Planning on launching an e-commerce store online? If so, a payment gateway is something that you definitely need to have.
Here at Inspirenix, we have worked on hundreds of eCommerce websites and have helped clients to run and maintain profitable e-commerce stores, while at the same time worked with several payment gateways in Sri Lanka.
With that said, here we will be looking at what payment gateways are, the best payment gateways available in Sri Lanka, and all the other relevant things in the middle that you as a business website owner should know of.
What is a Payment Gateway?
In the simplest terms, a payment gateway is a service provided by a bank or a third-party company that allows you, the business owner to accept payments through your website or app from customers online.
Usually, these payments are processed via a debit or credit card schemes like Visa and Mastercard although nowadays there are different forms of payment such as stripe, PayPal, and crypto along with many others which are accepted only if you conduct business in certain countries.
For the most part, debit and credit card payments are the most popular form of payment in Sri Lanka received via payment gateways.
If you are interested in getting those other forms of payments methods, it would be better to have a consultation with your bank or payment gateway provider first as some of these payment methods are not allowed in Sri Lanka. Although, there are some other payment methods such as eZ cash, Frimi, and Sampath Vishwa provided by certain payment gateway providers in Sri Lanka as well.
Why Does Your Business Needs A Payment gateway?
If you are running an online business, there is no way for your customers to pay you with cash if you do not offer cash on delivery. This is especially true if you sell digital products that you cannot directly deliver to your customers. Also, what if you sell your products internationally, how would you offer cash on delivery then?
Of course, you can request your customers to do a direct deposit to your bank account, but let’s be realistic, people nowadays don’t go for such manual payment methods, especially for smaller low-end products.
People nowadays always put their convenience first and if you don’t offer a payment gateway so that your customers can directly pay through the website, they will buy from one of your competitors who does offer a payment gateway and makes their buying process simpler.
Therefore, if you have an online store, you should always implement a payment gateway on your website as it will help you increase your business performance as well as help you keep things organized and easy when scaling.
The main parties involved in the payment process via a payment gateway.
Before we dive anymore deeper into payment gateways, we have to first identify all the parties involved in this process.
- The merchant – This is you, the owner of the e-commerce website that sells something to consumers.
- The customer – This is the person who goes to your website and makes a purchase. Also known as the cardholder.
- The issuer’s bank: This refers to the customer’s bank which the payment is made from.
- The acquirer’s bank: This is referred to as your bank (the merchant) to which you get your payments from customers.
These are the four main parties involved in the payment process via a payment gateway and knowing who these parties are will allow you to easily understand the next few topics on payment gateways.
How Do Payment Gateways Work?
Now that you know all the parties involved, we can take the next steps and see how the payment process of a payment gateway works. For this, we will go through step by step of a buyer’s journey on your website.
- First things first, a customer goes to your website, chooses a product, and purchases it. As soon as the customer chooses to purchase the product, he or she will be redirected to a payment page.
- On the payment page, the customer will have to add all his or her credit card or debit card details such as the name of the cardholder, the card number, the expiration date of the card, and the CVV (card secret key). Then, this information that the customer enters is very securely passed on to your payment gateway.
- Once the payment gateway receives the card details, it runs an encryption process and performs a fraud check on the card details provided. After the fraud check is completed and there are no issues found, the card information is forwarded to the acquirer’s bank (the merchant’s bank).
- Then the acquirer’s bank sends another secure line of information to the card schemes either that is Visa or MasterCard.
- After the acquirer’s bank receive the card information, they perform another fraud layer check and if it passes, then send the information to the issuer’s bank (the bank of the customer).
- Here, the issuer’s bank performs yet another fraud check and if it passes, they authorize the transaction or if the fraud check fails, decline the transaction. Also, an approval or decline payment message is back to the card schemes then forwards back to the acquirer’s bank, and finally to the payment gateway.
- The payment gateway then forwards that message to the merchant and if the payment is approved, then the acquirer’s bank collects the payment amount from the issuer’s bank, holds and deposits it into your merchant account.
We know, we know, you might be thinking “what the heck is a merchant account?” Not to worry, we will discuss more on this in a bit as well.
The process of this payment amount depositing to your merchant account from the hold is known as the “settlement” and the time frame for this settlement usually depends on your agreement with the payment gateway provider.
What is a merchant account?
A merchant account is a type of bank account that allows businesses to accept payments via credit or debit card along with many other ways. You need to keep in mind that this merchant account is not your typical business bank account and you have to have both this merchant account and a typical business bank account to take payments via a payment gateway.
Merchant accounts are usually provided by the payment gateway provider and you have to apply for a merchant account when you request a payment gateway.
Once the application for your merchant account is approved, you will receive a merchant id also known as MID. This MID is considered as the account number for your merchant account and this will be used as the account number to set up your payment gateway with.
Once all of this is set up, the payments from your customers will first go to your merchant account and then will be deposited into your normal business bank account.
- Finally, after the payment amount is deposited, the merchant will display a confirmation page to the customer.
On a side note, if the payment was unsuccessful, then a different message such as “payment failed, try again or use a different card” will be displayed to the customer.
We know that this seems like a lengthy process, and although it seems like it, this whole process takes around 3 seconds. Shocking right?
Best Payment Gateways In Sri Lanka
Now that you know what a payment gateway is, why it is important, the main parties involved, and how payment gateways work, let’s now look at some of the best payment gateways that you can get in Sri Lanka and their features.
Note: The below-mentioned payment gateway information can vary with time. If you are interested in any of the below-mentioned payment gateways, make sure to request fresh information from the respective banks or companies.
1. Sampath Bank Payment Gateway
One of the most commonly used payment gateways in Sri Lanka, the Sampath bank payment gateway offers several features along with high-end payment security for customers online. Sampath bank’s payment gateway is in such demand partly due to the safety and reputation the bank itself has within the public in Sri Lanka.
Basic Information
| Setup Fees | Recurring Fees | Commission Per Transaction | Payment Method | Settlement Time | Approval/Onboarding Time | Currencies | Recurring Payment Facility | Split Payment |
| 15,000 | 75,000 per year | 4% on International Transactions and 3% on Local | Visa, MasterCard, and Union Payment | 2 Working Days | 3 Working Days | All Major Currencies | Available | Available |
2. Commercial Bank Payment Gateway
Another highly trusted payment gateway in Sri Lanka, the Commercial bank payment gateway also provides several features. As a dominant player in the banking sector in Sri Lanka, they provide very secure payment solutions and they are the only bank that provides a direct MasterCard internet gateway system. They have introduced state-of-the-art e-commerce called ComBank Simple Pay. The costs involved in this payment gateway are also fair.
Basic Information
| Setup Fees | Recurring Fees | Commission Per Transaction | Payment Method | Settlement Time | Approval/Onboarding Time | Currencies | Recurring Payment Facility | Split Payment |
| 10,000 | 36,000 per year | 2.5% to 3% | Visa and MasterCard | 1 Working Days | 2-4 Working Days | All Major Currencies | Available | Available |
3. HNB Bank Payment Gateway
It’s no surprise that the HNB bank provides a top payment gateway in Sri Lanka as well. Because of the high authoritativeness of the bank, this payment gateway is also in high demand. HNB bank’s payment gateway also uses secure payment channels and state- of-the-art-technology along with several other advanced features. One downfall of this payment gateway is that the cost is a bit high (please keep in mind that these prices may vary, contact the bank and request fresh information if considering).
Basic Information
| Setup Fees | Recurring Fees | Commission Per Transaction | Payment Method | Settlement Time | Approval/Onboarding Time | Currencies | Recurring Payment Facility | Split Payment |
| 15,000 – 20,000 | 60,000 – 108,000 per year | 4% | Visa and MasterCard | 1 Working Days | 1-week | All Major Currencies | Available | Available |
4. Seylan Bank Payment Gateway
Just like the other three bank payment gateways, Seylan bank’s payment gateway is also very secure and has the same number of advanced functions that will be more than enough for an online business owner.
Basic Information
| Setup Fees | Recurring Fees | Commission Per Transaction | Payment Method | Settlement Time | Approval/Onboarding Time | Currencies | Recurring Payment Facility | Split Payment |
| 20,000 | 30,000 per year | 3% – 4% | Visa and MasterCard | 2 Working Days | 1 – 2 weeks | All Major Currencies | Available | Available |
5. PayHere
PayHere is a payment gateway that is provided by a private company. This is the same company that provided with us the Helakuru app. They have partnered up with Sampath bank and provides a seamless payment gateway experience. As they are partnered up with Sampath bank, you will have to create a Sampath bank business account if you don’t already have one.
This payment gateway is also very popular in Sri Lanka for its security and for its cost effectiveness along with the advanced functions that it provides. They also have three packages for you to choose from.
Basic Information
| Packages | Setup Fees | Recurring Fees | Commission Per Transaction | Payment Method | Settlement Time | Approval/Onboarding Time | Currencies | Recurring Payment Facility | Split Payment | |
| Lite | None | None | 3.9% | Visa, MasterCard, American Express, Discover, Diners Club, Genie, Frimi, eZcash, mCash, Sampath Vishwa | 2 Working Days | 1 – week | All Major Currencies | Available | Available | |
| Plus | None | 2990 per month | 2.99% | All of the above | 2 Working Days | 1 – week | All Major Currencies | Available | Available | |
| Premium | None | 9990 per month | 2.63% | All of the above | 2 Working Days | 1 – week | All Major Currencies | Available | Available | |
6. WebXPay
Another leading payment gateway provider in Sri Lanka, WebXPay provides one of the best payment gateways with a very unique and advanced dashboard that provides secure transaction channels and a wide range of payment options just like PayHere along with three packages for you to choose from. WebXPay was the first ever company in Sri Lanka to introduce an integrated solution to create invoices and create payment links directly into a payment gateway.
Basic Information
| Packages | Setup Fees | Recurring Fees | Commission Per Transaction | Payment Method | Settlement Time | Approval/Onboarding Time | Currencies | Recurring Payment Facility | Split Payment | |
| X Wallet | 15,000 | 1000 per month (billed annually) | 2.65% | Visa, MasterCard, American Express, Discover, Genie, Frimi, eZcash, mCash, Sampath Vishwa, and many more. | 1 Working Day | 2 – 4 days | All Major Currencies | Available | Available | |
| X Gateway | 15,000 | 4990 per month (billed annually) with other options | 2.8% | All of the above | 1 Working Day | 2 – 4 days | All Major Currencies | Available | Available | |
| X Gateway Enterprise | 15,000 | 8990 per month (billed annually) | 2.3% | All of the above | 1 Working Day | 2 – 4 days | All Major Currencies | Available | Available | |
7. 2CheckOut
2CheckOut is a foreign company that is operated under the American parent multinational company named VeriFone Holdings, Inc. Although 2CheckOut is a foreign company, they provide a good payment gateway to businesses in Sri Lanka without any issues whatsoever. They also offer very good 24/7 customer service. The review process of this payment gateway is a bit lengthy and strict. Therefore, make sure to follow their exact instructions and be patient when applying for this payment gateway.
Basic Information
| Packages | Setup Fees | Recurring Fees | Commission Per Transaction | Payment Method | Settlement Time | Approval/Onboarding Time | Currencies | Recurring Payment Facility | Split Payment | |
| 2Sell | None | None (pay-as-you-go model) | 3.5% + $0.35 | All debit and credit cards via Visa and MasterCard | 1 Working Day | 2 days | All most all major currencies | Available | Available | |
| 2Subscribe | None | None (pay-as-you-go model) | 4.5% + $0.45 | All debit and credit cards via Visa and MasterCard | 1 Working Day | 2 days | All most all major currencies | Available | Available | |
| 2Monetize | None | None (pay-as-you-go model) | 6.0% + $0.60 | All debit and credit cards via Visa and MasterCard | 1 Working Day | 2 days | All most all major currencies | Available | Available | |
8. Genie
Genie is a digital wallet app provided by Dialog which lets you connect it to your e-commerce store. Although this payment gateway app is not as widely used as the other, it still provides good security and functions that are more than enough for most e-commerce store owners.
Basic Information
| Setup Fees | Recurring Fees | Commission Per Transaction | Payment Method | Settlement Time | Approval/Onboarding Time | Currencies | Recurring Payment Facility | Split Payment |
| None | None | 1.5% – 2.5% | Visa and MasterCard, Savings/Current Account, and Mobile Money | 2 Working Days | 2 – 3 Days | All Major Currencies | Not Available | Not Available |
9. mCash
mCash is a payment gateway provided by SLT Mobitel. This payment gateway is supported for all most all of the major CMSs such as WordPress and OpenCart. Just like the Genie payment gateway we talked about above, you can connect mCash to your online store and receive payments to your mCash app where you can top up the mCash amount at any Amana Bank branch nationwide.
Basic Information
| Setup Fees | Recurring Fees | Commission Per Transaction | Payment Method | Settlement Time | Approval/Onboarding Time | Currencies | Recurring Payment Facility | Split Payment |
| None | None | 1% | All major cards, Visa or Mastercard. | 2 Working Days | 2 – 3 Days | LKR, USD, GBP, EUR, AUD, INR | Not Available | Not Available |
10. Onepay
Onepay is another great payment gateway available for businesses in Sri Lanka. As a Sri Lankan based company, onepay offers very good transaction security along with some advanced features such as QR code payments, advanced merchant dashboards, and dedicated merchant mobile apps to monitor your performance. Onepay also offers 4 packages for you to choose from.
Basic Information
| Packages | Setup Fees | Recurring Fees | Commission Per Transaction | Payment Method | Settlement Time | Approval/Onboarding Time | Currencies | Recurring Payment Facility | Split Payment |
| Standard | LKR 1500/= | None | 3.6% | Visa, MasterCard, Amex and QR payments | 2 Working Days | 1 – 6 days | All Major Currencies | Available | Available |
| Essential | LKR 1500/= | LKR 799/= | 3.2% | Visa, MasterCard, Amex and QR payments | 2 Working Days | 1 – 6 days | All Major Currencies | Available | Available |
| Elevate | LKR 1500/= | LKR 2999/= | 2.7% | Visa, MasterCard, Amex and QR payments | 2 Working Days | 1 – 6 days | All Major Currencies | Available | Available |
| Premier | LKR 1500/= | LKR 5999/= | 2.5% | Visa, MasterCard, Amex and QR payments | 2 Working Days | 1 – 6 days | All Major Currencies | Available | Available |
Requirements For A Payment Gateway In Sri Lanka.
While there are different requirements for most of these payment gateways, one common requirement that all of these payment gateways have on their requirement list is a registered business in Sri Lanka. It doesn’t matter if your business is registered as a sole proprietorship or a limited company as long as it is registered as a business in Sri Lanka, you can apply for any of these payment gateways.
If your business is not registered yet, make sure to register it before you request a payment gateway as your application will be rejected otherwise.
How To Add A Payment Gateway To Your Website?
There are different methods to add different types of payment gateways. Most e-commerce websites are built with WordPress nowadays and the majority of these payment gateways provide you with WordPress plugins that make it easy for you to implement them on your website. You just have to install the plugin, add in the relevant information such as the merchant id and the secret key and you are good to go.
Don’t worry if you have used any other sort of CMS like Shopify or Wix to build your website, they also have certain plugins and built-in elements that enable you to implement the payment gateway. You can also reach out to the payment gateway provider and mention to them the CMS you are using and get detailed documentation of implementation.
Also, most of these payment gateways have a dedicated technical support team that helps you each step of the way in setting up the payment gateway. Some of them also go the distance to even visit you and assist you in person.
We recommend that you let your web developer handle the setting up process as there are a few technical elements involved and they are well experienced in such tasks. If you built your own website, as mentioned above you can also request assistance from the payment gateway company or bank if you get stuck or there are a lot of free tutorials on YouTube that you can follow along the process.
Do only E-commerce stores support payment gateways?
No, it doesn’t necessarily have to be an e-commerce store to use a payment gateway. You can request and implement a payment gateway to any type of website whether it is an online tool that charges customers for using that tool or any other form of website that you need to take online payments from.
Make sure to state the nature of your business clearly and provide as much information as possible in the application process and you will not face any issues in the approval process.
What to look for in a payment gateway before you opt in for one?
There are a number of things that you should first consider before you fill out an application form for a payment gateway. Some of the most important factors to consider are:
1. The costs involved in the Payment gateway
There are certain costs involved in a payment gateway such as the set-up costs, an annual or monthly service cost, and a transactional fee and these costs/ fees vary from payment gateway provider to provider. With that said, you will have to consider a payment gateway that has a cost aligned with the nature of your business.
For example, if you are selling high-end products that have a higher profit margin, you will not have that much effect on paying for a high-end payment gateway with high transactional fees. On the other hand, if you are selling low-end products with low-profit margins, having an IPG (internet payment gateway) with a high transactional fee is not ideal for you.
2. Security of the payment channels
Nowadays, customers online tend to only engage with businesses that they trust. This is due to the scams that are widely operated on the internet. The payment gateway security plays a major factor when it comes to the trust of online customers and if your website has no secure payment gateway, then you have lost that customer forever. Therefore, make sure to use a payment gateway that provides maximum payment channel security with fraud checks and card data privacy standards.
3. Merchant account facilities
When you are using a payment gateway, you have to have a merchant account that provides all the required data for you to measure the performance of your online business. There are some payment gateway providers who offer very advanced merchant accounts whereas some offer very simple merchant accounts. Either way, you will have to choose a payment gateway provider depending on your requirement as some may prefer simple merchant accounts while some may prefer a more advanced one.
4. Implementation process
As we discussed above, implementing a payment gateway to your website requires a certain level of technical knowledge. While some payment gateway providers make it very simple to implement their payment gateway some may have a bit more complex method. Therefore, make sure to mention the CMS you are using to the payment gateway provider and request information on their implementation process first.
5. Payment Processing Speed
Another factor that you should consider is the payment processing speed. This refers to the speed at which money is processed from your customer’s bank to yours. The speed of the payment process is one factor that directly influences your customer’s purchasing experience as well. Therefore, make sure to request information on this from your payment gateway provider and opt in for a payment gateway that has the shortest payment processing time if possible.
Conclusion
There you go, 10 of the best payment gateways available for businesses in Sri Lanka along with all the other relevant information that you as a business owner should know on payment gateways in this day and age of digitalization.
We hope that now you will be able to pick out the best payment gateway that will match your business requirement and take your business to the next level online.
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