In this article, we will be talking about the Hosted Payment Pages - one of the simplest and safest ways to accept online payments on your website.
What is a Hosted Payment Page?
According to the 2019 Global Consumer Insights Survey done by PWC, more consumers are making online payments these days than ever before. The number of online shoppers more than doubled from 2010, rising from 7% to 17%. So, if you are looking into adding payment functionality to your existing site, now is the time to do it!
In the most basic terms, a hosted payment page (also known as External Checkout, Third-Party Checkout, External Payment Page or Checkout page) is one of the most common ways to accept online payments.
It is a third-party checkout web form that handles electronic transactions (payments made with credit and debit cards).
In exchange for a small transaction fee, these Hosted Checkout Pages will take care of the entire transaction process: payment information collection, sensitive data protection, and transaction security.
How does a Hosted Payment Page work?
The customer clicks "Buy Now" on your website and goes to the checkout to complete their purchase.
Then, they are instantly redirected from your store to a Hosted Payment Page.
Customers securely input their sensitive payment data on the Hosted Payment Page.
Customers' data never passes through your website directly - the entire transaction is being processed by the external payment provider.
If you only use a Hosted Payment Page to process payments, your Payment Card Industry Data Security Standard (PCI DSS) requirements are usually lower. The entire process of PCI Compliance becomes as easy for you as filling out a Self-Assessment Questionnaire form.
What are the benefits of a Hosted Payment Page?
Secure Hosted Payment Pages come with a bunch of benefits. Here are a few reasons to consider a Hosted Payment Solution for your business:
Easy Set-up: Ideal for small and medium-sized merchants, Hosted Payment Pages are one of the fastest ways to start accepting online payments.
The entire set-up process requires little-to-no technical expertise and often it is as easy as copying and pasting a line of code into a website.
Enhanced security: When choosing a self-hosted payment solution for your website, you become the one responsible for managing, transmitting, and protecting sensitive data. In addition, there are also risks of fraudulent losses that can impact your bottom line.
With hosted payment solutions, you outsource data protection to professionals. In the unlikely event of hacking or fraud, you as a business are not responsible for it. Even though you still need to be PCI compliant to accept online payments, you will not have to reimburse your customer if the fraudulent activity happens.
Simple checkout process: According to Forrester, approximately 89% of online shoppers have abandoned their carts at least once. Most of them are leaving your website before the sale is complete because of the long and confusing checkout process.
A hosted payment solution can help you remove those barriers for hesitation and make the entire checkout process more effortless. Because most of the checkout page hosted solutions offer simple intuitive navigation, mobile-friendly interface, and a variety of payment tools at checkout, your potential customers will have fewer reasons to leave before finishing the transaction.
Things to consider when choosing a Hosted Checkout Page
Not all the Hosted Checkout Payment providers are created equal. Pick a wrong third-party checkout provider and it will affect your conversion rates dramatically.
Here are a few things to consider when choosing a Hosted Checkout Page:
Is it easy to integrate into your website? The best option of a hosted checkout page solutions has a relatively easy setup process. It should not take you much time and effort. If you feel like the integration process is too complex, ask for a developer help you out or try with a different provider - there are plenty to choose from.
Does it allow for customization? Top-notch hosted checkout page solutions can be customized to fit into your branding. The more your checkout page looks and feels like your actual website, the better. This way, the entire shopping process will be more seamless for your customer.
Does the Hosted Checkout Page offer a variety of payment methods? While the majority of online buyers use credit cards to shop online, they are certainly not the only payment method you should be able to accommodate. Many shoppers may prefer digital wallets like Google Pay, or cash payments such as Boleto Bancário in Brazil or OXXO in Mexico. If your website fails to accommodate those customers, they may withdraw their orders. So make sure that your Hosted Checkout Page supports a variety of payment methods.
Does it offer global options? With cross-border e-commerce growing rapidly, more and more merchants are starting to look into international payment solutions. If you plan to expand abroad, provide your international customers with the convenience of paying in their own currency. When choosing a Hosted Checkout Page, go with the one that supports multiple languages and various currencies.
Why Hosted Payment Page is important?
Whether you are selling products online, offering services or taking donations, Hosted Payment Pages can help. Because these solutions are hosted on secure third-party servers, you as a merchant don’t have to worry about customer’s sensitive data.
Quick implementation, top-notch information protection, decreased PCI scope and costs, improved checkout experience - the benefits of hosted payment pages are clear.
But most importantly, while third-party Hosted Checkout Pages are taking care of all the mundane payment processes, you can focus on the business strategy and the ways to drive it forward.