Sri-lanka
The Ceylon e-commerce market's remarkable growth in recent years reflects increased use of the Internet and smartphones and an emerging demand for online services.
As more companies turn toward the digital era, reliable gateways will be required to facilitate seamless, secure transactions effectively.
- A total population of about 22 million people resides, with appreciable growth in urbanization.
- Over 10 million citizens use the internet, which is roughly 45%.
- About 40% of the population has primary banking facilities.
- About 3% of the total population holds at least one credit card.
- The B2C ecommerce vertical has risen and reached over $1 billion annually.
- E-commerce constitutes about 2% of total retail sales.
This guide will examine some of the best online methods. It will cover each payment gateway Sri Lanka, their features, pros and cons, and how to select the right one for your business.
Regional Statistics
The e-finance ecosystem has been one of the fastest-evolving in recent times and, as such, presents one of the most promising markets for online transactions in the South Asian region.
- Population:22 million
- Online population:10 million
- Banked population:40%
- Credit card population:3%
- B2C e-commerce:US$1 billion
- E-commerce of Total Retail:2%
These numbers indicate the certainty of the potential of payment gateways in Sri Lanka, which is ever-growing due to digital infrastructure and changes in consumer behavior.
What is a Payment Gateway?
A payment gateway has come up as an intermediary service between buyers and sellers, holding online transactions. It connects the e-commerce website to various financial institutions and ensures secured transactions through credit cards, debit cards, and digital wallets, among other means.
Lately, considerable favoring has been reflected towards online payment methods in Sri Lanka, and the tendency of companies to jump onto digital platforms is testament to this assertion. Besides, information regarding all transactions has been made non-accessible by third parties through encryption, even regarding sensitive card details. Paying them reliably and on time will definitely help build trust in your brand name.
Factors to Consider When Choosing a Payment Gateway
In this regard, choosing the correct Sri Lanka payment gateway is very important to maintain your business properly and have customer satisfaction. The key considerations are discussed below:
- Transaction fees. Transaction, processing, and withdrawal fees would be required to compare and contrast compatibility with the business model.
- Security. The security solution should be built on sound measures of security like encryption, fraud detection, and PCI DSS to protect the transactions.
- Integration of e-commerce. It should be easy to run a transaction, with support for popular platforms like WooCommerce, Shopify, or Magento.
- User experience. This refers to how customers will be experiencing the gateways; thus, select the ones that are easy to checkout, optimized for mobile, and multilingual.
- Payment methods. Optimize for gateways that support various alternative payment methods like cards, mobile wallets, and bank transfers.
- Currency support. Gates are supported by various currencies such as LKR, USD, and EUR for international settlements.
- Setup and maintenance charges. Check to see if setup or recurring charges are present. A small business would not want any of those since they turn out to be unaffordable.
- Settlement time. Find out the settlement time in your account. This is one important cash flow feature.
- Customer care. Ensure options that can support 24/7 through call, email, as well as live chat.
This will also allow businesses to find a practical gateway that meets one's need by focusing on these aspects.
Top Payment Gateways for Businesses
Some of the best payment gateways we will discuss are listed below.
- BitPay
- Commercial Bank
- Genie
- HNB, HNB Bank
- lPay
- PayHere
- Sampath Bank
- Seylan
- WEBXPAY
- 2Checkout
Below, we will describe 10 different payment options available in Sri Lanka in detail, including their features, pros and cons, setup fees, requirements, accepted methods, country availability, and supported currencies.
🔥 BitPay
Website: bitpay.com
BitPay is an online payment gateway that makes it simple, safe, and easy for businesses to accept crypto transactions. It’s one of the most favored platforms when discussing the onboarding of digital currencies for businesses.
Advantages
- ✓ The platform opens them up to a worldwide clientele using cryptocurrencies.
- ✓ Offers lower fees per transaction than conventional modes of payment.
- ✓ Protects against volatility with instant currency conversion.
- ✓ No setup or annual fees.
Disadvantages
- ✗ Only limited support for fiat currencies is available, which might not be feasible for every business.
- ✗ Crypto price fluctuations have the potential to change transaction amounts before conversion.
Main features
- Various cryptocurrencies are supported, such as Bitcoin, Ethereum, and Stablecoins.
- It offers invoicing, crypto wallet integrations, and merchant accounts.
- It supports online and in-store operations and is versatile for different types of businesses.
Setup fee
None
Requirements
- A registered business account.
- API implementation by a developer.
Accepted methods
Crypto wallets, BitPay wallet, Visa, MasterCard
Availability by country
230 countries and territories, including Sri Lanka
Supported currencies
BTC, BCH, DOGE, ETH, USD, EUR, GBP
🔥 Commercial
Website: combank.lk
Commercial Bank is the biggest private bank in the country. It offers Simple Pay, an all-inclusive solution that meets all business needs. Because it offers a wide array of online payment methods in Sri Lanka, it is considered one of the favorite gateways among local merchants.
Advantages
- ✓ Strong local presence and good in-country customer support.
- ✓ Easy integrations with most e-commerce platforms.
- ✓ Secure and reliable transaction processing.
Disadvantages
- ✗ Settlement requires a bank account with Commercial Bank.
- ✗ It may have higher transaction fees.
Main features
- Online card, bank transfers, and recurring billing are supported.
- 3D Secure is available to safeguard transactions.
- It supports multi-currency operations
Setup fee
LKR 10,000
Requirements
- Commercial Bank business account.
- A registered business entity
- An online business
- Secured web page for IPG
Accepted methods
VISA, MasterCard, and UnionPay
Availability by country
Sri Lanka, Bangladesh, Maldives, Myanmar
Supported currencies
LKR, USD, EUR
🔥 Genie
Website: genie.lk
Genie is one of the most popular Sri Lankan payment gateways developed by Dialog Axiata, one of the major telecommunications companies. It has gained fame for its hassle-free mobile phone transactions and user-friendly interface, which are targeted at businesses of all sizes.
Advantages
- ✓ Strong focus on mobile payments; hence, it is ideal for mobile-first businesses.
- ✓ Easy integration with other Dialog services, such as mobile wallets and telecom services.
- ✓ Provides a secure environment, including fraud protection measures.
Disadvantages
- ✗ Limited to mobile and online operations; does not support some advanced e-commerce features.
- ✗ Primarily focused on the local market, there is a limit to global reach.
Main features
- Mobile phone, online card payments, and QR-based transactions.
- Integration with mobile wallets for quicker checkout, faster checkout, and recurring payments.
- User-friendly mobile app for maintaining transactions and accounts.
Setup fee
None
Requirements
- Must have a Dialog Genie business account.
- Requires KYC (Know Your Customer) documentation for setup.
Accepted methods
Visa, MasterCard, American Express, eZ Cash, Genie Wallet, QR codes
Availability by country
Sri Lanka
Supported currencies
LKR, SEK, EUR, GBP, NOK, CAD, CHF, PLN, DKK, AUD, HKD, USD
🔥 HNB, HNB Bank
Website: hnb.net
Hatton National Bank is one of the leading commercial banks. It offers a robust payment gateway for website that supports online and in-store payments. Locals highly utilize it due to its fully-fledged service and secure infrastructure.
Advantages
- ✓ Strong network and local support.
- ✓ Fraud detection is built-in with secure processing.
- ✓ Easy integration with many popular e-commerce platforms and websites.
Disadvantages
- ✗ Settlement requires having a business account at HNB.
- ✗ Transaction fees may be charged depending on businesses of different types and the volume of transactions.
Main features
- Supports online card payments, mobile payments, and direct bank transfers.
- Provides a safe 3D Secure environment to handle card transactions.
- Detailed transaction reports and analytics for management.
Setup fee
None
Requirements
- A registered HNB business account.
- Additional documentation for integration
Accepted methods
Visa and MasterCard
Availability by country
Sri Lanka
Supported currencies
LKR, USD, EUR, GBP
🔥 lPay
Website: lpay.lk
lPay is a local solution developed to offer secure, convenient online transactions for businesses and their consumers. It is known for its solid network of bank partnerships and a focus on local solutions. Therefore, this solution perfectly answers the question, “What is payment gateway in a nutshell?”
Advantages
- ✓ Backed by extensive banking network and strong local support.
- ✓ Competitive transaction fees, especially in the case of local transactions.
- ✓ Seamless integration with local banks ensures faster settlements.
Disadvantages
- ✗ Limited international transaction support.
- ✗ A narrow focus on the local market; hence, it may not fit businesses operating globally.
Main features
- Support for online card, mobile payments, and bank transfers.
- Facility for secure authentication of 3D Secure facility for card transactions has been facilitated.
- Real-time settlements for speedier transaction processing.
Setup fee
None
Requirements
- Must be registered with lPay service.
- Requires documentation for business verification
- A registered business account.
Accepted methods
Visa, Mastercard, QR, IPay
Availability by country
Sri Lanka
Supported currencies
LKR
🔥 PayHere
Website: payhere.lk
PayHere is one of the most famous options for local businesses and e-commerce websites. This internet payment gateway supports almost all methods and provides a straightforward integration process, which is more favorable among startups and SMEs.
Advantages
- ✓ Provides multiple modes of payment, thereby giving customers choices.
- ✓ Its pricing is transparent and has very competitive transaction fees.
- ✓ Excellent customer support and support footprint.
Disadvantages
- ✗ Supports a handful of currencies; its operations are targeted at the local market.
- ✗ It may require technical expertise during initial integrations on websites or apps.
Main features
- Support for online card, bank transfers, and mobile wallet payments
- Real-time notification, fraud detection, and secure 3D Secure transaction.
- Recurring billing options and integration with major e-commerce platforms.
Setup fee
None
Requirements
- Must have a registered business.
- A local bank account.
Accepted methods
Visa, MasterCard, Amex, eZcash, mCash
Availability by country
Sri Lanka
Supported currencies
LKR, USD
🔥 Sampath Bank
Website: sampath.lk
Sampath Bank is one of the leading banks, offering different scales of local businesses and one of the best payment gateway in Sri Lanka. It allows multiple methods, hence this is a reason why merchants prefer it.
Main features
- This solution allows online card payments, mobile banking, and bank transfers.
- 3D Secure environment for securely making online card transactions.
- Provides comprehensive analytics for every transaction and has seamless support and customer care process.
- Very advanced features for securing every transaction.
- Processing reliability for online and in-store operations.
Cons
- The only method of settlement is a Sampath Bank account.
- Relatively high transaction fees compared to some international gateways.
Setup fee
LKE 15,000
Requirements
- Must have a registered Sampath Bank business account.
- Registered business entity.
Accepted methods
Visa, MasterCard
Availability by country
Sri Lanka
Supported currencies
LKR, USD, EUR, GBP, AUD
🔥 Seylan
Website: seylan.lk
Seylan Bank offers a fully secure solution that differs from other Sri Lanka payment gateways. It accepts various card methods, making it popular among those who want to settle online and in-store transactions easily.
Advantages
- ✓ Strong local presence and good customer support.
- ✓ Flexibility in paying options: via mobile and internet banking.
- ✓ Secure and fast processing of both local and international transactions.
Disadvantages
- ✗ The facility for settlement is available only through a Seylan Bank account.
- ✗ Limited global reach, mostly targeted at the local market.
Main features
- Online card facilities, mobile banking, and direct bank transfers.
- 3D Secure authentication for secure transactions.
- Transaction monitoring, reporting, and easy integration with e-commerce websites.
Setup fee
LKR 20,000
Requirements
- Seylan Bank business account.
- Additional KYC documentation for integration
Accepted methods
Visa, MasterCard, UnionPay (soon)
Availability by country
Sri Lanka
Supported currencies
LKR, USD, EUR, GBP, AUD
🔥 WEBXPAY
Website: webxpay.co
WEBXPAY is the most used payment gateway in Sri Lanka that provides both security and online transaction solutions for businesses. It is believed to be one of the easiest gateways when it comes to integrating with e-commerce platforms, and it also offers multi-mode transactions. Therefore, this is suitable for small to medium-sized enterprises.
Advantages
- ✓ Supports the use of multiple local and international methods.
- ✓ Transparent fee structure with competitive transaction rates in mind.
- ✓ Strong customer support and ease of integration processes.
Disadvantages
- ✗ A more locally focused platform that compromises much on its global transaction capabilities.
- ✗ Requires technical integration, which might seek developer assistance during the initial setup.
Main features
- The ability to receive online card settlements, mobile wallets, and bank transfers.
- Real-time notifications and detailed transaction reports will be provided.
- Recurring billing options and compatibility with the most popular e-commerce platforms.
Setup fee
LKR 15,000
Requirements
- A registered local business
- A local bank account
Accepted methods
Visa, MasterCard, American Express, Discover, eZcash, mCash, Virtual Wallet, Sampath Vishwa
Availability by country
Sri Lanka
Supported currencies
LKR, USD, GBP, EUR, AUD
| Characteristic | Value |
|---|---|
| Setup fee | LKR 15,000 |
| Requirements | A registered local business and a local bank account |
| Accepted methods | Visa, MasterCard, American Express, Discover, eZcash, mCash, Virtual Wallet, Sampath Vishwa |
| Available countries | Sri Lanka |
| Supported currencies | LKR, USD, EUR, GBP, AUD |
🔥 2Checkout
Website: 2checkout.com
2Checkout is one of those online payment gateways, recently becoming part of Verifone, which provides its services to merchants who can now receive money with ease. The platform offered by this website supports many methods and currencies; hence, it is ideal for businesses that have customers in every part of the globe.
Advantages
- ✓ Strong international presence with multi-currency and multilingual support.
- ✓ Extensive fraud detection and prevention tools.
- ✓ Diverse methods supported, like PayPal and a number of credit cards.
Disadvantages
- ✗ Much higher transaction fees.
- ✗ May require additional documentation for KYC.
Main features
- Online card, bank transfers, and PayPal transactions are supported.
- Customizable forms, seamless integrations with e-commerce platforms.
- Advanced fraud protection with recurring billing capabilities.
Setup fee
None
Requirements
- Proof of business registration
- ID proof
- A bank account
Accepted methods
Visa, MasterCard, American Express, Union Pay, Discover, Diners Club
Availability by country
Available in over 200 countries
Supported currencies
Over 200 currencies, including LKR
🔥 Paykassma
Website: paykassma.com
Paykassma is a global payment aggregator facilitating seamless online transactions for businesses and consumers in Sri Lanka.
Advantages
- ✓ Compatible with numerous currencies, facilitating international transactions.
- ✓ Achieves a 99.9% payment success rate, significantly enhancing conversion rates.
- ✓ Excels in providing services to high-risk industries, ensuring all businesses have access to reliable payment processing solutions.
Disadvantages
- ✗ Certain transactions may incur higher fees, particularly for currency conversion and withdrawals.
- ✗ Some local payment methods may not be supported.
Main features
- Provides access to over 100 local payment methods, including iPay and Upay, ensuring customers can pay using their preferred options.
- Offers a T+0 settlement period, granting immediate access to funds without holds or rolling reserves, crucial for maintaining cash flow.
- Employs advanced fraud detection and prevention measures, including real-time monitoring and encryption, to protect businesses and customers from fraudulent activities.
Setup fee
—
Requirements
- Registered business entity
- Completion of Know Your Customer (KYC) process
Accepted methods
Visa, MasterCard, Bank transfers, iPay, Upay
Available countries
125 countries, including Sri Lanka
Supported currencies
LKR, USD, EUR, GBP, AUD, BDT, BRL, INR, IDR, MYR, MXN, NPR, PKR, PHP, PLN, LKR, THB, VND
Top 10 Payment Gateways to Choose
Let’s compare payment gateways Sri Lanka in the table below.
| Payment gateway | Setup fee | Accepted method | Supported currencies | Available countries |
|---|---|---|---|---|
| BitPay | None | Crypto wallets, BitPay wallet, Visa, MasterCard | BTC, BCH, DOGE, ETH, USD, EUR, GBP | 230 countries, including Sri Lanka |
| Commercial | LKR 10,000 | Visa, MasterCard and UnionPay | LKR, USD, EUR | Sri Lanka, Bangladesh, Maldives, Myanmar |
| Genie | None | Visa, MasterCard, American Express, eZ Cash, Genie Wallet, QR codes | LKR, SEK, EUR, GBP, NOK, CAD, CHF, PLN, DKK, AUD, HKD, USD | Sri Lanka |
| HNB, HNB Bank | None | Visa and MasterCard | LKR, USD, EUR, GBP | Sri Lanka |
| IPay | None | Visa, Mastercard, QR, IPay | LKR | Sri Lanka |
| PayHere | None | Visa, MasterCard, Amex, eZcash, mCash | LKR, USD | Sri Lanka |
| Sampath Bank | LKE 15,000 | Visa, MasterCard | LKR, USD, EUR, GBP, AUD | Sri Lanka |
| Seylan | LKR 20,000 | Visa, MasterCard | LKR, USD, EUR, GBP, AUD | Sri Lanka |
| WEBXPAY | LKR 15,000 | Visa, MasterCard, American Express, Discover, eZcash, mCash, Virtual Wallet, Sampath Vishwa | LKR, USD, GBP, EUR, AUD | Sri Lanka |
| 2Checkout | None | Visa, MasterCard, American Express, Union Pay, Discover, Diners Club | Over 200 currencies | Over 200 countries |
Conclusion
Properly chosen gateway will enhance the scope of digital transaction and create a better customer experience. Each of those gateways mentioned above has specific features, fees, and how it can serve local SMEs or global enterprise needs.
At the end of the day, the decision has to be driven by the business's type, scale, and customers for an unflawed operation and smoother user experience.