Using multiple payment gateways: the pros and cons explained
Blogs on 13th May 2020
It could be tricky to rely on a single payment partner. Unfortunately, no one is immune to outages and downtimes. Only 6% of businesses surveyed haven’t experienced an unplanned outage in 2019, with 61% of companies have faced it more than twice per year. This issue is especially critical for a rapidly growing business, as every minute of downtime incurs losses, both financial and reputational. Integrating multiple payment gateways helps you to avoid it and ensure operational continuity no matter what. Continue reading to find out more about the pros and cons of this strategy and to decide if it’s worth a shot.
Why use multiple payment gateways?
Mitigating the risk of downtimes or outages may be itself a sufficient reason for many businesses to connect multiple payment processors. Still, the main reason to consider this approach goes beyond granting the technical ability for customers to pay you. It’s providing them with the best possible experience on their payment journey.
Using multiple payment gateways allows you to offer support for the variety of payment methods, while enabling customers to pay in their preferred currency. It makes your business flexible and scalable. It is also highly beneficial for growing businesses expanding globally. The more robust your payment stack is, the more local specificities and preferences you have covered. It converts directly into customers’ satisfaction, and later loyalty.
Let’s take a closer look at the benefits and pitfalls of having multiple payment gateways connected.
Benefits of multiple payment gateways on board
- Better customer experience. Make the payment process streamlined and frictionless by offering support for the payment methods and currencies your customers prefer.
- Facilitated expansion. When expanding your business abroad, you’ll have to provide not only primary global payment methods but also local options, which are loved and trusted in a particular region or a country. You can do it with just one gateway on board, but with multiple advanced vendors, you can ensure the best coverage, fees, and stability.
- Increased conversion. Having multiple payment processors pays off by boosting your approval rates. It helps to avoid customers’ frustration when they form order and proceed to payment to find out there’s no suitable payment option for them. Moreover, in case of any glitches on the provider’s side, you can reroute the transaction to another vendor instantly and seamlessly. Such flexibility and versatility save your sales.
- Optimised payment flows. Payment routing can do magic, helping you to process transactions at the most appealing fees and the highest acceptance rates. Alongside with failover management capabilities, it helps to minimise declines and ensure all transactions are processed most optimally.
- Comprehensive functionality. Various vendors offer various conditions and supporting features, so the more payment partners you have, the more of your specific business needs are covered.
Drawbacks of using multiple payment gateways
- Integration hassles. The process of integrating a payment gateway can be very complicated, and that complexity multiplies by the number of payment partners you want to connect. Development and setup can get very resource-draining.
- Cumbersome management. Right after the integration come administration and management. You’ll have to stay in contact with every payment partner to solve occurring issues and make amendments to your partnership.
- Maintenance issues. Aside from paying maintenance fees, there will be cases when development efforts are needed, i.e. for upgrades or to expand functionality. Besides, you’ll have to monitor PSPs’ health, which is not a piece of cake as standards vary from vendor to vendor.
- Disparate data sources. Having your transactions processed through multiple payment gateways deprives you of a comprehensive view of your performance. It leads to the need for manual systematisation and analysis of all that data.
- Effort- and time-consuming reconciliation. The more gateways and merchant accounts you have, the more manual work and time you’ll need for reconciling, and the more errors can be made.
How to avoid the pitfalls
PayCore.io helps you to integrate multiple payment gateways, avoiding most of the drawbacks mentioned above. We establish connections with APIs of payment providers and acquirers globally and ensure their security, integrity, and stability. A single integration with us gets you online with more than 80 providers. We provide you with a scalable technical infrastructure, building connections and maintaining them for you.