A customer adds items to their cart, clicks checkout, and then abandons it. One of the biggest reasons? A lack of preferred payment options. You need to choose the right payment gateway. Rather than just being about transactions, it’s about reducing friction and building trust. That helps maximise conversions.
When it comes to WooCommerce payment gateways, WooPayments is the obvious choice. But there are several options available, like Stripe, Square, Authorize.net, and more. Each of them impacts fees, security, and user experience differently.
So through this blog, we’ll explore and compare the top payment options preferred and used by the WooCommerce developers in their projects. But first, what is a payment gateway?
What is a Payment Gateway?
A payment gateway serves as a bridge between an eCommerce store and financial institutions for secure online transactions. So, as the customer enters their payment details, the gateway encrypts the information. It then checks with the bank for fund availability and approves or declines the transaction within seconds.
Purpose of a Payment Gateway
- Secure Payments: It encrypts sensitive card details to prevent fraud.
- Speed: These platforms enable real-time transaction processing.
- Convenience: It supports multiple payment methods (credit/debit cards, digital wallets, bank transfers).
- Global Reach: It processes cross-border payments together with on-the-fly currency conversion.
How a Payment Gateway Works
- Customer Checkout: A buyer enters payment details on your WooCommerce store.
- Data Encryption: The gateway securely transmits this information to the payment processor.
- Bank Authorization: The processor checks with the issuing bank to confirm funds.
- Approval/Decline: The bank responds, and the gateway relays the result to your store.
- Fund Transfer: If approved, money moves from the customer’s account to your merchant account (usually within 1–3 business days).
Payment gateways ensure smooth, secure transactions. They are critical for customer trust and business growth. Proprietary payment gateway is one of the advantages of creating an eCommerce store with WooCommerce. That is, WooPayments.
Overview of WooPayments
WooPayments is a fully-integrated, free payment solution by WooCommerce. It’s designed to simplify transactions for online stores. WooPayments offers a seamless checkout experience with competitive rates and powerful features. These are all managed directly from within your WordPress dashboard.
Key Features of WooPayments
- Native Integration: Do not bother with any plugin or third-party account; just configure it into WooCommerce.
- Multiple Payment Methods: Accept credit and debit cards, Apple Pay, Google Pay, and local payment methods.
- Global Reach: Supports over 135 currencies and popular payment methods of more than 100 countries.
- Transparent Pricing: No setup and formality fee; instead chargeable is a competitive conversion fee. It varies from country to country.
- Built-in Fraud Protection: In-built advance tools including dispute management, risk monitoring, and much more.
- Automatic Deposits: Money gets deposited in your linked bank accounts within 2-3 working days.
One of the biggest highlights of WooPayments is that customers pay for their purchase without leaving your site. That means lower cart abandonment.
Other Top WooCommerce Payment Gateways
As mentioned earlier, there is a range of payment gateways available for WooCommerce websites. But not all will be suitable. The right one can impact the conversion rates, customer trust, and operational efficiency.
So let’s compare the options one by one.
Stripe
Stripe is a developer-friendly payment powerhouse with WooCommerce support. It offers 135+ currencies and payment methods like credit/debit cards and digital wallets (Apple Pay, Google Pay).
Its robust API allows for custom payment flows and subscription management. Plus there is strong fraud prevention with built-in machine learning. It’s ideal for businesses scaling globally.
Key Features
- Global Reach: Supports 135+ currencies and payment methods (cards, digital wallets, BNPL).
- Developer-Friendly: Robust APIs for custom payment flows.
- Advanced Fraud Protection: Radar for fraud detection.
- Recurring Payments: Built-in subscription billing.
Square
Square synchronizes online payments and payments made in person effortlessly. It’s a boon for omnichannel sellers. There’s also Square for WooCommerce, which permits card payments, invoicing, and hardware POS integration.
This gateway offers transparent pricing, instant deposits (for a fee), and inventory management features. It’s a top choice for retailers blending eCommerce with brick-and-mortar sales.
Key Features
- Unified POS & Online Payments: Syncs with Square’s POS system.
- No Monthly Fees: Pay-as-you-go pricing.
- Instant Deposits: Funds available in minutes (for a fee).
- In-Person Payments: Works with Square hardware.
PayPal
PayPal is, perhaps, the most recognized name in online payments. It offers trust and convenience with one-click checkouts. Its WooCommerce integration supports PayPal, Venmo (U.S.), and credit/debit cards—plus features like “Pay Later” financing.
Transaction fees may be higher than some competitors. But its buyer protection policies reduce disputes and boost conversion rates.
Key Features
- Trust & Recognition: High customer trust, reducing cart abandonment.
- One-Click Checkout: PayPal Express speeds up payments.
- Buy Now, Pay Later (BNPL): Offers Pay in 4, Venmo (U.S.).
- Global: Supports 25+ currencies.
Amazon Pay
With Amazon Pay, you can leverage Amazon’s trusted checkout experience. Customers use their saved Amazon credentials to pay, skipping form fill-outs. It’s great for reducing cart abandonment. And Amazon Pay supports recurring billing and multi-currency transactions.
Its fraud detection system and A-to-Z Guarantee add security, making it a smart pick for high-volume stores.
Key Features
- Frictionless Checkout: Leverages saved Amazon account details.
- Trusted Brand: Familiar to Amazon’s 200 M+ users.
- Multi-Currency: Supports 10+ currencies.
- Fraud Protection: Uses Amazon’s A-to-Z Guarantee.
Apple Pay
Apple Pay is a payment gateway exclusive to Apple users. It enables frictionless, one-tap purchases on Safari and iOS devices. With no card details entered, transactions are faster and more secure (using Face ID or Touch ID).
WooCommerce stores benefit from higher mobile conversion rates and lower fraud risk, as Apple never shares actual card numbers.
Key Features
- Mobile-Optimized: One-tap payments on iPhones/iPads.
- Security: Tokenization replaces card numbers.
- Fast Checkout: No manual entry for Apple users.
RazorPay
Razorpay is a leader in emerging markets and specializes in India-centric payments. That includes UPI, NetBanking, and popular wallets like Paytm. The Razorpay for WooCommerce plugin supports recurring billing, instant refunds, and minimal redirects during checkout.
With competitive pricing and automated compliance, it’s a go-to for businesses targeting Indian consumers.
Key Features
- India-Focused: Supports UPI, NetBanking, and local wallets.
- Subscription Billing: Recurring payments for SaaS.
- Instant Settlements: Next-day payouts.
Authorize.net
Authorize.net is a veteran in payment processing. It prioritizes security with advanced fraud detection (AVS, CVV checks) and supports card-present transactions via virtual terminals. The Authorize.net WooCommerce plugin suits subscription-based businesses and high-risk industries. But the setup requires a merchant account. It’s Reliable but better for established enterprises.
Key Features
- Long-Standing: Reliable for U.S. merchants since 1996.
- Advanced Fraud Detection: Automated filters.
- Virtual Terminal: Manually key in payments (for phone/MOTO orders).
Each gateway balances fees, features, and regional strengths—pick based on your audience and business model. Our WooCommerce development company has tested these and more payment gateways and can provide you with the best one according to the project.
Not sure which WooCommerce payment option is right for you?
How to Choose the Best WooCommerce Payment Gateway?
The right payment gateway is crucial for the store’s conversions, customer trust, and operational costs. Here’s a structured approach to making the best choice for your WooCommerce store:
Consider Your Business Location & Target Market
There’s no perfect payment gateway for all stores. There may be some regional preferences. Stripe and PayPal dominate globally. But some local players like Razorpay (India) cater to specific markets.
For those selling internationally, your chosen gateway should support multi-currency processing and comply with local regulations (e.g., PSD2 in Europe).
Evaluate Payment Methods
Customers expect flexibility. Credit cards are standard, but digital wallets (Apple Pay, Google Pay) and alternative options (Buy Now, Pay Later, bank transfers) can boost conversions. Make sure to analyse your audience properly. eCommerce customer segmentation will help with that.
Younger shoppers may prefer mobile payments. But B2B buyers would much rather have invoice-based gateways like Authorize.net.
Compare Fees & Pricing
Transaction fees eat into profits. Look beyond the surface—some gateways charge monthly fees, setup costs, or penalties for high-risk industries. For example:
- Stripe/PayPal: ~2.9% + $0.30 per transaction.
- Square: No monthly fees but higher in-person rates.
- Razorpay: Lower fees for Indian payment methods (e.g., UPI).
Prioritize Security & Fraud Prevention
A single chargeback can hurt your reputation. Opt for gateways with built-in fraud tools:
- Stripe Radar: AI-driven fraud detection.
- PayPal Seller Protection: Covers eligible disputes.
- 3D Secure 2.0: Adds authentication for card payments.
PCI compliance is non-negotiable—avoid gateways that shift liability to you.
Check Integration & Ease of Use
Review Payout SpeA clunky checkout kills sales. WooCommerce-native options (WooPayments, Square) integrate seamlessly. But third-party gateways may require plugins. Test:
- Hosted vs. Embedded: Hosted (PayPal) redirects users; embedded (Stripe) keeps them on-site.
- Mobile Optimization: Apple Pay requires HTTPS and proper API setup.ed & Reliability
Review Payout Speed & Reliability
Cash flow matters. Most gateways take 1–3 business days, but:
- Square Instant Deposits: Funds in minutes (for 1.5% fee).
- PayPal: Instant withdrawals to debit cards.
- High-Risk Industries: May face longer holds (e.g., CBD, travel).
You can even try offering multiple gateways. A majority of the shoppers tend to abandon carts if their preferred option is missing. Our WooCommerce experts can help you choose and integrate the best payment gateway.
FAQs on WooCommerce Payment Gateway
Are WooCommerce payment gateways secure?
Yes, reputable gateways like Stripe, PayPal, and Authorize.net offer several security features. Like PCI-DSS compliance, tokenization and encryption, and 3D secure authentication. Always enable fraud prevention tools for extra security.
Can I use multiple payment gateways in WooCommerce?
Yes! Offering multiple options (e.g., PayPal + credit cards) reduces cart abandonment. Use plugins like WooCommerce Payments or Payment Plugins for Stripe WooCommerce to manage them.
Does WooCommerce charge for payment processing?
No—WooCommerce itself is free, but payment gateways charge transaction fees. WooPayments (official solution) has competitive rates with no setup costs.
Can I accept cryptocurrency payments in WooCommerce?
Yes, using specialized gateways like Coinbase Commerce, BitPay, and NOWPayments. These convert crypto to fiat currency automatically, but be aware of volatility risks.
Let’s Summarize
A payment gateway is supposed to be like a silent sales partner. It’s there to assist you with the payments. Beyond just processing transactions, it creates a seamless, secure, and trustworthy buying experience. The best choice depends on your business model, target audience, and operational needs.
If you prioritise global reach, Stripe or PayPal offer versatility and widespread acceptance. For local markets, Razorpay can be convenient for the customers. Then there’s WooPayments for a simple setup while keeping everything within your WordPress dashboard.
So, want help with integrating the best payment gateway in your WooCommerce store? Then connect with us today!
