Finding the right payment gateway is one of the most important decisions you‘ll make when setting up your WooCommerce store. It directly impacts your sales conversions, costs, and overall profits.
Choosing the wrong gateway can lead to missed revenue opportunities and unnecessary fees that eat into your margins.
That‘s why in this comprehensive guide, we‘ll compare the top 6 payment gateways for WooCommerce to help you find the best option for your business.
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How to Choose the Right WooCommerce Payment Gateway
When researching payment gateways, there are a few key factors you need to evaluate:
Transaction Fees
This is the percentage or flat fee charged per transaction. Rates typically range from 2-3% but can be higher or lower.
Lower transaction fees save you money but are not the only consideration. Sometimes slightly higher fees are worthwhile for better features and flexibility.
Availability
The gateway must be available for use in your country and support transactions from your target customers‘ countries.
For example, Stripe accepts payments from 47 countries but is only available to businesses in 21 countries.
Meanwhile PayPal can accept payments worldwide from over 200 countries and regions.
Recurring Payments
If you sell subscriptions, memberships or digital products requiring recurring payments, make sure the gateway supports this.
Around 34% of online stores rely on some sort of recurring revenue model.
User Experience
Look for gateways facilitating checkout directly on your site vs. redirecting users elsewhere.
According to Baymard Institute, redirecting users offsite for payment is one of the top reasons for checkout abandonment.
Features
Consider any value-added features like fraud protection, dispute management, payment scheduling, etc. that may benefit your business.
For example, Stripe Radar uses AI to detect fraudulent transactions saving you costs.
Reporting and Data
The gateway should provide transparent reporting and data for reconciling transactions and identifying revenue trends.
Now let‘s dive into the top options and see how they compare across these criteria.
Top 6 WooCommerce Payment Gateways
1. Stripe
Stripe is the most popular payment processor used by over 50% of WooCommerce stores.
Pros
- Available in 44 countries and 135+ currencies
- Checkout happens on-site for lower abandonment
- Accepts all major cards, Apple Pay, Google Pay
- Competitive 2.9% + 30¢ fee per successful card charge
- Built-in fraud protection and dispute handling
- Detailed reporting on transactions
Cons
- 2.9% + 30¢ fee slightly higher than competitors
- 3.4% + 30¢ fee for non-European cards
In 2020, WooCommerce stores using Stripe saw a 22% increase in conversion rates and 31% growth in revenue compared to other gateways.
Stripe is a great all-around option for accepting payments worldwide and provides a seamless buyer experience.
2. PayPal
PayPal has over 400 million active user accounts worldwide.
Pros
- Accepted virtually everywhere
- Customers can pay directly from their PayPal balance
- Established trust and recognition
- Advanced fraud and risk tools
Cons
- Redirects users off your site for payment
- Transaction fees from 2.9% for standard payments
- Chargeback fees if dispute is lost
PayPal is most beneficial for businesses with existing user recognition or selling internationally.
3. Square
Square offers easy online and offline payments.
Pros
- Accept payments anywhere with mobile app
- Flat rates from 2.6% – 3.5% per transaction
- Seamless integration between online and in-person
- Inventory syncing between Square and WooCommerce
Cons
- Only available in 5 regions
- Requires separate Square account
Square is ideal for stores with both an online and physical retail presence.
4. Authorize.Net
Authorize.Net is a popular choice among small businesses.
Pros
- Available worldwide
- Seamless checkout with no redirection
- Competitive transaction fees from 2.9% + $0.30
- No monthly fees or setup costs
- Integrated fraud detection
Cons
- Requires applying and approval for merchant account
- Additional fee for non-US issued cards
In 2021 Authorize.Net facilitated over $600 billion in transactions globally. It‘s a robust solution for worldwide payments.
5. WooCommerce Payments
WooCommerce Payments is built on Stripe but with greater convenience.
Pros
- Built specifically for WooCommerce stores
- Easy and fast setup process
- Accepts all major credit/debit cards
- Seamless checkout on your site
Cons
- Only available in 38 countries
- Slightly higher fees than Stripe
It‘s the best-integrated option for stores where Stripe is not available. The simplified setup and management make it appealing.
6. Alipay
Alipay lets you tap into the Chinese and Asian ecommerce market.
Pros
- Access to over 2 billion Alipay users
- Available in over 200 countries
- Multi-currency transactions
- Fraud protection and payment guarantees
Cons
- Requires Chinese-language website translations
- Minimal fees but forex charges apply
Sales to Chinese consumers account for nearly 50% of global ecommerce. Alipay connects you with this lucrative customer base. But you need to cater your site specifically to Chinese users.
Payment Gateway Comparison Tables
Here is an at-a-glance comparison of some key information between the top gateways:
| Gateway | Transaction Fee | Recurring Payments | Checkout Experience | Availability |
|---|---|---|---|---|
| Stripe | 2.9% + $0.30 | Yes | Embedded | 44 countries |
| PayPal | 2.9% + $0.30 | Yes | Redirected | Worldwide |
| Square | 2.6-3.5% | Yes | Embedded | 5 regions |
| Authorize.Net | 2.9% + $0.30 | Yes | Embedded | Worldwide |
| WooCommerce Payments | 2.9% + $0.30 | Yes | Embedded | 38 countries |
| Alipay | 0.15-0.6% | No | Embedded | 200+ countries |
And this covers the main features offered:
| Gateway | Main Features |
|---|---|
| Stripe | Fraud protection, subscriptions, SCA compliance, Apple/Google Pay, instant payouts |
| PayPal | Recognized brand, buyer protection, PayPal credit |
| Square | In-person payments, inventory syncing, digital receipts |
| Authorize.Net | CVV, AVS fraud filters, no hidden fees, virtual terminal |
| WooCommerce Payments | Simplified setup, seamlessly integrated, automated reconcilliation |
| Alipay | 100% fraud reimbursement, consumer escrow system, promotional coupons |
Best WooCommerce Payment Gateway – Our Recommendation
The best WooCommerce payment gateway for most online stores is Stripe.
It checks all the boxes by providing:
- Competitive pricing at 2.9% + $0.30 per transaction
- Seamless embedded checkout
- Recurring payments for subscriptions
- Global availability in 44 regions
- Extensive features like fraud protection
Stripe also has one of the highest conversion rates and helps you sell more by keeping customers on-site.
For new and growing businesses, Stripe is hard to beat due to its combination of convenience, affordability and power.
That said, there are scenarios where alternatives like PayPal or Alipay may be more suitable:
- Selling internationally to multiple regions
- Have an established customer base familiar with PayPal
- Want to expand into China/Asia markets
- Need in-person retail POS payments
Our advice is to start with Stripe for accepting credit card payments online. As your business grows, consider adding PayPal or other gateways in tandem to maximize flexibility.
Having multiple payment options has been shown to increase sales conversions by over 15% on average.
Let us know if you have any other questions as you research the best payment gateway for your WooCommerce store!
