The Impact of an International Payment Gateway on the Business Growth of Merchants
An international payment gateway lets merchants accept online payments from customers in other countries, regardless of the payment method they use. Merchants can choose between redirect gateways (simplest setup), off-site gateways (checkout on your site, processing in the back-end), and on-site gateways (full control of the checkout experience), with on-site options generally producing the smoothest customer experience.
Scope: For small and growing merchants considering selling online internationally and choosing between redirect, off-site, and on-site payment gateway types.
Why Merchants Are Moving Online
An international payment gateway is helping merchants in diverse ways. Merchants are trying their best to grow their business in the 21st century. The market has become very competitive, and the pandemic made everything more challenging. Customers stopped visiting offline stores and gave more focus to online shopping platforms. Amid this challenging situation, small merchants do not have many options through which they can achieve stability in their business.
The online business structure is not a new thing, but many merchants historically did not give importance to it — they were happy with their offline marketplace. The pandemic changed the entire ecosystem. Many small merchants now use the online marketplace and are observing huge growth in their business. You might be doing business domestically today, but you can extend your business internationally as well.
What Is an International Payment Gateway?
The international payment gateway is a kind of online payment gateway that allows the merchant to accept online payments from international customers. It does not matter what payment mode the consumer is using — you will not have any problem accepting payments online from your customers.
There are different types of international payment gateways available. If you want to step into the world of online business, you should know how each type works before choosing one.
Redirect Payment Gateway
If you are running a small business, this type of international payment gateway can be very helpful. You do not need any heavy setup in your online marketplace. It is a kind of third-party payment gateway: you open a merchant account with the payment processor and you are done. When customers want to check out, they are redirected to the payment page of your merchant processor, where they complete their transaction.
In terms of simplicity, it is the best option. But merchants do not have much control over the transaction process, and it adds an extra step in the checkout for customers. If you go with this option, your marketplace might not create as strong an impression on customers.
Off-Site Payment Gateway
This is another good option for merchants who want simplicity as well as a professional look. With an off-site payment gateway, customers are not redirected to another payment page — checkout happens on your marketplace, while the credit card payment processing is done in the back-end by the provider.
Like the redirect payment gateway, you will not be able to fully control the user's experience. Your business will rely on the quality of the off-site international payment gateway you choose.
On-Site Payment Gateway
If you want to uplift your business practically, this is the strongest option. Mostly, merchants doing business at a larger scale use this payment gateway. The payment checkout and the card processing are both done through your system, so you can fully control the user's experience.
According to a survey, merchants with an on-site international payment gateway get better outcomes than with other gateway types. The on-site gateway makes the online transaction process smoother: customers do not have to leave your online marketplace to complete the card transaction, which creates a good impression. Most consumers abandon their carts if they face complications during the checkout process, so if you want the best result, the on-site international payment gateway is the one to choose.
The Benefits of Going International
There are many benefits you get after embracing an international payment gateway. For accepting international payments through a gateway, everything is secured and safe, so you will not have to worry about fraud-prone situations.
An international payment gateway also increases the reach of your business. You can do business with international clients, and if they get satisfactory service from you, they will become your repeat customers.
RapidCents is a payment gateway provider that supports international payments, and many merchants successfully run their online business with its help.
Frequently asked questions
What is an international payment gateway?
It is an online payment gateway that lets a merchant accept payments from customers in other countries, regardless of the payment method the customer uses. It handles the secure processing of the transaction so merchants can sell beyond their domestic market.
What are the types of international payment gateways?
There are three main types: redirect gateways, which send customers to the processor's payment page; off-site gateways, which keep checkout on your site while processing happens in the provider's back-end; and on-site gateways, where both checkout and card processing run through your own system.
Which payment gateway type is best for a small business?
A redirect payment gateway is the simplest for small businesses because it needs no heavy setup — you open a merchant account and customers complete payment on the processor's page. The tradeoff is less control over the checkout experience.
Why do merchants prefer on-site payment gateways?
On-site gateways run checkout and card processing through the merchant's own system, giving full control over the user experience. Customers never leave the store to pay, which reduces the checkout complications that commonly cause cart abandonment.
Is it safe to accept international payments online?
Yes. Accepting international payments through a proper payment gateway is secured and safe, since the gateway protects the transaction. This lets merchants expand their customer base internationally and turn satisfied international clients into repeat customers.
