Paypal’s Braintree Payment Gateway- An Online Payment Solution

• 9 March 2020 | 1164 Views | By Abhinav Mishra

The fintech revolution has already started in the last decade and now this decade will see the industry touching new heights. There is a fierce competition among startups and some technology giants like Alphabet Inc and Apple.
For a business, choosing a perfect payment system for its web application is not an easy task especially when there are more than 70 payment systems already available in the market. The mobile apps can get away with in-app purchases but web applications still need a full-fledged payment gateway to accept money from its users and this is what makes it complicated for businesses & Braintree can be a solution to that.

As per study, 50% of online shoppers will abandon their carts if your app doesn’t have their favorite payment method. So your business needs to choose the best payment option available in the market. Out of 70 payment systems available in this article, we will talk about Braintree which is making noise for a few years now.

Braintree was founded in 2007 and was acquired by PayPal for $800 million in the year 2013. It has helped PayPal become a global one-stop business for payment processing and merchant account services.

What is Braintree for PayPal??

Braintree is an online payment gateway that was designed and created to make the online payment easier. The company offers global commerce tools to its users, build businesses and accept payments. It lets companies build their own experiences and then scale up their business across the globe. It lets merchants in more than 40 countries and in 130 different currencies to accept, split and enable payments. It offers debit and credit card processing through apps and e-commerce websites.

With the Braintree system, businesses can take major debit and credit cards such as MasterCard, Visa, American Express, JCB as well as PayPal, Apple Pay, Google Pay, and Bitcoin. Forward-thinking app developers, marketplace-style businesses, and other Internet-based, tech-driven merchants are finding their services ideal to use.

How is Braintree different from PayPal?

Braintree has a lot to offer to its customers and each of their service/product stands outs in terms of quality and ease of use. Their service can be broken down into 4 products –

Braintree Direct – This product is for those businesses that want to sell directly on a mobile app or a website. Using this product, you have multiple payment options to choose from like cards, PayPal, wallets, Google and Apple pay. Merchants get access to some of their best tools like recurring billing, fraud protection tools, and reporting and integration options.

Braintree Extend – With this product merchants can share payment data with partners including other platforms. Extend product is mainly used by merchants to share the data with fraud protection services or rewards and loyalty partners. The stand out feature of this product is that this product allows you to develop in-context commerce experiences and add purchasing options within your partner’s content.

Braintree Auth – This product is more for partners and platform providers. Auth is a way businesses can securely share merchant data and take authorization actions on behalf of merchants.

Braintree Marketplace – This product allows you to seamlessly manage all aspects of your business like the option to split payments between you and your providers.

Other than the above four products there are several other products/services offered by Braintree which comes at no additional cost.

In-Store Payments – Braintree will integrate with your current third-party POS or mPOS app provider to process card-present transactions.

Reporting – You can use reporting service to view reports and use the available filtering tools to isolate different fields.

Security – Braintree now offers 3D Secure 2.0 to all users. 3DS 2.0 is the new industry standard for customer authentication, and you get it with Braintree.

Drop-In UI & Custom UI – With Braintree, you can either use their ready to go checkout UI or you can use custom payments APIs to create something new for your customers.

Fraud Protection Tools – With Braintree, you get access to fraud monitoring tools through the company’s partner, Kount. You have an option to set parameters for security. Also, you have an option to override certain suspicious transactions.

Payouts – Through their new payout offering from Hyperwallet, Braintree can help marketplace businesses integrate seamless and efficient outbound payment solutions.

 The Braintree sandbox

Very few companies allow you to test their product as Braintree does. They have something called ‘Braintree sandbox’ which is a test environment that is almost identical to Braintree production environment. With your sandbox, you can create users and roles, process transactions using test credit card numbers and explore the Braintree gateway. When you start with your sandbox, your account will default to processing with a single currency setup which will be your local currency. You can choose to set up other currencies as well.

Rates and Charges

The rates and fees charged by Braintree Payments are very straight forward for most merchants. They charge you 2.9% + $0.30 per transaction. There are no additional surcharges or fees which means there is no monthly minimum, no monthly fee, no annual fee, no PCI compliance fee, no early termination fee, no setup charge, no gateway fees, and no statement fees.

Their rate of 2.9% + $0.30 is very much competitive especially when you consider there is no other type of fees. Everything is very crystal clear in terms of fees/surcharges. If your business monthly volume is over $80,000 then Braintree will offer you volume discounts.

Braintree also offers ACH Direct Debit at a low rate of 0.75% per transaction, with a maximum per transaction fees capped at $5. You can check for discounted rates if you are an enterprise business.

The gateway is available at below costs –

$49 per month for gateway

$0.10 per transaction

$10 additional for additional merchant accounts beyond the first

All the payments are made within 2 to 3 days which is another advantage offered to Braintree customers. Other providers take on an average of 4 to 5 days to settle your payments.

Why you should choose Braintree over other providers?

Conversions

They create a seamless payment experience and improve customer loyalty and brand affinity. Buyers can pay how they want. It offers buyers the most popular payment options which includes Paypal, credit and debit cards as well as digital wallets in one single integration.

Streamline Business Operations

Braintree helps you with reduced integration costs, meets industry standards for PCI compliance (Validated Level 1 PCI DSS compliant service provider) and automate processes and free up resources.

Reach more buyers in more places

You can reach more buyers by tapping into new distribution channels, new countries, and new revenue streams. All this comes with data security. Braintree relationships with local banks in many regions optimize acceptance rates.

Mitigate risk and keep payments data secure

With Braintree, you get peace of mind because they help you fight fraudulent transactions making payment data secure. Even when you are sharing your data with trusted partners it is secure.

If you are looking for a seamless experience to process transactions of your customers, you should definitely check Braintree once.