Last editedJune 20233 min read
If your business collects payment from customers either within Australia or worldwide, you’ll need to find a payment processing company to help. The payments landscape has changed over the years with an increasingly diverse set of services and features. Today’s consumers want a wide selection of payment types and methods to choose from, and they checkout to be as convenient as possible. Keeping that in mind, here are our top choices for the best payment processing companies in 2023.
What is payment processing?
Payment processing companies facilitate the exchange of funds during a transaction. They act as the third-party provider or middleman, serving the needs of both customer and merchant using a customer-facing payment gateway While online payment gateways focus primarily on card payments, payment processing companies work with all manner of payment types and methods. This includes debit and credit cards along with bank transfers, mobile wallets, and buy now, pay later services.
Best payment processing companies
Payment processors are diverse, ranging from small financial start-ups to major global banks. Here are eight of the best payment processing companies on the market today.
1. GoCardless
GoCardless is a payments platform designed to facilitate bank payments using BECS direct debit. This is a pull-based form of payment, allowing businesses to collect payment directly from customer bank accounts with full authorisation. Blending the security of ACH payment processing with the flexibility of today’s technology, it’s convenient for both customers and businesses alike. Use GoCardless to set up recurring subscription payments or take payment for one-off purchases, all with lower processing fees than comparable options. It also serves as an international payment gateway, settling transactions in the currency of your choice over a global bank-to-bank network.
2. PayPal
The next option on the list is PayPal, which benefits from its familiarity. It’s easy to set up a business PayPal account and start collecting payment without any need for a separate merchant account. PayPal facilitates credit card payments along with mobile wallets, direct debits, and BNPL services. If you’re just starting out or deal with low transactional volumes, PayPal can be a great choice. However, as your business grows the fees rise accordingly and it might be better to look for a more economical option.
3. Adyen
Amsterdam-based payment processor Adyen offers end-to-end solutions for enterprise businesses. It’s a card-first company, focusing primarily on credit and debit card payments. However, Adyen does also provide a range of alternative payment methods with fully integrated payments intelligence to reduce fraud. One thing to consider is that it’s not the best choice for resolving failures when they occur, and there’s also limited functionality for handling compliance issues.
4. Stripe
Another card-first solution, Stripe is an excellent choice for businesses that process credit card payments. One of its core benefits is its flexibility – you can customize Stripe by choosing from a variety of APIs. It’s a good choice for international payment collection, accepting card payments in over 100 currencies. On the other hand, if you don’t have access to developers this means you might not access Stripe’s full potential.
5. Square
Online payment processing companies are ideal for integrating with your website or ecommerce store. But what about businesses that have an in-person presence as well? Square fits the bill by serving both needs, providing mobile payment terminals that sync up easily with merchant devices for on-the-go card payment processing. It also offers a Square Checkout API for online payments.
6. Apple Pay
Let customers make a payment with a single click or swipe of their mobile device by integrating Apple Pay into your website. While Apple is known for its electronic products, it also functions as a payment processing company with the Apple Pay app. This lets customers pay businesses directly from iPhones and iPads using contactless technology. You can add bank account and credit card details to your mobile wallet too for fast, easy payments.
7. Amazon Pay
Like Apple Pay, Amazon Pay offers an alternative to the usual credit card processors and payment gateways. This API lets customers log in to non-Amazon websites to use their stored payment details. It provides cohesion across numerous websites for a more convenient shopping experience. From the business’s perspective, Amazon Pay lets you appeal to a wider audience with a globally recognized payment option. Per-transaction fees are similar to any other payment gateway.
8. ANZ eGate
Australia’s ANZ banking group offers a payment processing solution called eGate. Benefits include an easy set-up process with same-day fund settlement. Supported payment methods include Visa, MasterCard, American Express, Diners Club and JCB. It’s safe and secure, with industry-standard features including end-to-end encryption. However, ANZ isn’t compatible with every type of business, and it’s also known for having higher fees than some others on this list.
How to choose the best payment processing company
With so many options out there, how can you find the best payment processing company for your business or website? This usually boils down to two key factors.
Budget: What are the set-up and per-transaction fees? Are there monthly subscription fees? Compare the full list of costs carefully.
Customer preference: Do your customers prefer to pay by card, bank transfer, or mobile wallet? Analyze what your customers are doing with detailed market research to ensure you’re providing the checkout options they prefer.
Most businesses will find a hybrid approach works best. There’s no need to choose a single payment processor; instead, opt for a card-first company like Stripe and pair it with a direct debit solution like GoCardless to meet all customer needs in an efficient, user-friendly way.
We can help
GoCardless is a global payments solution that helps you automate payment collection, cutting down on the amount of financial admin your team needs to deal with. Find out how GoCardless can help you with one-off or recurring payments.