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The Pros and Cons of the eCommerce Payment Options

payment gateway for eCommerce

As a small business owner, a payment gateway for eCommerce has emerged as an attractive option for accepting online payments across various payment modes. 

The advent of eCommerce, coupled with the convenience and security of payment gateway systems, has made it easier than ever for business owners to take their businesses to the next level. Business owners can now sell internationally to a worldwide clientele and get paid instantly for the goods and services they sell.

However, just like there is a silver lining to this technological marvel, it does come with its set of drawbacks. Now, you may be wondering, “How can something that makes buying and selling so convenient online have a downside?”  

Well, allow us to break down the pros and cons to help you make informed choices whenever you want to start your online business!

Hosted Payment Gateways are Great- But Are They? 

Hosted payment gateways have allowed small business owners to accept online payments without shelling out money on integrating complex payment systems with their online store, website, or app. All they need to worry about is ensuring the availability of the products they sell and letting the third-party service provider take care of the rest. 

Once a user hits the checkout button, they are redirected to the service provider’s site, where payment information is collected and processed while making the entire process of buying and selling as simple as possible.

However, even though it allows for greater flexibility when it comes to different types of digital payment options, the downside is that sellers have little to no control over the user experience once they have left the merchant’s website. So, in case there is a glitch at the service provider’s end, and the payment fails to go through, that could result in cart abandonments and possibly result in the customer migrating to a rival merchant’s site for the same product.

Being Able to Accept Mobile Payments is Great but Tough

We say tough because the entire experience needs to be seamless across all devices, including desktops, mobiles, and tablets, without impacting the user experience. Therefore, the system needs to be such that your website or store can truly become mCommerce capable. However, creating such a seamless experience can be a complex process. It needs to work across multiple payment method types, including modern payment options such as Samsung and Apple pay.

Virtual Currencies

Virtual currencies are an upcoming payment method that is slowly gaining momentum worldwide. It is a great new alternative to traditional payment methods such as credit/debit cards. It has helped businesses access an untapped client base who could not transact online for the lack of access to these traditional payment modes. That is not the case anymore, as virtual currencies enable them to become a part of the ever-growing online ecosystem just like everybody else.

However, on the downside, virtual currencies are relatively new; therefore, untested and need more time to be evaluated as they are prone to currency rate fluctuations, at times even dramatic.

Although payment gateway systems across the eCommerce segment have revolutionized the game, every system has pros and cons. So, even though online payment platforms are great for business, they do come with their downsides.

In the end, let’s summarise the benefits and disadvantages of eCommerce payment methods.

Benefits of Payment Systems

  • Accepts multiple types of digital payments
  • Ability to accept multiple currencies
  • More secure than cash transactions
  • Ability to handle multiple high-volume transactions efficiently

Disadvantages of Payment Systems

  • You are at the mercy of the hosted payment gateway service provider
  • Providing seamless access across multiple devices is a complex process
  • Virtual currencies are great but prone to dramatic fluctuations

Also, Read: What is TUTFLIX?

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