Top 10: Online Payment Processing services

Updated: July 31, 2023

Online payment processing refers to the electronic transfer of funds for goods and services purchased over the internet. It involves the secure and seamless handling of payment transactions between customers, merchants, and payment service providers. Online payment processing platforms facilitate various payment methods, such as credit/debit cards, digital wallets, and bank transfers, allowing customers to make payments conveniently from their computers or mobile devices. These platforms employ encryption and other security measures to safeguard sensitive financial information, ensuring secure transactions. For businesses, online payment processing is essential to enable e-commerce and offer customers a convenient and frictionless shopping experience. It also reduces the risk of fraud and accelerates the payment settlement process, making it an integral component of modern digital commerce. Some of the most popular online payment processing services and providers are listed below.

See also: Top 10 Payment Processing platforms

2018. Braintree launches Stripe competitor - Extend



PayPal's payment services division, Braintree, is taking steps to enhance its competitive position in the market, particularly against rivals like Stripe. To achieve this, Braintree is introducing a new solution called Extend, which offers a range of tools for seamless integration of Braintree payments with other services commonly utilized by online businesses beyond basic transactions. Extend encompasses features such as loyalty and reward program integration, advanced fraud prevention measures, and support for "contextual commerce," enabling merchants to sell and accept payments on platforms other than their own. Some of these services, including contextual commerce, were already available, powering features like Pinterest's buyable pins. With Extend, Braintree aims to streamline and expand its payment offerings, catering to the evolving needs of online companies.


2015. Payment processing company Stripe partners with Visa



Payment processing company Stripe has recently completed a financing round, resulting in a valuation of $5 billion. In addition to securing nearly $100 million in funding, the company has formed a partnership with Visa, aimed at collaborating on various initiatives, including digital transactions and security. Stripe has been actively pursuing its global expansion strategy, and this partnership with Visa will play a crucial role in that endeavor. By leveraging Visa's extensive international presence and expertise, Stripe intends to broaden its existing coverage of 20 countries. CEO and co-founder, Patrick Collison, emphasized the significance of this collaboration in expanding Stripe's reach and capabilities, as highlighted in The New York Times.


2015. Square launched a dashboard app for iOS



Mobile payment processing service Square has introduced its second non-consumer application, an iOS dashboard app designed for business owners. This app enables business owners to monitor real-time sales data and gain valuable insights into the performance of their business through analytics. While this app is not intended for the barista on duty, it serves as a valuable tool for owners who need to oversee operations remotely. With this app, business owners can conveniently track stock levels across multiple locations, enabling them to make informed decisions on the go, without the need for a desktop computer.


2014. Stripe - the new king of online payment processing



Stripe, the highly popular payments processing service, has secured $70 million in funding, reaching a valuation of $3.5 billion. Notably, this valuation has doubled in less than a year. Founded in 2010, Stripe initially aimed to simplify online payment processing for businesses. It has since become a key player in powering commerce services for prominent tech giants such as Twitter and Apple, and it will also be responsible for facilitating Facebook's Buy button. Stripe's founder, Patrick Collison, highlighted that when they began, the majority of online transactions relied on outdated banking and merchant infrastructure. He emphasized Stripe's unique approach to addressing this challenge and emphasized their vision of building the foundation for internet commerce.


2014. Global payment processing provider BlueSnap raises $50 million



Global payment services provider BlueSnap has secured $50 million in funding to accelerate the adoption of innovative processing technologies. Originally established as Plimus in Israel, BlueSnap revolutionized global online sales of digital goods by eliminating the complexities associated with cross-border transactions. In 2011, the company was acquired by Boston-based private equity firm Great Hill Partners and rebranded as BlueSnap. Presently, BlueSnap operates in 180 countries, catering to 29 languages, and facilitates payments across 110 diverse platforms in 60 currencies. Notable competitors in the payment processing sector include Adyen, Braintree, and the emerging Credorax, which recently raised $40 million in financing.


2014. WePay launches payment processing API to compete with Stripe



WePay, a payment processing service catering to marketplaces, crowdfunding platforms, and other online transaction facilitators, is entering the competition against Stripe by introducing a new product. Called WePay Clear, this white-label, API-based service operates similarly to Stripe and also offers a fraud protection guarantee. WePay Clear is available on both desktop web and mobile apps, and it has already been launched in the United States with Freshbooks as its initial partner. The pricing structure for WePay Clear follows a flat rate, matching that of Stripe at 2.9% + $0.30 per transaction. However, WePay may adjust these rates on a case-by-case basis depending on the partnership arrangement.


2014. BitPay makes bitcoin payment processing free



BitPay, the pioneering BitCoin payment processing company, has made an exciting announcement by eliminating the 1 percent transaction fee on all starter plans. This means that merchants who choose the starter plan can now enjoy free access to the BitPay API, app, and plugins, without any transaction costs. Additionally, there are no limitations on the number or amount of transactions within the plan. For those opting for the paid plans, various additional features are included, such as 24/7 phone support, personal account managers, and Quickbooks integration. BitPay's primary competitor, Coinbase, which handles payments for renowned companies like Expedia and Dell, follows a different pricing structure. Coinbase charges a one percent fee for cashing out bitcoin to a bank account, but this fee only applies after the first $1,000,000 in sales.