the payment on eligible sales. Below are some of the key features of the policy.

https://www.paypal.com/uk/webapps/mpp/paypal-safety-and-security

Klarna

Klarna Payment System

A Swedish company, and one of the newer, but fastest-growing payment systems, Klarna offer several different payment methods to customers paying through them. 

Larger companies, such as fashion giant ASOS, accept payments via Klarna, as they offer the Buy Now, Pay Later payment method, which is increasingly popular, especially among younger shoppers – something to consider when looking at your business’ target demographic. 

However, customers get offered the chance to pay on the spot if they wish.

Features:

  • Autopay.
  • Zero-interest options
  • No annual fee
  • Easy-to-use app
  • Onsite Messaging
  • Customer Authentication
  • Buy now pay later 
  • Instalment payments

Trustpilot Rating for Klarna

Trustpilot Rating for Klarna
Trustpilot Overall Rating For Worldpay 2020 – EXCELLENT

Site Reviewed: www.klarna.com/uk

Klarna has an Excellent overall consumer review rating on trust pilot website. With 11,005 reviews as of 26/06/20:

  • 84% Stated as Excellent
  • 4% Stated as Great
  • 2% Stated as Average
  • 2% Stated as Poor
  • 9% Stated as Bad
Trustpilot Breakdown of Klarna
Trustpilot Break Down of Klarna rating 2020

Note: The reviews are on the, UK extension. The .com extension has an overall Great rating also with 14,235 reviews as of 26/06/20. With 70% giving a rating of Excellent, 3% rated as Great, 2% gave it as Average, 3% as Poor and 21% as Bad.

Fee Structure:

Difficulty in Understanding Fee Structure: MEDIUM

Klarna don’t have fixed fees, and instead are based on the size of your business, with their ‘Start-Up’ transaction fee up to 2.49%, the fee for ‘Growing’ businesses sitting at 2.19%, and ‘Established’ companies paying 1.99%. There are no set-up costs or monthly fees with Klarna.

PLANSET UP FEEMONTHLY FEEPER TRANSACTION COST
STANDARDN/AN/AUp to 2.49% + £0.20
KLARNA FEE STRUCTURE – Other fees may apply, please contact provider

Source: https://www.klarna.com/uk/business/products/checkout/

Fraud Prevention for Sellers:

This is what Klarna has to say about fraud protection:

Our global customer authentication platform enables you to identify and authenticate customers e-v-e-r-y-w-h-e-r-e-! Integrate Klarna’s customer authentication platform once and get access to all the authentication solutions your business needs.

https://www.klarna.com/uk/business/customer-authentication/

Shopify

Shopify Payment System

Selling through Shopify is especially beneficial to those who are looking to start an e-commerce business from scratch, as they offer everything you need to get your store up and running. 

Unlike other payment systems, they offer web hosting as well as simply the processing of payments. You can even try Shopify before committing to it, as they offer a 14-day free trial. 

There’s also no credit or debit card required to do this, so this is an excellent option for anyone who is new to e-commerce and has not run an e-commerce business before.

  • 14 Day Free Trial
  • With E-commerce site
  • Clear pricing
  • 24/7 Support
  • Sales Channels
  • Gift Cards

Trustpilot Rating for Shopify

Trustpilot Rating for Shopify
Trustpilot Overall Rating For Shopify 2020 – BAD

Site Reviewed: www.shopify.co.uk

Shopify has a Bad overall consumer review rating on trust pilot website. With 231 reviews as of 26/06/20:

  • 14% Stated as Excellent
  • 2% Stated as Great
  • 3% Stated as Average
  • 4% Stated as Poor
  • 77% Stated as Bad
Trustpilot Breakdown of Shopify
Trustpilot Break Down of Shopify rating 2020

Note: The reviews are on the, UK extension. The .com extension has an overall Bad rating also with 643 reviews as of 26/06/20. With 9% giving a rating of Excellent, 3% rated as Great, 2% gave it as Average, 2% as Poor and 84% as Bad.

Fee Structure:

Difficulty in Understanding Fee Structure: EASY

These added features do come at a price, as Shopify is a little more expensive than other key players in the payment system market. 

Their monthly fees run from $29 per month with 2.2%, plus an added 20p per transaction for their Basic package, to $299 per month with 1.6%, plus 20p per transaction for their Advanced package.

PLANSET UP FEEMONTHLY FEEPER TRANSACTION COST
BASIC SHOPIFYN/AUSD $292.2% + £0.20
SHOPIFYN’AUSD $791.9% + £0.20
ADVANCED SHOPIFYN/AUSD $2991.6% + £0.20
SHOPIFY FEE STRUCTURE – Other fees may apply, please contact provider

Source: https://www.shopify.co.uk/payments

Fraud Prevention for Sellers:

This is what Shopify has to say about fraud protection (an add on feature for larger sellers):

FraudBlock saves you from accidentally fulfilling fraudulent orders – automatically. We automatically cancel ‘high-risk’ orders, send a cancellation confirmation to the customer (optional), restock the inventory, and refund/void the customer’s payment (if any). Save time by not having to manually comb through orders in your Shopify admin dashboard.

https://apps.shopify.com/fraudblock-fraud-prevention

Stripe

Stripe Payment System

While you need to have an established, up and running website to get started with Stripe, they are a popular choice amongst new small business owners. 

As they do not charge any start-up or monthly fees and have transparent rates for transaction fees. 

You can also use Stripe to set up recurring payments and direct debits, which is hugely beneficial to start-ups offering subscription services, such as the ones provided by increasingly prominent companies such as Glossybox and BoroughBox.

Features:

  • Smart payment page
  • Custom UI toolkit
  • Clean canvas
  • In-person payments
  • Invoicing
  • Open-source plug-ins
  • 135+ Currencies
  • 25+ Countries
  • All major credit and debit cards
  • Dashboard mobile App

Trustpilot Rating for Stripe

Trustpilot Rating for Stripe
Trustpilot Overall Rating For Stripe 2020 – BAD

Site Reviewed: www.stripe.co.uk

Shopify has an Average overall consumer review rating on trust pilot website. With 30 reviews as of 26/06/20:

  • 7% Stated as Excellent
  • 0% Stated as Great
  • 3% Stated as Average
  • 3% Stated as Poor
  • 87% Stated as Bad
Trustpilot Breakdown of Stripe
Trustpilot Break Down of Stripe rating 2020

Note: The reviews are on the, UK extension. The .com extension has an overall Average rating also with 2846 reviews as of 26/06/20. With 50% giving a rating of Excellent, 4% rated as Great, 1% gave it as Average, 2% as Poor and 42% as Bad.

Fee Structure:

Difficulty in Understanding Fee Structure: EASY

As mentioned previously, there are no hidden, monthly or start-up fees with Stripe, and their transaction fees are apparent to any business owner looking to implement Stripe into their e-commerce site. 

Transaction fees – also based on the type of card used for payment rather than the monthly sales volume of the business or the package the business owner has subscribed in. 

Rates are 1.4%, plus 20p per transaction for European cards, with a cost of 2.9%, plus 20p per transaction for payments made using non-European cards.

PLANSET UP FEEMONTHLY FEEPER TRANSACTION COST
STANDARDN/AN/A1.4% + £0.20
for European cards
2.9% + £0.20
for non-European cards
STRIPE FEE STRUCTURE – Other fees may apply, please contact provider

Source: https://stripe.com/gb/pricing

Fraud Prevention for Sellers:

This is what Stripe has to say about fraud protection:

Stripe monitors for fraudulent authorizations and automatically blocks any that look suspicious. If we decline the authorization attempt as a result of our fraud analysis, the request_history.reason field on the Authorization is set to suspected_fraud.

https://stripe.com/docs/issuing/controls/fraud-protection#:~:text=Learn%20how%20we%20help%20protect%20you%20against%20fraud.,field%20on%20the%20Authorization%20is%20set%20to%20suspected_fraud.

Compare Online Payment Providers

PROVIDER AND PLANTRUSTPILOT RATINGSET UP FEEMONTHLY FEEPER TRANSACTION COST
WORLDPAY – PAY AS YOU GO AVERAGEN/AN/A2.75% + £0.20
WORLDPAY – PAY MONTHLY AVERAGEN/A£19.952.75% (credit cards) & 0.75% (debit cards)
PAYPAL – STANDARDBADN/AN.A2.90% + £0.30
PAYPAL – PROBADN.A£20.002.90% + £0.20
PAYPAL – MICROPAYMENTSBADN.AN/A5% + £0.05
KLARNA – STANDARDEXCELLENTN/AN/AUp to 2.49% + £0.20
BASIC – SHOPIFY BADN/AUSD $292.2% + £0.20
SHOPIFYBADNAUSD $791.9% + £0.20
ADVAMCED – SHOPIFY BADNAUSD $2991.6% + £0.20
STRIPE – STANDARDBADN/AN/A1.4% + £0.20
for European cards
2.9% + £0.20
for non-European cards
Other fees may apply, please contact provider

Which is Best For Me?

As you can see, there are several different payment system options available to those starting e-commerce businesses. These are just a few of them. What’s important to consider is which features offered by each payment company would present the most value to you and your business. 

For instance, Shopify may be the clear choice for anyone looking for a one-stop-shop for running and maintaining their business website. 

While Klarna may be ideal for anyone offering a more premium-price product and believes their clientele would appreciate the Buy Now, Pay Later option.

It is also wise to consider the feedback given by consumers on Trust Pilot. Klarna is the clear winner with consumers with an Excellent overall review on the UK extension and Great on the .com extension.

If I were to judge which payment system to use for my own business, I would go with the consumer feedback as one of my main decisions, so for me, the clear winner is Klarna. But does it fit my business model that is another question?

For more information on any of the companies discussed, be sure to visit their respective websites.

References:

https://online.worldpay.com/pricing

https://www.statista.com/topics/2411/paypal/

https://www.statista.com/statistics/218493/paypals-total-active-registered-accounts-from-2010/

:https://www.paypal.com/uk/webapps/mpp/merchant-fees
https://www.paypal.com/uk/webapps/mpp/merchant-fees#fixedfee

https://www.klarna.com/uk/business/products/checkout/

https://www.shopify.co.uk/payments

https://stripe.com/gb/pricing

https://uk.trustpilot.com/

Disclaimer:

This is for general guidance only, prices are subject to change by the providers and we are not responsible for any errors. We recommend you make your decision by conducting your own due diligence.

Recommended Read: Compare the best bank accounts for small businesses.

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