Online Payment Systems: The Best in Canada and Their Features

In 2023, over 80% of users made purchases online. E-commerce continues to grow, and to support this evolution, reliable and secure online payment systems are essential. These systems facilitate financial transactions between merchants and customers, whether it is an online store, a digital service, or even a physical point of sale. In this article, we will explore how online payment systems work , their role in facilitating modern commerce, as well as an overview of the best payment systems available in Canada and the United States .

What is an online payment system and how does it work?

An online payment system is a platform that allows merchants to receive electronic payments through their website or app. These systems typically integrate with your online store or point-of-sale (POS) system, connecting the customer, business, and banks in a secure, automated process.

Basic operation of a payment system:

1. The customer initiates a purchase by adding products or services to their shopping cart and proceeding to the checkout page.
2. The customer chooses their payment method , often via credit card, debit card, or other methods like e-wallets.
3. The online payment system processes the information by sending it to the payment processor for validation.
4. The transaction authorization is then sent by the customer's bank, confirming or declining the transaction.
5. Once the transaction is approved, the payment is transferred to the merchant's account.

Why are online payment systems essential?

In an era where technology and online accessibility are pillars of modern commerce, payment systems not only automate the sales process, but also:

• Facilitate the user experience by offering varied and secure payment options.
• Increase conversions by providing a fast and fluid interface to complete purchases.
• Reduce the risk of fraud with advanced security protocols like data encryption and two-factor authentication validation.
• Manage international payments , facilitating trade across borders.

The best online payment systems in Canada and the United States

There are a multitude of online payment solutions, but some stand out for their efficiency, functionality and security.

1. PayPal

PayPal is one of the most popular payment systems in the world. It allows users to pay through their PayPal account , with available funds or linked credit cards, and offers easy integration with the majority of e-commerce platforms.

• Benefits :
  • Supports more than 25 currencies .
  • Protection of buyers and sellers against fraud.
  • Simple and intuitive user interface.
• Disadvantages :
  • Slightly higher transaction fees than other options (around 2.9% + $0.30 per transaction).

2. Stripe

Stripe is a popular payment solution among developers for its flexibility and ability to integrate payments directly into websites and apps.

• Benefits :
  • Supports a wide range of payment methods (bank cards, mobile wallets, bank transfers).
  • Offers analytics tools to track sales performance.
  • Excellent API documentation for custom integrations.
• Disadvantages :
  • Less convenient to configure for users without technical experience.

3. Square

Square is ideal for small businesses looking for a unified solution for online and in-person payments . They offer card readers for physical points of sale, as well as easy integration with websites.

• Benefits :
  • All-in-one solution for physical and online stores .
  • Competitive rates (2.65% for card payments).
  • Easy to use mobile application.
• Disadvantages :
  • Available primarily in the United States and Canada, with limited options for international payments .

4. Moneris

Moneris is a Canadian payment solution that offers high security and local customer support . It is widely used by Canadian businesses.

• Benefits :
  • Designed specifically for the Canadian market .
  • Provides high security and compliance with local standards.
  • Solutions for large and small businesses.
• Disadvantages :
  • Fewer options for small international businesses.

5. Shopify Payments

Shopify Payments is an integrated system for Shopify stores , allowing merchants to manage their payments without having to use a third-party service.

• Benefits :
  • No additional commission for transactions through Shopify.
  • Seamless integration with Shopify stores.
  • Supports Apple Pay , Google Pay , and major credit cards.
• Disadvantages :
  • Only available for Shopify stores.

Conclusion

Online payment systems play a fundamental role in modern commerce. They facilitate commercial exchanges in the digital age, offering fast, secure and accessible solutions for all businesses, whether local or international. Depending on your needs and the size of your business, solutions like PayPal , Stripe , or Moneris can meet your expectations while ensuring a good user experience. If you are looking to choose the best payment system for your business in Canada or the United States, think about the specific features, associated fees, and integration with your sales platforms.