How To Integrate Payment Gateway Into E-commerce Website

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payment gateway integration

Payment Gateway plays a vital role when it comes to your e-commerce store. Accepting payments online is significant for any company that sales products/services on the Internet. It would be a long article, so make yourself a cup of hot and tasty coffee – and read on.

Before we move on to Payment Gateway Integration into e-commerce site, we need to know what it is.

“Consumers expect a safe, convenient, and affordable globalized payment platform”

Lucy Peng, businesswoman

What is a payment gateway?

A payment gateway processes credit cards at online and offline stores. It allows you to transfer the key information between websites or mobile devices and payment processors i.e. banks, and vice versa. In simple terms, a payment gateway is a software application that takes care of all the financial transactions online. It connects a website with the bank so that your customers can make payments on the spot. A payment gateway encrypts all sensitive information like credit card number, expiration date, and CVV code. Integrating a payment gateway into your e-commerce site makes user experience smooth.

There many options for you to choose from, like Instamojo, PayPal, Stripe,, Google Checkout, direct MasterCard/Visa payments, etc. All of these have their pros and cons, and you need to pay a certain percentage as their fees.

Today, online payment systems have become more and more popular. Even older people use digital banking and pay for many services online. In addition to this, as per Statista, transaction values are growing fast and are expected to grow further. In fact, by 2022, transaction values for e-commerce are expected to reach $5,411,354. And, this is exactly why your website needs to offer online payment opportunities to your customers.

Payment value

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How to choose the right gateway for your e-commerce website

You can either go for integrated or hosted payment gateways.

Integrated Payment Gateways

Integrated options allow you to serve your customers right there on your e-commerce store. This means that they don’t have to leave your website to complete the payment process. Plus, it does not hamper your conversion rates. The keynote here is that you are responsible for the security and keeping customer data well-protected.

Hosted Payment Gateways

Hosted payment gateways take your customers away from your e-commerce store to complete the payment process and then redirect them back once the process is complete. Transactions take place on the payment platform’s processor. Here, the responsibility of security, customer data, or PCI compliance is taken care of by the gateway provider. For instance: PayPal operates in this manner.

The limitation of this type of gateway options is that some customers may not trust third parties. Also, you do not want your customers to leave your website to complete the payment process. In order to make the right choice, you must analyze the e-commerce platform you use. If you are using Shopify, you need to fulfill some special requirements to ensure you select a compatible gateway.

Here are some tips on how to choose your gateway integration partner:

  • Evaluate the ease of integration
  • Check customer reviews
  • Determine funding speed
  • Check what are their fees

Cost of Payment Gateway Integration

Do check the fees that apply in different stages, before integrating online payment into your e-commerce site. Often they add up so it’s better to make a list of what is important for your business.

Gateway integration fees include:

  • Registration, setup and monthly fees
  • Transaction, processing, refund and chargeback payment fees (don’t forget the hidden components)
  • Fund transfer fees
  • Termination fees, etc.

These fees may differ according to the different payment gateways. Based on your requirements, you may add features that would make it more safe and convenient for your users to transfer money.

Payment gateways also assist you with other operations like:

  • PCI (Payment Card Industry Data Security Standard) compliance
  • Recurring bills (subscription-based pricing scheme)
  • Verify transactions by giving notifications
  • Store payment information so that your customers need not re-enter personal information
  • Developer information and API tools for customization to meet specific needs
  • Encryption for high-level security for sensitive user information
  • Integration with other tools such as accounting software or shopping carts

Now, let’s see some of the popular payment gateways.

Payment Gateway Options

1. Instamojo
2. PayPal
3. Amazon Pay
4. Stripe
6. SagePay
7. PayU money
8. CCAvenue


Powering more than 600,000 Indian businesses with payments and other business solutions, Instamojo is one of the popular payment gateway options you can opt for. It is more than just a payment gateway. Instamojo is a multi-channel payment gateway that covers SMS, Email, WhatsApp, Facebook, Website, etc. The good news is that you don’t have to pay any setup fee, maintenance fee or annual charges for using Instamojo. Instamojo offers quick and reliable payment transfers.


  • No setup fees
  • No maintenance/annual charges

Know more about Instamojo here.


When you think about payment integration, the first option that comes to your mind is PayPal! PayPal is well known for its reliability, flexibility, and people around the world use it. It offers advanced encryption to avoid fraud. As per Statista, PayPal’s payment volume doubled from 2014 to 2017 and is expected to grow even more. To use PayPal, users need not provide their bank account information. All they need is create a PayPal account. So, when you want to integrate a payment gateway into your e-commerce website, it’s integrated via Express API that is quick and convenient technique.


  • No setup/monthly fees

Know more about PayPal here.

Amazon Pay

Another easy option to get started with your payment gateway is Amazon Pay. Unlike PayPal express checkout, Amazon Pay does not take your customers completely away from your e-commerce store. In fact, Amazon Pay incorporates well into the look and feel of your e-commerce site. It allows your customers to use the credit cards they have already stored in their Amazon account, once they log in with their Amazon login and password.

Amazon Pay accepts:

  • MasterCard
  • Visa
  • Discover
  • American express
  • JCB
  • Diner’s club, etc.

The only drawback is that the cards need to have a US billing address.


  • Amazon Payment charges per transaction and separately applies a domestic processing fee plus authorization fee

Know more about Amazon Pay here.


Stripe is another hosted solution for your online payment gateway integration. Stripe is easy to use, customizable and PCI-compliant payment gateway option.

It accepts most credit cards and works with:

  • Apple Pay
  • Alipay
  • Android Pay
  • WeChat Pay (beta)

Platforms like Kickstarter, Twitter, Shopify, Pinterest use Stripe.


  • No setup fees
  • No monthly fees

Know more about Stripe here. is one of the major players when it comes to payment gateways. They offer excellent fraud protection services, easy checkout options, customizable integrations, subscription-based additional features, etc. Additionally, it provides a friendly user interface.

It accepts all major credit cards and works with digital solutions such as:

  • PayPal
  • Visa Checkout
  • Apple Pay determine and manage possible fraudulent transactions through Advanced Fraud Detection Suite, offer address verification service, card code verification, and supports Verified by Visa and MasterCard SecureCode.

In addition to this, they offer CIM (Customer Information Manager)service. CIM tokenises and stores the credit card information your customers on Authorize’s own secure server. There are many modules and extensions that allow you to integrate with your CMS.


  • is compatible with credit cards issued anywhere in the world, however, your business needs to be located in the US, the UK, Canada, Europe, or Australia.

Know more about here.


SagePay is one more popular payment gateway option you can go for. It is quick and secured. SagePay offers drop-in checkout integration that is a flexible checkout form that can be integrated into your payment pages. This allows you to blend your payment pages and your website. You can customize SagePay payment pages to match your brand.


  • Customizable checkout pages

Know more about SagePay here.

PayU money

Serving more than 3,00,000 business, PayU money is one more popular payment gateway option that you can go for. It is quick and secured. In fact, PayU money’s all transactions are secured with 128 bit SSL encryption and two-factor authentication.

PayU money supports payment options like:

  • Visa
  • Master
  • Maestro
  • Rupay
  • Amex


  • No setup fees
  • No Annual maintenance fees

Know more about PayU money here.


CCAvenue is yet another payment gateway option for you. It is fast, secure and offers multi-currency payment gateway. You can also customize your checkout page to deliver a ‘localized’ shopping experience to your customers. This is useful for users who prefer content in their native languages. Not only this, but you can also customize your CCAvenue Payments page to look & feel the way your e-commerce website does.


  • No setup fees

Know more about CCAvenue here.

Wrap Up

These are just a few popular payment gateway integration options discussed here. However, you have numerous options to choose from. You can either opt for hosted or non-hosted payment gateways or look for ready modules to integrate into your e-commerce site. You can also develop your own in case you want to distinguish your brand from off-the-shelf offerings.

Here are some widely used payment gateways solutions:

  • Instamojo
  • PayPal
  • Amazon Pay
  • Stripe
  • SagePay
  • PayU money
  • CCAvenue

Some of them charge per transaction and some charge you fixed cost on a monthly basis. Know more about payment gateway integration here.

Don’t forget to tell us more about your favorite payment gateway integration solution in the comments below.

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