Best Magento 2 Payment Gateways | Recommended List

Best Magento 2 Payment Gateways | Recommended List

This is the most complete list of Magento 2 payment gateway providers.

This article covers:

  • What is a Payment Gateway
  • How it Works
  • Factors to Consider While Choosing a Payment Gateway
  • What are the Best Payment Gateway Providers

This article contains 6 best Magento 2 payment gateways that are GREAT for startups & small businesses.

Let’s check.

A convenient and secure payment system is crucial for any ecommerce store. This is of paramount importance not only for customers but also for store owners. Customers prefer payment methods that are safe and fast while store owners are more concerned about ease of management.

Payment methods play a pivotal role in the overall performance of an ecommerce store. If a customer does not find his/her preferred payment system, they will most likely abandon the purchase. For example, some people prefer cash on delivery as it is safe while others prefer payment with credit or debit cards because of their convenience. Similarly, if customers find the payment methods on your store to be lengthy or complicated, you will witness a high abandonment rate. Therefore, it is important to provide payment methods that are not only safe but also provide customers with an easy checkout experience.

With Magento being a widely used ecommerce platform and abundance of payment gateways at your disposal, it is often a difficult choice as to which payment gateway(s) to use on your Magento 2 store. Each payment gateway presents its pros and cons and you can choose the one(s) depending upon your target audience and your store’s needs and preferences.

We have rounded up the best payment gateways for Magento 2 but before that let’s see what a payment gateway is and how does it work?

What is a Payment Gateway?

A payment gateway is a software application that payments service providers use to process payments for online purchases. It is a tunnel that connects your bank account to the platform where you need to transfer your money or a middleman between a merchant and a bank.

How Does a Payment Gateway Work?

As a middleman, the payment gateway makes sure the payment is securely transferred from the customer’s bank account to the merchant’s bank account. When a customer places an order by clicking on the checkout option, the website takes the customer to the payment gateway where they can enter information about their payment method. Now, the payment gateway authorizes the transaction making way for the bank to check for sufficient balance. If the balance is insufficient, the payment gateway displays an error message informing the customer about what went wrong with the transaction. If there is sufficient balance, the transaction proceeds seeking more information about the payment.

Lastly, the bank settles the money with the payment gateway which in turn settles the money with the merchant. All the while, the data is encrypted by the payment gateway for security purposes.

Factors to Consider While Choosing a Payment Gateway

Here we’ve highlighted the main factors that merchants should consider while choosing the recommended payment gateway for their Magento store.

  1. Security - Payment gateway should encrypt sensitive information, securely transmit payment information to payment processors and comply with the PCI Data Security Standard.
  2. Easy Management & Integration - Payment gateway should be easy to integrate to website and easy to manage.
  3. Easy Checkout Experience - The payment gateway should be fast & accept payment from credit cards, checks, or other forms of online payment.
  4. Multi-Currency - If your store is global, then make sure your payment gateway providers support multi-currency payments.

Best Payment Gateways for Magento 2

Magento is flexible enough to support a variety of payment methods and gateways. A payment gateway can be gauged on its security, convenience, and cost. Below are the best payment gateway service providers that we would recommend for Magento store owners.

  • Paypal - Best payment gateway for international transactions & subscriptions
  • Stripe - Best for marketplaces & subscription services
  • Authorize.Net - A flexible & simplified payment process
  • Braintree - Best for global online businesses
  • Skrill - Best payment gateway for B2B
  • Sage Pay - Best payment gateway for small businesses

Let's check each payment gateway in detail:

1. PayPal

PayPal is the leader when it comes to online payments. It is the most preferred choice of online customers & merchants. PayPal also has the highest number of active consumer accounts (346 million as of August 2020) and thousands of Magento stores are using PayPal.


  • Super easy to integrate
  • Super easy to send and receive payments
  • Accepts Credit cards including Visa, American Express, MasterCard etc.
  • Supports 26 currencies in 200 countries
  • Allows customized recurring & non-recurring invoices
  • No setup & monthly fee
  • Best payment gateway for recurring billing
  • 2.9% + $0.30 per transaction


  • Prone to frauds due to high penetration and ease of use

2. Stripe

Stripe is a fast expanding online payment gateway that offers a promising payment solution for Magento 2. Currently available in 25 countries, Stripe is preferred by online merchants due to its support for Magento.


  • No setup fees, monthly fees, or hidden fees
  • 2.9% + 30¢ per successful card charge
  • Supports 135+ currencies
  • Allows recurring payments
  • Integration for Android and iOS for in-app payments
  • Allows you to create tools to optimize checkout flow
  • 24×7 phone, chat, and email support


  • Does not provide 3D secure services
  • You are charged extra if you try to change the functionality of Stripe

3. Authorize.Net is trusted by over 430,000 merchants worldwide making it one of the leading online payment gateways. It is most suited for large enterprises’ needs due to its pricing structure. Large enterprises prefer to use Magento platform and as a payment gateway.


  • Easier to set up than PayPal and Stripe
  • Extremely secure
  • Advanced fraud detection suite
  • Customers can pay using credit cards, electronic checks or fund deposits
  • Accepts mobile payment
  • Supports recurring billing
  • Mail/Phone payment


  • $25 monthly gateway fee
  • 2.9% + 30¢ per transaction

4. Braintree

Braintree which was acquired by PayPal in 2013 is one of the heavy weights in online payment gateways processing over 6 billion transactions a year. Braintree currently accepts international payments in 144 local currencies, with settlement payable in 44 different currencies. If you’ve a global online business , then Braintree is one of the recommended payment gateways for Magento 2.


  • No monthly fee
  • 2.9% + $.30 per transaction
  • Extensive integrations available
  • Advanced fraud protection and 3D secure service
  • Accepts mobile payment
  • Recurring billing
  • Customers can pay via PayPal, Credit/debit cards, Apple Pay, Google Pay etc.


  • Not easy to setup
  • No credits back on partial refunds

5. Skrill

Skrill has emerged as one of the top online payment processors with some of the top brands as its customers. It started its services in 2001 and now operates in over 131 countries supporting almost 40 currencies. It’s your ultimate payment solution if cost is an issue for you.


  • Free account
  • Easy to use
  • Credit card transactions
  • Free trial
  • Email/Phone payment
  • No fixed transfer fee when you send money directly to a bank account
  • User-friendly mobile app
  • 1-2% transaction charges


  • Getting fully operational can be tedious
  • Complex fee structure
  • High currency exchange fees for “Skrill to Skrill” international transfers

6. Sage Pay

Sage Pay allows you to select a package that is most suitable for your business requirements. They offer a business package for small and medium businesses and corporate packages for large enterprises. Sage Pay is renowned for its security and fraud detection mechanism and that’s the main reason that Sage Pay is considered as the top payment gateway for Magento.


  • Accepts Credit/Debit cards & PayPal
  • Provides advanced reporting tool
  • Customization options
  • Face to face and mobile phone payments
  • Supports wide range of payments
  • Point of sale integrations
  • Subscriptions & recurring billing
  • Supports more than 25 currencies


  • No trial period
  • Charges £20.90/month for 350 transactions per month
  • £45/month for 500 transactions per month

Final Thoughts

It is the age of convenience and online payment gateways provide just that. Your Magento 2 website must integrate one or more of the above payment processors to securely charge your customers online. Each gateway has its own set of pros and cons and it’s up to you to prioritize your business and customer’s requirements and decide which one will work best for you.

In case of any queries regarding this article, contact our expert Magento team.

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