If you are an entrepreneur who is setting up your own online shopping site, chances are you are following a checklist of technical requirements that would look like this:
- e-commerce software
- data backup
- shipping software
- payment gateway
There’s a ton of information available online that talks about choosing the right payment way to use in an online shopping site. Unfortunately, most of these online resources and content don’t provide enough information about why you will need to use more than one payment gateway.
There is a prevailing public opinion about a single payment gateway rule – that this is already enough. However, if you are going to look at the statistics, e-commerce is rising and it doesn’t plan on stopping at any visible horizon. Come to think of it, in 2016 alone e-commerce reached $1.9 trillion in revenue and that’s expected to double across 2020, which will now be around $4 trillion worth of revenue. The numbers don’t add up with the public opinion of using a single payment gateway. The growth means that there will be new and more innovative ways to make money online. That said, it is necessary for e-commerce website integration with multiple gateways.
It’s time to trash the garbage idea of most public merchants and focus your energy in learning and understanding the reasons why you should be considering the need for your e-commerce website integration with multiple gateways. Let me run down the most compelling reasons below.
The need to work with multiple gateways is pretty much evident as you expand your business. This is truest in the case of expanding your business internationally as you take advantage of the growing adoption of globalization. With that being said, selling your products or services globally requires you to work with currencies, foreign banks, and managing different languages. Since payment gateways vary by region and currencies accepted, you will need to ask the question does your single payment gateway method able to accommodate the payment methods and currencies in the countries of your target markets?
- Great Economics
Now, say you don’t plan on expanding internationally because you are pretty much confident with the revenue you are earning domestically, having two or more payment gateways will allow you to potentially increase your conversion rates. It’s not the lone and big time reason why should do it but basically, having multiple payment gateways simply make sense on a business perspective.
Now, one example and terribly not a great example but let’s lay down the facts to make it more relatable. Say you have Paypal as your payment gateway for a long time and you believed it is enough. However, if you are closely paying attention, Paypal has stopped accepting all American Express (AMEX) cards without any advice on when that will resume. That may not have happened in general but it did happen to several Paypal accounts. That single situation has rippling impacts to your online store. Having another payment gateway equips you with nuances that you come across once in a while.
- Overflow, Back Up and Fail Safe
Back up is a basic. It is a fundamental concept you should put in place your business. It should not be overlooked at any given point in time. It is simply a sound business practice. That being said, having multiple payment gateway allow you to securely vault a copy of your customer’s debit and credit card information. It is also provides a fail over while your other payment gateway is under duress, down or underperforming. Moreover, having multiple gateways allow you to handle any overflow in cases of sales spikes triggered by growth or season.
- Single Method that Performs Both Payment Gateway AND Merchant Account
The payment industry has evolved over the years and now there are providers who offer a single method or system that accommodates payment gateway and merchant account services. This is a leap from traditional gateway only providers. Having combined services in one provider means simpler and fewer set up as well as monthly fees. The per-transaction fee may be a little bit higher but you can always leverage on the effort and recurring cost advantages.