In our previous guide explaining how to accept cross-border payments in India, we briefly touched upon the topic of the best payment gateways in India that let you transact in any currency.
Just like ProfitBooks lets you raise multi-currency invoices ; )
Today we’ve come up with a list of the best five international payment gateways that we’ve ranked based largely on their transaction fee and the ease of use.
Let’s be honest. There’s not much payment gateways can offer, except lower fees on transactions, especially international ones, and provide good user experience.
Read till the end, as we’ve added a bonus section, to help you manage your expenses and other transactions in a structured manner, using a simple accounting tool.
What Sets An International Payment Gateway Apart?
Not all international payment gateways are created equal. Some offer features that can give your business a real edge in the global marketplace.
Let’s delve into what makes a gateway stand out.
Imagine an Indian customer buying a product from your US store. A good international payment gateway would seamlessly process the payment in rupees, even though your store operates in dollars. This eliminates currency conversion headaches for the customer and encourages them to complete the purchase.
Technically speaking, this is called Multi-Currency Processing or MCP.
Multi-Currency Payment Processing
MCP allows international payment gateways to accept payments in various currencies and automatically convert them to the merchant’s settlement currency. This simplifies foreign exchange for both the business and the customer.
An international payment gateway with robust MCP empowers businesses to expand their customer base internationally by removing currency barriers.
Key Differentiators for International Payment Gateways:
- A wider range of supported currencies and payment methods signifies greater global reach.
- Advanced fraud prevention measures ensure secure transactions.
- Faster settlement speeds improve cash flow.
- Scalability and integrations allow the gateway to adapt to business growth and integrate with existing systems.
- Reliable customer support is crucial for international transactions.
Common Challenges Businesses Face While Receiving Cross-Border Payments (and how to solve them!)
Expanding your reach to international customers presents exciting opportunities for Indian businesses. However, accepting international payments also introduces new challenges.
Here, we’ll explore some of the most common hurdles and delve into strategies to navigate them effectively:
Problem: Complexity – Multi-party transactions, regulations, and paperwork lead to delays and hidden fees.
Solution: An international payment gateway can streamline the process by acting as a single point of contact for currency conversion, compliance, and settlements.
Problem: Fraud – Increased exposure makes businesses vulnerable to fraudulent activity.
Solution: Gateways combat fraud by employing robust security features like advanced fraud screening and 3D Secure authentication.
Problem: Currency Fluctuations – Unfavorable exchange rates can erode profits.
Solution: You can manage currency risk by offering competitive rates and tools to lock-in exchange rates with a payment gateway.
Problem: Chargebacks – Navigating disputes across different countries is complex.
Solution: Gateways handle chargebacks through efficient dispute resolution services, including communication with customers and gathering evidence.
Problem: Limited Support – Time zone and language barriers hinder customer support.
Solution: An international payment gateway offers global customer support with dedicated representatives knowledgeable about international payments.
By understanding these challenges and implementing the right solutions offered by reliable international payment gateways, Indian businesses can confidently navigate the world of international payments and unlock the full potential of global expansion.
Top 5 International Payment Gateways In India
1. Payoneer
Payoneer Interface – Best International Payment Gateway
A global favorite for freelancers and online businesses, Payoneer offers a unique solution for international payments. They cater specifically to receiving and sending funds internationally, making them ideal for businesses with a remote workforce or international clientele.
Features:
- Focus on Cross-Border Transactions: Payoneer simplifies receiving payments from clients worldwide. They offer local receiving accounts in major currencies, allowing clients to pay you like they’re paying a local business.
- Multiple Payment Options: Payoneer supports various payment methods, including bank transfers, credit cards, and their own Payoneer card for easy access to funds.
- Streamlined Invoicing: Generate and send invoices directly through Payoneer, simplifying the payment process for your clients.
- Competitive Fees: Payoneer offers transparent fee structures with competitive rates for international transactions.
Transaction Fees: Payoneer fees vary depending on the chosen service (receiving vs sending payments) and transaction method. They typically charge a receiving fee of 1% and a withdrawal fee of $1.50, though specific rates may differ.
Want to accept cross-border payments in India? Click here to submit your application.
2. Razorpay
Razorpay – Best International Payment Gateway in India
An Indian-based payment gateway, Razorpay is a popular choice for domestic and international transactions. They offer a user-friendly platform with a wide range of features, including support for multiple currencies, popular Indian payment methods like UPI and mobile wallets, and seamless integration with various e-commerce platforms. Razorpay is known for its competitive transaction fees and transparent pricing structure.
Features:
- Support for over 100 currencies
- Integration with popular Indian payment methods (UPI, mobile wallets)
- Seamless integration with various e-commerce platforms
- Competitive transaction fees and transparent pricing
Transaction Fees: Razorpay charges a 2-3% transaction fee (depending on the plan) + ₹17 for successful payments. They offer various pricing plans catering to different business needs.
3. Wise
Wise – International Payment Gateway – User Interface
Known for its transparent fees and focus on currency exchange, Wise offers a powerful solution for international payments, particularly for businesses that deal in high volumes. Wise boasts competitive exchange rates by utilizing the mid-market rate, which is typically more favorable than traditional banks.
Wise charges a flat fee per transaction, often lower than traditional payment gateways, especially for larger transfers. You can also hold and manage balances in over 40 currencies with Wise, allowing for easy international payments and receipts.
Lastly, Wise prides itself on fast and secure transfers, often completed within 1-2 business days.
Features:
- Mid-Market Exchange Rates
- Low Transaction Fees
- Multi-Currency Accounts
- Fast and Secure Transfers
Transaction Fees: Wise charges a flat fee per transaction, typically ranging from 0.41% to 1% of the transfer amount, with a minimum fee depending on the currency.
Note: While Wise isn’t a traditional payment gateway that integrates with websites, it excels in facilitating direct bank transfers with competitive rates.
4. Stripe
Stripe Checkout Example
A global leader in payment processing, Stripe offers a robust and scalable solution for international payments. They boast a wide range of features, including support for over 135 currencies, customizable checkout experiences, and integrations with popular business tools. Stripe is known for its powerful developer tools and focus on security.
Features:
- Support for over 135 currencies
- Customizable checkout experiences
- Integration with popular business tools
- Renowned for powerful developer tools and security focus
Transaction Fees: Stripe charges a 2.9% + $0.30 fee per successful credit card transaction. Additional fees may apply for other payment methods and currencies.
5. PayUBiz
PayUBiz – International Payment Gateway – Checkout Page
PayUbiz is an international payment gateway solution specifically designed for Indian businesses looking to expand globally. They offer a secure platform with support for major international currencies and popular payment methods used worldwide. PayUbiz emphasizes ease of use and provides dedicated support for Indian merchants venturing into international markets.
Features:
- Secure platform with major international currencies and payment methods
- Emphasis on ease of use
- Dedicated support for Indian merchants venturing internationally
- Competitive rates for international transactions (varies by plan)
Transaction Fees: PayUbiz pricing varies depending on the chosen plan and transaction volume. They typically offer competitive rates for international transactions.
6. PayPal
PayPal Dashboard
Being one of the first ever payment gateways, PayPal deserved to be on this list!
A household name in online payments and international payment gateway, PayPal offers a convenient way to accept international payments. It allows customers to pay directly from their PayPal accounts, eliminating the need for them to enter credit card details on your website.
However, PayPal fees can be higher compared to other gateways, and their platform may not be as customizable for businesses.
Features:
- Customers pay directly from their accounts, eliminating credit card details entry
- Supports multiple currencies
- Instant buyer protection and built-in fraud protection
- Easy integration with various platforms (fees might be higher than other options)
Transaction Fees: PayPal charges a 2.9% + $0.30 fee per transaction for online payments received outside of the US.
Bank vs International Payment Gateway for Global Transactions
Banks vs Payment Gateways for International Transactions
When venturing into the exciting world of global trade, you’ll need a reliable method to accept payments from international customers. But the options can be confusing.
Traditional banks have always handled international transactions, but there’s a new player on the scene: international payment gateways.
So, what’s the difference?
Banks offer a comprehensive suite of financial services, including international payments. However, their processes can be complex and slower, often incurring higher fees.
Payment gateways specialize in streamlining online transactions. They provide faster processing, wider payment method options, and often lower fees, making them ideal for businesses looking to expand their global reach.
Conclusion
Choosing the right international payment gateway depends on your business needs and priorities. Consider factors like transaction fees, ease of use, supported features, and customer support. We would strongly recommend – Payoneer from the available options. It offers most convenient way to accept cross-border payments in India.
Click here to submit your application for getting access to Payoneer.
Now that you’re equipped with knowledge on international payment gateway functions, focus on what you do best – running your business! But remember, managing all those expenses and transactions can get overwhelming.
ProfitBooks – Expense Management Mac
That’s where ProfitBooks comes in. Our user-friendly accounting software can help you stay organized and on top of your finances. Try ProfitBooks for FREE today and see how it simplifies managing your business!
Also Read:
How To Accept Cross-Border Payments In India?
What Is a Unified Payment Interface (UPI) and How it can benefit your Business
Top Payment Gateways in the UK
