What Payment Options Should An Ecommerce Store

By Ten Squared, posted on the 14th of September, 2021 · 5 minute read

There are a number of considerations you need to make before deciding which payment providers are right for you and your business. The goal is to find the balance between all these considerations and determining your priority. Different countries have different preferred payment methods, in this article, we will focus on Australian eCommerce, however, the points highlighted are likely relevant across the world.

Why you should care?


Depending on which payment provider you choose, the fees and rates that you pay will differ. Whilst per transaction these costs can seem trivial when you begin processing thousands of dollars worth of transactions, these small fees become a small yet significant chunk of your profit.


Sales and patent processes are two things you likely don't associate too closely together, however, they work extremely closely together. This is where it is vital to consider reliability, ensuring your provider is equipped to handle the traffic you send it. Additionally, offering services such as PayPal can provide a level of protection for your customers which can increase their trust in your brand and gently nudge them to put their trust in your company and the product you are offering. Finally, buy now pay later options have large fees, however, we have seen them increase sales for companies targeting younger audiences by more than 30% which could potentially make these services a worthwhile investment for your company.

Trust & Image

Providing a range of payment providers is not just an excellent way to provide your customers with choice, but it is also a great way to boost brand image. Having trusted payment providers on your website can help give customers confidence in your brand whilst simultaneously making your store look bigger than it is. We are not saying to put every payment provider under the sun on your website, however, make sure you have at least 1 or 2 identifiable providers available.

Convenience and Ease

It is no secret in the world of e-commerce that the easier you make it to purchase a product the more you can increase your sales, however, how does this relate to payment providers? Well with new payment options such as Apple Pay, and Android Pay you can allow users who are browsing on mobile devices to pay for a product with the click of a button, no need to find a credit card and no need to log in. Hence, integrating a provider that supports these payment methods is something you should strongly consider.



Different eCommerce platforms are made with different payment providers in mind. This means some payment methods will simply be easier to integrate. For example, by default, Shopify uses stripe to process all payments, you can of course use external payment providers, however, the provider fees plus Shopify fees will begin to add up. Hence, if you are using Shopify the easiest payment provider to use will be Stripe.


When you are choosing which payment providers to include an essential consideration is security. Hence, make sure the provider is reputable and perform extensive research to ensure you and your customers are protected. Things to consider include whether it is a fully integrated solution or a service hosted offsite such as PayPal.

Fees & Contracts

On large scale e-commerce stores, payment processing fees can add up to a large sum, the goal of many stores is to find the best possible provider with the most competitive rates. You also need to ensure that any contracts are flexible enough to fit your needs. Additionally, if you know your monthly transition volume you can use this to negotiate potentially lower fees.

Your Audience

This will help you decide how many different payment options you need to provide, if you are going for a wide audience, you will likely need more options to please all of them. A younger audience will likely appreciate a buy now pay later option, whilst older demographics like to stick to payment methods they are familiar with.


Whilst uncommon across almost all popular providers, it is still essential to understand the reliability of the payment provider. Providers can go down for any number of reasons, however, some are better than others and if you are only using a single provider, your payment provider going down for even an hour can result in thousands of dollars in lost sales. You also need to ensure that your payment provider is equipped and configured to handle the amount of traffic you intend to send to it. This should be in relation to the maximum amount of traffic you expect at any one time (for example at a product launch) and not an average of your traffic.

Popular Providers

Stripe (Shop Pay)

Stripe is offered as Shopify's default payment method through "Shop Pay". Shop pay is a great system that allows you to provide multiple options including Android Pay and Apple Pay and of course this is all done in a seamless way. It is flexible and powerful, works with subscriptions services and has incredible APIs that allow you to easily achieve all of this.

Pricing (domestic cards): 1.75% + 30c


We could write an entire article on why you should use PayPal warts and all, however, in the interest of time here are the most common reasons merchants choose to incorporate PayPal. PayPal is famous for offering a secure payment platform for their customers, this has built incredible trust amongst consumers, it is also designed to be fast without the need to input card details every single time and finally, PayPal is easy to both set up and use. This comes at a slight premium, however, it is definitely a payment method you should try to assess whether it is a profitable method to provide.

Pricing (domestic cards): 2.60% + 30c


Square began as a card reader that aimed to make processing card payments accessible to all businesses. Now Square can integrate with e-commerce stores. Again, there is a slight premium to use this service, however, if you have a physical store it is a great option to allow you to manage payments under a single payment provider.

Pricing (domestic cards): 2.60% + 30c


Afterpay is a popular way to give your customers more choice when purchasing. If you decide to use a buy now pay later provider, you can expect to see higher conversion rates and AfterPay lends the money meaning you're paid at the point of purchase.

Pricing: 5-6%


Choosing the payment methods you want to provide to your customers can have significant impacts on your conversion rates. Choosing the right combination of providers will inevitably allow you to maximise profits, and depending on your size you may be able to negotiate better rates to help boost your profits. In essence, providing customers more options, especially options that make the journey to purchase simpler is always a great thing to do.