Finding the right payment
gateway in Kenya is key to running an internet business and propelling
it forwards for the technological-driven 21st-century business. Payment
gateways make it easy for customers to make online payments through your
website and for you to receive the money. This article will dive into the world
of payment gateways in Kenya and why you need payment gateways for e-commerce
and marketplaces.
What is a payment gateway?
A payment gateway is an application that integrates with
your website and links it to your customer for easy online payments. It
integrates with the digital processes used by the company and links your
checkout system to the payment network used by your customer.
How does a payment gateway work?
When you use the services of a payment gateway in Kenya, you
are provided with a no-code payment link or an API (application programming
interface). An API is a tool that allows two applications to exchange data and
information quickly and seamlessly.
The API provided by the payment gateway acts as an
intermediary between your website or mobile app and the payment platform used
by your customer. Anytime someone wants to make a payment to you, the API links
your website to the payment platform or card used by the customer.
The no-code link is a singular link that your customers can
use to pay easily using their debit card or other payment mediums once opened.
Why do you need a payment gateway?
Fasy, convenient online payment
A payment gateway provides a fast, seamless way of making
online payments. It helps to make payment secure and convenient. It saves you
from the various hassles associated with receiving money online. A payment
gateway helps to quickly process bulky, voluminous transactions without lifting
a finger for each transaction.
Many internet entrepreneurs in Kenya have lost tons of money
to poor checkout processes on their websites. Imagine a customer loading their
cart with numerous products and getting to the checkout page only to be
frustrated with the whole payment process. The customer loses their patience,
dumps their cart in frustration, and heads to another platform to get what they
want. That is how several vendors in Kenya have lost money to poor payment
implementation.
Payment gateways in Kenya resolve all these. They keep
customers coming back for more and help boost your sales regardless of the kind
of business you run as a Kenyan entrepreneur.
Handling of both local and international payment
One other good thing about payment gateways is that they
help handle local and international payments. You can receive money from
foreign clients and expand your business internationally. So, you now have
various international payment options because some payment gateways receive
money in multiple currencies. The exchange rates are updated constantly, so
there is no room for exchange rate errors.
The payment gateway can work for more than one platform
Apart from your website, do you have a mobile app? Do you
have stores on other platforms? The payment gateway can work for them all. Some
payment gateways can be linked to your business’s social media account for easy
payment for those discovering your products through social media.
Customer data is safe and secure
A payment gateway keeps customer data safe and secure. You
are safe from the security risks of holding credit card data on your website.
This also protects you from business and legal liabilities that can ruin your
business.
Who can use a payment gateway?
A payment gateway can be used by almost anyone who receives
money online. Payment gateways are
used by e-commerce stores, website owners, developers, freelancers, online
business owners, etc.
What are the things to look out for in good payment gateways in Kenya?
Here are the features to look out for in a good payment
gateway:
Reasonable Pricing
A good payment gateway should be reasonably priced. Most
payment gateways charge a fixed percentage of the money received through the
gateway. Though, the percentage often reduces as the volume of transactions
increases for fairer pricing. Some payment gateways have tiered payment plans
with varying features.
Payment API
The payment
API is the number one thing you’ll be provided with when you pay for a
payment gateway. You integrate the API on your website to act as an
intermediary between your website’s checkout system and the payment network
used by the customer. The payment API should be easy to integrate by almost any
webmaster.
Prompt payment notification
Payment gateway for e-commerce and marketplaces should have
prompt payment notifications that notify you whenever a payment is made. The
notifications should come in the form of emails and other means. The payment
notifications should be as fast as possible with minimal delays.
Support for more than one card network
A good payment gateway should support more than one card
processor. At least, It must support the two major debit card processors, which
are Visa and Mastercard. It should also support other payment schemes like
M-Pesa. The payment gateway helps to authenticate customer card details
whenever online payments in Kenya are made.
Great customer support service
The customer
support service of any worthy payment gateway should be at your beck
and call whenever you need them. They should be readily available to listen to
all inquiries and resolve issues fast.
Security
A good payment gateway should be secure with no loopholes
that will give room for cyberattacks. It must protect both yourself and your
customer. Sensitive data like debit card information and other details pass
through the payment gateway, so there should be no room for errors.
Modern API design
A payment gateway should use an API with a modern design
like RESTful design. Modern API designs like REST API are easier to integrate
as they use new technologies and design practices.
Multiple API integration methods
Payment gateways in Kenya should have multiple API
integration options, tools, and SDKs (software development kit) so users can
easily select one to implement the API on their website or mobile app. These
options could include Python SDK, REST API, PHP SDK, JavaScript SDK,
WooCommerce plugin, and WordPress plugin.
Proper documentation
Good payment gateways have proper documentations that are
thorough, well-detailed, and exhaustive. Good documentation makes it easier for
a developer to implement the payment gateway API with no issues.
Dedicated account manager
Some payment gateways in Kenya have dedicated account
managers for key businesses using their premium offerings. If you’ll be dealing
with large volumes of online payments, this is a handy feature that you should
look forward to.
Fraud detection
Advanced payment gateways have fraud detection features that
enable them to detect payment fraud and protect the vendor or business. Payment
fraud detection saves businesses from frauds like the following:
Spam card testing: Spam card testing
occurs when nefarious people create lengthy lists of debit or credit cards and
try them on an e-commerce site. They spam orders using these cards with the
hope that one or more will work. Payment gateways use DDOS protection among
other protection tools to protect from this form of payment fraud.
Identity theft: Identity theft occurs
when fraudsters access a person’s debit card information and then use the
stolen information to make online payments. Good payment gateways use
two-factor authentication, SMS or email alerts, and security systems to stop
this.
Account takeover: Account takeover occurs
when cyber-criminals login or hack into a customer’s account and use their
stored payment information to make purchases from a vendor. Sometimes the
cyber-criminals resell the account. Payment gateways have security systems to
detect this and stop it.
You need to use an accredited and trusted payment gateway
for e-commerce and marketplaces to help you deal with these payment frauds and
handle them appropriately. Apart from the ones mentioned above, payment
gateways use advanced fraud detection systems like device fingerprinting, CVV
(Card Verification Value), 3DS2, fraud rule scoring system, reverse email
lookup, and data enrichment.
API test environment
A good payment gateway should have a developer test environment where
APIs can be tested without having to sign up for the payment provider services.
The testing time can range from 2 weeks to a month. This allows a developer to
thoroughly check all the API features and certify that it is fit for their use.
You’ll get a dummy account for the test, and the account will be deleted after
the testing period.
No-code integration
A standard payment gateway should have no-code integration
for clients who don’t have coding capabilities. It’s usually in the form of an
easy payment link that can be sent to customers or posted on a website or
social media for easy acceptance of online payments.
Prompt chargeback settlement
Payment gateways for e-commerce and marketplaces should
resolve chargebacks and dispute issues fast and without much fuss. They should
notify you of the issue immediately and work with you towards settling the
issue ASAP. You might be asked to provide some documentation like an invoice
and proof of delivery.
The payment gateway will work with you, the bank, and the
buyer fairly to resolve the issue. Sometimes the chargeback settlement might be
delayed by the bank or the buyer instead of the payment gateway who is working
towards resolving the issue promptly.
Cryptocurrency support
Innovative payment gateways support online payments using
popular cryptocurrencies like Bitcoin. Bitcoin is increasingly being adopted
worldwide, and every modern business should have payment options for Bitcoin
going forwards.
Invoice creation for freelancers, contractors, and merchants
Some payment gateways allow you to create invoices with
payment links directly from their website. The payment gateway will provide you
with an invoice template that you can easily input your details. These invoices
can be sent directly to the client, who will then be directed to a checkout
click on the link to pay. This is an innovative way for clients to make
payments easily.
You can also generate payment links from the websites and
share the link with clients via messaging apps, email, and any other option you
desire.
Fast payout period
Good payment gateways for e-commerce and marketplaces in
Kenya offer much more than convenient payments. They also allow you to withdraw
money as fast and as easily as possible. Crypto and cash payments are often processed
the fastest and could land in your account instantly. This means that you have
readily available cash to take care of business issues. Card payments take
longer to process, though they shouldn’t take more than two or three days to
settle.
Multiple mediums for receiving payout
You should have multiple options for receiving your money.
You could receive the money through your bank account, M-Pesa mobile wallet, or
other mobile wallets. Some payment gateways have an option for sending received
money to other people, thus acting as an all-in-one fintech solution. With
these payment gateways, you don’t need other fintech solutions or providers.
Rich functionalities
Payment gateways for e-commerce and marketplaces should have
rich and diverse functionalities like all the ones listed above. Ensure that
the functionalities work as they should, and they are not mere gimmicks.
What do you need to start using or implementing a payment gateway for your website?
First, you need to contact the payment gateway provider and
apply to become one of their users. Following that, you will be contacted by
the payment provider for the KYC (Know Your Customer) process. The KYC process
is where you will be vetted, and the payment gateway provider will inspect your
identification, profile, and business. They will confirm that your business is
legit, and you will not use their payment gateway for any nefarious business or
purpose.
After KYC has been conducted and your application has been
approved, you will be asked to choose between a no-code payment link or a
payment API. If you choose an API, you will be issued an API by the online
payment gateway provider. You will then implement the API on your website.
Payment should be activated by your payment gateway provider within a day or
two.
If you choose a no-code payment link, you will be sent a link that you can now put on all your platforms to receive payment from everyone. Following that, your payment gateway is active, and you can now receive online payments in Kenya quickly.