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How white-label payments help grow your e-commerce business sales

There are numerous ways to enhance the efficiency of companies in the field of e-commerce. One of the options is the use of white-label payment platforms. White-label payment solutions provide access to a wide range of payment methods, helping businesses operating in e-commerce to reach a fundamentally new level. Below, we will explain how white-label payment solutions work, their advantages, and how they affect the conversion rate. We will also advise on how to choose a reliable white-label payment provider.

How white-label payments work

To expand their audience reach and business geography, e-commerce companies should offer their customers as many payment tools as possible. However, this requires significant investment in developing and maintaining their own payment infrastructure. Differences between payment systems and methods in various countries lead to significant inconveniences, as entering a new market requires connecting each tool separately. Often, this process involves a lot of resources for preparing documents and coordinating with local banks and providers.

White-label payment solutions offer companies a ready-to-use payment infrastructure with pre-integrated payment methods, which can be customized to fit the brand's unique features. They easily integrate with e-commerce platforms and enable accepting payments in online stores using various payment tools. Let's consider the working principle of white-label payment solutions:

  • Connecting a white-label payment processor. An e-commerce business owner receives a ready-to-use solution from the provider, supplying information about their company and an account for accepting payments.
  • Setting up the payment solution. With access to an API or SDK, the online store owner can integrate the payment processor and customize the payment page interface so that all elements match the brand's style.
  • Expanding the list of available methods and optimizing payments. A white-label payment processor allows connecting many instruments, including bank cards, electronic wallets, and mobile payments.
  • Processing payments. When a customer selects a payment method, the white-label platform directs them to a secure payment page. Information about the virtual payment is provided to both the customer and the company. The money is transferred to the company's account minus the processor's commission.

White-label payment solutions process payments in the background, not revealing to users any information that doesn't correspond to the e-commerce platform. Specifically, the customer does not see the name of the white-label platform, information about the specific payment system, or the stages of payment processing.

Benefits of white-label payment platforms

Many large and small businesses in the e-commerce sector have already switched to white-label payment solutions and appreciated their advantages:

  • Optimization of costs and business processes. Instead of developing their own platform and manually connecting payment systems and methods, companies receive a ready-to-use solution. This allows them to save time and resources, focusing on other important issues.
  • Increase in the number of successful transactions. A white-label platform, being a ready-made solution, offers a wide range of payment options and technologies that enhance conversion - such as routing and cascading.
  • Ease of business scaling.With numerous payment solutions, an e-commerce company can easily scale its business into new markets, complying with the payment method requirements of almost any jurisdiction.
  • Payment security. White-label payment solutions contain built-in security protocols and comply with international standards, almost completely eliminating the possibility of fraud and leakage of sensitive information.
  • Analytics. Modern white-label payment platforms offer powerful analytical tools that help understand users' behavioral characteristics and make necessary changes to improve user experience and increase the conversion rate.

Implementing a white-label solution is essentially outsourcing payment processing. This approach allows companies to focus on other important aspects of their business, such as improving products and customer service quality. In turn, this contributes to the overall increase in sales.

How white-label payment solutions increase conversion rate

Companies that have integrated white-label payment solutions increased their conversion rates by:

  • Expanding the list of available payment methods. Users of e-commerce platforms can choose from various payment systems and tools, including those available only in certain countries and regions.
  • Ensuring a simple and understandable order placement and payment process. Making the process straightforward and user-friendly enhances customer experience and reduces the likelihood of abandoned carts.
  • Enhancing brand recognition. By aligning all interface elements with the brand, white-label solutions allow for creating a brand's own payment identity.

According to a study by SmartKarrot, a complicated order placement process leads to 83% of female shoppers and 77% of male shoppers abandoning an online store. Thus, implementing a white-label payment solution significantly increases the likelihood of a purchase being made.

How to choose a white-label payment provider

Before starting a collaboration with white-label payment providers, consider the following factors:

  • Available payment methods. Opt for a solution that supports payment instruments considering the requirements of your business. Additionally, consider factors such as the speed and ease of expanding the list of payment options, for instance, when your business enters a new market.
  • Compliance with industry standards. The proposed solution should comply with PCI DSS standards and use the latest technologies for user data security.
  • Available features. Analyze your business and identify elements necessary to achieve your goals. Quality white-label payment solutions include numerous features, such as fraud detection systems, tools for analyzing customer behavioral traits, automated reporting, and more.
  • Cost. Most white-label payment solutions are offered on a subscription basis. Leading providers offer service packages designed for businesses of different scales with various requirements, including personalized support and other options.

Finally, learn about the reputation of the white-label payment solution provider. Review feedback about different providers to choose an option that leaves no doubts about its reliability and security.

Practical case studies of white-label payment solutions successful implementation

Many e-commerce businesses have achieved leading positions in the market, particularly thanks to the use of white-label payments. Let's consider three examples of successful integration of white-label solutions with e-commerce platforms:

  • Stripe and Shopify. By implementing Stripe, Shopify significantly expanded its list of available payment methods. The total sales volume made by Shopify using Stripe in Canada amounted to about 4 billion dollars in a year.
  • PayPal Payments Pro and Magento. According to Magento's research, integrating PayPal Payments Pro significantly increased sales volumes worldwide.
  • Adyen and eBay. Supporting a multitude of payment methods and broad customization capabilities, Adyen helped expand eBay's audience.

The above-mentioned white-label payment solutions can process financial transactions in various regions worldwide, enabling e-commerce companies to expand their business internationally.

Bottom line

Thus, using white-label payment solutions can help businesses in the field of e-commerce expand their range of supported payment options and accelerate entry into new markets. Moreover, thanks to customization capabilities, white-label payment enhances brand presence throughout the entire purchasing journey, increasing customer trust and loyalty.

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