As a business owner, you are no longer restricted to receiving physical cash payments or tied down by geographical location, and as an online shopper, you can have speed and convenience at your fingertip? All of these has been made possible with virtual payment platforms, one of the best payment methods that makes life and business transactions easy and smooth.
We highlighted below 15 of these virtual payment platforms. These platforms provide seamless, secure, and fast ways of transacting; hence, they are a must-have tool for any business in this digital era.
Key Insights
1. Virtual payment methods allow the receiving of money from customers globally, thus widening their customer circle.
2. Such a platform ensures secure transactions, as most sensitive payment information is kept with the provider under very high-class encryption.
3. Virtual payments give faster checkouts; thus, the customer experience is significantly enhanced, and fewer carts will be abandoned.
4. Business owners incur reduced operational costs due to unnecessary cash handling or extra support/staff.
What Are Virtual Payment Platforms?
Virtual payment platforms are digital payment solutions that enable online shoppers to make payments without face-to-face contact with the merchant. It is one of the gifts of technology that takes away the hassle of moving around with cash. People can now make payments for any product they come across on the web regardless of their location or the business owner’s location.
Benefits of Virtual Payment Platforms
For Business Owners
- Virtual payment platforms allow business owners to receive payments from customers from all over the world, increasing the business customer base.
- They offer a faster checkout process reducing the rate at which customers abandon their cart.
- Virtual payment platforms can be integrated into your business websites giving you ideas of customer shopping behaviour by analysing transaction patterns, demographics and spending habits.
- It is cost-effective as business owners do not need to hire extra hands to receive payment as would have been required in a physical setting.
For Customers
- Online payment platforms are secure as you do not need to divulge credit card information while making payments. Some of these platforms make use of tokens or a form of identification before payment can be made.
- It affords you the leisure of making payments from the comfort of your home.
- Most virtual payment platforms offer rewards and cashback after you successfully complete a transaction.
- Payments are completed within the blink of an eye compared to traditional banking methods.
Best Virtual Payment Platforms
1. PayPal
PayPal is an online payment platform that helps online vendors process online payments quickly. It provides free analytics services and helps in targeting customers. Its PayPal cashback MasterCard offers a 3% cashback to customers who use the card to make purchases using PayPal. Check out the PayPal website on merchant fees for commercial transactions.
Pros
- PayPal has been in business since 1988 and is used by 429 million people worldwide. It is well-known and widely accepted as a trusted platform for sending and receiving money.
- The website and app have a friendly user interface.
- PayPal can be integrated into your business e-commerce shop, your business website and your social media pages.
- Your business is safe with PayPal. They make sure of this through their end-to-end encryption, fraud monitoring and email confirmation.
Cons
- PayPal charges a fee for each payment received which is a percentage of the transaction amount added to a fixed fee based on currency type.
- When fraudulent activity occurs PayPal will freeze your account and put a restriction on it, putting a hold on your business transactions. This can be frustrating especially when you need to make use of the account urgently.
- PayPal automated customer service takes time to address an issue and getting human support on time is also challenging. This can cause an issue when you need a situation solved immediately.
2. Amazon Pay
Launched in 2007, Amazon Pay is an online payment platform that aids Amazon users in making online purchases with their Amazon account. Amazon Pay is an advisable payment platform for business owners because it expands their customer base by attracting clients who already have an Amazon account.
Pros
- Amazon Pay supports global currencies.
- It does not require you to pay a setup fee or a monthly fee.
- Easy checkout for customers with an Amazon account.
- It allows merchant payments, mobile recharge and bill payments.
Cons
- For business owners with custom shopping carts, integrating Amazon Pay can be challenging.
- Amazon pay may limit the merchant’s ability to track data and reports, which is necessary for decision-making.
3. Apple Pay
Apple Pay is a digital payment platform that allows iOS users to make online purchases without a physical debit or credit card. You get to save your credit and debit card details in your device and all that is required is a verification of identity and you can make and receive payments. It is available for iPhones running in iOS 10 or higher versions.
Pros
- Apple Pay keeps your card details private.
- It is easy to set up.
- It is free to use and charges no fees for transactions.
- You can re-enable your Apple Pay on a new device once you lose or misplace your current device.
Cons
- It can only be accessible on Apple devices.
- Requires face recognition for payments which could be burdensome if you are in a hurry or in a dimly lit environment.
- Not all online merchants accept Apple Pay.
4. Stripe
Stripe provides easy integration, customisable checkouts and a fraud prevention plan. It supports over 135 currencies which makes it easy for business owners to accept payment from different places in the world.
Pros
- It takes no hassle at all to set up Stripe as your payment platform.
- It has a friendly user interface.
- Stripe has a fixed automation system for invoicing, refunds and payment cancellations.
- Stripe provides detailed documentation on how to navigate the platform.
- Stripe has a solid security feature that includes firewalls and detection in case of intrusion or unauthorised access.
Cons
- There is a 2.9% + $0.30 per transaction fee, and monthly fees increase based on the volume of transactions.
- Stripe has a strict account usage policy that comes with consequences when the account is suspected of unsupported activities.
- Customisation may require the skills of a developer.
5. Shopify Payment
This is a virtual payment method designed by Shopify that allows business owners with e-commerce shops to accept and process online payments.
Pros
- You can automatically set it up with your Shopify store.
- Allows multiple currencies.
- Shopify Payment does not require any extra software to process online payments.
- Customer support is always available.
- You can track orders and payments, customise your payout, and enable a fraud filter to help with the identification of suspicious transactions.
Cons
- There’s a monthly fee attached.
- There’s also a fee attached when a third-party gateway is involved.
- Shopify payments are only available in selected countries including Canada, The United States, Japan, Australia and several others in Europe.
6. Authorise.Net
Authorise.Net offers a variety of great options for both business owners and customers. This includes an account update, buy now, donate button and impenetrable fraud protection to safeguard important details and information.
Pros
- It has excellent functionality that enables you to locate transactions easily.
- Digital invoicing and smooth set-up procedure.
- It comes with a customer information management system that allows you to store customer’s sensitive information.
- Authorise.net has 24/7 customer support via different channels, emails, phone and online chat.
Cons
- Authorise.net is mostly available for U.S. businesses.
- Authorise.net comes with different fees that include an initial set-up fee and a monthly fee that may be difficult for small businesses to manage.
7. Google Pay
Google Pay is a virtual payment platform developed by Google to aid contactless purchases using just your smartphone.
Pros
- Google Pay can be accessed on both Android and iOS devices.
- Google Pay makes security its first priority. This is why customers do not make use of their card details but make use of a token instead.
- Google Pay also affords additional services like digital boarding passes and digital tickets.
- It helps to keep track of incoming and outgoing payments and customer invoices.
Cons
- It is not widely accepted as a form of payment in most countries.
- Google Play services are limited to a number of banks. If the merchant’s bank account doesn’t support Google Pay, he/she cannot accept payment.
- Many users of Google Pay have complained about slow response from customer support.
8. Venmo for Business
Venmo for Business was launched in 2021 as a digital payment route that allows customers to send money to business owners in exchange for a product.
Pros
- It is available on Apple and Android devices.
- Easy to set up.
- Low transaction fee.
- Venmo for Business comes with a virtual payment card, you can apply for a debit card, a credit card or a teen card.
- It has a friendly interface coupled with visually appealing graphics and legible fonts.
Cons
- You cannot set up more than one business account.
- A standard Venmo transfer takes 1-3 business days.
- Venmo for business accounts can only be used with a U.S.-based account.
- Venmo works best for solo business owners or a one-man business team because your Venmo account will be linked to your account and only the business owner can operate it.
9. 2Checkout
This is a virtual payment platform that aids business owners in selling their products online and also for accepting international transactions.
Pros
- 2Checkout supports numerous currencies allowing business owners to expand their horizons globally.
- 2Checkout helps in managing financial liabilities and sales tax management compliance.
- All transactions are safe and secure.
- The platform has customisable templates to help with user experience.
Cons
- High chargeback transaction fees.
- The fee associated with receiving payments is quite high, and this might be a challenge for small business owners.
- Unresponsive customer service.
- Occasional glitches which might affect business operations.
10. Payoneer
This is an online business payment platform that allows entrepreneurs and business owners to receive money from any location.
Pros
- You get charged a 1% fee for bank account transfers and get charged nothing for transfers to a PayPal account.
- It is free to set up.
- Payoneer affords you the opportunity to pay international clients in their currencies.
Cons
- Verification for account opening takes a long time due to its ability to accommodate everyone globally which leads to following through with international regulations and standards.
- Having a dormant account for over a year incurs charges.
- Payoneer charges a fee when you accept money into your account and when you withdraw money into your local bank account.
- Users have experienced limited withdrawal options.
11. Adyen
Adyen is a multichannel payment system which enables small and large business owners to receive online payments. It has an omnichannel payment solution called Unified Commerce that collates customer info from all sales channels to give the business owner a view of shopper behaviour.
Pros
- It has a friendly user interface which makes navigation easy.
- Adyen allows for customisation using APIs.
- It has a risk management feature known as Revenue Protect that helps prevent chargeback when payment fraud occurs.
Cons
- Adyen has a complex pricing model which makes it difficult to understand the entire cost before proceeding.
- Merchants are required to undergo an eligibility check before they can start using Adyen.
- Poor customer service.
12. We pay
Wepay is one of the convenient ways to accept online payments. It partners with software platforms like FreshBooks and Eventzilla, this way businesses can add payment options directly to their business website.
Pros
- No set-up or monthly fee is required.
- A convenient payment solution for businesses that work with Wepay partners.
- Wepay enables businesses to set up automated payments for customers which in turn makes it possible for subscription-based services or products.
Cons
- Wepay doesn’t have phone support if you ever run into technical difficulties.
- Available for only small businesses that work with Wepay partners.
- Inadequate functionality.
13. Payment Depot
Payment Depot offers subscription-based payment processing for merchants. It has a membership plan which starts off at $79 USD monthly and $199 for premium features.
Pros
- It has an easy-to-understand membership pricing plan.
- You do not need to pay a fee to set it up.
- Customer support is always available.
Cons
- It is not cost-effective for low-volume businesses.
- Available for only U.S.-based merchants.
- It is not compatible with high-risk merchants.
14. Helcim
Helcim is an online and in-payment service that offers tiered pricing that provides high-volume merchants with lower pricing.
Pros
- Helcim fees are transparent and cost-effective.
- One benefit of using Helcim is the fast rate at which payments are processed.
- Comes with business management tools that can help grow your business.
Cons
- It has limited third-party integration.
- Most suitable for only high volume merchants.
- There’s no online chat customer service.
15. Paystack
Paystack allows business owners to make use of several payment channels such as mobile wallets, bank accounts, USSD, QR codes, POS etc.
Pros
- Integration is easy.
- Support multiple programming languages.
- Great customer service.
- With PCI-DSS certification it offers fast, reliable and secure transactions.
Cons
- Paystack is primarily focused on African countries.
- Charges for each transaction.
- Over the years, users have experienced some forms of restriction.
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Conclusion
The infusion of virtual payment platforms into business transactions is one of the easiest routes to upscale your business as a business owner.
With the 21st century as a century of constant evolution, no one wants to be left behind, so you most definitely should not be left behind. Businesses that implement virtual payment platforms into their business website will be seen as forward thinkers, lovers of innovation and growth and would most likely be customers’ top choice.
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