These days, E-Commerce transactions are expected to be fast, easy, and safe. If your business manages its digital payment system in-house, this can be a red flag for many shoppers. Why? Because there are thousands of fraudulent E-Commerce businesses out there. Consequently, consumers are wary of websites and online stores that don’t use popular and trusted digital payment companies and innovative payment solutions at checkout.
Moreover, digital payment companies offer E-Commerce businesses a cost-effective way to finalize sales. When you choose to partner with a trusted digital payment service, you have the ability to use all of their built-in perks and security features. This reduces your billing expenses and makes your business more user-friendly and approachable for consumers.
In today’s post, we’ve compiled a digital payment service provider list for E-Commerce businesses:
What are the main features digital payment companies offer?
While some of the largest payment companies vary in their offerings, there are a few main services and features that are important to consider when shopping for digital payment solutions. So, let’s take a look at some of the most important digital payment services to look out for:
Invoicing
Invoicing allows businesses and individuals to automatically issue bills for the payment of a service or product. This feature also allows users to keep track of both paid and outstanding invoices, providing a simple and clear analysis of incoming and outgoing payments.
Capital Funding
Capital funding extends companies or individuals credit to cover short or long-term business expenses,and often requires you to pay fees or interest based on the amount borrowed.
User Accounts
User accounts features allow you to customize your control over your users’ payment experience. Features include onboarding, identity verification, charge types, payout settings, and use of dashboards.
Fraud Prevention Integration
Fraud prevention integration reviews orders to determine if they are legitimate. Many services offer chargeback guarantees that will reimburse you fully for the value of approved orders.
Tax Compliance Automation
Tax compliance automation features handle tax preparation and collection so you don’t run afoul of applicable tax law. Features include the ability to calculate and collect sales tax, VAT, and GST. Platforms can also show you where to register, will automatically collect the right amount of tax, and give you access the reports you need to file returns.
Pricing Structure
While no digital payment service is completely free, each varies in both the structure and cost of its pricing system. Some services are subscription-based, while others charge a nominal fee on every purchase.
Market Adoption
Market adoption measures the percentage of your potential customers that use the payment company. Although onboarding and maintaining a relationship with a payment company requires time and effort, customers expect you to minimize friction by offering them their preferred payment method.
Stripe
Founded in 2009, Stripe is one of the foremost payment processing services for E-Commerce businesses. Stripe is especially popular for its integration with existing business software and its enhanced security features.
Invoicing
Stripe lets you automate your invoices so that you don’t have to spend extra time finalizing your outgoing bills. You also have the option to send your invoices (and receive payment updates) via email.
Capital Funding
You can get fast funding in as little as one day through Stripe’s Merchant Cash Advances and small business loans.
User Accounts
With Stripe, you can easily create and manage multiple accounts for different team members. These accounts can be organized by unique tax IDs, descriptors, or bank accounts.
Fraud Prevention Integration
Stripe uses a fraud prevention tool known as “Radar.” This allows Stripe to collect and analyze data to detect patterns of suspicious activity and prevent fraud before it happens.
Tax Compliance Automation
Stripe Tax allows you to collect sales tax, VAT, and GST with the click of a button, while also keeping track of your quarterly or annual tax reports.
Pricing Structure
Stripe’s standard pricing structure charges 2.9% (plus $0.30) per transaction. However, you can access lower fees based on your location, volume of sales, multi-product discounts, and interchange charges.
Market Adoption
Roughly 2 million E-Commerce websites use Stripe.
Square
Though Square has been around since 2009, it didn’t start making waves as one of the most popular digital payment services until the late 2010s. Thanks to its affordable pricing structure and easy setup, Square is definitely one of the best digital payment companies on the market.
Invoicing
Square offers a separate mobile application just for invoicing. This allows you to quickly send and receive invoices, track pending payments, and analyze your invoice history — all in one easy-to-use app.
Capital Funding
Square offers various types of small business financing, including: Merchant Cash Advances (MCAs), PPP loans, and traditional business loans.
User Accounts
Square allows you to create multiple user accounts and share the same banking information across some or all of your accounts.
Fraud Prevention Integration
Square utilizes machine learning to detect fraudulent digital payments trends across its entire ecosystem.
Tax Compliance Automation
With Square, you can easily customize your tax compliance needs in your account settings. This ensures that you can set tax rates, select tax-exempt items (when applicable), automatically list sales tax with the purchase price, and configure itemized tax rates.
Pricing Structure
Square charges different processing fees per transaction based on the type of payment. As of 2021, the standard fee for contactless payments is 2.6% (plus $0.10). Alternatively, the rate for invoice payments is 2.9% (plus $0.30) with a card or 1% with ACH bank transfers.
Market Adoption
As of 2021, 3 million users make transactions with Square every single month.
Veem
Though Veem has been around for less than a decade, it is one of the most cost-effective ways to send and receive funds online. Founded in 2014, this California-based company has created a seamless payment system that is much faster and cheaper than traditional bank wire transfers.
Invoicing
Veem allows you to create invoices with your brand’s logo, fees, and information. Alternatively, you can request payment through simplified pay links or upload your own customized invoices.
Capital Funding
Small businesses that meet Veem’s financing requirements can secure loans up to $50,000 USD, while larger organizations can potentially gain access to even larger loans.
User Accounts
Veem allows you to add multiple users to your account and assign varying roles and levels of access.
Fraud Prevention Integration
Veem is committed to combating money laundering, terrorist financing, and similar forms of fraud or illegal activity on its platform.
Tax Compliance Automation
Veem does not automatically include or calculate sales tax on transactions. However, Veem has partnered with Aprio Cloud to enhance its accounting and tax management capabilities.
Pricing Structure
As of 2021, Veem charges 2.9% per transaction (within the US) and a flat fee of $20 for recipients abroad.
Market Adoption
As of 2020, Veem has reported more than 225,000 active users.
Zelle
Established in 2017, Zelle is a relatively new player in the digital payments industry. Nonetheless, it has secured widespread adoption thanks to affiliations with its parent companies: Bank of America, BB&T, Capital One, JPMorgan Chase, PNC Bank, U.S. Bank, and Wells Fargo.
Invoicing
To use Zelle, you must have an account with one of its affiliate banking institutions. Thus, invoicing procedures vary based on the bank you use. However, you can still send and receive funds directly through the Zelle app.
Capital Funding
Like invoicing, your ability to secure financing through Zelle will depend on the capital funding options available through your bank.
User Accounts
You can use the same Zelle account across multiple banks, but you can only create one Zelle account per email address or phone number.
Fraud Prevention Integration
Zelle does not currently offer fraud prevention services to businesses or individuals.
Tax Compliance Automation
Zelle does not automatically calculate sales tax. However, it does provide IRS documentation, including 1099-K forms, to eligible users.
Pricing Structure
Zelle charges the merchant a 1% processing fee on every transaction.
Market Adoption
In Q1 of 2021, Zelle reported roughly 392 million transactions, with payment transactions increasing by over 60% from the previous year.
Paypal
PayPal has been around since the late 1990s. Consequently, it is one of the most widely-known and used digital payment services on the market.
Invoicing
Paypal makes it easy to send and receive custom invoices (free of charge) with just a few clicks. You can also keep track of your paid and pending invoices from your account dashboard.
Capital Funding
Eligible businesses can access fixed-fee loans in as little as one business day via Paypal.
User Accounts
While non-business accounts are limited to one user per email address, business accounts can add multiple users.
Fraud Prevention Integration
Paypal implements multiple fraud prevention features, including a blacklist of users who have made fraudulent payments in the past.
Tax Compliance Automation
Paypal automatically calculates sales tax and provides users with tax documentation that corresponds with the account type and the annual value of transactions.
Pricing Structure
Paypal’s rates vary based on the type of transaction. As of 2021, merchants and payment recipients can expect to pay processing fees between 1.9% and 3.5% (plus a flat fee of $0.49) per transaction.
Market Adoption
As of 2021, Paypal has more than 360 million active users.
Ripple
Ripple is a payment protocol that has served as an active payment network since 2012. Not only is Ripple popular as a standalone digital payment service, but it also operates as an advanced cryptocurrency exchange.
Invoicing
Ripple allows you to quickly create invoices and store them in Ripple´s cloud server.
Capital Funding
While Ripple does not provide traditional financing options, it does offer On-Demand Liquidity (ODL) and lines of credit to XRP investors.
User Accounts
Ripple only allows one account per user or business entity.
Fraud Prevention Integration
Ripple works in tandem with the traditional banking institutions of its users to offer anti-money laundering controls, fraud detection, and regulatory reporting.
Tax Compliance Automation
Ripple provides annual tax documentation to its users in accordance with both IRS and overseas tax regulations, but it does not automatically calculate sales tax for transactions.
Pricing Structure
Ripple’s pricing structure is different than most digital payment companies, as it is linked to the current trading price of the XRP cryptocurrency. Each payment includes a processing fee of roughly 0.00001 XRP, which (as of 2021) is about $0.000075 USD.
Market Adoption
As of 2021, Ripple facilitates more than 2 million transactions per month.
Braintree
Braintree is a mobile and web payment service offered by Paypal. Established in 2007, Braintree is specifically designed as a payment solution for online merchants.
Invoicing
Braintree partners with Invoiced to provide businesses with automated invoicing and accounts receivable services.
Capital Funding
You can access capital funding partnerships from third-party lenders affiliated with Braintree, but the company does not provide direct financing to its users.
User Accounts
Braintree allows you to create multiple users and user roles per account.
Fraud Prevention Integration
Braintree utilizes fraud detection and machine learning to reduce instances of fraud and chargebacks.
Tax Compliance Automation
Braintree offers comprehensive tax management solutions through Quaderno.
Pricing Structure
The standard pricing structure is 2.59% (plus $0.49) per transaction. Alternatively, ACH Direct Debit transactions have a fee of 0.75%. For larger organizations, Braintree also offers discounts based on volume.
Market Adoption
As of 2021, more than 8,100 businesses use Braintree as their primary digital payment processing solution.
Bolt
Bolt is a payment service that promises “one-click checkout.” Founded in 2014, Bolt has grown into one of the most user-friendly mobile payment services for E-Commerce businesses.
Invoicing
Bolt does not offer businesses invoicing solutions.
Capital Funding
Bolt does not offer capital funding to businesses or individuals.
User Accounts
Each user can only have one account, but each account can be used across multiple businesses or organizations for sending or receiving payments.
Fraud Prevention Integration
Bolt analyzes more than 200 behavioral signals per transaction, providing ample data to identify and prevent fraud.
Tax Compliance Automation
Every business using Bolt can set up tax endpoints and customized tax payment implementation at checkout.
Pricing Structure
Bolt does not charge standard processing fees per transaction. Instead, it designs custom quotes based on your business needs and sales volume.
Market Adoption
As of 2020, Bolt had about 4.5 million registered users, with that number expected to rise dramatically with an additional $75 million in Series C funding.
Payoneer
Founded in 2005, Payoneer is a financial services company that specializes in digital payments and online money transfers. Headquartered in New York, Payoneer provides its services to consumers and businesses in dozens of currencies and countries around the world.
Invoicing
Payoneer offers a free invoice builder for businesses, freelancers, and contractors.
Capital Funding
Payoneer Capital Advance is Payoneer’s version of a traditional Merchant Cash Advance, designed to help E-Commerce businesses deal with poor cash flow.
User Accounts
While Payoneer only allows one account per user, businesses can open local receiving accounts associated with bank accounts in different countries.
Fraud Prevention Integration
Payoneer is compliant with the latest fraud protection and anti-money laundering procedures. The platform is regularly audited by third-party regulators to ensure the best possible protection for both merchants and consumers.
Tax Compliance Automation
Payoneer offers automated tax solutions, including the collection of W8 & W9 tax forms, but it does not automatically calculate or collect sales tax.
Pricing Structure
While it is free to receive money with Payoneer, each transaction comes with a $3 processing fee for the sender.
Market Adoption
As of 2021, Payoneer has more than 5 million active users.
Skrill
Founded in 2001, Skrill is a UK-based digital wallet and payment processing company. Skrill is highly respected for its strong security and identity-verification features.
Invoicing
Recurring billing and invoicing are available as part of Skrill’s business payment solutions.
Capital Funding
Skrill does not offer capital funding to businesses or individuals.
User Accounts
Businesses and individuals are limited to one account per email address or phone number.
Fraud Prevention Integration
Skrill offers chargeback protection, PCI compliance, as well as fraud and risk management solutions.
Tax Compliance Automation
Skrill offers a sales tax feature to allow businesses to automatically add taxes at checkout.
Pricing Structure
Skrill’s pricing structure varies based on the types of digital payments used and the sales volume of your business. For example, transfers between two Skrill users are free. However, non-Skrill users must pay 2.9% (plus $0.39) per transaction, with discounted rates for large sales volume.
Market Adoption
As of 2021, Skrill has more than 156,000 registered merchants and 32 million active users.
Venmo
Venmo is a mobile payment application owned and operated by Paypal. Since 2009, Venmo’s simple UI and low transaction fees have attracted millions of users.
Invoicing
While Venmo does not offer traditional invoicing services for businesses, you can easily request money from customers or other businesses using the Venmo application.
Capital Funding
Venmo does not offer capital funding for businesses or individuals.
User Accounts
Venmo allows all users to have up to two profiles within the same account. Additionally, users can add a business account to their existing Venmo profile.
Fraud Prevention Integration
Venmo allows users to quickly cut off access to their account if they believed it has been compromised. Otherwise, Venmo does not offer much in the way of fraud protection.
Tax Compliance Automation
While Venmo does provide monthly reports for tax reporting, it does not provide automated sales tax integration for merchants.
Pricing Structure
Most types of digital payments on Venmo are free, but receiving payments as a business comes with a 1.9% processing fee (plus $0.10) per transaction.
Market Adoption
As of 2021, Venmo has more than 2 million registered merchants and 70 million active users.
Amazon Pay
Amazon Pay offers users a way to pay for products and services on third-party websites using their existing Amazon accounts. Due to the popularity and pervasiveness of Amazon’s online services, Amazon Pay offers a safe, effective way to send and receive payments online.
Invoicing
Amazon Pay is primarily used for checkout on third-party E-Commerce websites. Therefore, it does not offer invoicing solutions for businesses.
Capital Funding
Amazon Pay extends lines of credit to eligible businesses via its “Pay by Invoice” feature. This allows businesses to make purchases now, with the flexibility of a 30-day repayment plan.
User Accounts
Account administrators can invite others to create user accounts that will be associated with one Amazon Pay business account.
Fraud Prevention Integration
In addition to the standard fraud protection offered by Amazon, the service offers dispute resolution services in the event of suspicious activity or chargebacks.
Tax Compliance Automation
Amazon Pay collects sales tax (in most states) on the seller’s behalf. However, Amazon Pay users in some states may need to manage tax compliance on their own.
Pricing Structure
For domestic sales, Amazon Pay charges a processing fee of 2.9% (plus $0.30). For international sales, the processing fee increases to 3.9% (plus $0.30).
Market Adoption
As of 2021, Amazon Pay has more than 5 million registered merchants and 40 million active users.
Google Pay Send
Google Pay Send (previously known as Google Wallet) is a service offered as part of the Google Pay digital payment system. It allows businesses and users to quickly and easily pay for goods and services online.
Invoicing
With the Google Checkout system, businesses can easily send invoices to customers and other businesses.
Capital Funding
Though Google Pay has future plans to offer loans to small and medium-sized businesses in certain locations, it does not currently offer capital funding to businesses or individuals.
User Accounts
Google Pay Send allows you to link multiple bank accounts, but you can only use one user account per person or organization.
Fraud Prevention Integration
Google Pay Send uses the power of Google’s existing security features to identify and prevent fraud, reduce chargebacks, and protect both merchants and consumers.
Tax Compliance Automation
Google Pay Send automatically collects sales tax based on location, but you can also use the payments center to set sales tax rates for transactions in specific states, countries, or regions.
Pricing Structure
Standard transactions (1-3 business days) with Google Pay Send are free. However, paying with a credit card incurs a 2.9% transaction fee and the Instant Pay feature incurs a fee of 1.5% or $0.31 (whichever is higher).
Market Adoption
As of 2021, Google Pay Send is available in over 40 countries and accepted by more than 700,000 merchants.
Apple Pay
Launched in 2014, Apple Pay is Apple’s premiere digital wallet and payment processing service. Thanks to its compatibility with virtually all Apple products, Apple Pay is widely accepted by businesses around the world.
Invoicing
Apple Pay does not offer invoicing services.
Capital Funding
While Apple does offer financing services to small and medium-sized businesses, these options are not part of the Apple Pay ecosystem.
User Accounts
Apple Pay only allows one individual or organization per account.
Fraud Prevention Integration
Apple does not store private information related to transactions, decreasing the risk of leaked information. And while Apple Pay does not offer buyer protection, it does allow merchants and consumers to open disputes regarding potentially fraudulent transactions.
Tax Compliance Automation
With Apple Pay, merchants can either allow the service to automatically collect sales tax based on location or set up customized sales tax in their Apple Pay account.
Pricing Structure
Apple Pay is free to use, but standard debit and credit card transactions fees still apply. Additionally, Apple charges an Instant Transfer fee of 1% on withdrawals from Apple Pay to external bank accounts.
Market Adoption
As of 2021, Apple Pay is one of the most popular digital payment companies, with approximately 43.9 million active users.