Global e-payment is on the rise, with the market expected to grow at a compound annual growth rate (CAGR) of 20.1% and account for close to 75% of the global payments market, as shared by Future Market Insights. The rise in e-commerce further augments this, making the adoption of payment gateways a cornerstone for business owners in Pakistan who seek to operate successfully in the international digital sphere.
What is a payment gateway?
At its core, a payment gateway functions as a digital channel that enables the transfer of funds from your customers to you. By facilitating online transactions anytime, anywhere, and through any device, they enhance the overall shopping experience and foster customer loyalty, prompting consistent repeat business.
Many also employ robust safety provisions, ensuring secure and efficient transactions to bolster your customer’s trust and willingness to transact with your business. Meanwhile, the automated mechanisms within payment gateways ensure that transactions are processed significantly faster. This expedited handling ensures customers enjoy brisk checkouts that increase customer satisfaction while enhancing your business cash flow.
But what are the e-payment services available in Pakistan, and which is the best option for you?
List of payment gateways for businesses in Pakistan
Let’s explore some of the top international payment gateways:
1. WorldPay
WorldPay, under the wings of Fortune 500 company FIS, stands as one of the leaders in payment processing. This impressive reputation assures customers a secure payment experience when ordering on your e-commerce website. Beyond this, here’s why WorldPay makes an appealing choice for SMEs in Pakistan:
- Swift funds transfer: Speed is at the heart of WorldPay's offerings, and your business can expect your funds within a 30-minute window.
- Payment versatility: Catering to a global clientele becomes effortless with WorldPay, which supports over 300 payment types. Plus, it accepts 126 currencies across 146 markets, so your international customers will appreciate the convenience of dealing with your business.
- Global support: No matter where you operate, WorldPay ensures help is always available with round-the-clock support in multiple languages so you can be confident of swift issue resolutions, minimising potential downtimes.
- Omnichannel management: For businesses that have a foot in both the online and offline realms, WorldPay's unified sales dashboard can provide a consolidated view of all sales, simplifying management.
To understand its pricing structure, you’d need to initiate a conversation with a WorldPay sales representative.
2. PayPal
If you’ve ventured into online shopping as a customer, you would likely have come across PayPal. Chances are that your customers would have, too. Using a payment gateway with global prominence like PayPal can help your customers feel more confident about transacting with your digital platform. Besides this, PayPal also offers several other advantages:
- Payment versatility: PayPal can process diverse payment methods, including all major credit cards, e-wallet Venmo, and even 'pay later' options. This versatility ensures your customers have multiple choices when transacting.
- Global reach: With its presence in over 200 countries and regions and payment accepted in 25 currencies, using PayPal means you're ready to cater to an international audience.
- Seller protection: To safeguard sellers from transaction disputes, the e-payment platform offers a Seller's Protection Programme for eligible merchants, which provides an extra layer of security, ensuring you're not at a loss during buyer disputes.
When using PayPal, you will have to pay a chargeback fee in addition to the standard transaction fees, and transactions from PayPal to traditional bank accounts typically take three to five days. While PayPal remains inaccessible for direct use in Pakistan, there's a workaround to set up a PayPal account:
- You can search for "PayPal Malaysia" and sign up from there.
- Select the "business account" option and complete the registration details.
- Although you can input your Pakistani SIM card number and address, you must select "Malaysia" as the state.
- Verify your email post account creation.
When it comes to withdrawals after account creation, you must link your local bank account with payment gateways like Payoneer to facilitate the process.
3. Payoneer
Payoneer is another payment gateway that enables businesses in Pakistan to serve a global clientele and here are some reasons to use this service:
- Payment versatility: Payoneer accepts diverse payment modes, including credit and debit cards, ACH debits, local bank transfers, SWIFT transfers, and via their Payoneer balance.
- Cost-effective: Payoneer offers fee-free payments to fellow Payoneer accounts. Additionally, you can waive your annual fee by keeping your account active.
Setting up an account is also straightforward:
- Register on the official Payoneer website or its mobile app.
- Choose your desired account type.
- Indicate your anticipated monthly transaction value.
- Provide your personal and business-related details.
- Complete any required verification.
At Present, Payoneer only supports eight currencies and transactions requiring currency conversion may attract a fee of up to 3.5%.
4. Stripe
Stripe boasts an A+ rating from the Better Business Bureau (BBB), reported by Forbes. And it's not just the recognition that makes the payment gateway attractive but also its exhaustive list of features.
- Seamless integration: Stripe offers easy integration with many online platforms such as Drupal, PrestaShop, Magento, Shopware, WooCommerce, and WordPress, ensuring a hassle-free adoption process for e-commerce businesses.
- Global reach: Going international becomes simpler with Stripe, which can process over 135 currencies.
- In-depth reporting: Stripe's reporting tools can delve into various facets of your transactions, providing an insightful view of your finances.
- Transparent pricing: Stripe's fee structure is both transparent and transaction-based, sans any monthly charges, enabling you to clearly grasp the expected cost of using the service.
To help business owners with integration, Stripe offers a comprehensive toolkit that demands technical proficiency, which you can leverage with the help of developers. Besides this, Stripe also exercises discretion concerning the industries it services, which includes businesses associated with counterfeit goods, adult content, and other high-risk sectors.
To set up your Stripe account, you will need to undertake the following steps:
- Establish a Limited Liability Company (LLC) in the United States (US).
- Get an Employer Identification Number (EIN) or Tax ID for your company.
- Have a legitimate physical address in the US, A functional US phone number and a bank account in the US to manage the funds.
Given these considerations, business owners in Pakistan must weigh the importance of Stripe’s advantages versus the potential constraints to ensure alignment with your needs.
