Online Payment Gateway Vs. PayPal

Online Payment Gateway Vs. PayPal

Online payment gateway is leading the online business forward. Standing in the 21st century, it is very important to understand the new strategies of the small merchants. People are nowadays preferring online and cashless transactions because of its reliability and enhanced security. If you are new to online business, you are probably familiar with online payment gateway. Well, an online payment gateway is something through which you can accept payments from customers across the globe.

An online payment gateway passes the credit card information to the payment processor in the most secure way. The payment processor shares the information with the credit card network. Then, the credit card issuing bank approves or declines the transaction depending upon the available credit. Finally, the bank passes the information to the credit card network and the credit card brand shares the same with the payment processor.

Why People Choose Online Payment Gateway

Well, you might be surprised to know that the online payment gateway is the future and it has several advantages. We have elaborated them below:

  • Enhance The Customer Base: If you pair your business with a merchant processor, you will get more number of customers. This happens because customers around the world get access to your online store. Ultimately, it will enhance the cash-flow of your business.
  • Faster Transaction: Going to a retail store and purchasing something is a time-consuming process. Moreover, you might have to stand in a long queue. But, if you go with an online transaction, you will don’t have to wait much. Online transaction is faster and reliable.

Nowadays, there are many virtual platforms such as PayPal, Stripe online payment gateway, Square and many more offering online payment gateway. But, among them, PayPal is very popular among the small merchants.

Here, we have mentioned the advantages as well as disadvantages of PayPal. So, have a look at the following points:


PayPal has the following advantages:

  • It offers affordable flat-rate pricing structure
  • PayPal has multiple pricing plans in order to enhance the flexibility
  • If the monthly transaction volume is low, PayPal will be an ideal option for you
  • It has effective developer tools
  • Merchants will get extensive integrations


Well, everything has disadvantages and PayPal is not an exception. The advantages are as follows:

  • Merchants might face problems regarding account stability
  • The customer support is inconsistent
  • If you are into high-risk industries, PayPal will not be an ideal option for you.

So, you have understood what PayPal is. Now, if you are a small merchant and want to start an online business, we will recommend you to go with PayPal payment gateway.

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