The Revenue-Driven Benefits of Using Multiple Payment Gateways for Recurring Payment Processing

Payment Gateway is an integral part of any subscription billing system. For businesses providing subscription services or products, setting up a payment gateway is inevitable to leverage the online and instant recurring payments directly into the merchant accounts.

These payment gateways apart from processing the secured and encrypted payments favor at checkout, also helps in scheduling and automated payment processing at various intervals as set by the merchants.

In our previous articles, we have learned about the payment gateways, how they work, why integrating a payment gateway in a subscription management system is important, and what are some of the key payment gateways widely used across the subscription industry.

In this blog post, we will discuss how using multiple payment gateways can help not only customers but also, supports merchants to get the optimized rates to receive payments from customers of every region.

The Growing Trend of Using Multiple Payment Gateways

It is an age variant option, on-the-go payment processing, and global customer engagements along with the risks of online payment frauds and scams. Today, integrating a single payment gateway won’t serve all the purposes of facilitating the customers for online recurring payment processing.

Merchants are required to give their customers more options for multiple payment gateways supporting multiple payment methods.

The evolution of eCommerce and Subscription billing and recurring payments processing give rise to end the dependence of multiple payment gateways facilitating customer base from across the continents.

Studies suggest that no one payment gateway holds a lion share. It shows significant competition and struggles to attract more merchants towards their platform.

Payment Gateways offer secure and encrypted payment processing to the eCommerce, online business, and subscription services providers, and other merchants.

The Benefits of Multiple Payment Gateways In the SaaS and Subscription Businesses

  • To Attract More International Leads and Across the Borders Sales In Their Own Domestic Currency

The payment gateways do not facilitate international transactions in all currencies. Most payment gateways are not available in many geographic locations across the world.

For instance, the industry-leading Payment Gateway is not available in several countries from where a huge market of customers exists for many US-, UK-, Australia-, Europe-, and other regions-based small- to mid-sized businesses, including Paraguay, Pakistan, Bangladesh, and other more than 50+ countries.

Including PayPal, Stripe, Braintree, and others, the most popular and widely-used payment gateways support the following three or more from the following major currencies:

  • Australian dollar (AUD)
  • Brazilian Real (BRL)*
  • British pound (GBP)
  • The Canadian dollar (CAD)
  • Euro (EUR)
  • Hong Kong Dollar (HKD)
  • Israeli new shekel (ILS)
  • Japanese yen (JPY)
  • Russian ruble (RUB)
  • US dollar (USD)

As subscription businesses are based on recurring billing and payment processing, they need payment processing solutions for the longer term.

Studies suggest that the B2C customer base prefers to pay in their domestic currency. To attract more international leads from across the continents, subscription businesses need to broaden their range of payment gateways that support the online payment transactions in the domestic currencies to cover every area where the market for the subscription business is available.

To accommodate the international customer base, merchants do not need to give up their domestic currency-based payment gateway. Instead, they can configure multiple payment gateways in their subscription management system to facilitate their revenue resources existing beyond the borders.

  • To Make Alternates Available When Any of the Payment Processors Are Down

Not always payment gateways are up and facilitate the seamless and frictionless transaction round the clock throughout the day.

Based on the transaction type or the transactional currency, the performance of the payment gateways fluctuates. It is common for the payment gateways to the outage.

Studies reveal that up to 37 hours, payment gateways outage, and more than half of the dozens of prominent payment gateways have suffered through the outage incidents multiple times in a year only.

The system down issues of payment gateways can incur a huge sum of revenue loss to merchants. Particularly, in the subscription business, the recurring payments processing require cutting-edge fast and instant solutions to receive payments in the recurring revenue cycle so that pace remains maintained and reflected in the real-time data.

It also hurts the customer experience, brand trust, and merchant’s efficiency.

The best solution to avoid these worst service and revenue hassles is using multiple payment gateways. Configuring more than one payment gateway in any recurring billing and payment processing system re-directs the payment transaction to another gateway if the desired processor is an outage.

Here is a list of some of the payment gateways that are widely used in most parts of the world:

  • PayPal
  • PayPal Payflow Pro
  • Stripe
  • Braintree
  • SagePay
  • WorldPay
  • Net
  • Go Cardless
  • Amazon Pay
  • Adyen
  • 2Checkout
  • PaySafe
  • Skrill
  • RazorPay
  • PayU
  • Payoneer
  • WePay
  • BlueSnap
  • BitPay
  • PayPro Global
  • To Support Multiple Payment Methods

For many reasons, payment gateways support selected payment methods. Following are some of the major payment methods for the online payment transactions accepted by the major Payment Gateways:

  • Credit Cards
  • Digital Wallets
  • Authenticated Debit Banks
  • Bank Debits
  • Bank Credit Transfers
  • Mobile Pay
  • Buy Now, Pay Later
  • Cash-Based Payment Methods

Let’s say Stripe support American Express, Visa, and MasterCard as well as some of the more niche products like UnionPay, but didn’t accept payments from many digital wallets and Buy Now, Pay Later Financing payment methods.

If you have the customer base from a region or a certain background that is more drawn to a certain method of payments, it is important to integrate the payment gateway separately in the billing and payment system to ease the transactions of the payment from that source to power the revenue.

  • To Increase the Ratio of Successful Payments

Using multiple gateways for online domestic and international transactions increases the probability of assuring successful payment processing. As with more options, there are fewer chances of an outage, technical transactional glitches, payment method or currency support, security, and other problematic issues, it is unlikely that the payments are keep declining.

If one payment gateway does not work, recurring billing software re-directs to the other payment gateway, and so on and so forth, until the payment is processed from the source.

  • To Identify the Payment Decline Reasons In Any Demographic

For the subscription businesses, declining a payment is a disaster, because it is the recurring payments against the subscription services received over the term and if it is not reflected in the recurring revenue real-time reporting, can create damages to the subscription health of a customer despite paying on time.

Not only it implies a negative impact on the revenue, customer experience, brand loyalty, it also disturbs the streamlined data-driven workflow in any team or organization.

For various factors, payments got declined. Some of the common likelihood include:

  • Payment Method
  • Card Type
  • Card Issuing Bank
  • Cross-Border Trade
  • Transaction Type
  • Customer Transactional History
  • Customer Country
  • Currency

Integrating multiple payment gateways in a subscription billing and payments software can deal with the above-mentioned aggravations and provide more opportunities for payment success. Also, it unearths and highlights the reasons behind payment failures or declines from a specific source or across the demography.

  • To Facilitate Customer’s Choice of Payment Method and Payment Gateways

Different people living in different regions consider different payment methods as well as gateways for different reasons.

In the subscription business, more customers can be drawn by providing the payment methods and payment gateway of their choices. This is a stellar example of personalized customer experience and attracts more brand loyalty.

Favoring customers with their choice of payment methods and payment gateways removes the frictions of conversions and enable more engagements within the customer base.

  • To Leverage Flexibility of Transactions and Independence of Dependability

Among other reasons, this is one of the significant factors which compels merchants and subscription products or services providers to integrate multiple payment gateways in their recurring billing and payment system.

When the business grows, you can’t afford dependability.

Configuring a single payment gateway to manage all the customers is not a wise decision because it drags merchants towards dependability and crunch freedom to do the business without stress.

As we have learned earlier that every customer belongs to different regions that have variant requirements for transaction ways, payment methods, currencies, and others. If any day PayPal is not supportive of any type of transaction, Stripe can help, and in case Stripe is an outage, Authorize.Net can work.

Often payment gateways performance fluctuates when there is a high influx of traffic on their platform, the payment declines are common. This could influence a customer’s decision to go further with the purchasing decision. Get your platform independent of the dependence on one single payment gateway, use other when the one you are using is busy.

Using multiple payment gateways keeps you from losing revenue and intact customer with your platform with smooth payment transactions.

  • To Access to Additional Payment Functionalities

Selecting a specific payment gateway has some intent behind it. Merchants prefer any payment gateway aside from facilitating the customers and worldwide coverage.

Not all payment gateways are favorable to businesses as they have hidden charges or high rates. Using multiple payment gateways allows merchants to go with the gateway that offers the best preferential rates in that region along with other p[ersks.

Similarly, there are so many additional payments and rates, security levels, and 3DS support and services which attract vendors or merchants to opt for a payment gateway.