10 Best Payment Gateway APIs in 2024

The global digital payment market is experiencing a remarkable transformation, fueled by technological advancements and evolving consumer preferences. It is expected to surpass USD 285 billion by the year 2029.

With the digital world growing rapidly, ensuring a seamless and secure transaction process is more critical than ever. Failure to do so can lead to lost sales and diminished customer trust.

In this article, we will explore: 

• The payment gateway API definition

• How does a payment gateway API work?

• Why a payment gateway is used?

• Different types of payment gateway APIs

• Considering factors before choosing a payment gateway API

• Best payment gateway APIs that you can use

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What is a Payment Gateway API?

A Payment Gateway API is a software interface that enables online businesses to process credit card payments and other transactions. It securely connects the merchant's website to the payment processor, handling authorization, payment capture, and transaction management. Using a Payment Gateway API ensures seamless and secure payment processing.

How Does a Payment Gateway API Work?

A Payment Gateway API works by facilitating the secure transfer of payment information between a customer, the merchant, and the financial institutions involved. 

Here’s a simplified breakdown of the process:

1. Customer initiates payment: When the customer selects products or services and proceeds to checkout, they enter their card details on the merchant's website.

2. Data encryption: The Payment Gateway API encrypts the payment information to ensure it is transmitted securely.

3. Authorization request: The encrypted transaction details are sent to the acquiring bank (the merchant’s bank) via the Payment Gateway API.

4. Bank and network processing: The acquiring bank forwards the transaction details to the card network (such as Visa or MasterCard), which then routes it to the issuing bank (the customer’s bank).

5. Transaction approval: The issuing bank verifies the transaction details, checks for sufficient funds, and performs fraud checks. If the transaction is approved, an authorization is sent back through the same channels to the acquiring bank.

6. Payment confirmation: The Payment Gateway API receives the approval from the acquiring bank and sends a confirmation to both the merchant and the customer, indicating the transaction was successful.

7. Settlement: Finally, the transaction is settled between the issuing bank and the acquiring bank, with the funds being transferred to the merchant's account.

Benefits of Payment Gateway APIs

Integrating a reliable payment gateway API into your business can significantly enhance your payment processing system. Here are some key benefits that highlight why investing in top-tier payment APIs is essential for your business success:

• Enhanced security: Payment gateway APIs provide robust security measures such as encryption, tokenization, and multifactor authentication (MFA), ensuring that sensitive payment information is protected from fraud and cyber threats​​.

• Global reach: By integrating with multiple payment processors and supporting various currencies, payment gateway APIs enable businesses to expand their market reach internationally, accommodating customers from different regions with ease​​.

• Real-time transactions: These APIs facilitate real-time processing of payments, enhancing cash flow management and providing immediate transaction confirmations, which is crucial for both merchants and customers​​.

• Customer convenience: With support for various payment methods including credit/debit cards, digital wallets, and BNPL services, payment gateway APIs offer customers flexibility and convenience, improving their overall shopping experience​.

• Improved conversion rates: Seamless and efficient payment processes reduce cart abandonment rates, helping businesses capture more sales and improve conversion rates by providing a smooth checkout experience​.

• Scalability: Payment gateway APIs are designed to handle high transaction volume, making them suitable for businesses of all sizes, from small startups to large enterprises. They can scale as your business grows.

• API Integration with other systems: These APIs can easily integrate with various e-commerce platforms, accounting software, and CRM software systems, streamlining business operations and ensuring a cohesive workflow​.

• Detailed analytics and reporting: Payment gateway APIs often come with comprehensive analytics and reporting tools, providing valuable insights into sales performance, customer behavior, and transaction trends, which can help in making informed business decisions​.

• Compliance with regulations: They ensure compliance with industry standards and regulations such as PCI-DSS, which helps businesses avoid hefty fines and build trust with customers​.

Types of Payment Gateway APIs

1. Hosted payment gateway APIs

These APIs redirect customers to the payment service provider’s (PSP) page to complete the transaction. After the payment is processed, the customer is redirected back to the merchant’s site. They are easy to implement and PCI DSS compliance is managed by the PSP.

Examples: PayPal Standard, Amazon Pay.

2. Self-hosted payment gateway APIs

Merchants handle the entire payment process on their own servers, allowing customers to enter their payment details directly on the merchant's website. This type offers full control over the user experience and branding.

Examples: Stripe, Authorize.Net.

3. API payment gateways

These payment gateways integrate directly with the merchant’s website or application, allowing for seamless payment processing service without redirecting the customer. They enhance user experience and provide control over the payment process.

Examples: Square, Braintree.

4. Direct post payment gateways

Payment details are collected on the merchant’s site but sent to the payment gateway for processing without being stored on the merchant's servers. This improves security as sensitive data is not stored on the merchant’s server and makes PCI compliance easier.

Examples: 2Checkout, SecurePay.

5. Local bank integrations

These APIs connect directly to local banks to process payments, often used in regions with specific banking preferences. They potentially offer lower transaction fees and better support for local payment methods.

Examples: Razorpay (India), iDEAL (Netherlands).

7 Factors To Consider Before Choosing A Payment Gateway API

Choosing the right payment gateway API is crucial for ensuring smooth and secure transactions for your online business. Evaluating these key factors will help you select a gateway that best meets your business needs and enhances the overall customer experience.

• Transaction fees and pricing structure: Different payment gateways have various pricing models, such as transaction fees, monthly fees, and setup costs. For example, some gateways charge x% per transaction plus a fixed fee of $0.30.

• Ease of payment API integration and developer support: The payment gateway should be easy to integrate with your existing systems and offer strong developer support. Look for gateways that provide comprehensive documentation, SDKs, and APIs. For example, Stripe and PayPal are known for their extensive developer resources and community support.

• Availability of multi-currency support: If you plan to sell internationally, ensure the payment gateway supports international payments and multiple currencies. For instance, a gateway that supports USD, EUR, and GBP can help you tap into global markets more effectively.

• Customer support and service reliability: Reliable customer support is essential for resolving any issues that may arise. Choose a payment gateway with a reputation for excellent customer service and 24/7 support availability.

• Processing speeds and uptime guarantees: Fast processing speeds and high uptime guarantees are critical for maintaining customer satisfaction. Look for payment gateways that offer quick transaction processing times and guarantee high availability, e.g., 99.9% uptime.

• User experience and interface design: A user-friendly interface can significantly impact the overall experience for both you and your customers. Evaluate the gateway’s dashboard and reporting tools for intuitiveness and functionality. 

• Reviewing supported payment methods: Ensure the payment gateway supports a wide range of payment methods that your customers prefer. This includes credit and debit cards, digital wallets (e.g., Apple Pay, Google Wallet), and bank transfers.

Top 10 Payment Gateway APIs That You Can Use

In 2024, several payment gateway APIs stand out for their reliability, ease of use, and comprehensive features. These gateways are designed to meet the diverse needs of businesses, from developers and small startups to mid-sized companies looking to streamline their payment processes. 

Here are the top 10 payment gateway APIs that can help you enhance your online transactions, improve security, and provide a seamless experience for your customers.

1. Stax

Stax offers an all-in-one payment platform that caters to a diverse range of business needs, from small and medium-sized businesses to large enterprises. This versatile platform supports various payment modes including credit and debit cards, ACH, SMS payments, and mobile payments providing businesses with the flexibility to accept payments online.

Stax is designed to enhance business operations by offering a flexible API and a range of SDKs, allowing for easy integration with popular payment gateways like Authorize.net and various accounting software such as Xero, QuickBooks, and Zoho.

Rating: 4.9

Key features

• Device-agnostic operations: Being device-agnostic, Stax does not require dedicated hardware, making it an economical and accessible option for businesses looking to manage payments across multiple devices.

• Advanced scheduling and recurring payments: Stax facilitates the scheduling of future payments and manages recurring billing, which is crucial for businesses that operate on a subscription model or that need to handle regular payments efficiently.

• No commitment, flat fee subscription: Stax offers a flat fee subscription structure with no long-term commitments, providing businesses with predictable billing and the flexibility to scale payment services as needed without financial penalties.

Pricing

• Up to $150,000 in processing per year: $99/month.

• $150,000 to $250,000 in processing per year: $139/month.

• Over $250,000 in processing per year: Starting at $199/month.

2. Adyen

Adyen is a versatile payment gateway provider that centralizes credit card processing and payment acceptance into a single, cohesive platform. It is designed to cater to businesses that operate across various channels such as online, in-store, and mobile. 

Adyen's ability to manage diverse payment methods and support transactions in over 120 currencies makes it a global partner capable of scaling with businesses. Its unified platform simplifies complex payment landscapes, allowing businesses to expand rapidly, manage risks efficiently, and monitor transaction outcomes seamlessly.

Rating: 4.8

Key features

• Enhanced security with dynamic card validation: Employing dynamic card validation, Adyen increases the security of transactions, ensuring that each payment is thoroughly verified, thus protecting both businesses and their customers.

• Real-time analytics and reporting: The platform offers comprehensive reporting tools and real-time analytics that provide immediate insights into consumer behavior, aiding businesses in making data-driven decisions.

• Advanced fraud detection: Utilizing sophisticated algorithms, Adyen offers advanced fraud detection and risk management capabilities to protect businesses and their customers from fraudulent activities.

Pricing

• Processing fee: €0.11

• Unique payment method fees for different methods. You can check it on Adyen’s website.

3. PayPal

PayPal, an established leader in the payment processing industry, offers a secure and powerful API that enables businesses to integrate PayPal's payment functionalities into their websites and apps. By leveraging PayPal's API, businesses can accept payments directly from PayPal accounts, eliminating the need to handle sensitive financial information.

This is particularly advantageous for smaller startups and businesses lacking the resources for high-level security implementations. 

Rating: 4.7

Key features

• Global transactions support: PayPal enables businesses to handle international transactions effortlessly, allowing them to expand their market reach without worrying about geographic boundaries, which is crucial for startups looking to scale quickly.

• Comprehensive protection policies: With strong buyer and seller protection measures, PayPal minimizes the risks associated with online purchases and transactions, providing a safer trading environment which is especially reassuring for small businesses and individual developers.

• Multi-currency and mobile support: The API facilitates transactions in multiple currencies and is supported by a user-friendly mobile app, enhancing accessibility and convenience for businesses and developers, thus improving customer satisfaction and engagement.

Pricing

• PayPal checkout: 3.49% + fixed fee per transaction.

• PayPal guest checkout: 3.49% + fixed fee per transaction.

• QR code transactions: 2.29% + fixed fee per transaction.

• Pay with Venmo: 3.49% + fixed fee per transaction.

• Send/receive money for goods and services: 2.99% per transaction.

4. Square 

Square API delivers a platform tailored for developers aiming to create customized payment solutions. Featuring two primary API divisions, Square addresses a broad range of business needs. The Payments API division focuses on streamlining payment processing activities such as credit card transactions, payment management, and refunds. 

Meanwhile, the Square Connect API division enhances business integration with a suite of tools for inventory management, order handling, and invoicing, enabling businesses to tap into valuable insights and streamline operations across Square’s extensive ecosystem.

Rating: 4.7

Key features

• Simplified credit card transactions: Square enables businesses of all sizes to easily accept and process credit card payments, removing traditional barriers and simplifying customer transactions.

• Equitable access to capital: Square provides fair and accessible loan options, enabling businesses of all sizes to secure the funding necessary for growth and expansion.

• Advanced reporting and analytics: The platform includes detailed reporting and analytics features, providing businesses with the insights needed to make informed decisions and optimize their operations.

Pricing

• Free plan: $0/month; pay only transaction processing fees.

• Plus plan: Starts at $29/month plus processing fees; includes advanced features with flexible cancellation.

• Premium plan: Custom pricing; potential for custom processing rates plus standard fees; contact sales for details.

6. Skrill

Skrill is a versatile payment system based in London, established in 2001, and now part of the Paysafe Group. Primarily focused on low-cost international money transfers, Skrill offers both personal and business accounts, catering to a variety of needs including online payments, and regular transactions to contractors and freelancers. 

Regulated by the Financial Conduct Authority, Skrill emphasizes security and compliance, ensuring a safe environment for users' financial activities. 

Rating: 4.7

Key features

• Prepaid card availability: Skrill offers a prepaid card linked to users' accounts, enabling easy access to funds and convenient in-person purchases and ATM withdrawals, enhancing the user's spending flexibility.

• Broad device compatibility: The platform is accessible via most web browsers and mobile operating systems, and with its mobile application available on both Android and iOS, Skrill ensures that users can manage their accounts and perform transactions seamlessly on the go.

• Multi-currency support and instant transactions: Skrill excels in facilitating transactions in several major currencies with the capability of instant deposits and real-time payments, which is crucial for businesses operating across borders and needing swift transaction turnarounds.

Pricing

• International transfers:

  • Bank transfer: Free.

  • Debit card, paysafecash, bank transfer via Sofort/Klarna: Up to 1% per transaction.

  • Credit card: Up to 2.99% per transaction.

  • Same currency transfer: Up to 4.99% send money fee per transaction.

  • Exchange rate mark-up: Up to 4.99% fee per transaction.

• Domestic transfers:

  • fee: Up to 2% per transaction (charged when the transfer begins and ends in the same country).

• Receiving money:

  • Skrill money transfer: Free (no charge to recipients).

  • Skrill to skrill:

    • Send money: 2.99%.

    • Receive money: Free*

6. Stripe

Stripe API is a premier choice for developers and businesses seeking a powerful yet user-friendly platform for online payment integration. Renowned for its adaptability across various programming environments, Stripe streamlines the inclusion of payment functionalities into applications and websites, catering to a global audience. 

With its extensive support for multiple currencies and localization, Stripe is particularly well-suited for international businesses that require a flexible and scalable payment solution.

Rating: 4.6

Key features

• Advanced fraud prevention: Equipped with a machine-learning system called Radar, Stripe enhances transaction security by adapting to specific business needs and detecting fraudulent activities effectively.

• Developer-centric tools: Stripe’s API is bolstered by extensive documentation and SDKs for major programming languages and platforms, including iOS, Android, and React Native, which simplifies integration and customization for developers.

• E-commerce and omnichannel integration: Designed with e-commerce and subscription businesses in mind, Stripe integrates seamlessly with various e-commerce systems and supports omnichannel strategies, enhancing operational flexibility.

Pricing

• Transaction fees: 2.9% + 30¢ per successful card charge. Additional fees include 0.5% for manually entered cards, 1.5% for international cards, and 1% for currency conversion.

• ACH direct debit: 0.8% per transaction, capped at $5.00.

• Additional payment methods: Fees start at 80¢ per transaction for methods like iDEAL.

• Instant payouts: 1% of the payout volume, with a minimum fee of 50¢.

• Dispute charges: $15 per dispute (chargeback fee).

7. Authorize.net

Authorize.net is a veteran in the online payment gateway sector, backed by Visa and trusted by a broad spectrum of small to medium businesses. It offers a robust set of tools tailored for developers looking to integrate comprehensive payment solutions into their applications and websites.

Authorize.net simplifies the payment process, helping merchants enhance their operational efficiency and customer service by automating tasks that typically require full-time staff attention. 

Rating: 4.5

Key features

• Seamless integration with retail and online stores: Authorize.net is optimized for both retail and service environments, offering features like a virtual terminal for manual transactions and batch uploads, which align with modern order management practices and enhance the shopping experience.

• Robust support and resources: The platform offers 24/7 free support and a wealth of training materials and tutorials, enabling developers to build custom solutions, like a merchant account, effectively and leverage the full potential of the API.

• Flexible contract terms: Authorize.net operates with no long-term contracts, offering flexibility to businesses by allowing them to use the service without the commitment of a lengthy agreement. This is particularly appealing for small businesses or startups that need adaptable payment solutions as they grow.

Pricing

• Monthly gateway fee: $25 per month.

• Setup fee: Free.

• Recommended plan: Ideal for those without a merchant bank account.

• Processing rates: 2.9% + 30 cents per transaction.

8. Razorpay

Razorpay, a prominent payment gateway in India, offers a comprehensive suite of products designed to streamline the handling of online payments for businesses. This platform is renowned for its ability to support a wide array of payment modes such as net banking, credit cards, debit cards, UPI, and several popular digital wallets. 

What sets Razorpay apart is its commitment to simplifying the payment process for both merchants and customers, making it an essential tool for businesses looking to enhance their online payment systems.

Rating: 4.2

Key features

• Advanced security and compliance: Razorpay ensures the security of transactions by implementing advanced measures like encryption and tokenization, crucial for protecting customer and transaction data and building trust.

• Seamless user interface: The platform boasts an intuitive and user-friendly interface, which significantly enhances the payment experience for users and simplifies transaction processes for businesses.

• Diverse payment integration: Razorpay supports integration with all major eCommerce CMS systems, including WooCommerce, Magento, and Shopify, which facilitates a smooth payment process across various online platforms.

Pricing

• One-time setup fee: ₹0.00

• Annual maintenance fee: ₹0.00

• Transaction fee for Indian credit/debit cards, net banking, UPI, wallets: 2% per transaction

• Transaction fee for diners and Amex cards, international cards, EMI: 3% per transaction

9. Braintree

Braintree, a subsidiary of PayPal, offers a sophisticated, full-stack payment platform that excels in flexibility and ease of use. With a focus on international commerce, Braintree has powerful currency conversion capabilities, making it an ideal choice for retailers targeting a global audience. 

Moreover, the integration of the next-generation GraphQL API allows developers to seamlessly connect and execute payment operations, further simplifying the payment process across various platforms and payment methods.

Rating: 4.0

Key features

• Braintree vault and drop-in UI: The Vault feature allows for the secure storage of payment information, which facilitates quick and easy repeat billing. The drop-in UI ensures a frictionless checkout process, enhancing user experience and potentially boosting conversion rates.

• Customizable integration options: Braintree provides customizable checkout flows and a dynamic control panel, allowing businesses to tailor the payment experience to their specific needs and preferences, which is crucial for maintaining brand consistency and customer satisfaction.

• Comprehensive support and quick payouts: The platform offers excellent customer support and quick two-day payouts, ensuring that businesses have prompt access to their funds and support when needed, enhancing operational efficiency.

Pricing

• Standard merchants: 2.59% + $0.49

• Verified charitable organizations: 1.99% + $0.49

• Non-USD transactions: Additional 1%

• International card transactions: Additional 1%

• Chargeback fee: $15

• American express pass-through: $0.15

• Venmo transactions: 3.49% + $0.49

• ACH direct debit: 0.75% (capped at $5)

10. WePay

WePay offers a seamless, integrated payment gateway tailored for web-based and point-of-sale systems, supporting diverse omnichannel environments. It is engineered to enhance e-commerce platforms by keeping the payment process within the customer's journey, thus offering a consistent user experience.

The platform’s specialized fraud risk algorithm and robust security features like high-level PCI compliance and tokenization ensure both retailers and customers are protected against potential threats.

Rating: 3.6

Key features

• Custom payout schedules: Users can choose their preferred payout schedules—daily, weekly, or monthly—providing added convenience and helping businesses manage their cash flow more effectively.

• Mobile POS and direct bank transfers: With mobile point-of-sale capabilities and support for direct bank transfers, WePay extends its functionality to meet the needs of mobile and in-person transactions, enhancing operational flexibility.

• Quick and efficient onboarding: The platform facilitates fast and simple integration and onboarding processes, making it easier for businesses to get started and scale up their operations without significant delays.

Pricing

• WePay link: Charges 2.9% + $0.25 per transaction.

• WePay clear: Quote-based, default rate is 2.9% + $0.30 per transaction if not pre-agreed.

• WePay core: Offers customized, relationship-based pricing.

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The increasing complexity of online transactions poses significant risks to security and user experience. By leveraging the best payment gateway APIs, businesses can ensure smoother, more secure payment processes and enhance customer satisfaction.

Key takeaways

• The bank always verifies the transaction details and performs fraud checks when you conduct payment through a payment gateway API.

• Payment gateways support various payment options such as credit cards, debit cards and bank transfers.

• PayPal is a hosted payment gateway API while Stripe is a self-hosted payment gateway API.

• Remember to evaluate various pricing models, such as transaction fees, monthly fees, and setup costs.

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