Magento 2 remains one of the most popular open-source platforms for generating revenue online. Even after its acquisition by Adobe, it has maintained its vibrant ecosystem, allowing small businesses to enterprises to run and manage online businesses. Whether it is B2B service packages or D2C e-commerce, Magento 2 (now rebranded as Adobe commerce) has a wide variety of developer tools and payment gateways to enable businesses of all sizes. In this article, we’ll take a look at the best Magento 2 payment gateways so you can decide which is best for you. 

How does Magento 2 payment gateway integration work?

Magento 2 payment gateways work by connecting the payment processor on the front end with the merchant’s and customer’s bank, verifying if the customer has a legitimate account with sufficient funds to pay for the item. It takes customers’ input data and sends it to the processing bank that replies with a binary response— either accepted or declined. The Magento 2 payment gateway transfers this response back to the server where this is shown to the customer. 

On the Magento 2 platform, merchants can install payment integrations that offer out-the-box solutions to handling payments from end-to-end, for a transaction fee. They can be integrated with your online shop by various extensions available on Magento Marketplace. It should be relatively straightforward to set up and test a plugin if built by the gateway’s company rather than a 3rd party developer. There is always the option of outsourcing plugin development for a gateway that doesn’t have a Magento plugin, but this will be a longer and less secure process. 

Benefits of Magento 2 payment integration

So what are the benefits of a Magento 2 payment gateway integration? Here, we cover the ways it can boost your bottom line and efficiency.

1. Security - Magento payment gateways provide in-built fraud screening tools to reduce money laundering and fraudulence risk, ensuring payments are legitimate.
2. Flexibility - Adopt more flexible payment options for customers such as recurring payment and modular pricing to add bespoke pricing to accommodate the needs of your B2B customers. The complexity of B2B trade when selling subscriptions or usage-based pricing, for example, means that more options are essential.
3. International Payments - Expanding to an international client base is only possible with the correct payment infrastructure. Magento payment gateways can offer wide ranges of card compatibility and instant FX conversions at reasonable rates to encourage you to go global.
4. Accounting integration - Integrating your payment volume and transaction history with accounting software allows you to keep full visibility over your business. This improves financial models and cash flow analysis, while reducing accounting fees and complexity at the end of the financial year. 
5. Wider payment terms - In B2B markets, buyers are even more reliant on cash flow, so the backlog of unpaid invoices that most businesses face makes credit and BNPL an attractive option. Magento payment gateways can offer flexible terms with no interest paid on the side of the merchant, with Pay Now and Pay Later options.
6. Speed - Using an established payment gateway allows you to piggyback on top of their infrastructure for rapid payments, streamlining the customer experience and driving retention. 

Best payment gateways for Magento 2

There are plenty of plugins to choose from on Magento 2. Many offer different features, pricing and products that come with a host of benefits and drawbacks. Let’s get started and take a deeper dive into which is best for you. In no particular order…

1. Stripe - The gateway offers several features. One of the major benefits is the availability to stay on-site, other than being directed to different sites while paying. There are no extra fees charged in Stripe integration, from monthly fees, set-up fees, minimum charges or card storage fees.  Magento stores only have to pay the associated rates of 1.4 percent + 20p for UK transactions with this extension.
2. PayPal - One of the oldest and most reliable payment gateways on the market. Its security is second-to-none given its experience in the market, but it does come at a cost. Both users and merchants will need a PayPal account to use this gateway on Magento 2. 
3. SagePay - SagePay is gaining ground with its strong security and integration into its own accounting software. It’s getting recognition for its highest level of card data security - PCI DSS Level 1 compliance which properly protects transactions against fraud. Especially, the Sagepay payment extension on Magento 2 provides additional security layers such as AVS, CVC, 3D Secure authentication. Its Magento 2 gateway integration offers customisable payment terms. 
4. WorldPay - Another older and reliable gateway with a strong international footprint. Operating in 140 countries, its Magento 2 WorldPay payment extension adds features such as WorldPay eWallets payment, Worldpay local card schemes payment, Worldpay vault for card saving and administration. 
5. iwocaPay - iwocaPay offers a new solution with functionality and security to match the existing options. Alongside fast, fraud-free verification, it offers Buy Now Pay Later for merchants to help turbocharge revenue, while customers are waiting to get paid. This flexibility in payment terms alongside faster payments powered by open banking make it one of the best Magento 2 payment gateways. 

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