The Best Payment Gateway for Digital Goods

Digital goods are increasing in demand worldwide. 

Digital goods are shaping the way we learn, work, and entertain ourselves and the demand is growing. From eBooks and software to digital art and online courses, these intangible commodities are purchased on the global market every second. To facilitate these modern-day transactions, a reliable and efficient payment gateway is key. 

As consumers spend more time online and rely more on their mobile devices, the demand for digital goods has skyrocketed. This shift in consumer behavior presents merchants with unprecedented opportunities, but it also demands a seamless digital payment experience. However, a one-size-fits-all approach to digital goods payments will not drive sales. Worldwide, fewer than 33% of buyers have used a credit card to pay for a purchase in the last year. And in all markets except the U.S., 17% of ecommerce sales were paid through an ewallet. At the same time, bank transfers and QR payments are increasingly popular global payment methods.

To capitalize on the digital commerce boom, businesses need to localize shopping and payment experiences. This means offering popular local payment methods at checkout and showing prices in local currencies. These steps can make your digital goods easier for customers around the world to purchase.

Understanding Payment Gateways

A payment gateway offers online payment processing services that authorize and process transactions between a buyer and a seller. It’s the digital equivalent of a physical point-of-sale terminal in a store. The best payment gateway for digital goods not only ensures secure and swift transactions but also provides a seamless user experience, supports multiple payment methods, and offers fraud prevention tools.

Get To Know Gateways: Rapyd, Stripe Checkout.com, Adyan

The online payment gateway landscape is dominated by several key players, each with its unique strengths and weaknesses. Essential features for payment gateways include: accepting local and alternative payment methods, merchant system integration, an API-first approach, and fraud management. Let’s get into the specifics of the features and functionality of Stripe, Checkout.com, Adyan, and Rapyd.

Rapyd Payment Gateway: Simplified Global Commerce

By connecting companies to all the ways consumers like to pay around the world, Rapyd simplifies and advances commerce in every market. On a single platform, Rapyd allows businesses to collect payments online, in-store and via payment links and virtual terminals. Rapyd’s unique Wallet infrastructure also lets merchants hold, transfer and exchange currencies, dramatically simplifying international and cross-border payment acceptance. Rapyd provides online payment gateways supported by in-depth compliance expertise and support for customers and developers.

Pros: 

• All-in-one payments and payouts
• Multi-currency support
• Cost-cutting FX platform 

Stripe Payment Gateway: A Popular First Choice

Stripe is a well-known name in online payment processing services with developer-friendly APIs and extensive documentation. Stripe processes both card payments and ACH (Automated Clearing House) payments. However, its transaction fees can be high for small businesses, and it lacks local payment method support in some regions. Stripe has a high churn rate as businesses find better online payment gateway fits or become frustrated with support. 

Pros:

• Developer-friendly APIs
• Extensive documentation
• High-security payment processing

Cons:

• High transaction fees for small businesses
• Limited local payment method support
• Not available in some countries
• Can be difficult and confusing to set up and maintain for non-technical users

Checkout.com Payment Gateway: A Flexible Option With Transparent Pricing

Checkout.com is renowned for its flexible payment platform and easy integration. Checkout.com helps businesses to scale around their unique needs. They offer fraud management, reporting, and insights from a single database and offer access to 150+ processing currencies and 25+ settlement currencies. 

Pros:

• Flexible payment solutions 
• Customizable platform and pricing structure
• Serves different size businesses from midsize to enterprise

Cons:

• Limited global reach, concentrated in the Middle East, Asia & Europe
• A newer platform that supports fewer countries or currencies as competitors
• Not suitable for brick-and-mortar payments needs like POS transactions and receipt printing

Adyen Payment Gateway: Offers Omnichannel Solutions

Adyen is a comprehensive international payment gateway that offers POS system solutions and mobile payments, in addition to online payments. Adyen provides infrastructure connecting directly to card schemes and local payment methods across the world, enabling businesses to accept payments online and in-store.

Pros:

• Fully customizable checkout
• Advanced risk management capabilities
• Local acquiring licenses provide global reach
• Integrates with leading technology solutions

Cons:

• The setup process is complex
• Pricing is not competitive, especially for micro businesses
• Users report slow customer support