Best Online Payment Gateways for Merchants & Online Shops in the Philippines

Last Updated – Aug 8, 2023 @ 3:11 pm

Launching your new online shop? Or looking for ways to improve the shopping experience on your existing store?

One of the critical decisions you’ll make has to do with how you’ll receive payments from customers. Of course, you’re running a business to get paid and make a profit. But before you get to that, you have to ensure that your customers can easily and safely pay for the products they buy from you.

Enter payment gateways. These online services help businesses manage payments from customers, so they can shop with confidence and without setbacks.

Before you use an online payment gateway, it’s important to learn about its role in the payment processing system, how it works, and the different options available for merchants in the Philippines.

What is an Online Payment Gateway?

An online payment gateway is a technology that enables e-commerce and physical stores to easily accept cash, credit cards, debit cards, e-wallets, and other forms of payment.

In traditional brick-and-mortar stores, payment gateways are the point-of-sale (POS) terminals used to swipe or tap cards and QR codes scanned to make a payment.

In online shops, e-commerce payment gateways are the checkout pages where customers submit their payment details. 

How Online Payment Gateways Work

Payment gateways play a crucial role in authenticating and processing payments, ensuring fund availability and secure transactions.

To have a clear idea of how a payment gateway works, let’s look at what typically happens during payment processing—from the moment a customer proceeds to checkout until the merchant gets paid.

1. A customer clicks on “Place Order” or any equivalent call-to-action button. This takes them to the gateway provider’s page or the e-commerce site’s checkout page.
2. The customer chooses a payment method from among the options available and then enters their account details.
3. The payment gateway performs fraud checks and encrypts the customer’s payment information. Encryption involves encoding sensitive data to ensure its secure transmission.
4. The payment gateway transfers the encrypted data to the merchant’s bank.
5. The merchant’s bank forwards the information to the payment processing network (e.g., Visa/Mastercard), which then performs an additional layer of fraud check. 
6. The payment processor sends the payment data to the customer’s bank for an authorization request to proceed with the transaction.
7. The customer’s bank performs fraud screening, verifies if the card is valid, and checks if the customer’s account has sufficient balance to pay for the order. It then approves or declines the transaction.
8. The approval or denial of the transaction goes back to the payment processor, which then relays the message to the payment gateway. 
9. The information gets to the merchant through the payment gateway. If the transaction is approved, the merchant’s website will display a payment confirmation. If it’s declined, an error code will be displayed, along with a request for the customer to select another payment method.
10.  The customer’s bank releases funds to the merchant’s bank account, and the customer’s card is charged accordingly for the transaction.

Note that the actual process may work differently depending on the payment method. Regardless, the entire payment transaction processing—though seemingly long and complicated—takes only a few seconds to complete.

Popular Payment Methods in the Philippines

Preferred payment methods among Filipino consumers are diverse. To reach more customers, your business must be able to accept both cash-based and cashless payments.

Here are the different payment options you can offer to your customers.

Cash on Delivery (COD)

Despite the emergence of electronic payment options in the Philippines, most Filipinos still prefer to pay with cash.

Cash on delivery is still used in 80% of e-commerce transactions in the Philippines, based on an Asian Development Bank report.

When paying via COD, buyers are assured that the following common risks associated with e-payments are minimized:

• Fraud – Receiving an incomplete package or an item that’s different from the product image and/or description
• Logistical issues – Lost or damaged product/package
• Hacking – Stealing of personal information for fraudulent activities like making unauthorized transactions using the victim’s bank account/credit card

With COD, customers pay only after receiving their order in acceptable conditions. They won’t risk losing their money and stress over product returns and refunds. They feel more secure because they don’t have to give their sensitive information such as credit card or bank account details to the merchant.

On the sellers’ end, though, COD may not be the ideal option to receive payments. Businesses bear the risk of not getting paid when dissatisfied buyers refuse to pay for their COD orders.

Even so, offering COD payment is still an effective way to gain a competitive advantage. Particularly, new businesses without an established reputation stand to benefit the most from it. 

Having COD as a payment option attracts more buyers, especially those who either don’t have a credit card/bank account/e-wallet or have trust issues with e-payment methods. Ultimately, this will lead to increased sales.

E-wallets

Various studies note the increasing use of electronic wallets in the Philippines over the past few years. 

According to the Bangko Sentral ng Pilipinas data, there are 8.8 million active e-wallet accounts in the country as of 2019, with a 74% growth from the previous year’s 5 million accounts.

Meanwhile, the 2018 Visa Consumer Payment Attitudes study found that consumers in the Philippines used in-app payments the most in Southeast Asia, sharing the top spot with Singapore at 48%.

What do these figures mean to your business? Digital wallets have a huge potential to drive more customers to your business. Consumers have become open to alternative methods that would enable them to pay conveniently and safely at home. 

In fact, e-wallet services are seeing massive growth during the COVID-19 pandemic. Two of the leading digital payment platforms in the Philippines, GCash and Maya, reported a surge in new users since the start of the lockdown. 

Take advantage of this new consumer behavior trend. Who knows, e-wallets might topple down cash as the country’s most preferred payment method sooner than we expect.

Related: Top Cashless E-Payment Systems in the Philippines

Credit and Debit Cards

The low penetration of credit cards in the Philippines (one credit card owner in every 50 Filipinos, per World Bank data) shouldn’t deter you from accepting card-based payments.

If your online store caters mostly to middle-class or affluent consumers, provide them with the option to pay with a credit card. This payment method is also a must-have if you’re offering an installment payment scheme, as customers prefer to use a credit card for that.

Giving an additional option to pay with a debit card also lets your online business receive payments from over 43 million ATM cardholders nationwide.

By accepting credit and debit card payments (and having the logos of brands like Visa, Mastercard, and American Express on your website), online shoppers will see your business as legitimate and are more likely to trust your brand and buy from you.

Also Useful: Best Prepaid Cards (Visa/Mastercard) in the Philippines

Bank Deposits

Over-the-counter and online banking payments are a safe and accessible payment option to Filipino consumers without a credit card or e-wallet. 

To pay for their purchase, customers make a deposit at the bank or transfer funds to the merchant’s bank account. 

Without a payment gateway, customers are required to send the merchant a photo of the deposit slip or screenshot of the online fund transfer transaction as proof of payment. 

But with a payment gateway, customers simply enter a code or reference number from their banking transaction, and they’ll instantly receive a payment confirmation via email.

It doesn’t matter if the customer’s bank is different from that of the merchant. Nowadays, 24/7 interbank payments are made convenient and secure through electronic funds transfer services such as InstaPay and PESONet. 

Related: Best Savings Accounts in the Philippines

Remittance Services

This cash-based payment method provides sellers the benefits of COD sans its biggest risk—the uncertainty of getting paid. 

Through remittance services, merchants receive payment from the customer before shipping out the product. This also allows customers without a bank account, credit card, or e-wallet to pay for their online purchases with cash.

If you offer remittance services as a payment method, buyers may visit any branch of the merchant’s partner remittance/payment center to make an over-the-counter payment. 

Some of the top remittance services that accept payments for online orders include 7-Eleven CLiQQ, Bayad Center, Cebuana Lhuillier, ECPay, Palawan Express, Robinsons Business Center, and SM Bills Payment.

Point of Sale (POS)

To accept card payments for in-store purchases, you need a POS terminal. This electronic device enables merchants to get authorization for card transactions. It’s where you insert, swipe, or tap a credit or debit card to start the processing of a payment transaction.

Using a POS terminal makes sense if you’re selling big-ticket items such as gadgets, appliances, or furniture in a physical store. It minimizes usual cash handling issues such as running out of change and receiving fake bills. 

QR Codes

For in-store purchases, QR (Quick Response) code-enabled payments are faster, more convenient, and more secure than using credit or debit cards. 

To pay for their orders, customers just need to scan the code at the counter and enter the amount using their smartphones. Since the customer’s account information is stored in the QR code, there’s no need to input details, thus minimizing encoding and payment errors.

As such, QR codes are among the best payment methods to offer if you’re selling to young, tech-savvy consumers in the Philippines. More so if you have a retail store or fast food outlet, as  QR payments are widely used in such types of establishments, based on the Visa study findings. 

Accepting QR payments also provides some advantages to merchants. The system is simple to learn and set up—all you have to do is display the printed QR code from your payment gateway provider. This is more cost-efficient, too, compared to investing in a machine like a POS terminal for receiving card-based payments.   

No wonder that in the Philippines, QR payments are seeing a higher adoption rate than POS terminals. Since 2017, the number of businesses that accept QR code-based payments has grown to 120,000, according to The State of Digital Payments in the Philippines 2019 report.

Online Payment Gateways vs. Payment Processors

When looking for information about payment gateways online, you’ve probably come across the term “payment processor.” 

Together, both technologies work to transmit payment from the customer to the merchant. However, each has a unique role in the payment processing system.

Here are the key differences between payment gateways and payment processors:

• A gateway moves encrypted data around the payment processing system. A processor is the step in the process facilitating the transfer of funds from a bank account to another.
• The gateway sends a transaction request to the processor, while the latter processes the said request and executes it by depositing money from the customer’s account to the merchant’s account.
• The gateway communicates the issuing bank’s approval or decline of the transaction to the merchant and customer; the processor doesn’t.
• Examples of payment processors are credit card networks such as Visa and Mastercard. Payment gateway examples include PayPal and Dragonpay.

With their distinct functions, you might be wondering if you need both a payment gateway and a payment processor.

It depends on the payment options you provide and whether or not you’re selling online.

If you’ll be accepting card-based payments online, you should invest in a payment gateway and a payment processor.

However, if you’re running a brick-and-mortar store that accepts credit and debit card payments using a POS terminal, you may not need to avail of a payment gateway service.

Types of Online Payment Gateways in the Philippines

Payment gateways come in four types, which vary in the way they’re integrated into the merchant’s website. Each type has its own advantages and disadvantages, so consider them when choosing a payment gateway.

The right payment gateway type for you depends on how much control you want over your customer’s payment experience, the features you need, and your business model.

Hosted payment gateways

As the name suggests, hosted gateways redirect a customer away from an online store’s checkout page to a secure, hosted third-party payment page where they’ll enter their payment details. 

After filling out and submitting the payment information, the customer is taken back to the merchant’s site to finish the checkout process.

Best for: Newly opened stores and small businesses

Pros:

• Easy to set up and integrate with the merchant website
• Secure, PCI-compliant transactions, usually with fraud protection features
• Customizable (e.g., adding a brand logo to the payment page)
• Familiar payment gateway type to most users

Cons:

• Lack of control over the entire user experience on the merchant website
• Requires an additional step to the customer’s purchase process
• Might affect conversion rates if customers aren’t familiar with the gateway or don’t trust it

Examples: 2Checkout and PayPal Website Payments Standard

Self-hosted payment gateways

A self-hosted gateway collects a customer’s payment details at the merchant’s own website and sends the data to the payment gateway’s URL. 

Compared to hosted gateways, self-hosted ones provide a more seamless checkout experience. As every transaction can be completed from a single page, customers never have to leave the merchant site.

Best for: E-commerce retailers and wholesalers

Pros:

• Better customer experience than hosted gateways, as the checkout process is kept short and simple
• More control over the entire checkout process

Cons:

• Merchant is responsible for implementing data security measures (e.g., PCI compliance, getting SSL certification, etc.)
• Typically no technical support that provides assistance when the system fails

Examples: Shopify Payments and TradeGecko Payments

API hosted payment gateways

Also known as non-hosted gateways, API (Application Programming Interface) hosted payment gateways let shoppers enter their credit or debit card details directly on the merchant site’s checkout page. Payments are then requested and processed using the gateway’s API or an HTTPS queries service.

With this type of gateway, checkout is done onsite, while the payment is processed off-site.

Best for: Online retailers and wholesalers who want full control over their checkout process and don’t want customers to be redirected outside from their checkout page

Pros:

• Total control over the user interface of the merchant’s checkout page
• Seamless customer experience, as the customer never leaves the merchant site to complete the transaction
• Ability to integrate online payment methods with any mobile device such as smartphones and tablets
• Support for both fixed and recurring payments

Cons:

• Difficult and time-consuming to set up (Merchant has to integrate API with the chosen gateway.)
• Requires some custom programming or developer expertise
• Merchant is responsible for implementing data security measures (e.g., PCI compliance, getting SSL certification, etc.)

Examples: Coins.ph Merchant API and PayMongo API 

Local bank integration payment gateways

This gateway type is the straightforward version of the hosted type. It takes a customer directly to the bank website to make the payment. After the order is paid, the customer is redirected back to the merchant’s website.

Best for: Small businesses that accept one-time payments only

Pro: Quick and easy to set up

Con: No support for refunds, cancellations, and recurring payments (Merchants need to do these manually on their e-commerce store.)

Related: Best Ecommerce Platforms & Website Builders for Filipino Online Shops

Benefits of Using Online Payment Gateways

Subscribing to a payment gateway service is well worth the investment considering the benefits your business can gain from it.

Here are the biggest advantages of using an online payment gateway for both merchants and customers.

1. Secure Transactions

The most important benefit of payment gateways is the fraud protection they provide to sellers and buyers.

Payment gateways encrypt all sensitive data (such as credit/debit card number and security code) and move it via a security technology called SSL (Secure Sockets Layer). This keeps the customer’s payment information from being accessed by hackers, ensuring that funds get to the merchant safely.

Preventing customer data breach helps build your credibility as a business. Customers are more likely to buy from you if they trust that their confidential details are always kept secure.

Payment authentication is another crucial security-related function of payment gateways. 

Processing a credit card payment online is done differently than the physical swiping of a card on a POS terminal in-store.

Since online shoppers don’t present their physical card to the merchant when paying for their purchase, it’s uncertain whether every online payment made through a credit card is legitimate. There’s also the risk of customers having an insufficient balance on their debit card, exceeding their credit limit, or using expired cards. 

To protect merchants against fake buyers and invalid transactions, payment gateways work with payment processors to ensure that payments are both valid and legitimate. 

2. Fast Transaction Processing

Online payment gateways make it easy to accept payments from customers, as they handle all the processing and security measures.

An all-in-one gateway service is particularly helpful to small businesses that have limited manpower and resources to manually process payments themselves. 

Imagine how much time and effort you and your customers would be wasting if you’re not using a payment gateway. 

For instance, when receiving bank payments, there would be back-and-forth communication between your team (who’s processing the payment) and the customer (who needs to send you a screenshot of their proof of payment and wait for your confirmation before their order is packed and shipped out).

With a payment gateway, transactions are verified and completed in an instant. You don’t have to manually record all transactions because the gateway service will do the reporting for you. You can let the payment gateway do its job while you focus on running your business.

3. 24/7 Availability

Payment gateways work 24 hours a day, seven days a week. Using a gateway service allows your online shop to accept payments at all times and your customers to pay anytime and anywhere. 

Regardless of the time of day a customer makes a payment for their order on your site, it will be instantly processed. No need to wait for days to receive a payment confirmation from the merchant.

Providing such a convenience helps your business build customer loyalty.

Related: Best Loyalty, Rewards, Discount, and Membership Cards in the Philippines

4. Multiple Payment Options

Lack of payment options is one of the top reasons online shoppers abandon their carts, based on numerous studies. That’s a wasted opportunity right there if your online store offers only a few ways for customers to pay.

Put yourself in your customers’ shoes—would you go ahead with the purchase if the e-commerce store allows you to pay only with a credit card when you don’t have one?

With a payment gateway service, you can offer a wide variety of payment choices. Buyers love that kind of flexibility. If a customer has maxed out their credit card limit, for example, they can opt to pay with another method, like cash or e-wallet.

Also, providing cashless payment options makes your business compliant with the Philippine government’s minimum health and safety protocols.

In the new normal, there’s a growing preference for contactless payment methods, such as e-wallets and credit/debit cards, because they minimize physical contact during product delivery.

Related: Best Online Credit Line for Shopping

Top Online Payment Gateways in the Philippines

Looking for an online payment gateway for your business? Here are the best local and international gateway providers in the Philippines based on features, convenience, reasonable cost, reliability, and reputation.

1. GCash Payment Solutions

• Best for: Micro, small, and medium enterprises (MSMEs), including online and social sellers, stall owners, market vendors, sari-sari store owners, taxi operators, etc.
• Setup fee: None
• Transaction fee: 2% (applicable to sole proprietors, partnerships, and corporations)
• Monthly fee: None
• Payment type accepted: QR code
• E-commerce Integration: Shopify, WooCommerce, and Magento
• Supported Currencies: Philippine Peso

Key features:

• Free QR kit that includes a unique QR code and promo merchandise
• Email or SMS notification per completed transaction
• Transaction status verification via SMS
• Daily/Weekly/Monthly transaction reports
• GCash wallet and daily bank settlement (for non-individual accounts)
• One-time training on basic usage and troubleshooting
• Merchant support hotline
• Php 500,000 wallet size limit for individual accounts / No monthly limits for non-individual accounts
• Auto-sweeping of daily transactions into the merchant’s bank account the next banking day

Get access to the huge GCash customer base (20 million users nationwide as of 2019) by adding a GCash payment option to your physical store or online shop.

Regardless of size, businesses in the Philippines can use GCash as a payment gateway. GCash has two gateway services—the scan-to-pay and online payment portal—that use QR technology to accept mobile payments from GCash subscribers.

GCash payment gateways cater to individual sellers (freelancers, professionals, online sellers, vendors, etc.) and business or non-individual merchants (sole proprietors, partnerships, and corporations). 

Individual merchants get a QR code linked to their personal GCash wallet, while business merchants get a separate transaction wallet tied to their business. 

The transaction fee, also called merchant discount rate (MDR), is waived for individual merchants using the GCash payment gateway. For non-individual merchants, a 2% MDR is deducted from their sale per transaction. This fee is waived for the first year.

2. Maya Business

• Best for: Businesses of all sizes, whether selling online or offline
• Setup fee: None
• Transaction fee: 
  • Credit/Debit cards – 3.5% + Php15 (Maya Checkout and Digital Invoice) / 3.5% (One by Maya)
  • Maya QR, WeChat Pay, GrabPay – 1.5%
• Monthly fee: Php 750 (One by Maya only)
• Payment types accepted:
  • Credit/Debit cards: Visa, Mastercard, and JCB
  • BancNet (available on One by Maya only)
  • E-wallets: Maya (GrabPay and WeChat Pay available soon)
  • QR code
• E-commerce Integration: Shopify, WooCommerce, Magento, and Cafe24
• Supported Currencies: Philippine Peso

Key features:

• 24/7 fraud protection
• Real-time authorization, billing, and T+1 settlement
• Detailed automated reports
• Real-time transaction notifications
• Custom checkout system
• Custom pricing packages for merchants with high payment volumes
• Dedicated 24/7 customer support team

Maya provides payment flexibility with its four end-to-end digital payment solutions that suit different payment acceptance needs of businesses in the Philippines. 

• Maya Checkout – An online payment gateway that enables e-commerce merchants to accept payments directly on their website or app
• Maya Digital Invoice – Allows businesses without a website or app to easily create and send online invoices, quickly process payments, and receive payments via email or SMS
• One by Maya – A POS device for accepting cashless payments from in-store and drive-thru customers
• Maya QR – A scan-to-pay service with a QR code that can be posted on an online store, sent to customers via chat, or printed for display at a physical store

3. PayMongo

• Best for: Freelancers, online and social sellers, startups, and MSMEs
• Setup fee: None
• Transaction fees:
  • Credit/Debit cards – 3.5% + Php 15 (+1% foreign fee for cards issued outside the Philippines)
  • E-wallets – 2.9%
  • Remittance centers and Coins.ph – 1.5% (minimum of Php 10)
• Monthly fee: None
• Payment types accepted:
  • Credit/Debit cards: Visa and Mastercard
  • E-wallets: Coins.ph, GCash, and GrabPay
  • Remittance services: 7-Eleven, Cebuana Lhuillier, and M Lhuillier
• E-commerce Integration: Shopify, WooCommerce, Magento, and Prosperna
• Supported Currencies: Philippine Peso

Key features:

• Advanced fraud detection tools and PCI-certified systems for fraud protection
• PayMongo Links for accepting payments via SMS, chat, or email
• PayMongo API for direct integration with an e-commerce website or app, so customers won’t have to be redirected away
• E-commerce plugins for direct integration with Magento, Shopify, or WooCommerce websites

PayMongo is a fintech startup in the Philippines that enables individuals and companies to receive not just digital payments but also over-the-counter cash payments at remittance centers. 

As such, this online payment gateway is ideal for businesses that cater to the masa market, such as unbanked and uncarded consumers.

4. Dragonpay

• Best for: E-commerce businesses that sell to the mass market, particularly to customers who don’t have credit cards and can pay only in cash
• Setup fee: Php 36,000 (VAT-inclusive)
• Transaction fee:
  • Online banking – Php 10
  • OTC bank deposits – Php 15
  • Remittance services – Php 20
• Monthly fee: None
• Payment types accepted:
  • Cash on delivery
  • E-wallets: Dragonpay Credits, Alipay, Coins.ph, GCash, GrabPay, PayPal, and WeChat Pay
  • Bank deposits (OTC, ATM-based, and online bank payments): BDO, BPI, Metrobank, PNB, China Bank, and more
  • Remittance services: 7-Eleven, Bayad Center, Cebuana Lhuillier, ECPay, LBC, M Lhuillier, Palawan Express, Robinsons Department Stores, SM Bills Payment Counters, and more
• E-commerce Integration: Shopify, WooCommerce, Wix, Shopline, Shopee, EasyStore, Easybuilder, and Email-based billing.
• Supported Currencies: PHP, USD, CAD, EURO, and 16 other currencies.

Key features:

• Data encryption via industry-standard SSL technology
• Supports a wide range of cash-based and cashless payment methods
• Comes with a single, unified API for accepting payments from multiple sources
• Free pre-sales and after-sales support for PayPal
• Recurring payments service (for subscription, installment, and membership fees) that allows receiving payments through credit cards and major banks (BDO, BPI, Metrobank, etc.)

Dragonpay is a great payment gateway to add to your e-commerce store if you already have a gateway for PayPal and credit/debit card acceptance, and you’re looking to expand your payment methods.

Online shoppers can pay via e-wallets, online banking, or COD. Dragonpay also makes it possible for merchants to get paid through over-the-counter cash payments at remittance centers, banks, supermarkets, convenience stores, and bills payment centers.

Unlike other payment gateways, Dragonpay has a fixed pricing scheme instead of charging sales-based transaction fees. This lowers the cost, especially for smaller businesses.

Related: How to Pay Bills Online in the Philippines

5. Payo Cash on Delivery

• Best for: E-commerce merchants
• Setup fee: n/a
• Transaction fee: n/a
• Monthly fee: n/a
• Payment types accepted: 
  • Cash on Delivery
• E-commerce Integration: Shopify and WooCommerce
• Supported Currencies: Philippine Peso

Key features:

• Easy plug-in setup
• Early remittance feature for those who want to get payment before the courier remits them
• Full solution for all COD activity
• Same-day and next-day fulfillment nationwide
• Multiple warehousing options

Payo is a logistics provider that allows businesses to bring products into their customer’s homes faster. 

Despite the popularity of e-payments, millions of Filipinos still prefer Cash on Delivery, especially those who remain unbanked.

Thankfully, Payo offers a Cash on Delivery Integration which is extremely important for businesses who want to take advantage of this widely used payment method. This also allows you to give your customers more flexibility.

Merchants who want to take advantage of Cash on Delivery can do so with Mayo’s Cash on Delivery Plug-in. After installing this, customers can automatically see this option upon checkout.

Payo works with various couriers who receive the payment. Once it is remitted to Payo, it will be transferred to the merchants. There is also an Early Remittance option for those who want to receive payments even before the courier remits them.

6. Coins.ph

• Best for: MSMEs, e-commerce merchants, and commercial establishments (e.g., retail stores, cafes, restaurants, etc.)
• Setup fee: None
• Transaction fee: None
• Monthly fee: None
• Payment types accepted: 
  • Credit/Debit cards: Visa and Mastercard
  • Coins.ph wallet
  • Remittance services: 7-Eleven, Cebuana Lhuillier, and M Lhuillier 
  • QR code
• E-commerce Integration: via API integration
• Supported Currencies: PHP and cryptocurrencies like BTC, ETH, USDC, USDT, and more.

Key features:

• Receive payments in real-time from over 33,000 locations in the Philippines
• Receive recurring and subscription payments by becoming a Coins.ph biller
• Easy, mobile-friendly API integration
• No required minimum balance for maintaining a Coins.ph account

Coins.ph’s payment gateway allows online merchants to receive QR payments, accept payments on their e-commerce website or app, or send payment requests to customers via email or SMS. Payments are instantly credited into the merchant’s Coins.ph business account.

Currently, the payment gateway service is free for all merchants. But in the future, Coins.ph will charge a 0.5% to 2% volume-based transaction fee.

7. PesoPay

• Best for: Large companies across industries (retail, food and beverage, financial services, etc.), especially those selling to the Chinese market
• Fees: Undisclosed
• Payment types accepted: 
  • Credit and debit cards: Visa, Mastercard, American Express, JCB, China UnionPay, and BancNet (Diners Club and Discover available soon)
  • E-wallets: GCash, GrabPay, Alipay, and WeChat Pay
  • Bank deposits: BDO and RCBC
  • Remittance services: Bayad Center and ECPay
  • PayPal
  • BancNet online bank transfer
• E-commerce Integration: Magento, Drupal, OsCommerce, LiteCommerce, and EasyStore
• Supported Currencies: Philippine Peso

Key features:

• PCI DSS Level 1 certification (the industry’s highest security compliance level)
• Built-in fraud management system and Transport Layer Security (TLS) 1.2 encryption
• Guaranteed 99.99% uptime for real-time payment processing
• Free shopping cart plugins for easy integration with Magento, WooCommerce, and other e-commerce platforms
• Payment tracker that lets customers check the status of their cash payments
• SchedulePay service for receiving recurring payments 

With more than 10 years of experience as a payment gateway provider, PesoPay is considered a leader in the e-payments industry. 

What sets PesoPay apart from other online payment gateways is its high uptime rate of 99.99% for real-time payment processing. This is made possible by its servers that are located outside the Philippines, which run unhampered by the country’s slow internet connection.

PesoPay charges annual set-up fees, transaction fees, and chargeback handling fees. However, these are not posted online. Interested merchants may contact PesoPay to ask for the rates.

8. 2Checkout

• Best for: E-commerce websites that sell globally
• Setup fee: None
• Transaction fee: 3.5% + $0.35 to 6% + 60%
• Cross-border fee: 2% (for international payments)
• Monthly fee: None
• Payment types accepted: 
  • Credit and debit cards: Visa, Mastercard, American Express, and JCB
  • Bank transfer
  • PayPal
• E-commerce Integration: Shopify, WooCommerce, Magento, and available via API integration
• Supported Currencies: PHP, USD, AUD, CAD, EURO, and 40 other currencies.

Key features:

• SSL support, PCI compliance, two-factor authentication, credit card vault, fraud protection, and other security features
• Receive payments in USD, EUR, or GBP via PayPal, Payoneer, ACH, or wire transfer
• Support for multiple currencies
• Quick integration with any of 120+ shopping carts such as Shopify, Magento, AliDropship, and Wix.com
• Reporting and analytics tools
• Promotional and merchandising tools such as discounts and coupons
• 24/7 email and chat support for merchants and shoppers

If you’re planning to take your online business to a global market, you need a payment gateway like 2Checkout that makes it easy to receive digital payments from customers worldwide.

With this international gateway provider, you can reach customers in 200 countries and provide a localized buying experience. 

Merchants can choose from any of 2Checkout’s packages:

• 2Sell – The basic plan that provides a simple way to sell globally
• 2Subscribe – Designed for subscription-based businesses
• 2 Monetize – One-stop platform for businesses selling digital products

9. PayPal

• Best for: Small, medium, and large online businesses that sell to overseas customers
• Setup fee: None
• Transaction fee: 
  • Domestic payments – 3.9% + Php 15
  • International payments – 4.4% + Php 15
• Monthly fee: None
• Payment types accepted: 
  • PayPal
  • Credit and debit cards: Visa, Mastercard, and American Express
• E-commerce Integration: Shopify, WooCommerce, Magento 2, Drupal, Wix, Shopee, and more.
• Supported Currencies: PHP, USD, AUD, CAD, EURO, and 18 other currencies.

Key features:

• Fast and easy integration with most shopping carts such as Magento, Shopify, and WooCommerce
• PCI compliance, TLS connection, key pinning, two-factor authentication, seller protection against unauthorized payment and disputes, 24/7 built-in fraud prevention, and other security features
• Mobile-optimized checkout experience
• Support for 25 currencies
• 24/7 support

PayPal is a widely used and recognized brand in the world, with 325 million active accounts worldwide (as of 2020) in 200+ markets. It’s also the most trusted brand in the financial services industry. 

This is why adding PayPal as your payment gateway provider is good for your business, especially if you want to scale it up internationally.

PayPal allows e-commerce merchants to receive payments on their website or app through PayPal Checkout and Website Payments Standard. 

Ideal for medium and large businesses, PayPal Checkout provides customers a quick and smooth checkout process without them having to leave the merchant’s website. According to PayPal, this can help achieve 82% higher checkout conversions. 

Meanwhile, Website Payments Standard lets merchants easily add a PayPal payment button to their online store by copy-pasting an HTML code.

Through PayPal, merchants that run a business without a website can receive payments in any of these three ways: online invoicing, sending a PayPal.Me link, or sending payment requests via email.

10. NextPay

• Best for: MSMEs across all industries (retail, food, services, among many others), solo entrepreneurs, and freelancers
• Setup fee: none
• Transaction fee:
  • Php15 for every Php50,000 transfer to a single recipient via disbursements
  • Direct Debit: PHP 30 under PHP 50K, 0.1% above PHP 50K
  • Credit & Debit cards: PHP 15 + 3.5%
  • International cards: PHP 15 + 4.5%
  • eWallets (GCash, Maya & GrabPay): PHP 2.9%
• Monthly fee: none
• Payment type accepted: direct debit, cards, eWallets, over-the-counter
• E-commerce Integration: via API integration and payment links
• Supported Currencies: Philippine Peso

Key features:

• Great for centralizing and simplifying your company’s growing finances
• No maintaining balance
• No setup fees
• No minimum and maximum accounts for sending and collecting money
• Customizable package depending on your company’s frequency and volume
• Recipient gets notified via SMS or email
• Securely pay employees, suppliers, and customers in batches
• Collect payment from customers through digital invoices and payment links that can be tracked in real-time
• Downloadable reports for easier accounting and bookkeeping
• Integrate financial operations with accounting tools and HRIS systems (coming soon)
• Online bills payment

Growing businesses are essential in our economy. Unfortunately, a lot of financial services today only cater to larger businesses that can afford high fees.

Because of this, MSMEs are left behind and forced to deal with inefficient and outdated means of managing their finances whether it’s sending, collecting, or managing money.

NextPay aims to change that. Since 2020, this company has been empowering Filipino businesses by centralizing and simplifying their financial operations.

Thankfully, it’s so easy to get started on NextPay. All you need is to create an account on their website and supply requirements depending on your business type.

After the verification process, you can add your suppliers, customers, and employees to the directory.

Tips for Choosing the Best Payment Gateways for Your Business

Many factors have to be considered when finding the right payment gateway for your business. Here are some ways to trim down your choices and ensure you sign up with the gateway that meets your requirements best.

1. Check if the payment gateway is PCI DSS compliant

Security is a big deal in online payments—your customers expect you to handle their confidential information with great care. For that, you need the help of a payment gateway with plenty of security features to ensure a safe checkout experience for customers. 

Most importantly, the first thing you should look for when choosing a gateway is whether it’s certified for compliance with security standards like PCI DSS. 

PCI-DSS stands for Payment Card Industry Data Security Standard, the global security standard for cardholder data safety. If a payment gateway provider has a PCI-DSS certification, it means the company has technical and operational safeguards in place to protect customers’ payment information and minimize fraud. 

2. Factor in the costs of using a gateway

Pay close attention to how much it will cost you to use a certain payment gateway service. Usually, providers charge merchants one, two, or all of the following fees:

• Setup fee – A one-time payment to cover the cost of setup or installation
• Transaction fees – The most common type of fee that’s charged per successful transaction. Typically a percentage (ranging from 1.5% to 15% depending on the payment method used) of the total gross sale plus a fixed fee
• Monthly fees – The amount a merchant pays every month for using a payment gateway service.

Keep an eye out not only for the fees listed above but also for hidden charges. The rates you see on the payment gateway provider’s website may not reflect the total cost of the service. 

For example, customers may be slapped a fee for using a certain payment method, like interbank transfers (from one bank to another) that may come with an InstaPay fee. 

So that you avoid any unpleasant surprise, contact the company to ask if they charge each type of fee and how much.

If you’re selling large volumes of products, luxury items, or big-ticket goods, even a low rate for transaction fees could add up and cost you more in the long run. Find out if the payment gateway offers volume-based discounts or custom pricing packages for high-volume payments.

3. Choose a gateway that’s easy to set up and use

You’re paying for a payment gateway service to save time and effort that could be better spent improving your business strategies and operations.

Thus, it makes sense to invest your resources in a gateway that allows for easy setup and doesn’t involve a learning curve. Not one that makes things more complicated and tedious for you. 

Your online payment gateway should also be compatible with any third-party software you’re using. This means it easily integrates with your e-commerce platform, shopping cart software, and accounting software.

4. Ask for a demo

Some payment gateway providers let potential clients test and review the checkout process that customers will experience with them.

PayPal, for example, lets you see a demo on its website. 2Checkout allows interested merchants to create a demo account, so they can see for themselves how the gateway works.

A demo gives you an idea of what the customers will see when they place an order, whether they’ll be redirected to an external page, and what details will be required of them, among other important UX elements.

Your goal is to find a payment gateway that provides a smooth and efficient shopping experience for your customers.

5. Make sure the gateway provider has 24/7 customer support

It’s easy to overlook the customer service aspect of using a payment gateway, but it actually matters—and not all companies provide assistance 24/7.

If any issue arises, it should be fixed immediately, or you’ll lose sales. You must able to contact the gateway provider’s customer support anytime you need help using the channel you’re comfortable with—be it email, chat, or phone. 

6. Look for features that your business model requires

Online payment gateways offer multiple features. You might need some features, but there may be others you don’t need and will just unnecessarily add up to your total cost.

Consider your payment acceptance needs based on your business model. Then ask yourself these questions, so you can identify the features to look for in a payment gateway:

• What payment methods do your customers prefer to use? You can run a survey to find that out. Select a payment gateway that offers as many payment options as possible, preferably those your customers are using. This minimizes the risk of shopping cart abandonment on your online store.
• Do you sell online? Features of payment gateway services are different for merchants with e-commerce stores from those without websites or apps.
• Will you charge membership fees or subscription fees to customers? For accepting such fees, choose a payment gateway with a recurring payment feature. 
• Will you sell to customers outside the Philippines? If so, look for gateways that support multiple foreign currencies and allow you to accept overseas payments from countries you want to sell to.
• Do you want a gateway with a bundled shopping cart? Do you prefer to get your shopping cart software from a third party instead?

Does the payment gateway provide transaction reports and analytics? This is a must-have feature for every merchant. It helps to gain insights into your customers’ behavior, so you can improve their shopping experience.

Payment Gateway FAQs

Still got questions about payment gateways? We’ll answer them below.

What types of payments can a payment gateway process?

This depends on your payment gateway of choice. Generally, it can process Visa, Mastercard, American Express, JCB, China UnionPay, BancNet, and other major cards.

Most payment gateways also cater to e-wallet users like GCash and Maya, as well as bank deposits, and remittance services.

Is it safe to use a payment gateway?

Absolutely. Most payment gateways are Data encryption with industry-standard SSL technology.

How much does a payment gateway typically cost?

Usually, the set-up fee is free for most payment gateways. You only need to take care of the transaction fee, which can range from 1.5% and above.

How long does it take to set up a payment gateway?

It usually takes between one day to two weeks. The integration process can depend on the priority of your application, and the payment gateway you applied to.

How can I integrate a payment gateway into my website or E-commerce platform?

Payment gateways can be integrated into your website or E-commerce platform through APIs provided by the service, or via plugins/modules if your platform supports them. This process might require some technical expertise.

What are the main factors to consider when choosing a payment gateway?

The main factors include cost (transaction fees, setup fees), security, ease of integration, customer support, payment options offered, and whether it supports international transactions.

Can a payment gateway handle international transactions?

Yes, many payment gateways can handle international transactions and support multiple currencies. However, you should confirm this with the specific gateway as it can vary.

How do I manage refunds through a payment gateway?

Refunds can be managed through the administrative dashboard provided by the payment gateway. This usually involves selecting the transaction and choosing the refund option.

What happens if a payment gateway experiences downtime?

If a payment gateway experiences downtime, transactions may fail to process. Having a backup payment gateway or alternate payment methods can mitigate this risk.

How can I resolve issues with a payment gateway transaction?

You can typically resolve issues by reaching out to the payment gateway’s customer support. It’s important to provide them with as much detail as possible about the issue.

Can I use more than one payment gateway on my website?

Yes, you can use more than one payment gateway on your website. This can offer your customers more flexibility and serve as a backup in case of downtime.

Can a payment gateway handle recurring payments or subscriptions?

Yes, many payment gateways support recurring payments or subscriptions, but you should verify this feature with your chosen provider.

Sources:

• https://mb.com.ph/2020/07/15/quick-service-restaurants-deploy-paymaya-payments/
• https://www.shopify.com/encyclopedia/purchase-order
• https://www.e-commerce.ph/popular-online-payment-gateways/
• https://www.pesopay.com/frequently-asked-questions.html
• https://business.inquirer.net/220906/7-reasons-merchants-choose-pesopay-accept-payments-online
• https://mb.com.ph/2020/07/12/ph-going-cashless/
• https://financesonline.com/top-3-payment-gateway-providers-philippines/
• https://digitalfilipino.com/accepting-payments-online/
• https://www.opengovasia.com/a-commitment-to-grow-e-payments-in-the-philippines/
• https://www.tradegecko.com/blog/small-business-growth/types-of-payment-gateways-comparative-guide
• https://woocommerce.com/posts/how-to-choose-payment-gateway/
• https://businessmirror.com.ph/2019/12/04/gcash-empowers-msmes-with-e-payment-gateway/
• https://www.gcash.com/payment-solutions-terms-and-conditions/
• https://ecommerce-platforms.com/ecommerce-selling-advice/what-is-difference-between-a-payment-gateway-payment-processor-and-a-merchant-account
• https://responsiblefinanceforum.org/wp-content/uploads/2020/02/The_State_of_Digital_Payments_in_the_Philippines-Feb20.pdf