Open banking has been a game-changer in the payment industry. It is a technology that enables banks and other financial services companies to provide their data to third-party companies. These third-party companies can then use APIs to build consumer or enterprise-focused applications that simplify payments worldwide.
Some of the most popular capabilities provided by open banking include lending, personal finance, wealth management, and consumer payment, among others. In this article, we will look at some of the top online payment platforms.
Stripe
Stripe is a company that most people have never heard about. It is also a company where billions of people have used its service for years. For example, when you make payments on platforms like Shopify, Slack, and Amazon, you are likely using Stripe’s infrastructure.
Stripe, which is valued at over $50 billion, simplifies how companies accept payments on their websites or mobile applications. Companies using its system can accept payments in over 135 currencies. Other services offered by its platform are recurring payments, real-time reporting, and fraud protection.
Stripe makes money by charging a small commission for every payment it processes. Its commission is 2.9% of the total amount and 30 cents. The company also provides some discounts to companies that have substantial volume. Stripe is loved for its transparent costs, strong infrastructure, and advanced security features.
Shift4 Payments
Shift4 Payments is an American publicly-traded company valued at over $5.4 billion. The company provides payments to online and physical companies from around the world. It specializes in companies in the travel and hospitality, retail, and entertainment industries. Some of the firms using its services are Choice Hotels, Pebble Beach Resorts, and BetMGM, among others. It has over 200k customers from around the world.
For physical companies, the firm provides POS solutions that enable them to accept payments using cards. Further, for e-commerce companies, Shift4 Payments has tools that simplify how they accept payments using cards. The main con for Shift4 Payments is that its pricing details are not listed on its website.
PayPal
PayPal is a giant company used by over 420 million people around the world. The company provides numerous consumer-to-consumer and business-to-business services. Its main C2C solution allows people to send money to each other through email.
PayPal’s B2B solution enables companies to process payments using credit and other types of cards. This capability is made possible by Braintree, a company that PayPal acquired in 2012 for about $800 million. Today, PayPal’s business solution has over 29 million merchants.
Noda
Noda is a payment processing company that provides solutions to companies of all sizes. Its product makes it possible for companies to add a checkout button to their websites. Using this button, companies can receive payments directly from a customer’s bank and even their plastic cards.
Noda has other features. For example, companies can integrate QR codes, receive payments via emails, and handle link payments. Like Stripe, Noda has transparent pricing, where it charges a commission of 1% per transaction. It also has a more advanced analytics dashboard that allows businesses to track their performance.
Adyen
Adyen is a giant European fintech company that provides payment solutions to thousands of companies around the world. It serves companies in industries like retail, mobility, digital firms, marketplaces, and hospitality, among others.
Some of the companies that use Adyen are Uber, eBay, Gap, and Tory Burch, among others. It has no setup fees. Instead, it charges a $0.13 commission plus a small payment fee depending on the method used. For example, for Visa and Mastercard, the company charges an extra interchange fee, while for Diners, it charges 3.95%.
Summary
The number of payment infrastructure providers is constantly growing. As a result, companies need to take time to consider the pros and cons of the companies they decide to use. In most cases, the differentiating feature will be the pricing, payment options used, and the reputation of the payment provider.
