WooCommerce Payments is Here. Should It Replace Stripe for Your Store?
With the release of WooCommerce Payments finally reaching Canada, I was finally faced with the question of whether or not to replace Stripe for my employer’s store.
Every year, running an online store gets easier and more manageable. More apps are emerging every single day that can help streamline the process and get your products in the hands of customers faster.
There is a downside to all of these useful apps and plugins though – your staff ends up having to balance a collection of apps, just to manage the one store.
For WordPress based sites, you end up with a WordPress account, WooCommerce account, and Stripe account just to manage accepting payments.
WooCommerce Payments is hoping to change that.
The goal of this post is to break down what WooCommerce Payments is, the advantages and disadvantages of switching to it, and how it will affect your store.
What is WooCommerce?
Before getting into WooCommerce Payments, we should step back and cover the basic information some of you may be missing. What is WooCommerce?
WooCommerce is a storefront application built to operate on WordPress websites.
WooCommerce allows for you to upload products, assign sku numbers, track inventory, charge shipping and taxes, and more.
The tool allowed for a lot of opportunities for business owners. But it didn’t have an embedded payment gateway.
Payment Gateway: The interface used to collect payment information from customers.
Instead of an embedded and included payment gateway, WooCommerce links to existing 3rd party ones. Long standing payment gateway, Stripe, being the leader in the category. PayPal being another commonly used one.
What is WooCommerce Payments?
WooCommerce Payments is the answer to Stripe.
“Built for WooCommerce, by WooCommerce.” The tagline boasts that it should be familiar and seamless.
By having an embedded payment gateway, you strip away the 3rd party. Your staff wouldn’t have to log into a separate website. The entire payment system – from deposits to refunds – can be operated from the WordPress back end.
It also promises a streamlined experience for your customer, and the ability to use Apple Pay among other payment options. Less friction in your checkout should always be the goal.
But in our efforts for a friction-less experience, we have to make sure we are weighing the pros and cons effectively.
The Advantages of WooCommerce Payments
There are 2 glaring advantages of WooCommerce Payments above other applications:
- No 3rd Party Services
- More conversions thanks to a streamlined checkout
The Disadvantages of WooCommerce Payments
The pendulum swings the other way, however, and there are some things to be wary of if you are thinking of switching.
- Other applications and tools are built on top of Stripe
- Possible loss of historical data
- Loss of negotiated rates with Stripe
If your business uses tools that pull data from Stripe, either for reporting and analytical needs, chances are it won’t be available after switching. As well, your historical payment data from Stripe could be important to your forecasting and reporting regiment.
Many companies have also negotiated with Stripe to get a better rate on each of their payments. By switching to WooCommerce, you are giving that up and beginning new negotiations.
Should You Switch From Stripe to WooCommerce Payments?
Short Answer: If You Are Already Using Stripe, I Don’t See the Need to Change.
For New Stores
The real opportunity is in new stores being set up.
Upon setup, WooCommerce Payments will be the recommended option for all new WooCommerce stores. If you are building something new, and enjoy using WooCommerce, then this option is perfect.
No clunky setup, and a administration is easy from day 1. WooCommerce Payments will make new WordPress stores launch faster than ever before.
For Existing Stores
The decision to switch payment gateways comes down to your store’s needs and goals.
If your goal is quicker conversions, easier administration, and a streamlined checkout – it may be an option worth exploring.
If your business’ goals include detailed financial reporting, or you have other applications built into your payment gateway process – the switch from Stripe to WooCommerce Payments wouldn’t be worth it.
Thanks for reading. If you or your business decides to make the switch, let us know how it goes with #InTakeCreate on Twitter – or Leave a comment below this post.