Best Payment Gateways for E-Commerce Businesses — Ranked & Reviewed

Choosing the best payment gateways for e-commerce businesses isn't just about collecting payments.

It's about trust.

Speed.

Security.

And giving your customers the smoothest checkout experience possible.

Your payment gateway is the one thing that may either rocket sales or be the unsaid reason your customers are quietly leaving.

So how do you choose the right one?

In this guide, we will review which payment solutions stand apart in 2024 and what makes them different.

We'll break down the top contenders, compare key features, and help you choose the perfect fit for your online store.

Why Choosing the Right Payment Gateway Matters

Payment gateways are used as a bridge between your customer and your bank.

It provides credit cards, digital wallets, and sometimes even direct bank transfers.

However, your store is shaped by its customers' feelings about your store, which go way beyond transactions (1).

People bounce if that process is slow, clumsy, or even untrusted (2).

Your profit margins shrink if the fees are high.

Lacking fraud protection means you take the risk of chargeback and financial loss (3).

Choosing the right gateway impacts:

• Customer trust and conversion rates

• Transaction speed and reliability

• Your global reach and expansion potential

• Compliance with security standards like PCI-DSS (4)

Not all payment gateways are the same.

The best one depends on the size, the platform, and the size of your growth goals.

What to Look for in the Best E-Commerce Payment Gateways

Start with fees.

The transaction costs can be anywhere from 1.5 to 3 percent per sale.

Notice monthly fees, chargeback fees, and international transaction surcharges.

Next, think about security.

Does it use tokenization as well as fraud detection?

Is it compatible with PCI out of the box?

Then, check platform compatibility.

Will it fit perfectly into your current platform, which is Shopify Wo, eCommerce, or Magento?

Is custom development required, or does the fact that it is such a small community allow you to exclude it?

You also want flexibility.

Mobile payments.

Recurring billing.

If you plan to sell internationally, this will allow for multi-currency support.

Last but not least—support.

If something happens and you need help, can you get it fast?

Does live chat, email, or phone support sit on the provider's site?

8 Best Payment Gateways for E-Commerce Businesses in 2024

Below is a compiled list of the best payment gateways that work perfectly well for many small, medium, and even enterprise e-commerce brands.

1. Stripe

Stripe is built for developers.

With Stripe, you get total control of the checkout experience.

The system supports recurring payments, mobile wallets, and global currencies.

The most advanced of its fraud detection systems is called Radar.

2. PayPal

PayPal is a household name.

 That creates trust at the moment of the checkout.

 It's an excellent option for a small store and an independent entrepreneur.

 The downside?

 Higher fees, especially internationally.

 It's hard to beat but for ease of use.

3. Square

Square is a good idea if you sell as a Shopify seller from a single brick-and-mortar store.

It provides unified reporting, built-in POS, and online invoicing.

Its clean interface and transparent pricing make Square very popular with small stores.

4. Authorize.Net

It's one of the oldest in the game.

Now owned by Visa, they have a good reputation.

It supports simple and other Integra.

Very suitable for new businesses looking to optimize their service provision while also not losing control over the business.

5. Shopify Payments

This is the smoothest path if you are using Shopify.

It is then integrated directly into your store dashboard.

It's an extra safety measure against additional transaction fees.

It is also equipped with fast payouts and supports major payment methods.

6. Braintree

A PayPal company, but with way more flexibility.

You can fully customize checkout.

Supports subscriptions, mobile payments, and even Venmo.

A smart choice for SaaS or service-based e-commerce.

7. Payoneer

Payoneer is your friend if you are selling globally.

Especially good for freelancers and dropshippers.

It enables accepting payments from major marketplaces and paying vendors in multiple currencies.

8. Adyen

A powerhouse in the enterprise world.

Brands like Spotify and Uber use it.

In detail, it offers analytics, a global payment facility, and direct bank integration.

Good for high-volume e-commerce, businesses need good infrastructure.

Comparing the Top Payment Gateways

Here’s a quick overview comparing key features:

How to Choose the Best Payment Gateway for Your E-Commerce Business

Start with your business model.

Selling digital products?

Physical items?

Recurring services?

Next, consider transaction volume.

Are you processing $5,000 a month—or $500,000?

For high-volume merchants, the fees are negotiable.

After, examine which continent your customers live on.

Picking a gateway where multi-currency payments can be accepted by going global.

Check your platform integration.

Your CMS must have plug-ins or APIs for your gateway.

Without that, you may simply have to get a developer to get started.

Scalability is key.

Don't only think about nowadays; think five or six months from now, a year from today.

Payment Gateway Types Explained

There are three key types of payment gateways available that you need to understand before making decisions.

Hosted Gateways

Visitors get sent to another online payment platform, which PayPal is an example of.

Setup is simpler for hosted gateways, yet they provide reduced brand control.

Integrated Gateways

The transaction process stays within your site domain for the entire duration.

Establishing this gateway requires more configuration work while delivering an upscale user payment experience.

API-Based Gateways

Offers full control over checkout UX.

Stripe is a good example.

Requires technical resources.

Mobile-Optimized Gateways

Speed and simplified checkout and wallet acceptance functionality should be your focus.

Committed users who shop only via mobile phones will need this payment gateway (5).

Final Thoughts

The payment gateway is your central business tool, extending from back-end tools to front-end operations.

It's your frontline salesperson.

The smoother the checkout, the fewer abandoned carts.

Higher conversion rates will occur due to greater trust in the payment gateway.

Your selection of a gateway should match your business goals, platform requirements, and target customers' shopping preferences.

Test it.

Tweak it.

The payment gateway operates to serve as your financial growth tool.

Make the selection of the appropriate tools, including your payment gateway, your first priority. This will help you maintain operational excellence and focus on business expansion.

You are ready to advance your complete e-commerce strategy optimization.

A business enhancement strategy emerges when payment gateway integration is connected to analytics measures, marketing automation, and fulfillment handling capabilities.

💸 Simplify your sales funnel—explore the best gateways built for e-commerce! 💸 

FAQs on the Best Payment Gateways for E-Commerce Businesses

What is the best payment method for e-commerce?

The best method supports fast, secure transactions and builds customer trust—credit/debit cards via Stripe or PayPal are the most popular.

Which payment gateway is best in the US?

Stripe and Square are top choices for US merchants due to their flexibility, local support, and competitive pricing.

What are the types of payment gateways?

They include hosted, integrated, API-based, and mobile-first gateways—each with pros and cons based on business needs.

What's the best gateway for small e-commerce businesses?

PayPal, Shopify Payments, and Square are great for small stores because they require little setup time and are easy to use.

Can I use multiple payment gateways in my online store?

 Yes, many platforms allow you to offer multiple gateways to increase conversions and serve customer preferences.

Related Studies

1. Title: Exploring Consumer Preferences and Behaviour Toward Digital Payment Gateways in India

This study analyzes how convenience, trust in security, and rewards influence consumer trust and satisfaction with digital payment gateways, highlighting their critical role in driving e-commerce sales.

Link: https://journals.indexcopernicus.com/api/file/viewByFileId/2023506

2. Title: E-Commerce Checkout Usability: An Original Research Study

This research identifies poor checkout design and usability as the primary reasons for a global cart abandonment rate of 70.19%, emphasizing the need for streamlined checkout processes.

Link: https://baymard.com/research/checkout-usability

3. Title: From Data to Action: Chargeback Trends and Fraud Strategies for 2025

This study highlights a 19% increase in chargeback rates across industries, driven by merchant errors, true fraud, and first-party fraud, emphasizing the need for proactive risk management strategies in e-commerce.

Link: https://sift.com/blog/from-data-to-action-chargeback-trends-and-fraud-strategies-for-2025

4. Title: PCI Compliance: Requirements Explained + PCI DSS Checklist

This guide explains the critical role of PCI DSS compliance in preventing credit card fraud and securing online transactions for e-commerce businesses.

Link: https://www.bigcommerce.com/articles/ecommerce/pci-compliance/

5. Title: The Effect of Mobile Payment Solutions on Use Intention: An Application of UTAUT2

This research explores how performance expectancy and habit strongly predict mobile payment usage intentions, providing insights for tailoring solutions to consumer preferences in the U.S. market.

Link: https://pmc.ncbi.nlm.nih.gov/articles/PMC9258462/