When PayPal arrived back in the late 90s, it was a revelation. Offering easy-to-use services that individuals and small businesses could take advantage of and join the burgeoning e-commerce industry, PayPal became enormously popular and successful, and rightly so. Much of what the Internet has become depended on there being a relatively simple payment method with a low barrier to entry. However, in 2002 PayPal was bought by eBay, and most of the founders, the so-called PayPal Mafia, left to innovate elsewhere. Unfortunately, PayPal rested on its laurels, offering not much in the way of improvement in the intervening years. Additionally, anyone who has had to deal with PayPal in their business will be well aware that PayPal’s customer service can leave a lot to be desired. Even the PayPal founders who cashed out in the early days don’t have much hope that the company will prosper in the long run.
With that in mind, we’re going to look at three alternative payment processing services that Nexcess customers can use in their Magento stores. Although we’re concentrating on Magento in this article, these services can also be integrated with WordPress.
All of these services aim to be PCI-compliant, so, when used in conjunction with our PCI-DSS-certified hosting environment, your store will conform to the relevant regulations for dealing with credit card transactions online. Be sure to check out each service’s website for details of their levels of PCI compliance.
2Checkout.com offers a merchant account and payment processing service that can be easily integrated into a Magento store. They can accept payments with all major credit cards and by a variety of other means, including through PayPal if that’s what your customers prefer. 2CO can receive payments in 31 currencies across 200 countries. A 2Checkout.com-certified payment module is available from Magento Connect.
Braintree Payments is a popular PayPal alternative for handling credit card payments. Braintree provide a merchant account and payment gateway with a very slick UI and a focus on providing great customer service. They accept payment by credit card in 130 currencies and can pay out to retailers in 13 major currencies. At the moment, Braintree is only available to US-based companies, but should be rolling out internationally later in the year. Braintree is one of the included payment gateways in Magento; it can be enabled by following this guide.
Stripe is a payment processing startup with backing from PayPal founders Elon Musk and Peter Thiel. It aims to be the PayPal alternative “that doesn’t suck” and is friendly to developers. With an overarching goal of making setting up credit card payment processing as little hassle as possible, Stripe is fast becoming a Silicon Valley darling. Magento users should have a look at the Inchoo Stripe extension in Magento Connect.
Do you have any experience with using these services in Magento or in your own products? Let us know how it went for you, and if you have any other services you’d add to the list.