Think of your payment provider as the silent partner in your ecommerce business. It handles the behind-the-scenes work, processing payments and moving money, but it also plays a huge role in your customer experience and how smoothly your store operates.
The right choice can simplify transactions, reduce fees, and keep customers happy with a fast, secure checkout process. But the wrong one? You could end up with clunky transactions, hidden costs, and too many abandoned carts.
At the end of the day, your payment provider isn’t just a way to get paid. It’s a gateway to building customer trust and ensuring long-term growth. In this guide, we’ll walk you through what to look for, the options available, and why choosing the right provider matters more than you might think.
What is a payment provider?
A payment provider is the company that enables your ecommerce store to accept payments from customers. It acts as the bridge between your customer’s chosen payment method—whether that’s a credit card, bank transfer, or digital wallet—and your business’s bank account. In simple terms, the payment provider ensures that money moves smoothly from your customer to you.
But in ecommerce, there are other key players you need to know about. A payment processor is the engine behind the scenes, responsible for handling the actual transaction between the customer’s bank and your bank. It’s the payment processor that verifies whether the funds are available and approves or declines the payment.
Then there’s the payment gateway, which is the technology that securely transmits your customer’s payment details from your online checkout to the payment processor. Think of it as the digital equivalent of a card reader at a physical store.
So, while the payment provider is the one-stop shop for accepting and processing payments, the payment processor and payment gateway are the key technologies working together to make sure each transaction is fast, secure, and successful. Each plays an important role in ensuring your ecommerce business runs smoothly, but the payment provider is the central piece of the puzzle, bringing everything together.
Choosing the right payment provider isn’t just about picking the one with the lowest fees or flashiest features. To make the best decision for your ecommerce business, you need to consider a few key factors. Here’s what to look for:
Transaction fees and pricing models
One of the first things you’ll want to dig into is the fee structure. Payment providers can charge fees in a variety of ways—flat rates, percentages, or tiered pricing based on your transaction volume. Some providers may also include additional fees for things like chargebacks, currency conversion, or refunds. The tricky part is that these costs can quickly add up, so it’s essential to look beyond just the basic transaction fee.
For small and medium businesses, understanding hidden fees is crucial. Make sure to choose a provider with transparent pricing that won’t surprise you with unexpected costs. Knowing the true cost upfront helps you manage your margins better and avoid unpleasant surprises down the road.
Payment method compatibility
The more payment options you offer, the more likely your customers will complete their purchases. A good payment provider should support a wide range of local and international payment methods, especially if you’re operating in Europe. Popular local methods like bank transfers or BLIK in Poland can significantly increase conversions if your customers prefer those options.
Additionally, supporting global payment options such as credit cards, Apple Pay, Google Pay, and even cryptocurrency can help you capture a broader audience. Flexibility is key here—your provider should enable you to offer customers their preferred way to pay.
Security and fraud protection
When you’re dealing with sensitive financial information, security is non-negotiable. A good payment provider must be fully PCI DSS compliant, which is the standard for protecting cardholder data. Beyond basic compliance, look for providers that offer robust fraud detection tools, such as encryption, tokenization, and advanced machine learning algorithms that detect and prevent suspicious transactions.
Fraud can hit small businesses particularly hard, so it’s worth investing in a provider that takes security seriously and offers comprehensive protection for both you and your customers.
Settlement times
How quickly you can access your funds after a transaction is processed can make or break your cash flow. Some providers may take a few days to settle funds, while others offer next-day or even same-day settlements. For SMEs, getting paid quickly is critical to keeping the business running smoothly.
When evaluating providers, find out how long settlement takes and whether there are any extra fees for faster payouts. A provider that ensures quick access to your funds can give you the flexibility to reinvest in your business without delays.
Integration with your ecommerce platform
Seamless integration with your ecommerce platform is another must-have. Whether you’re using WooCommerce, PrestaShop, or Magento, your payment provider should integrate easily without the need for complex setups or constant maintenance.
The goal is to create a smooth, frictionless checkout experience for your customers and simplify backend management for your team. The more effortlessly your payment provider integrates with your existing systems, the fewer headaches you’ll face down the line.
Customer support
Even with the best technology, things can go wrong. When that happens, having a reliable customer support team on hand is essential. Look for a payment provider that offers responsive, local support, ideally in your time zone.
Whether you need help with a technical issue or have a question about a transaction, the last thing you want is to be stuck waiting for an answer. Choose a provider with a reputation for excellent customer service, so you can get the help you need when you need it.
These key factors will help you narrow down your options and choose a payment provider that not only meets your current needs but also supports your future growth.
Bank vs. Payment Providers: Understanding your options
When it comes to choosing how you’ll handle payments for your ecommerce business, you’ve got two main options: traditional banks or specialised payment providers. Both have their advantages, but for SMEs in the fast-paced ecommerce space, one option is clearly more agile and cost-effective.
Banks: Old, outdated technology and higher costs
Traditional banks have long been the go-to for managing business finances, but when it comes to payment processing, they often fall short. Most banks rely on outdated technology that isn’t built for the modern ecommerce environment. This means their systems can be slow, clunky, and lacking in the flexibility needed for businesses to scale quickly.
On top of that, banks tend to charge higher fees for processing transactions, with complex fee structures that can eat into your margins. Whether it’s transaction fees, setup costs, or maintenance charges, using a bank for your payment processing can quickly become expensive, especially for small to medium-sized businesses.
For SMEs in the ecommerce space, where agility and affordability are key, banks simply don’t offer the speed, customization, or cost control that modern businesses need to thrive.
Payment providers: Enterprise options and specialised SME solutions
Enter the payment providers. Well-known names like Stripe, Adyen, and Worldpay offer robust, full-service solutions that can handle complex, high-volume transactions. These providers are popular for a reason—they offer enterprise-level features like advanced analytics, multi-currency support, and global scalability. However, these services often come with high fees and complex setups that aren’t always ideal for smaller businesses.
Stripe, for example, is designed for companies looking to process a massive number of transactions worldwide, with the infrastructure and cost to match. Similarly, Adyen and Worldpay cater primarily to large enterprises that need an all-encompassing, high-performance payment solution, but these come with layers of complexity and pricing models that can be overwhelming for SMEs.
For small to medium-sized businesses, it’s often better to go with a specialised payment provider that focuses on simplifying the process and keeping costs low.
Montonio: The payment provider for European SMEs
When it comes to simplifying both payments and shipping for small to medium-sized ecommerce businesses, Montonio offers a unique all-in-one solution. Instead of juggling multiple providers, Montonio brings payments and shipping together into one easy-to-manage system, designed specifically with European businesses in mind. This integration makes operations smoother and more efficient, allowing you to focus on growing your business rather than managing complex backend processes.
But Montonio goes beyond just payments and shipping. With features like Pay Later, which allows customers to split their payments into manageable instalments, and comprehensive shipping tools that automate label creation and tracking, Montonio adds extra value that directly enhances the customer experience and boosts conversion rates. These extras make it even easier for your business to compete and grow in today’s ecommerce landscape.
Localised payment methods
One of Montonio’s standout features is its support for localised payment methods that resonate with customers in the Baltics and Eastern Europe. Offering popular options like BLIK, which is widely used in Poland, and SEPA bank transfers for European customers, Montonio ensures that your customers can pay using the methods they know and trust. By offering the right payment options, you’re not just making it easier for customers to complete their purchase—you’re actively reducing cart abandonment and boosting conversion rates.
Fast settlement and transparent fees
Unlike traditional banks and many enterprise-focused payment providers, Montonio offers quick settlements and transparent pricing, which means you won’t be caught off guard by hidden fees. You’ll know exactly what you’re paying, and more importantly, you’ll get access to your funds faster—crucial for maintaining healthy cash flow, especially for growing businesses. Faster settlements allow you to reinvest in your business quickly and keep your operations running smoothly.
Seamless integration with top ecommerce platforms
Montonio integrates effortlessly with popular ecommerce platforms like WooCommerce, PrestaShop, and Magento. These seamless integrations mean that you don’t need to waste time with complicated setups or worry about compatibility issues. Montonio works behind the scenes to ensure payments are processed smoothly and shipping is handled efficiently, creating a streamlined experience for both you and your customers.
Etuo case study: A success story
To see Montonio in action, look no further than etuo, a leading Polish ecommerce company specialising in mobile phone accessories. As etuo expanded into the Baltics, they needed a payment provider that could handle the unique demands of cross-border payments and improve cash flow. Montonio delivered on both fronts, offering localised payment options and faster access to funds. The seamless integration with Magento allowed etuo to manage payments without the hassle, while Montonio’s all-in-one system helped them navigate the complexities of cross-border ecommerce. With Montonio, etuo was able to scale their operations smoothly, improve cash flow, and meet the needs of their growing customer base.
Montonio simplifies payment processing, supports localised methods, and offers fast, transparent settlements—all while integrating seamlessly with the platforms you’re already using. It’s the smart choice for ecommerce businesses in Europe looking to scale efficiently.