15 Best Payment Tools for Small Businesses, and Startups

Efficient payment processing is crucial for startups to ensure smooth operations, maintain cash flow, and provide a seamless customer experience. With the right payment tools, startups can accept payments, manage invoices, track expenses, and integrate with other business systems effortlessly. This article explores some of the best payment tools for startups, highlighting their key features and benefits.

Here’s a comprehensive look at some of the best payment tools for startups:

1. Stripe

Overview:
Stripe is a powerful online payment processing platform designed for Internet businesses. It supports a wide range of payment methods, including credit cards, debit cards, and digital wallets like Apple Pay and Google Pay.

Key Features:

• Flexible APIs: Allows for customized integration with websites and mobile apps.
• Global Reach: Supports multiple currencies and international payments.
• Security: PCI DSS compliant with advanced fraud prevention tools.
• Subscription Management: Ideal for SaaS businesses with recurring billing needs.

Benefits for Startups:

• Easy to set up and scale as the business grows.
• Comprehensive documentation and developer support.

2. PayPal Business

Overview:
PayPal is a widely recognized and trusted payment platform that offers both online and offline payment solutions. It’s suitable for startups looking for a quick and reliable way to accept payments.

Key Features:

• Wide Acceptance: Used by millions of customers worldwide.
• Multiple Payment Options: Accepts credit cards, debit cards, PayPal balance, and bank transfers.
• Invoicing: Built-in tools for creating and managing invoices.
• Mobile Payments: Supports mobile transactions through the PayPal app.

Benefits for Startups:

• Instant credibility due to its widespread use and trust.
• No setup fees and straightforward transaction fees.

3. Square

Overview:
Square is a versatile payment processing system that caters to both online and brick-and-mortar businesses. It’s known for its easy-to-use hardware and comprehensive software solutions.

Key Features:

• Point of Sale (POS): Robust POS system for in-person transactions.
• Online Store: Integrated eCommerce solutions for online sales.
• Invoicing: Create and send professional invoices.
• Analytics: Detailed sales reports and analytics.

Benefits for Startups:

• Quick setup with no long-term contracts.
• Competitive pricing and a flat-rate fee structure.

4. Shopify Payments

Overview:
Shopify Payments is a built-in payment processor for businesses using the Shopify platform. It streamlines the payment process for online stores, eliminating the need for third-party payment gateways.

Key Features:

• Seamless Integration: Fully integrated with Shopify’s eCommerce platform.
• Multiple Payment Methods: Accepts credit cards, debit cards, and alternative payment methods.
• Security: PCI compliant with fraud analysis.
• Simplified Billing: Transparent pricing with no hidden fees.

Benefits for Startups:

• Simplifies setup and management of an online store.
• Competitive transaction fees with no additional charges for third-party payment gateways.

5. Authorize.net

Overview:
Authorize.Net is a reliable payment gateway solution that supports a wide range of payment methods and integrates with various eCommerce platforms and POS systems.

Key Features:

• Payment Gateway: Secure payment processing for online and in-person transactions.
• Recurring Billing: Supports subscription-based businesses.
• Fraud Detection: Advanced fraud detection suite.
• Customer Information Manager: Securely stores customer payment information.

Benefits for Startups:

• Comprehensive support and resources for merchants.
• Scalable solutions for growing businesses.

6. Braintree

Overview:
Braintree, a subsidiary of PayPal, provides a robust payment processing solution that caters to online and mobile businesses. It supports various payment methods and offers advanced features for growing startups.

Key Features:

• Multiple Payment Methods: Accepts credit cards, debit cards, PayPal, Venmo, and digital wallets.
• Global Reach: Supports multiple currencies and international payments.
• Fraud Protection: Built-in fraud detection tools.
• Developer-Friendly: Flexible APIs and SDKs for custom integrations.

Benefits for Startups:

• Backed by PayPal’s extensive network and resources.
• Transparent pricing with no hidden fees.

7. Square

Overview:
Cash App by Square is a mobile payment service that allows individuals and businesses to send and receive money instantly. It’s a convenient option for startups looking for an easy-to-use mobile payment solution.

Key Features:

• Instant Transfers: Quickly send and receive payments.
• Business Accounts: Allows businesses to accept payments from customers.
• Cash Card: A free debit card for spending funds directly from the Cash App balance.
• Bitcoin Trading: Option to buy and sell Bitcoin.

Benefits for Startups:

• Simple setup and no monthly fees.
• User-friendly interface suitable for quick transactions.

8. Venmo Business

Overview:
Venmo, owned by PayPal, is a popular peer-to-peer payment app that now offers business profiles. It allows startups to accept payments from customers who prefer using Venmo.

Key Features:

• Social Payments: Leverages Venmo’s social feed to promote business transactions.
• QR Codes: Easy payment acceptance through scannable QR codes.
• Instant Transfers: Quickly transfer funds to a linked bank account.
• Security: Secure transactions with buyer protection.

Benefits for Startups:

• Access to Venmo’s large user base.
• Low transaction fees for business payments.

9. Revolut

Overview:
Revolut offers business accounts with multi-currency payment solutions, making it ideal for startups with international clients. It combines payment processing, expense management, and banking services.

Key Features:

• Multi-Currency Accounts: Hold and exchange multiple currencies.
• Corporate Cards: Issue physical and virtual cards to employees.
• Expense Management: Track and categorize expenses.
• Payment Gateway: Accept online payments in various currencies.

Benefits for Startups:

• Competitive exchange rates for international transactions.
• Comprehensive business banking and payment solutions.

10. Payoneer

Overview:
Payoneer provides cross-border payment solutions, enabling startups to send and receive payments globally. It’s particularly beneficial for businesses with international clients and remote team members.

Key Features:

• Global Payment Service: Receive payments in multiple currencies.
• Mass Payouts: Send bulk payments to multiple recipients.
• Prepaid Mastercard: Access funds instantly with the Payoneer card.
• Marketplace Integration: Compatible with platforms like Amazon and Upwork.

Benefits for Startups:

• Simplifies international payments and reduces transfer fees.
• Offers flexible payment options for global business needs.

11. Due

Overview:
Due is a payment processing and digital wallet solution designed to simplify invoicing and payment for freelancers and small businesses.

Key Features:

• Invoicing: Create and send professional invoices with ease.
• Time Tracking: Track billable hours to streamline invoicing.
• Digital Wallet: Store funds securely and transfer money between accounts.
• Credit Card Processing: Accept credit card payments at competitive rates.
• Reporting: Generate detailed reports to keep track of financial health.

Benefits for Startups:

• Easy to use and set up, making it ideal for freelancers and small businesses.
• Offers a digital wallet feature that adds flexibility to payment processing.

12. Dwolla

Overview:
Dwolla focuses on ACH (Automated Clearing House) payments, enabling businesses to transfer money directly between bank accounts.

Key Features:

• ACH Payments: Securely send and receive ACH payments.
• White-Label API: Customizable API for integrating Dwolla’s payment processing into your platform.
• Mass Payments: Send bulk payments efficiently.
• Real-Time Transfers: Supports faster payment processing times.
• Compliance: Built-in compliance features for regulatory adherence.

Benefits for Startups:

• Ideal for businesses that need to handle high volumes of ACH transactions.
• Customizable API allows for seamless integration with existing systems.

13. Wepay

Overview:
WePay, a part of JPMorgan Chase, offers payment processing services tailored for online platforms and marketplaces.

Key Features:

• Integrated Payments: Easily integrate payments into your platform with WePay’s API.
• Fraud Detection: Advanced security features to minimize fraud risks.
• Customizable Checkout: Tailor the checkout experience to your brand.
• Instant Payouts: Access funds quickly with same-day deposits.
• Risk Management: Comprehensive tools for managing risk and compliance.

Benefits for Startups:

• Strong support for online platforms and marketplaces.
• Backed by JPMorgan Chase, providing additional trust and resources.

14. Neteller

Overview:
Neteller is an online payment processing service widely used for transferring money to and from merchants. It’s particularly popular in the e-commerce and gaming industries.

Key Features:

• Digital Wallet: Store funds securely and make online payments.
• Merchant Services: Accept payments from a wide range of sources.
• Prepaid Card: Access funds with a Neteller prepaid card.
• Global Reach: Supports multiple currencies and international payments.
• Security: High-level encryption and fraud protection.

Benefits for Startups:

• Offers a global payment solution with support for multiple currencies.
• Prepaid card provides easy access to funds.

15. Worldpay

Overview:
Worldpay is a comprehensive payment processing provider offering solutions for both online and in-person transactions. It’s known for its global reach and robust features.

Key Features:

• Global Payments: Supports multiple currencies and payment methods.
• E-commerce Solutions: Integrates with popular e-commerce platforms.
• POS Systems: Offers hardware and software for in-person sales.
• Fraud Prevention: Advanced tools to detect and prevent fraud.
• Reporting and Analytics: Detailed financial reports and insights.

Benefits for Startups:

• Extensive global reach, making it ideal for businesses with international customers.
• Comprehensive solutions for both online and offline transactions.

16. Charge

Overview:
Charge is a merchant services provider that offers a range of payment processing solutions tailored for small to medium-sized businesses.

Key Features:

• Credit Card Processing: Accept credit card payments online, in-store, or on-the-go.
• Low Rates: Competitive transaction fees with no setup fees.
• Mobile Processing: Mobile credit card processing with a card reader.
• E-commerce Integration: Easily integrates with e-commerce websites.
• 24/7 Support: Round-the-clock customer support.

Benefits for Startups:

• Affordable payment processing solutions with transparent pricing.
• Excellent customer support to help with setup and ongoing operations.

Others are:

Helcim
Revel
Vend
TouchBistro
Plootoo
Stampli
Melio
Chargebee
Recurly
Podium
Zoho
Fivestars
Gumroad
Patreon
HoneyBook
Podia
Invoicely

Selecting the right payment tools is essential for startups to streamline their financial operations, improve cash flow, and enhance customer satisfaction. Tools like Stripe, PayPal, Square, Shopify Payments, Authorize.Net, Braintree, Due, Dwolla, WePay, Neteller, Worldpay, and Charge.com each offer unique features and benefits that cater to various business needs. Whether a startup requires advanced invoicing capabilities, robust ACH payment processing, seamless platform integration, global payment solutions, or affordable credit card processing, there is a suitable tool available to meet these requirements. By leveraging the right payment tools, startups can ensure efficient transaction management, maintain financial health, and focus on scaling their business effectively.