It’s exhilarating to embark on the road of starting an ecommerce business. However, choosing an online payment gateway in Singapore is one of the most crucial decisions you’ll need to make while creating your branding and website. It can be tricky to choose the best payment gateway for your company because there are so many things to take into account. Therefore, in this article, we will discuss the best way to choose the right Shopify payment gateway in Singapore for your business.
Definition of Shopify payment gateway
A payment gateway works on the same task as a point-of-sale terminal at a physical store. It enables credit card payments from customers on your e-commerce website. The gateway encrypts credit card information while processing payments, verifies the information, and approves the transaction. It guarantees quick, secure payments for both customers and businesses.
It’s easy to understand how a payment gateway operates. Online payment processing consists of these three fundamental steps:
Security: A payment gateway encrypts credit card information, making it possible for customers’ web browsers and your store’s server to communicate transaction information securely.
Authorization: After transferring the credit card information, a payment gateway contacts the customer’s credit card company to obtain authorization for the transaction. This takes place instantly.
Completion: After receiving authorization, the gateway enables customers to move on to the next stage of the checkout process on your website, which is often completion and confirmation of the purchase.
These are the main purposes for which payment processing services are used. However, many gateways additionally provide other helpful features. For instance, some Singaporean online payment gateways can estimate taxes and provide pricing in local currencies for clients from other countries.
Learn more about detailed Shopify pricing plan here.
Shopify payment gateway options in Singapore
PayPal is the leader in online payments worldwide with close to 400 million active accounts. In Singapore, it serves as a reliable, fully working online payment gateway for both clients and businesses. A variety of credit and debit cards are supported by the system, which also provides safe transactions with round-the-clock fraud monitoring, seller protection, and two-factor authentication. With availability in more than 200 nations and compatibility for 25 different currencies, it’s also fantastic for businesses looking to market to customers throughout the world. However, PayPal charges hefty transaction fees of 4.4% plus a set fee for overseas orders or 3.9% + S$0.50 for local sales.
DBS PayLah! is a great option for contacting local customers because it is one of Singapore’s most well-liked local payment applications. Quick and easy payments are made possible since the gateway debits the money immediately from a customer’s DBS account. It is very simple to incorporate into online stores and accepts omnichannel payments. However, it can be costly, particularly for fledgling e-commerce firms. A SG$800 establishment cost, an SG$1,000 yearly fee, and a 3% fee on credit and debit card purchases are all required.
This online payment gateway in Singapore allows clients to pay up to one-third of the total purchase price up front and the remaining amount over the course of four days through interest-free payment plans. Hoolah is a good alternative for newly established online merchants. It will also seamlessly connect into your online store and accept payments made by credit and debit cards.
WorldPay is a flexible payment processing solution that charges reasonably. For a basic Gateway Standard account, your monthly fee might actually be as little as SG$35; credit or debit card purchases result in a 2.75% plus SG$0.37 fee. Additionally, this gateway offers recurring billings and accepts a variety of credit and debit cards.
It’s easy to understand why more than 26,000 companies utilize eWay. This payment gateway is PCI certified, takes all significant credit and debit cards, and integrates quickly with online stores. Additionally, it offers flat-rate pricing of 3.4% plus S$0.40 per transaction and 24/7 technical support, making it simple for new merchants just beginning their ecommerce adventure to streamline payments.
Grab, which was once a well-liked ride-hailing service in Southeast Asia, now provides GrabPay, its own online payment gateway, in Singapore. Merchants will need to integrate Strip, a third-party payment processing system, with their Shopify store in order to use this service. Singaporean clients use GrabPay because it allows them to use their Grab Points or credit cards that are linked to their accounts to make purchases. However, because GrabPay transmits payments promptly, offers complete encryption, and enables merchants to simply check balances, view transaction details, and issue refunds, it is perfect for new merchants.
The complete guide to choose the best Shopify payment gateway in Singapore
Each Singaporean online payment gateway will work for various online retailers and clients. Therefore, you should think about your objectives and your customers’ needs while choosing the best one for your store. Here are some things to consider:
What are your customers currently using?
You may choose the gateway you want to utilize by understanding what payment methods your clients are already using. For instance, DBS PayLah! as a payment gateway in Singapore may be preferred by many local clients despite PayPal’s widespread popularity. Knowing which credit or debit cards your consumers use can also assist you choose a gateway that supports them.
How much does it cost?
In Singapore, all companies that process payments will impose fees. These typically consist of a percentage of all transactions and monthly user fees. It could be tempting to choose a payment gateway with cheap rates while you’re just getting started with your online business. However, as your firm expands, a gateway with greater costs might provide more features and more flexibility.
Is it secure?
If a site seems secure, customers will feel more comfortable making purchases there. Secure payment gateways are essential because of this, especially for a new e-commerce store. Make sure the payment gateway you choose complies with PCI standards. This indicates that it adheres to the guidelines established by the Payment Card Industry Data Security Standard (PCI DSS). Customers can feel more secure with the visible security indicators that many payment gateways provide, like the Verisign checkmark.
Where are your customers?
If local customers are your online business’s target market, having an online payment gateway in Singapore that serves them is fantastic. Your needs could alter as you travel, though. Therefore, if you want to be able to serve customers from other nations, you should choose a payment processing provider who can handle this by, for instance, providing local payment options in several countries.
If you want to build an ecommerce Shopify store, doing careful research on the payment gateway of Shopify is necessary. Because choosing the right payment gateway for your store can make it easier for customers to make a purchase on your website. If you want to hire an ecommerce agency to help you in building an online Shopify store with the best payment gateway for customers, Scuti is here to help.