Magento Payment Gateway Integrations: An Overview of Contenders | Magenest
Perhaps we can all agree with this opinion:
“In the digital age, payment is increasingly being done online.”
Today there are various online payment gateways that act as standalone processors or as
integrations in e-Commerce platforms such as Magento.
You might be thinking of PayPal, yes?
Since the dot-com bubble of the last two decades, PayPal is by-and-large the largest payment
gateway on the planet.
But PayPal’s not the only contender here.
Other significant competitors are there, competing with PayPal since the smartphone era.
In this article we show you most popular payment gateways online. Especially in case you’re doing commerce business.
If you are further interested, we have built integrations for most of them in Magento that you can
check out here: https://store.magenest.com/magento-2/payment-integration.html
Stripe, currently the hottest new kid on the payment gateway block, is taking the world by storm.
Absolutely yes. This year Stripe was ranked as No.1 in Forbes’ Cloud 100, a list of top 100
companies engaged in cloud computing.
Among the Magento Payment Gateway Integrations, Stripe can be considered the best, or second
best depending on who you ask.
Today, Stripe is the second most used e-Commerce payment gateway in the world.
It’s really hard to argue against Stripe’s popularity at this point.
Stripe is appealing for many reasons. It is marketed as the ultimate e-Commerce toolkit for
developers, it has streamlined and successful APIs (such as add-ons for PrestaShop).
Additionally It is the answer to online payment in the smartphone era.
Basically you can’t go wrong with Stripe, but as always, there are alternatives to choose from if you
For years the PayPal juggernaut hasn’t seen a halt in e-Commerce payment gateways.
In fact, it is so common that the name PayPal is synonymous with “online payment”. Just as much
as how we associate “online shopping” with Amazon.com.
This is admittedly crazy.
PayPal has its roots in the late 1990s dot-com bubble, and has since dominated the world’s online
But does PayPal rule all platforms? Nope. Alipay owns the mobile platform.
Even with stiff competition in the market today, most noteworthy from Stripe and Amazon Pay,
PayPal is still on the throne of payment gateways.
You might be thinking: “PayPal is unstoppable, there’s no other gateway that can challenge it.”
Well you might want to think again.
Startups like Stripe however have struck PayPal’s confidence in its status quo, so it has responded
in kind by upgrading APIs and other initiatives.
Also, PayPal’s Magento Payment Gateway Integrations continues to be competitive against other
rivals in the Magento marketplace.
Are you into gambling?
Or into gaming? Or any sort of “unconventional” business?
Congratulations, Skril’s got your six.
If your business is in the “unconventional” area (a.k.a. high risks, high rewards), Skrill is the one
you should choose as one of your Magento Payment Gateway Integrations.
Skrill was formerly called Moneybookers, and was known primarily for two things:
Low-cost international money transfers and…
…being the only reliable, sanctioned digital wallet to online gambling.
Perhaps one of Skrill’s biggest advantages over competitors, aside from being the gateway of choice
for online gambling, is its handling of large scale transactions.
Even better: Skrill also allows users to purchase online without the need to fill in financial details.
Another huge advantage it has is that there are absolutely no transaction fees for buyers.
Due to this and allowing bigger transactions than competitors, Skrill is popular among those with a
high risk, high reward mentality, especially in the gambling and gaming trade areas.
If you’re already into those areas, Skrill will be your best friend.
Ever heard of PayPal of the East?
That’s what people call Alipay. The word “Ali” should ring a bell to you now that it’s created by
Somewhat similar to how Amazon has Amazon Pay, Chinese e-Commerce giant Alibaba’s very own
Alipay can be considered a leader in the payment industry.
While PayPal still dominates the desktop platform, Alipay is the king on the mobile platform.
There’s something about Alipay that sets it apart from others, though:
It does not allow chargeback. This means that customers must purchase at their own risks,
regardless of circumstances, as Alipay does not support dispute handling at all.
Alipay’s integration in Magento has been among the most popular Magento Payment Gateway
Integrations. The PayPal of the East has in recent years integrated various services into the
Alipay’s API is slightly harder to integrate than PayPal, but it’s nevertheless becoming a large
financial service in Asia.
If your business is based in China, you might opt for Alipay.
5. Sage Pay
British software giant Sage Group has set its foot in online payments with its own payment
gateway: Sage Pay.
A multi-channel payment service provider, Sage Pay’s size and scope are rather limited compared
to the above payment gateways.
It is the only integrated payment solution for Sage’s ERP, and does not allow international
transactions. Despite this, Sage Pay is still one of the more popular Magento Payment Gateway
Functionally speaking, Sage Pay carries out many duties similar to other payment gateways. The
downside is that what Sage Pay offers is just a fraction compared to, say, Stripe or Alipay.
Despite being based in the U.K., Sage Pay’s popularity falls extremely short of Stripe’s, which has
been dominating the U.K. market for a while.
No, this is not a Tencent product.
Another one of Magento Payment Gateway Integrations. Not really strong a contender like Stripe or
Alipay, WePay nevertheless is still popular in the United States.
So what makes it special?
Specifically, in the complex scenario where you have a large group of buyers and sellers and need to
distribute money between them and the platform they’re using, WePay is the right choice.
The best part about WePay is that there is no monthly fee and no setup fee, and additional charges
only apply for flat per transaction.
It gets even better.
WePay’s API is better in many ways compared to PayPal. The interface is quite easy to navigate
with a reasonable learning curve. Despite being a relatively small platform, WePay has a strong,
loyal customer base.
WePay consistently not only provides services to customers but also follows up the issues
afterwards. WePay has the potential to become among the most significant Magento Payment
Gateway Intergrations alongside the likes of Stripe or PayPal.
What it needs now, of course, is expansion.
CyberSource relies solely on credit card payment. It acts as a normal payment gateway like the
Wait, is that it? No.
In case you didn’t know before, its fraud detection radar is so far the largest on Earth (and among
the best of its kind). It offers specific solutions to enhance fraud prevention and payment security,
way beyond what other competitors could do.
Before its acquisition by Visa Inc., CyberSource was growing at an exponential rate compared to
other veterans including Visa itself.
Could it be another Stripe with fast growth and a more robust fraud radar? Maybe.
CyberSource’s experience in combating e-Commerce fraud is invaluable to many companies. This is
especially true considering fraud is becoming an extremely serious threat to the liability of
businesses to protect customers in online shopping.
If you ever feel insecure about payment security, CyberSource will be your solid, dependable best
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