Small Business Growth: A Guide on Payment Gateways

Written by Kevin Liew on 17 Apr 2018
8,313 Views • Miscellaneous

When starting off your small business, you’ll need a good payment gateway to ensure that you’re getting compensated for your services. While there is a myriad of payment options available, PayPal,, and Stripe are the most applicable for most businesses. With our payment gateway comparison, you’ll find out which option suits your preferences and fits the needs of your business.


PayPal is the best payment gateway for small to medium-sized businesses. And, with every plan, you're able to accept PayPal payments. This is important as PayPal has a 44% conversion rate which is higher than its competitors. Add this to its positive reputation and worldwide recognition; it's hard to surpass PayPal when it comes to payment gateway comparisons.

PayPal has three different payment plans

  • PayPal Standard
  • Payments Advanced
  • Payments Pro

Each plan conveniently mixes credit card processing and payment gateways into one full service and has a competitive rate of 30¢ + 2.9% per transaction. With these plans, PayPal tends to suit the needs of all sellers and startups alike.

There are two main advantages PayPal has over their competitors. First, it provides the largest array of payment plans. Second, each plan uses PayPal payments. Most e-commerce shopping carts allow you to use multiple payment gateways such as and Stripe, but you’ll have to install them separately and manage two accounts. With PayPal, you can manage one payment service making it easier than the other gateways on this list.

However, PayPal has monthly fees. Another issue is its checkout security. Some payment plans handle the PCI compliance and checkout security for you, but you’re on your own in the basic plans. Because of this, and PayPal are similar, but Stripe has the better security checkout options in comparison.


Stripe bests the competition when it comes to checkout security. While and PayPal leave the checkout security to you, Stripe makes it their responsibility to provide a safe and efficient checkout option. To do this, Stripe hosts the checkout payment portion. Because of this, the payment information reaches their server and never touches your store’s data.

Along with its enhanced security, Stripe has a multitude of interesting features. It accepts over 100 different currencies such as Bitcoin, AndroidPay, and ApplePay. In fact, its app is simple and easy to use. But its cost effectiveness is one of the best features about this platform; it has the simplest pricing structure on this list.

It’s only disadvantage is that it doesn’t have a merchant account option. This means that you can’t implement Stripe’s gateway with your merchant service provider to decrease credit card processing rates. and PayPal surpass Stripe in this aspect, as you can use a third party account alongside your traditional payment gateways.

Still, Stripe is a great option for those who want a secure payment gateway with a simple interface. Stripe is connected with 51 of the top shopping carts available. While and PayPal have this option, Stripe has its security behind it and can be fully customized by a programmer. For most small businesses, Stripe's standard features and its versatility fills almost every processing needs. is the best choice if you already have a merchant service option or currently seeking one. This payment gateway is partnered with Wells Fargo, Flagship, Chase, and much more; making it easy for merchants to get started and have a reliable payment option.

If you plan on using PayPal’s gateway, you’ll have to find a merchant service option that supports it. Unlike, PayPal doesn’t offer a list to choose from; meaning that you’ll have to find it manually.

On the other hand, has an extensive list of partners that work with its system. So you won't have any issue getting a merchant account on this platform. Also, if you receive over $8,000 a month in credit card revenue, then you can save money with's merchant/gateway account combo instead of using an all-in-one solution.

But, has a lot of fees which can be a slight turn off for some small businesses. You have to pay a setup fee, monthly fees, and doesn't have a good security system like Stripes. If you need a dedicated gateway to create your own merchant account, then you should use

Closing Thoughts

Mainly, getting the best payment gateway for your business requires research and a thorough assessment of what your company needs. Whichever one you choose, make sure that your customers can use the option seamlessly. By doing this, you increase your profits and help grow your business!


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