Nowadays, every mobile device user has the ability to connect to the network at any convenient time regardless of location. Web applications based on constant access to the Internet provide a wide range of opportunities for their users. Watching a video online, playing simulators or paying for purchases – based on personal preferences and age, each user decides which mobile applications will be useful to them at work or in daily life.
In modern society, time is the main and most important resource. While paying for personal purchases or making utility payments, many users use special applications. How do trading Internet applications work? What does the payment process look like? The customer chooses goods from the list of offered products and places them into the order basket. When placing an order, the buyer can choose from several payment options, the number, and types of which depend on the connected payment gateways. The payment gateway processes the information on the required payment and, through the connection with the bank, authorizes the transfer of funds from the consumer to the trading account. If within a few days the customer does not challenge the transaction, the money is transferred to the store.
A payment gateway is a software complex created to provide automation of the process of making payments on the Internet.
The payment system is a set of apps that provide the possibilities to conduct electronic payments. The main function of the payment system is money transfer, without which ecommerce simply could not function in such a way as to be convenient for both consumers and sellers alike.
Payment systems are characterized by the support for the following features:
• Provision of the list of payment methods and communication with banks and electronic purses;
• Protection of the transmitted data. Data exchange between the payment gateway and banks, including transmission channels, are protected by the most powerful security and encryption protocols;
• Authorization. The payment system ensures the reconciliation of the buyer’s data with the banks in which they are serviced and authorization of transfers;
• Processing of payment requests. Once the payment system receives a request for a transaction, it sends the data to the customer’s bank or the electronic wallet, after which authorization and reconciliation of the data occurs.
In this article, we described the three most popular payment platforms:
1. Stripe;
2. Braintree;
3. PayPal.
This online payment services comparison is directed at helping the reader determine which of the presented platforms will be most effective for their application or website, and will also provide an opportunity to identify all the nuances of developing applications with payment capabilities.
Braintree vs Stripe
Braintree service is a subsidiary of PayPal and was purchased by the latter in 2013. The company provides its customers with integration to a payment gateway, as well as the ability to create trading accounts. There are ready-made order basket options for integration with online stores and web applications. Commerce PayPal feature allows adding purchase buttons to any application, including social media clients. An example of such an application can be Facebook Messenger, closely associated with the social network of the same name. The official website of this payment processor promises the easiest possible way for accepting payments via credit cards or PayPal.
Braintree also offers its customers around the clock telephone support, which allows instantly dealing with all the payment nuances and provides a high level of service.
The main features of Braintree in comparison with Stripe:
• Integration of the Braintree services requires the attention of professional programmers;
• Supports browser-based data encryption;
• Provides three client SDKs for mobile and web platforms, as well as server-side libraries for six common programming languages – Ruby, Python, PHP, C #, Java, and JavaScript.
Since 2010, Braintree processes are in full compliance with the Payment Card Industry Data Security Standard (PCI DSS) – a set of standards, credit card data exchange and security principles, created by the PCI Security Standards Council, consisting of five major payment card brands. Data on cards and corresponding transactions can be transferred to the seller of goods or provider of services in accordance with their request.
Stripe vs Braintree
Compared to Braintree, Stripe’s main advantage is the presence of own servers. Consequently, developers do not need to additionally encrypt data about users and their payments. They can use payment processing mechanisms built into the platform in their own applications and sites, without having to register an account. A special feature of Stripe is also the systematic multi-level protection against fraud. The system offers libraries and APIs for various platforms (iOS, Android) and programming languages/frameworks (Ruby, Python, PHP, Java, Node.js (JavaScript), Angular (JavaScript), Go (C#), .NET (C#), ColdFusion/CFML, Perl, Elixir, and others). Stripe will be the best solution for service providers since it has ready-made libraries for adding payment transactions to service sites.
Stripe is the best choice for those who want to offer their customers the opportunity to settle payments with cryptocurrencies like bitcoin.
In 2015, Stripe developed a special product, Relay, which allows developers to add buttons for shopping in social applications, among which Facebook and Twitter are the most famous.
Another serious advantage of Stripe vs Braintree is direct interaction with Alipay payment system.
PayPal vs other payment gateways
The PayPal integrated payment system is considered, perhaps, the most famous of all mentioned. This system is available to users from 202 countries, which is an undoubted advantage of PayPal vs Stripe since the latter is available in 25 countries only. PayPal performs the exhaustive systematic fraud checks. The advantage of PayPal vs Braintree is the presence of own servers, to which the user data is redirected, thus eliminating the need for additional security measures. PayPal also provides discounts on services for large customers.
PayPal also offers a paid premium Payments Pro service containing the additional functionality, including customizable checkout pages, elimination of the need for the redirection to the paypal.com and real-time transaction authorization.
In 2012 the developers of PayPal introduced a new tool – PayPal Here. This is the device for reading information from bank cards, which, when connected to a mobile gadget, gives the user the opportunity to make payments through credit and debit cards.
Alternative online payment methods
Online payment processing comparison should include at least a mention of alternatives. Along with the above discussed, such payment platforms are popular:
• Amazon Pay;
• Adyen;
• WorldPay.
Amazon Pay is a payment gateway, the main advantage of which is the wide variety of delivery methods provided by Amazon, the world electronic retail leader.
The Adyen payment system was developed in the Netherlands. This payment system is notable for charging an interest rate for each transaction.
WorldPay is a system that has gained wide popularity in Britain. It is equipped with an open programming interface, convenient for developers. WorldPay monitors the conduction of transactions in real time to ensure the increased security of payments.
Service cost comparison
| Fees | Braintree | Stripe | PayPal |
|---|---|---|---|
| • Monthly
• Transaction, per one • Currency conversion, per transaction • Chargeback, per one |
• –
• 2.9% + $0.3 • 1% • $15 |
• –
• 2.9% + $0.3 • 2% • $15 |
• $30 (Payments Pro)
• 2.9% + $0.3 • 1-4% • $20 |
Summary
The next table shows a side-by-side online payment gateway comparison:
When creating applications integrated with payment systems, developers must select the payment processor first. In this selection, special attention should be paid to the ease of integration, taking into account the abundance of programming languages and the ability to augment the work of existing applications. Of great importance is also the degree of protection of the user personal data.
Customers can choose a better platform according to their preferences regarding fees, as well as the proposed functions. When choosing a payment system, special attention should be given to the methods of payment. For example: unlike Stripe and Braintree, PayPal does not support cryptocurrency operations.
To all the above platforms characteristic is the wide support for operating systems, programming languages, an abundance of quoted currencies, and interaction with major brands of bank cards, such as Visa and Mastercard. All three platforms return the commission fee in the event of a refund and carry out all payments not later than in two days. Pray this short comparison would be helpful for you when selecting the suitable among three.