Today’s businesses require dynamic payment solutions with streamlined integrations and simplified user experiences. Traditional payment gateways are cumbersome, complex and challenging to integrate.
They often have steep learning curves and lengthy setup processes. Even once they’re integrated, traditional payment gateways don’t easily adapt to ever-changing business needs.
If your company is struggling with a clunky payment system, you’ll find peace of mind in Stripe as it solves the most common problems with traditional payment gateways.
This post covers everything you need to know about the most common problems with traditional payment gateways and how Stripe solves them. Keep reading to be equipped with all the insider knowledge you need!
Understand The Most Common Problems With Traditional Payment Gateways
Traditional payment gateways have been around for decades. They do a good job of managing payments, but the way they do it can create a lot of problems for businesses.
First, they’re not built to be flexible or meet the needs of today’s businesses. They lack customization options, like the ability to add branding to payment screens. As a result, businesses must adapt to their payment systems, not the other way around.
Second, traditional payment gateways are expensive to implement. You’ll likely face costly onboarding and integration processes, steep monthly fees, and unexpected charges.
This can make it challenging to scale your business, especially if you’re just getting started. Traditional payment gateways can also be tricky for businesses in regulated industries, like healthcare and finance, to navigate.
Complex Onboarding Processes
Traditional payment gateways often have lengthy onboarding processes that can be challenging to navigate. The onboarding process often includes these steps:
– Finding a payment gateway that works for you
– Traditional payment gateways have a wide range of features and functionality. Figuring out which payment gateway meets your needs and best fits your business can be difficult.
– Identifying the right integration method
– Traditional payment gateways integrate in many different ways. Depending on the type of business you have, you might need to build a custom integration into your website or mobile app.
– Completing a long and sometimes confusing setup process
– The setup process varies depending on the payment gateway, but it often involves creating and configuring your account and completing tedious administrative tasks.
– Managing ongoing monthly fees
– Traditional payment gateways typically charge monthly fees, which can add up to a significant amount over time. Especially if you don’t have a high volume of sales, the costs might be unappealing.
High Development Costs
Traditional payment gateways are complex. They require significant development resources and technical expertise to integrate into software.
Depending on the number of payment methods you want to offer, your business might need to integrate with several separate payment gateways. Doing so can add significant costs and complexity to your business.
The Bottom Line: Should You Use A Traditional Payment Gateway Or Stripe?
Overall, traditional payment gateways are a great option for companies that don’t need high levels of customization or ongoing support.
The best payment gateways are designed to be plug-and-play. Using a traditional payment gateway gives you a reliable payment experience without the need to build your own complicated payment system.
You should use a traditional payment gateway if you’re looking for a simple way to accept one or two payment types. If you need to accept more than two payment types, or if you need full control over the design and experience of your payment flows, you should use Stripe instead.
The biggest difference between Stripe and traditional payment gateways is that Stripe is a software-as-a-service (SaaS). That means you don’t have to integrate it into your website or build the payment functionality from scratch.
Stripe provides a fully managed solution with a one-time fee that scales with your business. The best part? You can start accepting payments immediately and without any coding!
The drawback of Stripe is that it is not available in all countries worldwide. Despite that, there is a legit way to open a stripe account in an unsupported country.