Best Online Payment Systems for a Small Business

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Managing payments could be daunting when running a small business, but the good news is that online payment systems have transformed how transactions are conducted. Nowadays, a small business payment system allows small to medium sized business (SMBs) to process payments seamlessly, offering customers a large variety of options such as bank transfers, credit card payments, and even digital wallets.

For small businesses, having a reliable online payment system is not just a ‘nice to have’ —it’s a must. It enables SMBs to serve customers both locally and globally while ensuring secure and effective transactions. Platforms like Payoneer take this a step further by simplifying worldwide payments and offering solutions specifically designed for small business payments and their objectives.

This guide explores the most popular small business payment options, their differences, and how to set them up. Read on to find the best small business payment processor for your needs.

The most common online small businesses payment options

Small businesses have access to an abundance of online payment systems, each offering distinctive benefits. Let’s go through a few. 

• Payoneer: An excellent small business payment option for SMBs expanding globally, managing international clients, and looking for simplified cross-border payments with multi-currency accounts and competitive fees.
• PayPal: Known for its ease of use, PayPal is perhaps the biggest household name on the list. It is widely accepted and allows businesses to receive payments through credit cards, bank accounts, and PayPal balances. 
• Stripe: Supporting a range of integrations, with a reputation for developer-friendly tools, Stripe is good for businesses requiring custom payment solutions.
• Square: With tools like invoicing, inventory management, and mobile payments, Square is a good choice for a small business payment processor. It’s a robust payment processor for in-person and online transactions. 
• Amazon Pay: The clear choice if your business relies on Amazon, Amazon Pay leverages Amazon’s customer base for seamless payment processing.
• Google Pay: A growing favorite for contactless and online payments, Google Pay is a user-friendly solution for businesses seeking straightforward payment options.

For small businesses handling global transactions, Payoneer stands out as the best small business payment processor due to its cost-efficient international payment solutions and easy setup process. 

Read more about how to get paid by marketplaces with Payoneer.

How small business payment systems differ

While similarities undoubtedly exist, not all small business payment systems are created equal. Here’s a breakdown of the key differentiators between the systems we have already named:

Payoneer

• Pros: Cost-efficient international payments, simple and secure setups to receive payment, a wide range of multi-currency accounts, and virtual accounts for global transactions.
• Cons: Not designed for in-person payments.
• Best For: Any SMB, including freelancers, who work with international clients or suppliers and keep the relationship strictly digital. 

Paypal

• Pros: Accepted almost anywhere, easy to set up, supports a variety of currencies.
• Cons: Very high transaction fees, including up to 3.9% + fixed fees, and limited customer support.
• Best For: Small businesses with a large capital or business loan.
  

Stripe

• Pros: Highly adaptative to unique SMB needs, with support for recurring payments and subscriptions.
• Cons: Technical skills needed for setup and the fees (2.9% + fixed fees per transaction) can add up.
• Best For: Small business that are developer-savvy and don’t mind a bit of extra cost in fees.

Square

• Pros: Inclusive tools for in-person and online payments, invoicing, and inventory management.
• Cons: Limited options for multi-currency support and certain services come at an extra cost.
• Best For: Small businesses that have both online and physical store operations.

Google Pay

• Pros: Simple integration, fast transactions, no additional fees for customers.
• Cons: Limited global reach compared to other platforms such as Payoneer.
• Best For: Businesses catering to a tech-savvy local audience.

When choosing a small business payment processor, consider factors like transaction fees, ease of setup, customer base, and scalability. For small businesses handling cross-border payments, Payoneer offers unmatched affordability and global reach, making it an ideal choice.

Find out how simple it is to get paid with Payoneer.  

How to set up online payment systems for small businesses

Setting up an online payment system for your small business is simpler than it sounds, as long as you dedicate the proper time to follow the steps below:   

1. Identify Your Needs and Research: Start with the payment methods your customers and/or employees prefer. Ask yourself if you want to send and receive payments via credit cards, digital wallets, or bank transfers. Also, compare transaction fees, global reach, and features between the systems in your research. 
2. Choose a Payment Processor: Select the best small business payment processor based on the needs you’ve identified in the first step. For example, if you work with international clients, Payoneer is a clear choice because of how comprehensively it supports multi-currency payments.
3. Set Up Your Account: Sign up with your chosen platform and go through the steps which involve entering basic details and verifying your account. Some systems, like Stripe, may also require developer assistance for integrations.
4. Integrate Payment Solutions: Connect the payment system to your website or point-of-sale (POS) system. Most platforms offer plug-ins or APIs for seamless integration. Payoneer goes a step further than most and allows you to link directly to global marketplaces for easy client transactions.
5. Test the System: Before going live, test your payment system to ensure smooth functionality. This is an imperative step that should not be dismissed or rushed. 
6. Promote Your Payment Options: Do some marketing and promote your new payment options to your target audience. If you go with Payoneer, you should highlight features like low international fees for global audiences.

By following these steps, you can set up an efficient small business payment system that elevates customer satisfaction and paves the way for financial management without headaches.

One of the biggest factors when deciding on the best small business payment processor is understanding how you will be getting paid from your customers.

Read more Payoneer’s process on how to get paid by clients to discover this platform is the top choice for many SMBs. 

How Payoneer can help your small business grow

With its innovative features and global reach, Payoneer simplifies small business payments and stands out as a trusted partner for small businesses worldwide by offering:

• Multi-currency accounts: Receive payments in a wide range of currencies, including USD, EUR, and GBP, and transfer them directly to your local bank account.
• Low Ttransaction fees: Enjoy affordable rates for cross-border transactions, helping you save on operational costs. A big plus for startups and freelancers who have tight cash flow.
• Seamless integration: Connect Payoneer to global marketplaces, payment platforms, or directly to your business website for seamless transactions.
• Global client accessibility: Payoneer’s receiving  accounts enable you to work with customers from around the world without worrying about currency conversions or excessive fees.

Payoneer isn’t just a payment system — it’s a digital payment partner that helps your small business expand and thrive in an increasingly global marketplace. Whether you’re a freelancer, sole e-commerce establishment, or small business owner managing international clients, Payoneer offers solutions tailor-made to your needs.

Ready to take the next step? Visit Payoneer’s website or sign up now to get started!

Quick links: 

• Get paid by clients 
• Get paid by marketplaces 
• International payment processing
  
  

Frequently Asked Questions (FAQs) 

1. How can small businesses take payments?

Small businesses can take payments in a variety of ways, including:

• Online Payment Systems: Platforms like Payoneer enable secure and efficient payments.
• Point-of-Sale (POS) Systems: Used in physical stores, which offer credit card and mobile payment options.
• Payment Links: Payoneer’s payment requests, for example, allow businesses to send custom payment links via email or chat.
• Digital Wallets: Google Pay and Apple Pay provide additional flexibility for customers in the form of contactless payments.

2. What are the benefits of using an online payment system for a small business?

There are many benefits to using an online payment system for a small business, chief among them being that processing times for transactions are much faster. Online payments also support multiple payment methods, including credit cards, bank transfers, and digital wallets, catering to diverse customer preferences.

Platforms like Payoneer additionally simplify international payments by providing flexible, multi-currency accounts and competitive fees. 

3. Can I use more than one payment system for my business?

Certainly. In fact, using multiple payment systems can help diversify your small business payment options and reduce dependance on a single provider. For example, you can use Payoneer for your global clientele, PayPal for local credit card transactions, and Square for in-person payments.

This approach means you cast your net wider to cater to a broader audience. Keep in mind that managing multiple systems effectively should involve combining data using accounting tools like QuickBooks or Xero.

4. How does Payoneer compare to other online payment systems?

Payoneer offers several advantages over traditional systems and other payment platforms:

• Global Reach: Provides receiving  accounts in multiple currencies for smooth international transactions.
• Low Fees: Competitive rates for international payments, making it ideal for SMBs with a global clientele.
• Ease of Use: Simple account setup and a user-friendly dashboard.
• Multi-Currency Support: Enables businesses to hold and transfer funds in various currencies with no hidden fees.

5. What are the typical fees associated with online payment systems?

Fees for online payment systems include:

• Transaction Fees: Typically speaking this is a fixed fee in the ballpark of 2.9% per transaction for platforms like Stripe and PayPal. Payoneer’s fees for cross-border payments are often lower.
• Currency Conversion Fees: Charged when converting payments to your local currency. It’s important to keep in mind that Payoneer offers competitive rates here.
• Subscription Fees: Some platforms even charge monthly fees for premium services or higher transaction limits.

It’s important to compare these fees while choosing the best small business payment processor for your needs.

6. How can I accept payments for free?

Accepting payments for free is a challenge since most platforms have to charge something for transactions as this is an important part of their business model.

That said, you can look for more cost-effective solutions, such as:

• Using Payoneer for international payments, which offers competitive rates and avoids high conversion fees.
• Encouraging direct bank transfers, which typically have lower fees than card payments.
• Choosing platforms with no subscription fees or free tiers

7. Are online payment systems secure for small businesses?

Absolutely. Any reputable online payment systems prioritizes security with encryption, fraud detection, and by complying with standards like PCI-DSS.

Payoneer, for example, uses advanced security protocols to protect transactions and ensure regulatory compliance. Choosing a reputable platform and keeping a close eye on the transactions is crucial for SMBs so that they can ensure the safety of their payment processes.