What is a Hosted Payment Page?

Navigating the e-commerce space requires a keen understanding of payment systems and their implications.Although you may have not noticed it, you've likely used multiple hosted payments pages this week. We’ll take a closer look into hosted payment pages and dissect their various implementations such as iFrames and pop-ups, to show the intrinsic advantages they bring to online security and user experience.

What Is A Hosted Payment Page?

A hosted payment page refers to a webpage, pop-up, or embedded section where the customer is directed when they are ready to check out and pay for their purchase. 

Hosted payment pages are enabled through third-party services rather than being built and managed in-house, hence the name “hosted.” Through this type of payment page, merchants can collect vital information, such as customer billing addresses and payment card details. 

Processing payments in-house can be quite the technological burden, especially for smaller businesses or merchants operating online. Not only do you need the ability to properly handle payment data, but you must also build an intuitive checkout interface for customers to use to make payments.

Hosted payment pages reduce this complexity by giving you a premade payment interface that opens in a separate window and is managed entirely by a third party.

Hosted Payment Page Example

Worldpay and PayPal are two popular examples of payment service providers that offer hosted payment pages. Worldpay, in particular, offers several different types of hosted payment pages to fit various use cases, including a card payment page flow and an alternative payment method page flow. 

Card payment page flows tend to be the most basic and straightforward. On these hosted payment pages, you’ll find a few standard steps to the process:

1. A payment method selection page or button
2. Data entry fields for card numbers or other payment credentials
3. Additional security steps, such as 3D Secure. 

Hosted Payment Page vs. Hosted Payment Gateway

Sometimes, hosted payment pages are mistaken for hosted payment gateways. While in many cases these two come bundled as one service, they are separate tools.

A hosted payment page is the technical interface responsible for collecting payment details from the customer and providing a good user experience. Meanwhile, a hosted payment gateway is the technology working in the background to connect the merchant to the relevant payment processor, such as a card network or issuing bank. They work together to collect and send payment data at the start of a transaction. 

Is a Hosted Checkout Different from a Hosted Payment Page?

In most cases, the terms “hosted checkout” and “hosted payment page” are used interchangeably. 

However, some providers may advertise hosted checkout solutions that offer an integrated payment page within the merchant’s main website. In this scenario, the hosted checkout would be different from a hosted payment page, as the payment page would be directly integrated rather than a redirect.

The Different Types of Hosted Payment Pages

There are a few different types of hosted payment pages, including:

• iFrames: An iFrame is an HTML element that is embedded naturally into your website or online shop. Using an iFrame is a great option for a hosted payment page, as it reduces the amount of redirection the customer must go through, making the overall checkout process much smoother and more seamless.
• ‍Webpages: Many hosted payment pages redirect customers to a separate secure webpage that appears in a different tab on their desktop or mobile web browser. These types of hosted pages are typically not seen when using a mobile app, as mobile apps need an embedded or pop-up page to carry out the checkout process.
• Pop-Ups: A pop-up is a type of hosted payment page that pops up — as the name suggests — directly on the webpage or app the customer is using. This involves less redirection, though it is not quite as convenient as an iFrame.

Though there are many benefits to using a hosted payment page for your online store or merchant business (which we discuss in greater detail momentarily), one of the most important benefits is the ability to maintain PCI compliance with ease.

Since hosted payment pages are supported by third-party payment service providers, the provider is often responsible for ensuring the checkout process meets all compliance requirements. 

In turn, merchants are less burdened by costly and time-consuming compliance activities while still providing an excellent customer experience to shoppers.

Hosted Payment Page vs. iFrame

An iFrame is an HTML element that is embedded natively into your website or online shop. Using an iFrame is a great option for a hosted payment page, as it reduces the amount of redirection the customer must go through, making the overall checkout process much smoother and more seamless.

iFrames are essentially payment forms embedded within your company’s website, app, or online storefront. It is typically displayed in a separate window and designed by a third-party payment services provider. Because it is embedded in your website, an iFrame does not fall into the “hosted” category. 

Like a hosted payment page, an iFrame sends customer payment details directly to a payment processor for authentication and approval. The main difference is that a hosted payment page fully redirects customers away from your main webpage. Once they’ve completed the payment on the separage page, the customer is automatically returned to your checkout interface.

So, which should you use? It depends on how much customization and control you want.

An iFrame payment solution gives you a much greater level of control over the design of the checkout interface and the user experience. iFrames can be a nice middle ground between hosted payment pages and in-house payment processing for companies that want a more seamless payment flow without having to manage all the technical aspects of authorizing, securing, and settling transactions. 

It’s also worth noting the value of keeping customers on the same webpage. Payment redirections can be off-putting and increase your chances of losing customers before they complete a payment. iFrames give you the ability to keep customers on the same page while entering payment details. 

However, when it comes down to overall security and efficiency, hosted payment pages generally come out on top. Payment processing providers are directly responsible for securing payment data through a hosted checkout, meaning more money and resources go into making these solutions secure.

How Do Hosted Payment Pages Work?

Picture the last time you made a payment online as part of the $5.3tn annual eCommerce market. Whether you were shopping for goods, purchasing a service, or paying a bill online, you likely encountered a hosted payment page.

To illustrate how and when hosted payment pages come into play, let’s examine four key steps in the process:

1. The Initiation: Once a customer has selected the products, services, or bills they would like to pay for, they must then navigate to the checkout screen. This is often initiated by a button that reads “Checkout”, “Buy Now”, or a similar phrase. Placing this button in an easy-to-find location on your website is crucial, as this is how a customer arrives at a hosted payment page.

2. The Redirection: After clicking the checkout button, a customer is then redirected to a new webpage — this webpage is often a separate tab on their web browser that opens automatically. It can also, sometimes, be a pop-up screen or form that appears on the original web page where the checkout button resides. If you are using an iFrame for your hosted payment page, you can eliminate this step entirely.

3. The Checkout Form: With the redirection or embedded iFrame complete and the new section loaded, the customer will then see a checkout form with payment options and spaces to enter their payment information. Depending on how many payment methods you have enabled in your merchant system, the customer can then select their preferred payment method and enter the necessary authentication information to initiate the transaction.

4. The Confirmation: In most cases, the hosted payment page will offer a confirmation that the transaction has been processed and approved. This is an important step in the process, as it adds clarity and transparency for the customer regarding the transaction, letting them know immediately whether or not their payment has been approved in the system.

The Benefits of a Hosted Payment Page

Merchants and other online businesses who deal with digital transactions and payment processing can greatly benefit from hosted payment pages. Understanding what advantages there are to gain is essential when deciding which payment service provider to partner with to set up a hosted payment page.

Here are four  key benefits of hosted payment pages:

• Enhanced Security: When a customer enters their payment information through a hosted payment page, the customer’s data does not pass through the merchant’s or business’s website directly. As a result, the entire transaction is processed by a third-party provider and the merchant is not responsible for securely storing customer payment information. Overall, this is a much more secure system that helps to protect the customer from fraud, identity theft, and more.
• Seamless Checkouts: Hosted payment pages make the checkout process more seamless and simple for customers. One of the key reasons for this is that customers can easily select their preferred payment method and enter their information quickly and securely. A seamless experience is vital, as it ensures the customer completes the transaction and does not abandon their cart due to a confusing or time-consuming checkout process.
• More Payment Options: Hosted payment pages are essential for any merchant or business that plans to activate alternative payment methods (PayPal, Apple Pay, SEPA payments, Zelle, Klarna, etc.). Every payment service provider is different, so it is important to be diligent when researching different providers and look for one that offers the payment integrations your merchant system needs.
• Ease of Integration: Integrating a hosted payment page into an online store or platform is often more straightforward than building a bespoke payment system from scratch. Most third-party providers offer easy-to-use tools and APIs that can be seamlessly woven into a website's existing structure, irrespective of the platform or coding language it's built on. This means merchants can expedite their go-to-market strategy, focusing on refining their products or services instead of grappling with complex payment integrations.

When Should You Use a Hosted Payment Page?

To put it simply, a hosted payment page should be used anytime a customer is expected to enter their payment information. 

As mentioned above, hosted payment pages add an extra layer of security that alleviates the merchant of some of the burdens of compliance and protects the customer against fraudulent activity. 

Moreover, hosted payment pages make it incredibly simple for merchants to integrate and offer various payment methods. In turn, the merchant can better serve their customers and expand into new regions around the world where payment accessibility may be limited.

Types of Hosted Payment Methods?

Hosted payment pages offer flexibility and cater to a wide range of payment preferences, ensuring that businesses can meet the varied needs of their customer base. Here's a glimpse into the diverse payment methods these pages can enable:

• Credit and Debit Cards: Universally accepted, credit and debit cards like Visa, MasterCard, American Express, and Discover remain a staple in online transactions.
• Mobile Wallets: Mobile wallets, such as Apple Pay and Google Pay, offer a touchless and speedy payment option, especially favored by mobile users.
• Buy Now, Pay Later: Solutions like Klarna and Afterpay enable customers to purchase immediately but defer payments, often without interest if paid within a set timeframe.

Local and Alternative Payment Methods: In different regions, local payment methods, such as Alipay in China or Pix in Brazil, can be prevalent. Hosted payment pages can integrate these, allowing businesses to cater to regional preferences and expand their reach.

Are Hosted Payment Pages PCI Compliant?

Hosted payment pages play a crucial role in assisting merchants to align with the Payment Card Industry Data Security Standard (PCI DSS). This set of standards is necessary in ensuring a secure environment for companies dealing with credit card transactions. Here's a breakdown of how these pages bolster PCI compliance:

• Data Handling: By integrating hosted payment pages, merchants are relieved from directly processing or storing sensitive cardholder data. Instead, this information is managed directly in the third-party provider's system, greatly diminishing the PCI compliance spectrum for the merchant.
• Infrastructure Security: The task of establishing and maintaining robust security measures, such as encryption and firewalls essential for PCI compliance, falls upon the third-party provider hosting the payment page.
• Offloading Responsibility: Selecting a PCI DSS compliant hosted payment page provider enables merchants to transfer a significant chunk of PCI compliance responsibility, mitigating potential liabilities.
• Consistent Updates: Top-tier hosted payment page providers are proactive in regularly refining their systems, ensuring adherence to the most recent PCI standards and security protocols.

While the integration of hosted payment pages eases the path towards PCI compliance, merchants must remain vigilant. There remain inherent responsibilities, such as guaranteeing their collaboration with PCI DSS compliant providers like Spreedly, sustaining a secure website, and following prescribed best practices.

Can You Use More than One Hosted Payment Solution?

Your ability to use more than one hosted payment solution comes down to the flexibility of your payments setup and the choices you’ve made in how that infrastructure is designed. 

Many businesses start out with a single provider because it’s simpler to manage and initially meets their needs. But as a company grows, expands into new regions, or wants to offer customers more payment options, relying on only one provider can become a limitation. That’s when the question of whether multiple solutions can be used together becomes more relevant.

If your payments infrastructure is built in-house, it may prove difficult to plug in and connect to more than one provider. Proprietary systems often lack the adaptability needed to support multiple integrations without significant development work. This limit your ability to quickly onboard new providers and create technical debt that grows more complicated over time.

To overcome these challenges, you need an orchestration layer that provides the necessary tools and technical capabilities to connect and manage multiple solutions. 

Open payments platforms, such as Spreedly, can provide you with these capabilities. They give you the ability to bring together all aspects of your payments technology, including hosted payment pages, into a single environment. With an open platform, you can test new providers and switch traffic between them to figure out which payment solutions work best for your business.

The right open payments approach can increase your operational flexibility and resilience, all while also reducing risk and maintaining consistent customer experiences.  

Connect to a Vast Payment Ecosystem with Spreedly

At Spreedly, our powerful API allows our clients to connect to a range of different payment methods and payment service providers. Plus, we offer an iFrame form that you can embed directly into your site’s HTML to make the checkout process as smooth and seamless as possible for your customers.

With specialized knowledge in how to support merchants, aggregators, and fintechs, Spreedly has both the technology and expertise your business needs to enable a speedier and more secure payment system. 

The Spreedly Connect solution is a testament to our open payments capabilities. 

Through Connect, you can directly integrate multiple providers and payment tools into a central payments environment. We offer an expansive marketplace of partners and connections that allow you to customize your payments stack to the fullest without ever overburdening your IT team. Spreedly’s single, normalized API makes it easy to enable all types of services and solutions within one payments strategy.

By partnering with Spreedly, you can access more than 200 partner services, allowing you to orchestrate payments with hundreds of different payment gateways, payment service providers, fraud tools, and more. Spreedly’s solutions are available in more than 100 currencies, making it easy to expand and conduct business across the globe. 

Get in touch with Spreedly today to see how we can help setup or optimize your hosted payment page today!

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