Payment gateways in the Philippine for ecommerce websites

In present technology, many people are engaged in online activity, particularly buying stuff or things from fashion and gadgets to food supply and produce. Although the concept of an e-commerce website was introduced in the 90s, it was not until in the year 2000 that many companies from America and Western Europe had taken their businesses on the internet and utilized the online buy and sell transaction. To make this possible, e-commerce sites must be equipped with a payment gateway to allow payment transactions between the seller and the buyer.

A payment gateway is an online service provider that facilitates payment transactions between a merchant and a customer. Usually utilized by e-commerce websites or online shopping sites such as eBay, it allows merchants to accept payment through credit cards and other forms of electronic payments or via online banking.

Because money is involved, extra caution is highly encouraged when choosing a reliable payment gateway that will be integrated on your e-commerce websites. There are many factors involved in the process of choosing a secure and reliable payment gateway:

• Is the chosen payment system compatible on your website platform? Meaning, will it work on platforms like Magento, WooCommerce or Shopify?
• How much are the fees? Usually payment gateways charge a percentage of off your profit depending on how big a particular business transaction is.
• Is your chosen payment gateway has a good reputation? What do people say about your chosen provider?
• Does your chosen provider support your customers’ preferred payment methods such as Visa or MasterCard or does it support your chosen bank?

To provide your customers a seamless transaction, it is important to know all of these. Payment gateways are one of the most important features of an e-commerce website.

Here are some of the most sought-out payment gateways that you can use for a Philippine based e-commerce site:

1. PayPal

   

   One of the most popular payment gateways used in e-commerce sites, Paypal has been winning the hearts of merchants and customers who purchase online. Because it’s secured and reliable, Paypal has been considered as one of the most sought-out e-payment provider in the present.

   Before PayPal, the company was operating under the name Cofinity. Founded by Peter Thiel and Max Levchin, the company specialized in Palm Pilot cryptography. During that time, another company, named x.com specialized in financial services which included online payments via banks. PayPal founder, together with Elon Musk, who founded x.com, merged the two companies and created a partnership. The need for a secure, safe, and fast online payment transaction gave birth to PayPal.

   Currently PayPal is accepting 26 currencies from 203 countries and markets. Its global reach made it a success.

   How does PayPal work?

   PayPal comes in three distinct main accounts, namely personal account, premier account and a business account. All of these accounts don’t require any fee when signing up. Personal account allows for any online shopper to pay for the stuff they bought online via credit card. A premiere account is for people who sell online and would need funds deposited into their account. Lastly, a business account is designed for business owners; it allows for merchants to accept all types of payments.

2. AsiaPay

   

   Since the launched in Hong Kong in October 2006, AsiaPay has become a leading provider of online payment services all throughout Asia.

   One of the most sought-out electronic payment providers in Asia, AsiaPay Payment Technology Corp. is equipped with a comprehensive collection of secure and reliable payment processing means of credit cards and other various payment methods, catering to various business establishments from call center agencies and banks to corporate and small enterprise businesses.

   AsiaPay’s broad range of services boasts a lot of good features that can help e-commerce sites tremendously.

   • It requires NO deposits when you apply,
   • It’s cost-effective with flexible payment plans,
   • It’s user-friendly and easy to navigate
   • It’s secure with the latest IT security capable of fraud detection
   • It’s easy to integrate as it requires no additional hardware or SSL certificate
   • It’s supported by technician 24/7

   Furthermore, AsiaPay supports the following platforms:

   • Magento
   • Opencart
   • Commerce Kickstart
   • LiteCommerce
   • Virtue Mart
   • WooCommerce
   • PrestaShop
   • Zen Cart
   • osCommerce

3. 7-Connect

   Fear of online transaction because of the unsafe and unsecured payment systems, 7-Connect has introduced one of the safest ways to conduct business online. You no longer have to input your credit card information on the internet and be vulnerable to risks. An online ticket of your purchased product will be sent to you. Once you have received it, you can print it and go to any 7-11 stores.

   7-11 is strategically spread all over the metro. With branches to branches in the corner of most highways, customers can just as easily pay their purchased product.

   How does it work?

   Go to any online shopping site equipped with a 7-Connect payment system. A reference number will be given to you once you proceed to the checkout payment section. Get the reference number and visit any 7-11 store near you. Just pay the amount of your purchased product and the merchant will receive confirmation of payment right away. Expect product delivery within days at your doorstep.

4. DragonPay

   

   DragonPay is an alternative online payment provider that allows online shoppers to buy from e-commerce sites using online banking systems such as BPI Express Online, Metrobankdirect, and RCBC AccessOne. It is a substitute payment system for those who don’t have PayPal accounts and are not credit card holders. Customers have the option to use online banking facilities or over-the-counter payment at physical retail channels. DragonPay automatically monitors payment transaction, both online and offline activity and notifies merchants whether a payment has been made. Using our payment systems allows for a more secure and safe notion that your money goes in the right place with the option of using cash or a check.

   Because credit card holders in the Philippines are still relatively low, DragonPay saw an opportunity to utilize online banking transactions and over-the-counter payment system at banks and retail channels. Currently, DragonPay supports BDO, BPI, Metrobank, RCBC, Unionbank, UCPB, Chinabank, PNB, Maybank, RobinsonsBank, Sterling Bank of Asia, and EastWest Bank.

   Buyers can pay on three different modes of payments:

   1. Online Banking which charges Php10 per transaction
   2. Over the Counter Banking which charges Php15 per transaction
   3. Over the Counter Non-Banks which charges Php20 per transaction

   Unlike other payment gateways which charge every time there’s a purchase, Dragon Pay offers a fixed fee per transaction. Items sold 200 and below is charged with 5% for very transaction instead of the fixed rate called micropayment. For one-time set up only, merchants can enjoy DragonPay for P28,000 set-up fee for the Micropayments Plan.

   How does it work?

   Customers can transact business online and select any items of their liking, once finished, the customer can check out the purchasing process and receive a reference number so he can pay at a bank of his choosing. Once he pays his bills, DragonPay will send an email notification to your merchant to let him know that a customer has paid already. At this point, your merchant will have all the necessary detail on your product shipping. DragonPay acts as a third party that allows for smooth payment transaction and once payment has been made and notification has been sent, DragonPay holds no knowledge of the shipping details of the product.

5. MOLPay

   

   MOLPay is a leading online payment provider in Southeast Asia that offers multi-currency with over 170 currencies available. It offers a broad range of payment methods, including credit/debit card such as Visa, MasterCard, and CUP, online to offline payment transaction or MOLPay CASH, and local internet banking transaction.

   How does it work?

   Online shoppers can visit any e-commerce site and select as many items as they want to purchase. Once in the checkout process, the shopper can choose any mode of payment from credit/debit card transaction and internet banking, to MOLPay cash via 7-11 or Petronas.

   For merchants, MOLPay charges on-time set up fee, and for every online banking transaction, there’s a 3.5% charge while for credit cards chargebacks will cost $5 every time payment has been made.

6. PesoPay

   

   Peso Pay is one of the leading online payment systems in the Philippines that caters both to SMEs and corporations. With their broad range of services, merchants are able to accept payments online from credit /debit cards such as Visa, MasterCard and JCB, over-the-counter payment such as RCBC and BDO, non-bank payment partners such as pawn shops or via PayPal.

   It’s been 10 years since Peso Pay has been in the industry. With years of practice and talent, Peso Pay continues to provide seamless payment transactions for consumers and businesses of all types and sizes.

   For merchants, there’s an annual set-up charge, commission based on the amount of payment received if an item was bought, and a chargeback handling fee.

Because of technological advances, today, businesses have taken advantage of major environment changes, particularly how online businesses have changed people’s buying behavior. While the emergence of many online payment providers has offered a lot of beneficial features to customers worldwide, there are still a lot of risks involved in payment processes online especially that money is involved. Consumers are becoming more wary about this type of systems. Ensure that you have a comprehensive guideline or research whether an online payment service provider holds a good reputation or not. It is important to note various factors before choosing a payment gateway for your site. Factors like credibility, reliability, and security, should be considered before integrating any of these payment systems on an e-commerce site.

What other payment gateways can you recommend to business owners who have their own e- commerce site? Any suggestions on how they can improve customer service and support using these online payment systems? Share us your thoughts about this!