Gaurav Sharma June 30th, 2021

5 Best Magento 2 Payment Gateways and How to Integrate Them on the Website

Payment Gateway is a phrase that refers to receiving and transmitting money from online customers to seller accounts for their purchased products online in a safe manner using any form of transaction, such as credit card or debit card.

Actually, a payment gateway is a third-party resource that assists both vendors and purchasers in completing safe and secure transactions. They should also be in charge of maintaining high levels of security on online shops in order to direct online consumers to third-party pages where they may complete their orders.

Magento 2 is a free and open-source e-commerce platform that allows you to create an online store through a custom web development company with extensive functionality and scalability, allowing you to sell both physical and digital items and services. It works with the most recent PHP versions, as well as CSS3, HTML5, and MySQL. Magento 2 facilitates the online transaction procedure and this makes companies hire expert magneto developers

  • If all internet shoppers are included and an average is calculated, roughly 19 online transactions per person per year occur globally.
  • Online fraud, as opposed to in-person fraud, currently accounts for 58 percent of all instances.
  • Furthermore, 7 out of 10 buyers proceed with a transaction depending on the payment gateway option that is accessible.
  • Backend order processing is a crucial aspect of eCommerce that is sometimes ignored.
  • Business owners spend a significant amount of money to create a visually appealing website but often place less emphasis on payment delivery methods.
  • Consumers throughout the world expect more in the 2010s and 2020s.

What do you mean by payment gateways?

An eCommerce payment gateway is a third-party service that approves credit card payments within your eCommerce software and connects your eCommerce shop to a bank.

Consider it a physical POS (point of sale) terminal at a grocery store or café. A payment gateway, like a cash register, is offered and supported by a third party for your convenience. It takes, verifies, and encrypts your customers' credit card information. As a result, sensitive financial information is sent securely from a consumer to the merchant, and subsequently between the merchant and the bank.

What are Magento payment methods?

The payment gateway for the Magento store is the manner through which a client decides to pay for an item. Cash, credit/debit card payments, e-Wallets, bitcoin transactions, and other internal and external ways are examples. Yes, you read it correctly: cash transactions are used in eCommerce, though they are less common than other payment methods.

The following payment methods may be configured by a Magento merchant: check/money order, bank transfer, cash on delivery, buy delivery, and zero subtotal checkout. The methods may be installed by going to Admin Stores Configuration Sales Payment Methods in the admin panel.

Understanding a merchant account

A merchant account is a bank account into which proceeds from a successful financial transaction are placed. Your retail business can accept credit and debit card payments processed through a payment processor with a merchant account.

The payment gateway's primary function is to refuse or authorize each financial transaction, whereas a merchant account is responsible for accepting credit and debit card payments. In simple terms, a merchant account is an agreement between an internet business owner and a credit card processing firm. As a retailer, you don't need a merchant account because it isn't required.

What are the best 5 Magento gateways?

Let us have a look at the top 5 payment gateways of Magento2 that one must know:

1. World pay business payment

Most eCommerce shop owners select Worldpay Business Payment Module as one of their preferred Magento2 online payment solution integration extensions because it allows them to sell their products while remaining calm and relaxed without having to worry about technical issues. Many new online store owners, regardless of which PHP-based online store they have just launched, may be perplexed when it comes to choosing Worldpay payment extensions because it is available in two different types: Business account and Online account. They should know which account they have before purchasing any Worldpay payment extensions.

  • It allows you to apply customer-specific discounts.
  • It aids in the provision of a discount in order details and order emails.

2. World pay the online payment

Worldpay Online Payment Extension allows store owners to manage all payments and transactions within their store, and buyers can continue shopping after checking out by paying with any of their credit cards (Visa, Mastercard, JCB, AE, etc.) within your online shop without being redirected to the Worldpay payment page, as in Worldpay Business. It also aids the Magento2 store administrator in increasing sales and maximizing profits.

  • The payment system is completely automated.
  • It has a feature that allows you to receive automated payment updates.
  • It provides secure codes to improve payment security.

3. Paypal adaptive

PayPal is a well-known Top Online Payment Gateway for a variety of companies other than e-commerce domains since it has had a significant beneficial influence on online businesses such as online hotel bookings, online shopping, rental bookings, and travel bookings, among others. I discovered PayPal’s Adaptive Payments Extension provides a flexible manner of collecting and transferring funds received from purchasers, which may be divided into different user tiers (primary receiver, secondary receiver). Because it allows sellers to easily handle admin to shopper commission transactions, this type of adaptive payment system will be best suited for the Multivendor Marketplace, which comprises vendors, admin, and buyers.

  • Both Magento 2.0 and 2.1 are supported by this plugin.
  • This addon is very simple to set up.
  • It accepts both normal PayPal payments and PayPal express payments.
  • It accepts payments in all currencies except the base currency.
  • Customers are able to pay in any currency of their choice.

4. Stripe payments

Stripe is a well-known payment gateway among all internet users, similar to the PayPal payment system, so there is no need for a lengthy introduction. Since store owners included the Stripe Payment Module by default along with PayPal to collect huge quantities of transactions within their online store, Stripe is another smart payment option on virtually all shopping cart websites. It enables Magento2 shop owners to create partial billing from both the admin panel and the customer dashboard.

  • It offers credit card processing for level II and level III data.
  • This extension offers encrypted card readers.
  • It helps to protect customer data and secure checkout.
  • It minimizes PCI scope and reduces liability

5. Sage pay

In comparison to other payment methods that are frequently incorporated into an online business, such as Worldpay, 2 checkouts, and so on, Sage Pay is one of the most dominant payment service providers in the UK. It also enables online consumers to conduct safe purchases using credit or debit cards. With the aid of a PCI-compliant data vault, Sage Pay Payments would be able to collect and preserve payments from consumers, as well as save payment information via checkout forms.

  • It comes with a responsive checkout page by default.
  • This add-on is simple to use.
  • This plugin allows you to auto-fill your address.

How do these payment gateways work?

As a middleman between a merchant and a bank, an eCommerce payment gateway protects customers' privacy while also reducing merchant costs. But how does it function in practice? Let's have a look at each step.

A payment gateway (and especially Magento payment processing) follows the four stages below:

  • Step 1: A consumer chooses the product he or she wishes to buy and completes the transaction by entering his or her credit card information on the checkout page. The transaction data is encrypted before being sent to your payment gateway.
  • Step 2: The payment gateway receives the order and uses a Digital Certificate to authenticate the store (a sort of your online shop ID). When a client selects a payment method, the payment gateway sends the information to either the acquiring bank (in the case of Magento credit card payment method) or a merchant account (in the case of another chosen method).
  • Step 3: After the issuing bank or credit card (Mastercard, VISA, Maestro, American Express) authenticates the transaction, it is accepted or refused (depending on the charges available on the customer's bank account).
  • Step 4: The bank transfers the funds to the payment gateway, which then directs the funds to the merchant account. The money may arrive on a merchant account in a few minutes or a few working days, depending on the payment gateway.

What's the appeal of it? This entire process takes no more than 2-3 seconds! The final stage of settling the payments may take a few days, but with the appropriate payment gateway, your customer will be able to check out in the blink of an eye.


These extensions are the backbone of not only online retailers, but also many enterprises that have switched from conventional direct store sales to a digital platform. While many online shop administrators obtain the Best Ecommerce Website, others fail to integrate the Best Online Payment Extensions on their particular eCommerce marketplaces. At the end of this post, any online shop owner will be able to choose the best payment gateway modules for their Custom Magento2 Marketplace.

Featured image by on Unsplash

Gaurav Sharma

Gaurav Sharma is the Founder of Attrock, a digital marketing company. He works closely with top marketing influencers and has helped numerous brands, ecommerce firms, and SaaS companies grow. He is also a certified Google Analytics and Google Adwords specialist and regularly contributes to reputable publications like HuffPost, TechCrunch, and many more.

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