Top 10 online payment tools for every small business

In recent years, the landscape of business transactions has evolved dramatically, thanks to the widespread adoption of online payment tools. Small businesses, in particular, have reaped the benefits of these digital payment solutions, which have revolutionized the way they conduct transactions, manage finances, and attract customers. Brands are now finding new opportunities to expand their customer base and streamline operations through online payment tools.

Now more businesses are compelled to integrate one or more digital payment tool as more customers preference are tilting towards online transactions, and, of course, online settlements. Recent research reports that over 60% of consumers prefer online payments. And a McKinsey survey shows that about 9 In every 10 American now use one or more form of digital payment. 

In essence, if you don’t have an online payment option in this era, then chances are that you’re losing more than 50% of potential revenue to you competitors.

But it’s not enough to jump on the trend as not every digital payment solution is suitable for you kind of business or your specific need. Hence the need to properly evaluate the available options to identify which one suits your business finance management needs.

So we have put together a list of the top ten online payment tools and payment portal for small business.

Understanding the concept of an online payment tool

Simply using the phrase “online payment tool” or “system” may be confusing because it is broad and encapsulates various methods of making payments online. It could be a payment gateway, an e-wallet  or even a cryptocurrency gateway etc. 

Generally though, online payment systems are technology platforms that facilitate the electronic transfer of funds between buyers and sellers during online transactions. These tools serve as the intermediary between the customer's payment source, such as a credit card or bank account, and the merchant's account, ensuring a secure and seamless transfer of funds.

Here are few popular methods that fall under the category of an online payment tool

Payment Gateways 

Payment gateways are the most common type of online payment tool used by small businesses. They function as the virtual equivalent of a point-of-sale (POS) system and securely transmit transaction data between the customer, the merchant, and the payment processor. Customers enter their payment details during the checkout process, and the payment gateway handles the authorization and processing of the payment.

Popular payment gateways include PayPal, Stripe, and Square. They support various payment methods like credit cards, debit cards, and digital wallets, making it convenient for customers to make payments online.

Digital payment platform

Digital payment platforms also known as digital wallets, or e-wallets are currently the most popular form of online payments as most people prefer this method. Juniper research projects that over 60% of the global population will use a digital wallet by 2026. Another report suggests that over 72% of Americans already use one.

Digital wallets are online accounts that customers can fund and use to make payments conveniently. These wallets store the customer's payment information securely, eliminating the need to enter payment details for each transaction.

For small businesses, integrating virtual payment systems can lead to higher conversion rates and repeat business, as customers find the checkout process faster and more straightforward. Many of these wallets allows you to receive payment using your email address or a payment link. 

Well-known digital wallets include Apple Wallet, Google Wallet, and Amazon Pay.

Cryptocurrency payment processors 

Cryptocurrencies have emerged as a novel form of payment, and some small businesses are adopting them to cater to tech-savvy customers and tap into the global market. Cryptocurrency payment processors enable businesses to accept payments in digital currencies like Bitcoin, Ethereum, and Litecoin.

While still relatively niche, cryptocurrency payments offer advantages such as lower transaction fees, faster cross-border transactions, and increased security. Payment processors like BitPay and Coinbase Commerce facilitate cryptocurrency payments for businesses.

Online finance management and invoicing systems

For small businesses that rely on invoicing for their services, online invoicing systems are game-changers. These tools allow you to create and send professional invoices to your clients via email or a secure online portal. Customers can then make payments directly through the invoicing platform, streamlining the entire payment process. 

For example Workee which is a business management tool integrates systems like Stripe and PayPal. This enables your clients to pay the issued invoices and you manage everything from your Workee dashboard.  

Benefits of online payment tools for small businesses

One of the most transformative advancements has been the rise of online payment tools, empowering small businesses with the means to enhance their operations and stay competitive. With the convenience, security, and efficiency they offer, these tools have become essential for entrepreneurs seeking growth and success. Let’s explore the remarkable benefits that online payment tools bring to small businesses.

• Streamlined operations and faster transactions: Gone are the days of time-consuming paperwork and traditional payment methods. Online payment tools streamline operations by automating the payment process. Invoices can be generated and sent with just a few clicks, reducing manual errors and accelerating the entire payment cycle. Moreover, online payments enable instantaneous transactions, improving cash flow and eliminating the delays associated with physical checks or cash transactions.

• Enhanced customer experience: Customers now expect seamless and hassle-free transactions. Online payment tools enable small businesses to offer various payment options, including credit cards, digital wallets, and online banking, catering to a broader customer base. This enhanced flexibility fosters customer loyalty and trust, leading to increased customer satisfaction and repeated business.

• Global reach and expanded market opportunities: With the internet breaking down geographical barriers, online payment tools allow small businesses to tap into the global market. By offering secure and convenient online payment options, companies can reach customers beyond their physical locations. This expanded market reach presents immense growth opportunities and opens up new revenue streams for small businesses.

• Cost savings and efficiency: Traditional payment methods often come with substantial overhead costs, such as processing fees and administrative expenses. Online payment tools, on the other hand, generally offer cost-effective pricing structures and eliminate the need for manual record-keeping. Small businesses can save on time and resources, reallocating them to focus on core business activities and growth strategies.

• Real-time analytics and insights: Online payment tools provide businesses with valuable data and analytics, enabling them to gain insights into customer behavior, payment trends, and revenue patterns. Armed with this information, small businesses can make informed decisions, optimize their sales strategies, and tailor their offerings to meet customer demands effectively.

• Speedy account reconciliation: Manual reconciliation of payments can be a tedious and error-prone task. Online payment tools offer automatic synchronization with accounting software, allowing for easy and accurate tracking of incoming and outgoing payments. This integration simplifies financial reporting and ensures transparency in financial records.

Top ten payment tools

Following an extensive  research by experts at Workee, here are the top ten payment tools for small businesses and freelancers. This list also includes finance management systems that aids business management.

1. Workee

While Workee isn’t a default digital payment solution, it however houses a financial management system that integrates some of the best and popular payment platforms. 

Workee, offers an array of remarkable features that empower users to receive payments effortlessly, no matter their location. Integrated with cutting-edge payment systems, Workee abolishes transaction fees, granting unparalleled freedom to its users.

With Workee, the process of receiving payments becomes seamless and convenient. By utilizing the platform's user-friendly interface, one can effortlessly send invoices to clients. This ensures a smooth and professional invoicing experience, enhancing the freelancer's reputation and credibility.

The platform's global reach is facilitated by its collaboration with renowned payment gateways, Stripe and PayPal. This strategic integration guarantees that freelancers and small business owners receive their hard-earned income promptly, regardless of their geographic location. 

Not limited to just payments, Workee goes above and beyond by providing additional value to its users. The platform takes care of tax calculations, lifting the burden of financial paperwork off the shoulders of freelancers. This valuable feature ensures that tax obligations are accurately determined, saving both time and effort, and enabling freelancers to focus on what they do best—delivering exceptional work.

Workee serves as the ultimate one-stop solution for self-employed professionals and small business owners alike. By centralizing payment processing, invoicing, and tax management, the platform streamlines the entire financial aspect of freelancing and entrepreneurship, leaving users with more time and energy to devote to their creative endeavors and business growth.

Features of Workee

• It’s a multipurpose tool that includes a website builder, automated invoicing, scheduling and booking function among others. 

• It integrates with payment tools like PayPal and Stripe. This gives you access to two of the top solutions around the world.

• No chargebacks or commissions for every payment you receive.

• While you can begin with Workee free version, signing up for Workee Pro gives you access to more functions. Check out what you can do with Workee pro.

2. PayPal

With over 420 million users globally, PayPal is regarded as the most popular online payment tool. Infact over 70% of Americans use PayPal making it their number one choice for digital payments. This mean you’re more likely to have clients and customers who uses PayPal for payments. As a business owner, the chances are that owner, 

PayPal enables users to make secure online payments to merchants without revealing their credit card or bank account details. Users can link their credit cards, debit cards, or bank accounts to their PayPal accounts for easy transactions. Business owners can request for payment and get paid by sending a personalized link generated from the app, or through their email address.

Features of PayPal

• PayPal offers various payment options, including credit card payments, debit card payments, and bank transfers.

• Supports multiple currencies

• Services are available in over 200 countries.

• PayPal have different charges based on the service you need. Check out the fee schedule here

3. Stripe

Known for its flexibility and developer-friendly approach, Stripe is an excellent choice for businesses of all sizes. It offers a range of APIs and tools to integrate payment processing into your website or app smoothly. Stripe's primary service is payment processing, allowing businesses to accept payments online and handle transactions from customers worldwide. It supports various payment methods, including credit and debit cards, digital wallets, bank transfers, and alternative payment options. This makes it easy for online businesses to process transactions securely and efficiently.

Features of stripe

• It is primarily a payment processor

• Stripe is available in over 135 countries

• Stripe acts as a payment gateway, securely handling the transmission of payment data between the customer and the merchant.

• Stripe has different charges based on the service you need. Check out the fee schedule here

4. Square

Square is a versatile payment platform that provides hardware solutions for in-person transactions as well as online payment processing. It allows small businesses to accept credit cards, contactless payments, and mobile payments through its API and developer tools. This tool also offers features for inventory management, and sales reporting. 

Features of Square

• Supports various payment methods, including credit cards, debit cards, contactless payments (NFC), mobile wallet payments

• offers a user-friendly and versatile POS system that allows businesses to accept payments in-store and on-the-go using smartphones

• Get the complete pricing schedule for square here.

5. Apple pay

Apple pay is regarded as the number one mobile wallet in the United States according to usage. A recent report revealed that over 90% of mobile wallet transactions in the US were from Apple pay. This isn’t so surprising as the Apple mobile devices that houses this wallet is the most popular brand in the country with over 59% of the market. Apple Pay can be integrated into various online platforms and mobile apps, making it easy for small businesses to incorporate it into their existing payment systems.

Features of Apple pay

• Apple Pay is available across a range of Apple devices, including iPhone, iPad, Apple Watch, and Mac.

• supports transactions in multiple countries and currencies.

• Supports multiple payment methods including debit and credit card.

6. Authorize.net

Talking about one of the oldest payment solutions, Authorize.Net is a payment gateway service that allows merchants to accept online payments securely and conveniently. It acts as an intermediary between the merchant's website or app and the financial institutions involved in processing the payment transactions. With Authorize.Net, small businesses can enable various payment methods, including credit and debit cards, electronic checks, and digital payment wallets.

Features of Authorize.net

• Apart from credit cards, Authorize.Net supports electronic check (eCheck) processing.

• Supports subscription-based services or products. It allows businesses to automatically charge customers at regular intervals without the need for manual intervention.

• Get the complete pricing schedule for Authorize.net here

7. Verifone

If your business has a global reach, Verifone, formerly known as 2Checkout might be the solution for you. It supports multiple currencies and payment methods, making it easier for international customers to make purchases. This solution supports up to 45 payment methods and multiple currencies.

Features of Verifone

• Supports multiple currency

• Supports recurring billing

8. WePay

Acquired by Chase bank in 2017, this platform has gone on to become one of the most user friendly payment solution. Setting up your account is a breeze. You don't need to be a tech whiz to navigate through the process. WePay is an online payment solution primarily designed to cater to small businesses and start-ups. It provides businesses with the ability to accept payments online and handle transactions through various payment methods, making it easier for them to collect payments from customers and clients.

Features of WePay

• Offers simple and developer-friendly APIs and SDKs, making it easy for businesses to integrate payment functionalities into their platform

• supports various payment methods, including credit/debit cards, bank transfers, and even ACH

• mall businesses that rely on subscription-based or recurring revenue models can use WePay to handle recurring payments.

9. Braintree

Braintree offers a suite of payment processing services, including credit and debit card processing, as well as support for various digital wallets and payment methods. It plays well with various platforms and languages, making it a breeze to set up on your website or app. Whether you're a tech-savvy entrepreneur or just dipping your toes into the online world.

Features of Braintree

• Supports a wide range of payment methods; Credit and debit cards, PayPal, Apple Pay and Google Pay

• Services are not limited to a specific region, making it an ideal choice for small businesses with international customers.

• Explore Braintree pricing schedule here

10. Amazon pay

Amazon Pay is an online payment solution offered by Amazon, one of the world's largest e-commerce companies. It is designed to facilitate secure and convenient transactions for both customers and small businesses. As an online payment service, Amazon Pay enables small businesses to accept payments on their websites and mobile applications, leveraging Amazon's trusted infrastructure and customer base.

Features of Amazon Pay

• Amazon Pay provides easy-to-use APIs and developer tools that allow small businesses to integrate the payment solution into their existing platforms.

• Amazon Pay prioritizes security, and small businesses benefit from Amazon's robust security infrastructure.

Amazon Pay is available in multiple countries, allowing small businesses to accept payments from customers around the world

Conclusion

Now that we've covered the ten best online payment tools for small businesses, you might wonder which one is the right fit for you. Well, it depends on your specific needs. Consider factors such as transaction fees, integration options, security features, and customer support. If you're uncertain about the best choice for your business, you might want to consider payment consulting services to get personalized recommendations. Alternatively, the Workee platform might be a suitable option for your needs as it offers you a complete business management solution with access to two major payment tools.

In conclusion, these online payment tools can save you time, streamline your financial processes, and boost customer satisfaction. Whether you prefer a payment portal, automatic payment service, or free payment software, there's a perfect fit waiting for your small business.