When setting up your website to sell digital products, considering external payment systems can provide more flexibility and customization compared to built-in payment options. External payment systems, like Stripe, PayPal, and LemonSqueezy, offer a wide range of features and benefits that can enhance your e-commerce operations.
Popular External Payment Systems
Stripe
Overview: Stripe is a comprehensive payment processing platform known for its developer-friendly APIs and extensive customization options.
Key Features:
- Customization: Highly customizable checkout process to match your brand.
- Global Reach: Supports multiple currencies and international payments.
- Integrations: Easily integrates with various e-commerce platforms and tools.
- Advanced Security: Includes fraud detection and prevention measures.
Pricing:
- Stripe charges a standard fee of 2.9% + 30¢ per successful transaction.
- Additional fees may apply for international transactions and currency conversion.
PayPal
Overview: PayPal is a widely recognized payment platform that offers simplicity and trust, making it a popular choice for both businesses and consumers.
Key Features:
- Ease of Use: Simple setup and user-friendly interface.
- Buyer Protection: Enhances customer trust with PayPal’s buyer protection policies.
- Versatile Payments: Supports various payment methods, including credit/debit cards and PayPal balance.
- Global Reach: Accepts payments from customers worldwide.
Pricing:
- PayPal charges a standard fee of 2.9% + 30¢ per successful transaction.
- Additional fees apply for international transactions and currency conversion.
LemonSqueezy
Overview: LemonSqueezy is a payment system designed specifically for creators and digital product sellers, offering features tailored to these needs.
Key Features:
- Digital Product Focus: Optimized for selling digital products with features like automated delivery.
- Subscription Management: Supports recurring billing and subscription management.
- Integrated Marketing Tools: Includes tools for email marketing and customer management.
- User-Friendly: Easy to set up and manage, with a focus on simplicity.
Pricing:
- LemonSqueezy charges a transaction fee of 5% + 50¢ per successful transaction.
- Subscription and additional service fees may apply.
Tip: We use Stripe as our main payment system platform. They offer integration with PayPal, which is great because it allows you to manage and view all PayPal payments in Stripe.
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Pros of Built-In Payment Systems
✅ Flexibility and Customization
- External payment systems allow for greater customization of the checkout process, making it easier to create a seamless and branded experience for your customers.
✅ Advanced Features
- They often offer advanced features like subscription billing, detailed analytics, and fraud prevention, which can be crucial for scaling your business.
✅ Global Reach
- Many external payment systems support multiple currencies and international transactions, helping you reach a global audience.
✅ Better Integrations
- External systems typically integrate with a wide range of tools and services, enhancing your overall e-commerce ecosystem.
Cons of External Payment Systems
❌ Complexity in Setup
- Setting up external payment systems can be more complex and time-consuming compared to built-in options.
Choosing the right payment system is crucial. It’s a big decision for your digital product business. Built-in payment systems are convenient and easy to use. But, systems like Stripe, PayPal, and LemonSqueezy are more flexible, have advanced features, and integrate better.
Assess your business needs. Think about the good and bad of each option. And, ask your accounting team for advice. They can help you make the best choice for your e-commerce operations.
Other External Payment Systems
Payment Gateway for Platforms | WePay, a Chase Company
Home – Mangopay
Checkout Page | Sell event tickets, products & subscriptions
www.2checkout.com
Mollie — Effortless Payments and Money Management
Power your entire business | Square
Chargebee: SaaS for Effective Revenue Growth Management
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