Choosing the best payment gateway for your Woo store

Are you a Woo enthusiast ready to dive into the world of payment gateways and select the best fit for your business?

Choosing the right WooCommerce payment gateway in the UK is critical for increasing transaction speed, minimising costs, and providing a seamless customer experience across multiple touchpoints.

But before we dive in, let’s take a closer look at the Woo marketplace.

Recent WooCommerce data

• WooCommerce commands a market share of around 39% of all e-commerce stores worldwide.
• Their user base is approximately 6.3 million websites
• According to a research on The State of WooCommerce 2024 by Store Leads, Woo recorded an increase in the number of online stores by 9.6% quarter-on-quarter in 2024 Q1 and 50% year-on-year till Q1 this year.
• The UK has 3.9% of Woo stores, which is the second highest in the world.

WooCommerce payment methods: An overview

WooCommerce payment solutions include several plugins and gateways tailored to different business requirements. While some WooCommerce payment plugins cater to simple transactions, others include extensive subscription payment gateway functionality.

WooCommerce payment methods may be classified as:

●     Direct Payment Gateways: Process credit cards on your website.

●     Redirect Payment Gateways: Directing clients to safe payment pages.

●     Subscription Payment Solutions: Manages recurring billing.

Each approach has distinct features in terms of transaction processing, security, and integration possibilities. The option has a considerable impact on the checkout experience, fees, and processing speed.

Recent data indicates that Woo holds a market share of about 39% of all e-commerce stores globally, along with consistent growth in the use of payment gateways. The State of WooCommerce 2024 reports that online stores saw a growth of about 2.5% from one quarter to the next in the first quarter of 2024.

Why is selecting the right WooCommerce payment gateway so important?

Payment gateways play a pivotal role in several areas of your business. Here are some of the reasons for being critical about choosing an appropriate platform:

Customer experience:

Baymard reported an alarming 70.19% cart abandonment rate for e-commerce firms in 2024. Thus, checkout customer experience matters. A well-integrated WooCommerce payment gateway streamlines checkout and offers open banking, digital wallets, and card-based payments. The result? Customers who are satisfied and likely to buy.

Cost-effectiveness:

Different fees apply on Woo payment gates. For companies with significant traffic, changing to a less expensive transaction gateway can help to lower expenses. Look out for additional expenses; prices for extra services, monthly payments, and setup fees could bust your budget. Excellent is a clear, reasonably priced solution provider that will change your company.

Safety and compliance:

According to 2024 eCommerce fraud data, 43% of customers reported fraudulent transactions, and 75% of e-businesses wanted to increase fraud prevention costs. WooCommerce payment gateways have strong security and fraud prevention and ensure regulatory compliance to protect your organisation from legal difficulties.

Modern WooCommerce payment gateways need to follow various regulatory frameworks:

●     PCI-DSS Compliance: In addition to the basic requirements, merchants should adopt enhanced security measures such as tokenisation and end-to-end encryption. This protects sensitive payment information during the transaction process.

●     Things to Consider Regarding GDPR: Payment processors must provide straightforward documentation on how they handle data. This includes where data is held, how long it is maintained, and customers' rights to their personal information.

●     Strong Customer Authentication (SCA) refers to European rules requiring additional verification processes for specified transactions. It is critical to identify gateways that meet these requirements while also offering a smooth user experience.

Implementing security features:

●     Modern gateways should have advanced fraud detection systems using machine learning to spot suspicious trends while lowering false positives.

●     Tokenisation keeps security by substituting unique identification symbols for sensitive card data, therefore allowing features like one-click payments and subscription billing.

●     Payment systems should contain automated monitoring technologies able to identify and react to security risks as they develop.

These security aspects have to be used carefully to strike a compromise between usability and protection. Fraud detection solutions should, for instance, be adjustable to fit your risk tolerance and company model.

Global expansion:

If you are a local business looking to scale beyond borders, a reliable payment gateway is an essential supporting tool. The best WooCommerce payment gateways can handle multi-currency and international transactions, enabling you to penetrate regional markets and cater to an expanding global audience.

Scalable integrations:

Scalable payment gateways can handle rising transaction volumes and operations smoothly, providing smooth performance. Seamless integration with your WooCommerce online store and other business tools like accounting software and CRM systems ensures streamlined operations and better data management.

Types of WooCommerce payment plugins

WooCommerce payment plugins are mainly divided into three categories:

●     Standard payment plugins: Manage simple transactions and one-time payments.

●     Subscription payment gateways: Specialising in recurring payments and subscription administration.

●     Multipurpose payment solutions: Combine different payment methods and features.

When choosing a WooCommerce payment plugin, keep your company's specific demands, transaction volumes, and customers in mind.

How to add a custom payment gateway in Woo?

Steps for WooCommerce payment gateway integration:

●     Install the WooCommerce payment plugin: Access your WordPress dashboard, select Plugins > Add New, and search for the payment gateway plugin. Select the "Install Now" option to install the chosen plugin.

●     Activate the plugin: Once installed, you have to select the "Activate"

●     Configure the settings: Navigate to Woo > Settings > Payments after activation. The gateway that was recently added is located here. To modify its configurations, simply click on it.

●     Set up your account: Please provide the payment provider with the necessary information, including API keys, account credentials, and any other specific details.

●     Gateway evaluation: Before going live, it is crucial to test the payment gateway in a sandbox environment to confirm that transactions are processed accurately.

What is the WooCommerce payment gateway API?

If you are keen to add a custom payment gateway, then Woo has a robust API to facilitate a hassle-free WooCommerce payment integration. The API comes with unique hooks and filters for customising payment methods. Some of the key components are:

●     Classes: Extend the ‘WC_Payment_Gateway’ class to create a custom payment gateway.

●     Functions: Utilise functions like ‘init_form_fields’ for defining settings and ‘process_payment’ for handling transactions.

●     Webhooks: Implement webhooks to manage asynchronous events such as payment notifications and refunds.

For a more detailed understanding on API integration, check out the WooCommerce payment gateway API resource.

How to integrate a local bank payment gateway with your Woo store?

For both local and global businesses, adding a local bank payment gateway can open up new business prospects. You can do this with the following simple steps:

●     Procure API documents: First, you need to get the required API documents from your bank. This will include endpoint URLs, API keys, and all other security protocols.

●     Create a Custom Plugin: Utilise the WooCommerce payment gateway API to create a custom plugin that communicates with the bank's payment system. Implement the necessary methods, including init_form_fields, process_payment, and validate_fields, by extending the WC_Payment_Gateway class.

●     Verify the integration: As mentioned earlier, it’s essential to validate the integration in a sandbox environment. This allows you to check and rectify any glitches. You can seek Woo support for this or connect with your bank for assistance if required.

●     Comply with local laws: To protect sensitive payment data, comply with local financial rules and security requirements, including PCI-DSS.

●     Ready to launch: After completing the testing phase, deploy the plugin to your Woo store. Oversee transactions to ensure smooth execution.

WooCommerce payment gateway integration and performance

Implementing a payment gateway on your Woo store requires careful consideration of technical as well as business factors.

You can achieve optimal performance by starting with proper gateway integration. A good payment gateway should process transactions within 2-3 seconds and maintain this level of efficiency during high-traffic periods. New findings indicate that payment processing delays exceeding 5 seconds can lead to a rise in cart abandonment rates by as much as 27%. It's important to select a gateway that is known for its reliability and strong infrastructure.

The performance of your WooCommerce payment gateway matters significantly in subscription-based organisations. The system should manage regular billing cycles, retry failed payments, and allow subscription adjustments while providing a good user experience. Find gateways with smart retry options for failed payments and automatic subscription management.

Integration testing should address several possibilities:

●     Processing high-volume transactions: Your WooCommerce payment gateway should keep constant performance even during promotional activities or sales peaks. This consists of managing several concurrent transactions without compromising processing speed.

●     Error management and recovery: The system should efficiently handle common problems such as network timeouts or authentication failures, therefore giving administrators and consumers clear feedback.

●     Mobile commerce is expanding quickly; hence, your gateway has to be constantly reliable on all devices and platforms.

Part of your WooCommerce payment gateway management system should be regular performance monitoring and optimisation. Tracking transaction success rates, processing times, and error frequencies helps you to see possible problems before they affect your company.

6 best WooCommerce payment gateways for UK merchants

Woo subscription plugins support subscriptions that integrate with various online payment gateways to process transactions.

The following WooCommerce payment gateway list dives deep into 6 platforms that come with several interesting features that can transform your e-Commerce experience.

1. Wonderful: One of the key considerations for small and medium businesses is the upfront investment and recurring costs. This is where Wonderful is redefining payment processing for Woo stores in the UK. Wonderful leverages the Open Banking system to provide one of the cheapest WooCommerce payment gateways with zero percentage fees, making it an ideal solution to minimise your transaction cost while availing of a host of useful features.
   
   Key features: The Plus Plan subscription for Wonderful's WooCommerce payment plugin includes 2,000 monthly transactions for just £19.99, and those made outside the bundle are still only charged 1p per transaction. Businesses may control costs with this predictable pricing approach. With Open Banking, merchants can receive direct bank transfers from customers, making payments secure and fast. Woo connection is simple, letting merchants accept payments without a complex technical setup. Wonderful's bank-level security and rigorous consumer authentication prevent fraud. Transferring funds instantly creates a positive working capital reserve and prevents payment bottlenecks. You can also add Wonderful to your existing WooCommerce payment gateways to provide a more robust experience.
   
2. PayPal: One of the most subscribed payment gateways, PayPal has wide global acceptance. A simple user interface and a host of attractive features make it a popular choice for Woo stores.
   
   Key features: If you're looking to cater to clients worldwide, using PayPal can help since it handles transactions in over 200 countries. Whether you choose to swipe a credit card, punch in a debit card number, or tap into your PayPal funds, you're covered! The integration with Woo is uncomplicated, and ordinary accounts have no monthly costs. PayPal prioritises security, including enhanced fraud detection and buyer protection, to protect both merchants and customers from fraudulent activity. When you team up with PayPal, the well-known dependability it brings can elevate how much customers trust your company.
   
3. Stripe: This is another efficient payment gateway that has a developer-friendly API and useful features. For Woo stores looking for adaptability and scalability, Stripe could be a good choice.
   
   Key features: Stripe is adaptable to the needs of a variety of customers since it accepts a broad variety of payment methods. These include major credit cards, ACH transfers, Apple Pay, and Google Pay. With Stripe, you can enjoy the simplicity of one-click checkouts, deep-dive into transaction data through comprehensive analytics, and manage subscriptions effortlessly. Businesses can modify their payment processing to meet their unique requirements thanks to the platform's rich application programming interface (API).
   
4. Square: Does your Woo store have an offline option as well? Then Square, with its unified payment option and flexible features, could be a gateway worth exploring.
   
   Key features: To provide your customers with a seamless experience across physical and virtual domains, Stripe is a suitable solution. It has a simple setup process that allows you to start accepting payments immediately. With no hidden cost, it helps you predict the actual cost implications. Its comprehensive set of tools includes sales reporting, inventory management, and customer engagement, which provide holistic support for your enterprise.
   
5. Authorize.net: One of the USPs of Authorize.net is its robust security and compliance mechanisms.
   
   Key features: With its Advanced Fraud Detection Suite (AFDS), Authorize.Net protects against fraudulent transactions. It accepts multiple payment modes, such as credit cards, digital payments, and e-checks. The platform offers businesses efficient recurring payment processing for subscriptions. Authorize.Net's Customer Information Manager (CIM) securely maintains payment information for repeat transactions, improving the customer experience and payment processing. Businesses that handle sensitive payment data rely on its reliability and security.
   
6. Amazon Pay: The trust behind Amazon’s brand image and ease of checkout has made it a widely used Woo payment gateway.
   
   Key features: Amazon Pay allows customers to use their familiar Amazon account to make payments, leading to increased subscriptions from e-commerce stores. Easy installation, a streamlined checkout process, and access from multiple devices like tablets, smartphones, laptops, etc. make them convenient for both customers and businesses. With a quick setup process, you are good to go.

Apart from these, what payment gateways does Woo support?

The global popularity of Woo has led to several new Woo subscription payment gateways entering the market. Following is a WooCommerce payment gateway list of emerging players:

● GoCardless specialises in recurring payments and direct debit processing, making it suitable for subscription-based businesses in the UK and Europe. Provides automatic money collecting and clever retry solutions.

● Worldpay is a leading payment solution provider in the UK market, offering multi-currency support, advanced fraud protection, and integrated reporting tools for large-scale e-commerce.

Global Payments is a popular WooCommerce subscription payment gateway for UK businesses. It offers a robust WooCommerce payment plugin for one-time as well as recurring payments.

● WebToPay provides a variety of regional WooCommerce payment methods throughout European markets, making it ideal for firms targeting various EU nations. Includes support for a variety of regional bank transfers and payment options.

● MultiSafepay offers payment solutions tailored to European markets, including local WooCommerce payment methods, gift cards, and specialised checkout choices. Features include customisable subscription management and full transaction data.

Understanding WooCommerce subscription payment systems

Selecting the proper WooCommerce subscription payment gateway is absolutely vital for subscription-based companies. When weighing choices, retailers should take complex subscription management tools into account as well as basic payment processing capacity.

Essential requirements:

●     Automated Recurring Billing: Managing planned payments on your behalf

●     Handling failed payments: Unsuccessful payment-retry customer alerts help to manage payments.

●     Subscription Lifecycle Management: Supporting billing cycles and changes in plans

Renowned WooCommerce subscription-payment gateways like PayPal and Stripe offer such robust WooCommerce plugin features.

Future trends in WooCommerce payment options

New technology and changing consumer tastes continuously affect the features of WooCommerce payment gateways. Some of the latest developments in this field are:

Integration of Open Banking:

WooCommerce payment processing is changing as a result of open banking, especially in the UK market. Direct bank-to-bank transfers are made possible by this technology, which has various benefits:

●     Lower transaction expenses when compared to using a standard credit card

●     Quick money settlement

●     Enhanced security via authentication at the bank level

●     Better control of merchants' cash flow

Some modern WooCommerce payment methods:

●     Certain gateways are now providing integrated crypto processing, thus attracting a fresh crop of buyers who are increasingly adopting digital finance. For instance, Bitcoin payments are also becoming more common.

●     Buy now pay later (BNPL) companies are witnessing significant expansion, especially within the demographic of young consumers.

●     The adoption of mobile wallets is on the rise, making support for services like Apple Pay and Google Pay increasingly essential.

These trends suggest that e-commerce success will depend more and more on flexibility in WooCommerce payment methods.

Corporate social responsibility (CRM)- the Wonderful way

By associating with organisations which support various charitable causes and are committed to making a positive social impact you can become an integral part of important social initiatives. Wonderful is one such FCA-authorised payment provider which partners with businesses that emphasise social and environmental effects and support many philanthropic projects. Apart from eliminating the high costs of card-based transactions, they also support charitable institutions in the UK by providing services free of charge.

FAQ

Does Woo support multiple payment gateways simultaneously?

WooCommerce payment gateway integration has the flexibility to allow you to use multiple payment gateways at a time. You can cater to a larger customer base with wider payment alternatives, thus increasing your conversion rate.

How do you select the best WooCommerce payment gateway for international buyers?

International payment methods that support multiple currencies and a robust global network are the main considerations for choosing a payment gateway for international customers. PayPal, Stripe, and Authorize.net are great choices, as they offer a robust currency conversion feature and an active international support team.

Which WooCommerce payment gateway settles funds instantly?

Using the power of Open Banking, Wonderful ensures instant settlement of funds through direct bank transfer. This eases cash flow management, particularly for small enterprises, by eliminating settlement bottlenecks. Wonderful also has one of the best WooCommerce payment gateway fee structures to further contribute to your business growth.

Are there free payment gateways for Woo?

There are no "free" payment gateways for WooCommerce; however, platforms like PayPal and Stripe do not have an installation cost or fixed monthly charges, and Wonderful’s inexpensive plans are also extremely pocket-friendly alternatives that you can consider.

What mobile-focused features of a payment gateway should I consider?

When using WooCommerce subscription payment gateways for mobile-optimised businesses, you should look out for mobile SDK integration, fast checkout systems, and good support for mobile wallets. On average, these features reduce mobile cart abandonment by 10–15% compared to desktop transactions.

How do I prepare my payment system during high-traffic periods?

Ask your payment gateway vendor for load testing and error-handling solutions. Proper hosting capacity and queuing systems can assist in lessening transaction failure during busy selling times.

Photo by Mike Petrucci on Unsplash