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Top 10 Electronic Payment Systems for E-Commerce Business

Introduction to the types of electronic payment systems

Technology is evolving fast with great innovations popping up constantly. As bankers and retailers move to the internet realm, the last couple of decades marked the rise of electronic payment systems. Non-cash payment methods are rapidly gaining popularity all over the world. According to Smithers, the number of non-cash transactions on the planet will reach 1.22 trillion in 2024. Here is a forecast by the FinancesOnline:

During the ongoing Coronavirus pandemic people are forced to buy online, this estimate, in reality, the actual numbers could be much higher. In this article, we will talk about why exactly they are important for the E-Commerce business and whether the single best electronic payment system actually exists. Let’s go!

What is the E-payment system?

Simply put electronic payment system is a system that facilitates the acceptance of electronic payments online. It allows customers to pay for their purchases through the internet eliminating the necessity to use cash or checks.

What is the role of an electronic payment system in E-commerce?

For businesses, online payment systems play a defining role in 2020. The revenue and growth of a business are heavily dependent on the E-payment gateway providers the business is partnering with. The payment options available can attract new customers and further build a brand image or make the business look obsolete and lose to the competition. Every market leader is making sure to use the latest technology for the most secure and convenient transactions for their clients.

What are the online payment methods?

Every transaction requires a method, here are ones for online transactions:

Credit and Debit Cards

You can’t live in the modern world without knowing the names Mastercard and Visa – they are among the giants of credit cards popular all over the globe. For some reason, debit cards for E-commerce payments are not that popular in the USA. The rest of the world is fine with spending money on purchases directly from the bank account, but not Americans. However, this trend might change according to this forecast:

Bank Transfers

Another available option is a single or recurring bank transfer – some e-Commerce platforms are actively using it. Speaking of bank transfers, ACH Transfers are very popular for B2B transactions in the United States.


This is a type of prepaid account that has customer’s financial data to simplify online transactions. Companies like PayPal, Google Pay, or Apple Pay are the prime examples of this method. PayPal is an undisputed leader of the market here that is available on any device with millions of users.

How do the E-Payment systems work?

The explanation for the electronic payment system in E-commerce could be very complex from a technical perspective with a lot of elements to it. But to understand what’s really going on from the business side, here is how the E-payment process looks like:

Generally, there are two types of payments – one-time and recurring. The first one is popular for marketplaces – a customer must input his billing information and proceeds to the checkout page. The term recurring payment means that a customer pays for something regularly, entering his financial information only once and confirms the payment date.

The top international electronic payment systems

There are hundreds of payment systems available. We will take a closer look only at those that are operating internationally, but if you want to get the biggest revenue possible you should learn more about popular payment methods in areas such as The United States and Canada, Latin America, and the Asia Pacific.


The number one payment solution in the world with over 60% of payment gateway market share. It is in the status of a default system for customers and retailers. But this success made PayPal a target for competitors, as they are trying to offer better security, quicker transactions, and lesser fees to take the lead.

“If you think about the under-30 generation, the millennial generation – GenTech, as I call them – they grew up with a screen in front of them. And so they think about everyday processes, like payments, differently than you and I do.”


The closest competitor to PayPal, Stripe has 16% of the market share. Probably one of the reasons for that is their flexible API. With Stripe, the retailers can set up their platforms to meet their needs both for subscription-based and on-demand marketplaces. Quick set up, no additional fees and the integration with hundreds of other apps are the prime advantages of this system.

Amazon Payments

Concluding the top 3, this system offers its unique advantage for the customers – Amazon’s checkout. This means that you can accept payments through Amazon on your marketplace and when the purchase is made, the customer will be directed to the Amazon website, and they can use their Amazon account.

Apple Pay

While limited to certain devices, this up and coming payment system is gaining momentum. With the touch ID confirmation, transactions are way quicker than competitors and the level of security is significantly higher.


This system offers free transactions and while it has similarities to PayPal, Dwolla focuses on ACH payments. This solution can be implemented by a retailer to a marketplace in a day.


The main advantage of this payment processor is its reputation. Available in two hundred countries and accepting 150+ currencies, Payoneer can offer free payments for the receiver and API for businesses.


This reputable platform offers advanced E-commerce Fraud Detection, supports automated recurring billing, and hundreds of online shopping cards. Another great selling point – the support of nearly 90 languages.


This solution made its name by introducing magstripe reader, which allowed business owners to swipe their credit card at any place with a small fee.


Compared to PayPal, Skrill can offer such advantages as instant withdrawals and deposits, refer-a-friend feature, smaller fees, and accepting 40+ currencies.


This one accepts bitcoin! In addition to that, Payza offers very fast global transactions with a simple interface and advanced fraud protection.

What is the best electronic payment system?

Is there a single best system that will handle all E-commerce payments? Probably not. The truth is your marketplace or another e-commerce venture is unique. You may need a couple of payment systems, or maybe a specific one for your region or the target audience. Here are some factors that might help you to choose the best for your business.

Reputation It’s easy to find the information about the market leaders, but if you need some specific system you need to spend time learning about it and finding reviews.
Fees Not only pricing is very different across systems, but there is also a danger of hidden costs attached to them. Consider all possible pees to calculate the overall price.
Security Every payment system must obtain PCI DSS compliance, however, it would be great if it offers some additional fraud protection capabilities.
Payment Methods Support Don’t stop with the payment methods you currently require. Keep in mind the potential growth and try to foresee in which direction your business will go.
Merchant Account If you don’t already have a merchant account, you can consider a payment system that is offering this as a part of their service.

The types of electronic payment system integration

Finally, it is worth to mention methods to integrate payment gateways that will handle E-commerce payments in your business.

The Hosted Payment Gateway method is perfect for small businesses. You don’t need PCI compliance, as all processing is on the service provider. It’s fast to integrate, but on a drawbacks side – you can’t really control it and your customer must leave your website for a transaction.

The Direct Post method is suitable for businesses of any size. It is not the safest method, but it will give you more room for customization and you don’t need PCI compliance because your platform will not store any financial data.

The Integrated method is probably the best for big businesses. The customer will remain on your website and you will get complete control over each transaction. On the downside – it could be very expensive and take a lot of time and the right team of experts to pull off.


E-commerce is an industry with heavy competition – the financial success of a particular enterprise could be a sum of small details. Be open to and keep your finger on the pulse of the latest Fintech innovations to give your clients the most convenient and safe user experience possible. You can achieve that with the existing solutions mentioned in this article, but there is always something new on the horizon and you can be the one to leverage it!