Magento payment gateways

We often overlook some essential aspects of e-commerce merchants and customers that revolve around their mutual trust despite being unknown to each other. What is one thing that strengthens their mutual trust? A seamless checkout experience! An exceptional online shopping experience can’t be attainable without having a powerful e-commerce payment gateway. An e-commerce payment gateway is considered an exigent factor for merchants and customers in ensuring an exceptional online shopping experience.

Choosing from the abundance of the cheapest payment gateways for e-commerce can be an overwhelming journey for merchants with limited knowledge of newly launched e-commerce gateway tools and features.

Regarding Canadian B2B e-commerce merchants, navigating the plethora of options may seem daunting and time-consuming. But if they are Magento users, the freedom to choose the best e-commerce payment gateways can prominently affect user experience, conversion rates, and overall business efficiency.

Being a future-ready e-commerce merchant, you must know some of the best payment gateway for small business in Canada available for Magento, considering essential factors like ease of integration, transaction fees, security, and global reach.

This comprehensive guide delves into the best e-commerce payment gateways tailored for the Canadian market, highlighting their unique features and benefits.

What is a Payment Gateway?

The payment gateway acts as a crucial bridge between your bank and your store. It allows online stores to manage payments securely and ensures that transactions get accepted between customers and banks. Think of it as a virtual cash register for your online store, processing transactions seamlessly. The payment gateway captures essential customer data like credit card details, again encrypted for security, and then transfers them safely between the customer, the merchant, and the bank.

How does it work?

  • Securely encrypt and transfer payment information like credit card numbers
  • Examine the availability of money in the customer’s account and gain transaction permission
  • After the approval through the system, it executes the final transaction

The Magento payment gateway enables seamless transactions between buyers, sellers, and financial institutions. To ensure customer data security, the Magento store can integrate with various third-party payment gateway providers. For more data insights about payment gateway market share, look at the image below.

Payment gateway market top players

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Magento Payment Gateway Checklist

The payment gateway is more about the convenience of customers. So, make a checklist to see whether the gateway is qualified, adaptive to your Magento store, and aligned with your business goals. Consider these vital parameters of top e-commerce payment gateways before making the final decision.

  • Capabilities: Invest in gateways that support credit cards, debit cards, and standard digital wallets like PayPal. Such payment options will make the customer buying experience more convenient. Also, compatibility with local payment methods improves customer checkout experience. It supports features like one-time payments, recurring payments for subscriptions, etc. to meet diverse B2C e-commerce customer needs.
  • Safety: Ensure the payment gateway is PCI compliant and follows all the essential security measures to prevent potential online fraud.
  • Price: Make sure the price stays under the budget without hidden costs.
  • Customer Support: Check whether your payment gateway offers reliable customer support to help you troubleshoot complex issues.
  • User-Experience: Always focus on a seamless checkout shopping experience for customers.
  • Convenience: Seamless Integration leads to more customer convenience. Look for a gateway that offers easy-to-set-up and clear guidelines. Also, go for such gateways that offer plugins and extensions as it simplifies the integration process.

Top 8 Payment Gateways for Magento: A Brief Comparison Table

Here’s the top-features comparison among the top 8 payment gateways for Magento. Let’s discover the best payment gateways to find the right match for your B2B e-commerce business.

Payment Gateways for Magento

Note: The data mentioned in the above comparison table can be subject to change. Visit the official website for the latest transaction charges.

Best Magento Payment Gateways in Canada

1. PayPal

PayPal is a popular payment gateway provider used by nearly 426 million e-commerce merchants and active customers across the globe. It is majorly known for security and reliability. You can access PayPal in more than 200 countries with seamless transactions.

Key Features

  • Multiple Magento Payments Methods Available like Mastercard, Visa, Diners Club, and American Express
  • Access Digital Wallets like Apple Pay and Google Pay
  • Register for Free PayPal accounts
  • Connect PayPal Accounts with Bank Accounts
  • Online Invoicing Option Available for the Merchants

Cost: PayPal doesn’t charge a setup fee or monthly fee. For United States users, PayPal will charge 3.49% + $0.49. With international transactions, it will be 5.0%. For more info visit.

2. Stripe

Stripe

Stripe is a renowned and top Magento payment gateway with a global presence in 46 countries and rated among the best payment gateway for small business in Canada.

Stripe supports all the major credit cards, including Alipay, Bitcoin, Apple Pay, and Android Pay. It offers exclusive features like real-time reporting and PCI compliance for secure transactions. Stripe also offers customization flexibility for all business shapes and sizes. Merchants can accept payments and send payouts from global customers in 135 currencies.

Key Features

  • Get a Hassle-Free Checkout Experience as You can Stay On-Site During the Payment Process
  • Users can get Single-Click Checkout and Mobile Payments
  • Exclusively Designed for Developers with No-Code Options, Pre-Built Integration and Libraries
  • Minimize Checkout Friction with Invoices, Physical and Virtual Cards
  • Execute Online and In-Person Payments Including Subscription Companies and Marketplaces

Cost: Stripe costs you 2.9% + $0.30 per transaction. No monthly fee or setup fee is applicable.

3. Braintree

braintreepayments

Braintree is a well-known Magento Payment gateway that suits businesses of all scales. For online store owners, the Braintree Gateway is uniquely designed for mobile and web payments. Braintree is sponsored by PayPal and operates in 44 countries with 130+ currencies. It ensures a seamless customer checkout experience.

Key Features

  • Braintree Offers Built-In PayPal Integration
  • Ensures Unwanted Data Theft and Fraud Protection
  • Stores Sensitive Customer Data Like Account Payment Information
  • Supports All Popular Digital Wallets and Credit Cards
  • Get the Exclusive Access to Braintree Marketplace Solution
  • Braintree Offers Recurring Billing and Subscriptions

Cost: Braintree costs range from 2.2% to 3.50% + $0.30-$0.49 per transaction.

4. Amazon Pay

Amazon Pay

Amazon Pay is among the top secure and useful payment gateways and offers a streamlined customer checkout experience with fast payment solutions. It supports 12 currencies and multiple languages and allows customers to pay on other e-commerce websites using an Amazon account. This feature reduces the checkout time and improves the customer’s shopping experience. Moreover, Amazon Pay provides services like Amazon Simple Pay (ASP) to ensure a seamless checkout experience.

Key Features

  • Top Payment Methods like Credit and Debit Card Accepted Including Visa, American Express, Diner’s Club
  • Amazon Assures Its Customers from Fraud Protection
  • Shop Directly from Shopping Cart Using Amazon Pay Without Leaving the Website
  • Amazon Pay can be Easily Integrated with Magento and Other E-Commerce Platforms
  • Integrates Seamlessly with Your Existing CRM Systems

Cost: Amazon Pay charges 2.9% (Per Transaction) + $0.30 (Per Transaction). If you’re processing transactions for cards issued outside the US, the fee is 3.9% + $0.30 per transaction. Also, Amazon doesn’t charge you monthly fees or account setup charges.

5. Authorize.net

authorize.net

Authorize.net is a trusted payment gateway launched in 1996. This payment gateway was considered one of the most compatible checkout tools for Magento. Authorize.net is better for small-scale and medium-scale online stores. If you’re looking for the best payment gateway for small business in Canada, get exclusive access to Authorize.net and experience a hassle-free checkout experience.

Key Features

  • Well-equipped with All Major Debit and Credit Cards like MasterCard, Visa, American Express, etc.
  • Popular for User-Friendly Interface and Available in 33 Countries
  • Virtual Point of Sale (VPOS) Options Available for Customer
  • Multiple Mobile Payment Options Available
  • Customers are Allowed to Set Up Billings Subscription for Checkout Convenience
  • Protects Customers from Suspicious Transactions Built-in Fraud Detection Tool

Cost: Authorize.net charges a $25 monthly fee + 2.9%+ $0.30 Per Transaction (Applicable for All-In-One Payment Gateway). If you are using a merchant account, you’ll be charged $0.10 per transaction with a daily fee of $0.10.

6. Verifone (Formerly 2Checkout)

verifone

Verifone is another name in the Magento payment gateway list and is popular among e-commerce merchants. This payment gateway is available in 200+ countries and supports 30 languages, which can be enough to target a large pool of global B2C e-commerce audiences. It can be seamlessly integrated with 100+ shopping carts.

Key Features

  • Safeguards You from Unwanted Online Fraud and Ensures Safer Checkout Experience
  • Follows Security Standards like GDPR, BBB, SSAE 18, and PCI DSS Level 1
  • Compatible with All Major Payment Methods like Credit, Debit Cards, and PayPal
  • API-based Solution Available for Magneto 2 Users.
  • Offers Localized Payment Options for Customers
  • Transaction Fees may Vary Based on Business Location

Cost: No monthly fees or account set-up charges. But you will pay more than PayPal and Stripe, and it can cost you around 3.5% + $0.35 per transaction.

7. Square

squareup

The next payment gateway is Square, known for its unique POS (Point of Sale) system that empowers its customers to accept offline payments from customers. Square allows you to make transactions from anywhere with all the essential features like sending invoices to recurring customers, adding payments from popular credit cards, selling online through e-commerce platforms, and much more. Use Square Online to make digital payments at affordable online payment gateway fees. All these exclusive features establish Square as a renowned payment gateway among e-commerce merchants.

Key Features

  • Allows Faster Payments Executes in 1-2 Business Days
  • Enabled with PCI-Compliant Payments and Fraud Detection Features
  • Manage Sales and Inventory through Analytics and Reporting Feature
  • Leverage POS Software that Allows In-Person Transactions for Physical Stores
  • Customers can Save Credit Card Details for Future Use
  • No Monthly Fees or chargebacks from customers

Cost: Square charges from 2.9% + $0.30 per transaction. Square is an esteemed payment gateway and is considered one of the best payment gateways for small business in Canada.

8. Skrill

Skrill 

Skrill was launched in 2001 and is a widely used payment gateway in the United Kingdom. The goal behind the Skrill payment gateway is hassle-free online money transfer for customers. Customers can use e-wallets with multiple currency options. Skrill is most suitable for small and mid-sized B2B e-commerce businesses and outshines many existing gateway solutions in terms of fees, payment options, and currencies.

Key Features

  • Allows its customers more than 100 Local Payment Methods
  • Helps you Improve Overall Conversion Rates
  • Allows Customers to Make Recurring Payments
  • Faster Integration with Great Checkout Experience
  • Multilanguage Customer Support Option
  • Supports 40+ Currencies Across the Worldwide

Cost: Skrill offers you free Magento POS transactions. It is among the cheapest payment gateways for e-commerce.

Let’s summarize all these top 8 payment gateways for Magento in 2024 with these brief pros and cons analysis in the given table:

Gateway Name Pros Cons 
PayPal • Widely recognized brand
• Easy setup for merchants
• Buyer protection
• Higher fees for larger transactions
• Limited customization options
• Can hold funds for review
Stripe • Clean API for developers
• Global reach
• Supports multiple currencies
• Technical expertise required
• Higher fees for high-risk businesses
Braintree (Owned by PayPal) • Streamlined integration with PayPal
• Easy to set up recurring billing
• User-friendly interface
• Limited customer support compared to PayPal
• Relies on PayPal for merchant account approval
Amazon Pay • Easy integration for Amazon sellers
• Trusted brand for frequent Amazon shoppers
• Limited to Amazon ecosystem
• Higher fees for non-Amazon transactions
Authorize.net • Reliable and secure
• Competitive pricing
• Good for businesses with large transactional volume
• Complex set-up process
• Limited customer support
Verifone • Robust security features
• Support in-person and online payments
• Higher transaction fees than some competitors
• Complex integratio
Sqaure • Utilize POS system
• Competitive fees for small business
• Limited features for larger businesses
• Not suitable for international transactions
Skrill • Popular for international payment
• Faster and secure transactions
• Higher fees than some gateways
• Limited customer support options

Frequently Asked Questions

Magento offers in-built payment gateways like Braintree, PayPal, and Authorize.net by default. But merchants can integrate other Magento payment gateways too for a convenient checkout experience.

Setting up Magento payment gateways is very easy for beginners. All you need to do is first choose your favorite payment gateway provider. Then set up an account with a selected payment gateway. In the next step, choose the integration method for your Magento store. In the last step, ensure your payment gateway is working seamlessly.

The four different types of payment gateways in e-commerce are available in the market, which are as follows: 1. Hosted payment gateway. 2. Self-hosted payment gateway. 3. API-hosted payment gateway. 4. Local bank integration gateway.

Price is the biggest factor for budget-sensitive merchants. For Magento 2 B2C e-commerce users, the price may vary between 2.6% and 4%. A few of the major payment gateways offer free monthly costs for different business requirements.

Here are some of the best payment gateways for small businesses in Canada.

1.PayPal, 2. Stripe, 3. Authorize.net, 4. Square

We have covered these payment gateways mentioned in this article. They are well-known for their reliability, ease of use, and support for various business needs, making them popular choices for Canadian e-commerce businesses.

Final Words

Over the years, online payment has witnessed a considerable advancement in the digital payment ecosystem. More and more e-commerce stores are adopting online payment options because of their convenience. We hope the features of all the popular payment gateways have been thoroughly covered in this blog. Every payment gateway has its pros and cons. However, choosing the right one requires all essential considerations like ease of use, cost, capabilities, etc.

Payment gateways are more about the customer checkout convenience. With the right payment gateway integration to your Magento store, you can enhance your customer experience, boost your brand awareness, and improve overall sales revenue. Ignitiv is a trusted customer experience agency for all your Magento-related needs. Our Magento experts are one step away to assist you in choosing the best payment gateway for your Magento store. For Magento upgradation services, contact Ignitiv now!

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