Payment System Struggle

In previous blog post we have discussed an optimal choice for payment system. There is no one-size-fits-all payment processing method for every niche out there and your mileage may vary. But still, the quest for a most appropriate payment processor to one’s need remains unresolved.

The most popular payment gateway – Paypal

Let’s take a look at “the one ring to rule them all” – Paypal. This is what most people imagine when we talk about payment gateway. For those who are not yet familiar with Paypal or just plainly want to have some statistics of this payment method: Paypal has about 190 million active users as of Q3 2016. In 2014 it processed 4 billion payments. It operates in 203 countries around the world and processed $228 billion in payments in 2014. Customers can pay in more than 100 currencies, withdraw funds in 57 currencies and hold balances in 26 currencies. Long story short, Paypal is, for now, the most well-known and prevalent payment system there is.

Everything is fine and dandy until you find yourself setting up a store in a country that Paypal does NOT support, partially or entirely.

When you are out of payment system struggle

An example would be India. As mentioned, Paypal accepts over 100 currencies but Indian Rupees (INR) is NOT one of those. Thus, there would be little reasons for an Indian merchant to use Paypal when his native currency is utterly denied of service. The problems don’t end there, however. Paypal typically charges 2.9% to 5.9% plus a small fee of $0.3 for sending or requesting money. This means that one has to pay about 5% plus 20 Rupees before moving account balance, which is pretty costly.

But India is just a tiny drop of water in the ocean of troubles that retailers encounter when it comes to Paypal. Googling “Paypal does not support my country” returns a whoop 3.000.000 results, implying that the actual problems might be much greater. As successful as Paypal is, it is by no means an omnipresent or omni-support payment system, and therefore it is no surprise that there are merchants out there struggle to make this titan of payment gateways work.

When things turn dire, merchants turn to their smaller payment systems. Strangely, the ever-increasing expansion of titanic payment gateways never seem to finally kill off smaller payment systems. Perhaps catering to the minority’s need is what make them float. They thrive amidst the chaos. Again with India, merchants can use CCAvenue or PayUbiz should they want to process payments in Rupees. Unfortunately, smaller payment systems receive little to no support from e-commerce platform providers.


That’s our story for today. Before you finally close this tab, feel free to tell us your struggle with payment systems. How did you finally get it done? And how would you want e-commerce solutions provider help you achieve your goal? To tell your stories is to help us help you. Stay tuned!

Payment System Struggle
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