The discussion around having multiple payment providers is live and vibrant these days. It’s not a “one size fits all” solution. But some businesses benefit from it more than others.
And before we dive into the list of these businesses, let’s first recap why having multiple payment gateways is a good idea.
Why your business needs multiple payment gateways
- Decrease fees.
First and foremost, this solution leads to cutting the expenses significantly. Since there’s a technology allowing to select a provider with the best fees and terms for each particular transaction, the cost of the payment processing will be reduced. Cost optimization is one of the key factors that motivate business owners to seek multiple payment gateways. But it’s not the only one.
- Offer alternative payment methods.
Access to multiple payment providers means access to multiple local and international payment methods. This translates into a faster and smoother payment process as local payment methods ensure a decreased level of declined transactions.
- Decrease the decline ratio.
Some payment providers offer cascading technology which aims to decrease a transaction decline ratio by distributing declined transactions between connectors. As a result, a merchant receives an increased transaction approval ratio and a higher conversion rate!
- Offer better customer experience.
Happy customers are your best brand advocates and a chance to expand your business. To maintain their satisfaction with the service you need to ensure a fast and affordable customer journey. With multiple payment gateways, you can offer all this and even more.
- Increase your geo.
Various payment providers cater to various audiences around the world. Therefore, to gain more international clients, a merchant must find ways to meet their payment needs. And that’s when having several gateways comes in handy. The latter ensures smooth flow and a top-notch support system for specific regions your customers or potential ones are interested in.
- Offer state-of-the-art technology.
Having access to several providers equals having access to their functionality and other business values. And this is beneficial both for customers and providers. Customers get access to the required functionality. Meanwhile, providers can offer great service without having to develop the software or cover the legal ground for a solution themselves.
- Have a backup.
High-risk processing comes with its risks, too. And it’s only smart to have a Plan B in case of system failures or downtimes. Let’s say the payment gateway of your choice crashes. As a result, your business experiences enormous money loss in missed sales since you don’t have an additional payment gateway to process the transactions. However, should merchants have access to multiple payment providers, they will always have an additional processing channel.
Having multiple payment providers can be beneficial. But not necessarily to your business.
Which businesses benefit from multiple payment providers
- Medium and large businesses with average monthly volume starting at $50-150K.
Higher monthly volumes require flawless transaction flow and dozens of alternative payment methods to meet the needs of customers from all over the world. Besides, they must always have a backup gateway to process their payments should the main one crash. Otherwise, they’ll lose thousands of dollars in missed sales.
- Businesses with multiple GEOs.
If your business is targeting audiences from different locations, you need to have several payment providers to offer local and alternative payment methods. This will grow customers’ loyalty and, as a result, conversion rates.
- Businesses willing to increase transaction approval ratio.
Having several payment gateways allows for implementing cascading technology. Simply put, it distributes declined transactions between different providers to increase the transaction approval ratio.
- Any high-risk business.
It goes without saying the high-risk businesses should always have several payment providers to cater to their needs for hassle-free payment processing. They often face declines given the nature of their business. Therefore, having a few options to choose from is only smart!
- Businesses seeking innovation to grow their presence.
The truth is that each processor has a limited number of tools and technologies on its hands. And if you need more than what’s offered, you have to integrate with an additional gateway. To avoid situations where you need the solution now but can only get it after two weeks of document collection and technical integration, it’s best to have a range of payment providers from the start.
Integrating a payment gateway is quite expensive. Add fees and maintenance to that – and the numbers go through the roof.
Luckily, there’s a solution for businesses that want multiple payment providers but can’t afford paying for all these integrations. This solution is called Cashier.
Basically, Cashier is “a sort of laying or buffering between the merchant and the payment processor. This system lets merchants get connected to multiple providers.”
Here at Ikajo, we offer the services of Cashier with access to 50+ connectors to banks and payment solutions all in one place. Sounds interesting? Drop a line or contact us here so we can share more details!