Comparing the Best Payment Gateways in Canada

In 2023, Canada alone has an eCommerce revenue of roughly 62.12 billion USD. This is a 47% increase from its value in 2019, and its future projected value in 2027 is a whopping 94.14 billion USD.

These numbers scream one thing: Cash is over!

This is an era of seamless digital transactions. And the only way to stay ahead of the curve in this ever-growing ever-faster-paced eCommerce market is to choose the best payment gateways to power cashless payments.

In this article, we explore the best payment gateways in Canada, so you have the insight you need before making the big decision of which payment gateway to integrate with. So, if you’re based in Canada and want to make your payment process hassle-free, keep reading!

Why Use a Payment Gateway?

While we have discussed that a payment gateway is imperative to the success of your business, it is important to understand why exactly that claim is being made.

Payment gateways are online services that allow businesses to accept payment in the form of credit or debit card payments, digital wallets, or other electronic payment methods. All while ensuring critical financial data is encrypted for safety and transported across a digital tunnel, shielding both your consumer and your company from data theft and fraudulent conduct.

They operate as a bridge between the online store and the payment processor. Funds transfer securely from the customer’s bank account to the merchant’s account via the Internet. So, payment gateways are the very backbone of modern e-commerce.

Top Payment Gateways in Canada

Now we will be taking a look at the most popular payment gateway service providers in Canada and assessing why they’re worthy options to consider for your business.

PayPal

PayPal is one of the top choices for e-commerce payment gateways, with over 250 million customers, many of whom are Canadian. It offers a wide range of solutions to over 200,000 Canadian SMB clients.

Many businesses choose PayPal Payments standard solution because it is a quick and straightforward way to enable online purchases. It’s great for enterprises that do not want to face financial or security risks thanks to its robust fraud protection systems. It is the most popular payment gateway for businesses in Canada, and many Canadian business owners choose PayPal over holding consumer credit card information internally.

The costs it charges are entirely dependent on the service provided. It is typically 2.9% + $0.30 for each successful transaction, which is the industry standard. If the monthly volume is met, the 2.9% decreases and it can fall as low as 1.9% + $0.30.

The monthly fee for the pro solution, which handles American Express, Visa, and Mastercard, is $35, in addition to the usual transaction fees. Despite being robust, it is not one of the cheapest solutions on the market as charges tend to add up especially with alternative payment methods.

Stripe

Stripe is the most popular online payment processing integration system in the Global North. It has always emphasized empowering Internet businesses by providing good developer tools and flexible solutions for the majority of online businesses.

It is a third-party payment processor that assists businesses in orchestrating frictionless payments, powering in-app mobile purchases, offering extensive reporting capabilities, and provides outstanding marketplace and subscription features.

These Canadian payment processors also offer multi-channel sales such as payment terminals, virtual transactions, and mobile payments. As a result, brick-and-mortar shops may also be empowered to accept digital currencies with ease.

Stripe does not charge any annual maintenance or startup fees. The only fee is the industry standard fee of 2.9% + $0.30 per successful transaction.

Square

Square was the first company to introduce a swipe-based smartphone processing system in 2009. The fact that there is no monthly fee or equipment expense is the most interesting part.

It is widely regarded as the most feature-rich and powerful mPOS (mobile POS) solution available without a monthly cost. Merchants pay 2.75% for swipe transactions, 3.5% + $0.15 for keyed transactions, and 2.9% + $0.30 for online transactions when using Square.

There are no statement fees, monthly fees, or minimum monthly payments. This is a boon for merchants who do not have a history of payment processing.

Square also offers a free online store that syncs with in-app inventory counts and eCommerce interfaces, allowing for a seamless transition between online and in-person sales.

It also includes a virtual terminal, saved card capability, invoicing and recurring billing, online ordering, analytics, third-party app integrations, and a payment doorway API for developers. For all these reasons, Square makes the cut for the best payment gateways in Canada.

Adyen

Adyen is one of the world’s most technologically advanced online payment processing services. It accepts and processes payments in over 120 currencies and is available in over 20 countries. This is great for Canadian companies looking to expand their operations globally.

Adyen has excelled at offering cutting-edge omnichannel payment processing, and a unified company experience through its payment processing, payment gateways, and merchant accounts.

Braintree

Braintree is another well-known payment processor that was acquired by PayPal in 2013. Braintree, founded in 2007 and headquartered in Chicago, Illinois, provides a variety of payment alternatives, including credit cards, debit cards, and PayPal balances, as well as services comparable to PayPal, such as recurring billing and fraud protection.

It is a developer-friendly platform with expansive payment options, lower transaction fees for most payment methods, and seamless international payments.

Braintree is particularly well-known for offering simple APIs and user-friendly interfaces for a wide range of programming languages and platforms. It is also known to be more geared to businesses and can work really well for B2B businesses.

What to Factor in When Deciding on a Payment Gateway?

When comparing payment gateway in Canada for your business, there are several factors to consider:

1. Transaction Fees

Transaction fees play a crucial role in shaping your business’s profitability, especially when you’re handling a bustling stream of transactions.

Every swipe, every click, and every sale holds the potential to impact your bottom line. That’s why it’s absolutely vital to dive deep into the realm of transaction fees and seek out a payment gateway that offers competitive rates tailored to your unique monthly sales volume.

Carefully scrutinizing and selecting the gateway with the best value proposition, can unleash the true potential of your business and keep those profits flowing in.

2. Supported Payment Methods

Different payment methods are preferred by different customers. Examine whether the payment gateway accepts a variety of payment methods, such as credit/debit cards, digital wallets, bank transfers, and alternative payment methods popular in your target market.

3. Level of Security

Payment gateways handle confidential financial data. As a result, security becomes a primary consideration in your decision-making process. Choose a payment gateway that employs cutting-edge security techniques like encryption and tokenization to protect both your consumer and your business from fraudulent behaviour.

4. Integrations

Consider how simple it is to integrate your e-commerce platform or website. Choose a payment gateway with easy-to-use APIs and smooth integration.

Opt for payment gateways with built-in fraud prevention features or interfaces with third-party fraud detection systems to assist reduce the risk of fraudulent activity.

5. Customer Support

Look for a payment gateway that provides excellent, round-the-clock customer service. So, you can rely on the customer success team to resolve payment-related difficulties swiftly.

To handle any concerns quickly, look for a payment gateway supplier with responsive customer care channels, such as phone, email, or live chat.

A simple and easy-to-use payment experience with responsive customer support can have a major impact on consumer satisfaction and conversion rates.

6. Reliability & Availability

Choose a payment gateway that is reliable and comes with minimal downtime. A dependable payment gateway with a high uptime ensures that your clients may make payments without interruption.

7. Reporting and Analytics

Payment processing, transaction trends, and customer behaviour can provide you with usable data insights imperative to your success. It’s a good idea to go for a payment gateway that has comprehensive reporting options to assist you in monitoring and optimising your payment operations.

8. Scalability and Growth Potential

It is also advisable to take a look at the payment gateway’s scalability. Will it be able to handle higher transaction volumes as your company grows? Factor in the gateway’s adaptability and expansion potential into your final decision to ensure they are compatible with your long-term business objectives.

Final Word

Finally, there are various payment gateway providers in Canada, each with its own set of services and costs.

When selecting one for your company, do consider transaction fees, payment methods supported, security levels, accessible integrations, and customer service quality along with other factors that we have mentioned.

The right payment gateway is sure to be a game-changer for your organization and can assist you in orchestrating smooth payment processing and growing your business.