PayMongo Payment Gateway Setup for Ecommerce — GCash, Maya, Cards Complete Guide

A payment gateway is the backbone of any ecommerce store. Without a reliable way to accept payments, your online store simply cannot function. In the Philippines, PayMongo has emerged as the most trusted and developer-friendly payment gateway — powering thousands of Filipino businesses from small online sellers to large-scale ecommerce platforms. In this comprehensive guide, we will cover what PayMongo is, why it is the best choice for Philippine ecommerce, what payment methods it supports, how much it costs, how it compares to alternatives, and how to set it up for your online store step by step.

What Is PayMongo?

PayMongo is the Philippines' leading online payment gateway, designed specifically for Filipino businesses. Founded in 2019 and backed by Y Combinator, Stripe, and other prominent investors, PayMongo has rapidly become the go-to payment solution for ecommerce in the Philippines. The platform enables businesses to accept payments through all the methods that Filipino consumers use every day — GCash, Maya, credit and debit cards, GrabPay, and bank transfers.

What makes PayMongo stand out is its simplicity and Philippine focus. While international gateways like Stripe have limited support for local payment methods, PayMongo natively integrates with GCash (80+ million users) and Maya (50+ million users) — the two e-wallets that dominate digital payments in the Philippines. For any ecommerce store targeting Filipino customers, PayMongo is the clear first choice.

Why PayMongo for Philippine Ecommerce?

PayMongo is the preferred payment gateway for Filipino ecommerce for several important reasons:

Payment Methods Supported by PayMongo

One of PayMongo's greatest strengths is its comprehensive support for the payment methods that Filipino consumers actually use. Here is a complete breakdown:

Understanding GCash — The Philippines' Dominant E-Wallet

GCash, operated by GCash (formerly Globe Fintech Innovations), is by far the most widely used digital payment platform in the Philippines. With over 80 million registered users and partnerships with Globe Telecom, GCash has become synonymous with mobile payments for Filipinos. For ecommerce stores, accepting GCash is not optional — it is essential. A significant portion of Filipino online shoppers prefer GCash because it is fast, familiar, and does not require a bank account or credit card.

Maya (formerly PayMaya) is the second major e-wallet, backed by Voyager Innovations and PLDT/Smart. With over 50 million users, Maya offers a full digital banking experience alongside e-wallet functionality. Maya users tend to skew slightly older and more affluent, making it important for stores selling mid-to-premium products.

Through PayMongo, your store can accept both GCash and Maya seamlessly — customers select their preferred e-wallet at checkout, authenticate the payment on their phone, and the transaction is completed in seconds. No friction, no manual bank transfers, no waiting for payment confirmation.

PayMongo Transaction Fees

Understanding PayMongo's fee structure is essential for your business planning. PayMongo charges a per-transaction fee with no setup fees, no monthly fees, and no lock-in contracts. You only pay when you receive a payment. Here is the breakdown:

Important note: FlexiCommerce charges 0% platform commission on your transactions. You only pay the standard PayMongo fees listed above, which go directly to PayMongo. Compare this to Shopify, which charges its own 2% transaction fee on top of the payment gateway fee — effectively doubling your payment processing costs.

Settlement schedule: PayMongo settles funds to your bank account on a T+1 to T+3 basis (1-3 business days after the transaction). You can track all settlements, payouts, and transaction details in the PayMongo Dashboard. There is no minimum withdrawal amount, and payouts are made to any Philippine bank account.

PayMongo vs Other Philippine Payment Gateways

How does PayMongo compare to other payment gateway options available in the Philippines? Here is a detailed comparison:

While Dragonpay is well-known in the Philippines (especially for over-the-counter bank payments) and Xendit offers multi-country support, PayMongo is the best choice for ecommerce due to its native GCash and Maya integration, competitive fees, fast settlement, modern dashboard, and excellent API documentation. For Filipino online stores, PayMongo is the clear winner.

Security Features — Keeping Transactions Safe

Payment security is non-negotiable for ecommerce. Filipino consumers need to trust that their payment information is safe. PayMongo provides enterprise-grade security features:

With PayMongo handling payment security, you can focus on running your business without worrying about data breaches, fraud chargebacks, or compliance issues. Your customers see the PayMongo trust badge at checkout, which increases their confidence in completing the purchase.

How to Set Up PayMongo for Your Online Store — Step by Step

If you are using FlexiCommerce, the PayMongo integration is pre-built and requires zero coding on your part. Here is the simple step-by-step process:

Total time from sign-up to accepting live payments: As fast as 3-5 business days (including PayMongo KYC verification). With FlexiCommerce, there is no coding, no plugin installation, no complex webhook configuration. We handle the entire technical setup for you.

Cash on Delivery (COD) — Still Essential for Philippine Ecommerce

Despite the explosive growth of GCash and Maya, Cash on Delivery (COD) still accounts for approximately 35% of ecommerce transactions in the Philippines. Many Filipino consumers — especially those outside Metro Manila, in Visayas, and Mindanao — still prefer paying cash when the order arrives at their doorstep. If you do not offer COD, you are turning away more than a third of potential customers.

COD is not processed through PayMongo — it is handled by your shipping partner (J&T Express, LBC, Flash Express, etc.) who collects cash from the customer and remits it to you. However, COD comes with challenges that every Filipino ecommerce business owner should be aware of:

• Fake orders: Some customers place COD orders with no intention of accepting delivery, leading to wasted shipping costs and returned inventory
• Return to Sender (RTS): The customer refuses the package at the door, and you pay for both the delivery attempt and return shipping
• Cash remittance delays: Collecting and reconciling cash payments from delivery partners can take 5-14 days

FlexiCommerce COD safeguards:

• COD with OTP verification — Customers must verify an OTP (sent via SMS) before the COD order is confirmed. This eliminates up to 90% of fake orders by ensuring the customer is genuine and reachable.
• COD extra charge — Add a ₱30 to ₱100 COD handling fee to discourage non-serious buyers while covering your logistics overhead. Customers who are willing to pay the small COD fee are far more likely to accept delivery.
• COD order limit — Set a maximum order value for COD (for example, COD only for orders below ₱5,000). This reduces your financial risk on high-value orders and encourages customers to pay online for larger purchases.
• Open Box Delivery — Allow customers to inspect the product before accepting and paying. This builds trust, reduces disputes, and lowers RTS rates significantly.
• COD to Prepaid nudge — Offer a small discount (e.g., ₱50 off or free shipping) for customers who choose online payment (GCash, Maya, card) over COD. This gradually shifts your order mix toward prepaid, reducing COD-related risks and costs.

PayMongo Dashboard and Settlement

The PayMongo Dashboard is where you manage and monitor all your payment activity. It provides a clean, modern interface (inspired by Stripe's dashboard) that makes it easy to track your business finances:

Best Practices for Ecommerce Payments in the Philippines

1. Offer every payment method available: GCash + Maya + Cards + GrabPay + Bank Transfer + COD. Filipino consumers have strong payment preferences, and a missing method is a lost sale. Data shows that offering 5+ payment options increases checkout completion by 30%.
2. Make GCash prominent at checkout: GCash is the dominant payment method in the Philippines. Make it the first visible option on your checkout page. Many Filipino shoppers will abandon their cart if they do not see GCash immediately.
3. Offer COD with safeguards: Do not eliminate COD entirely — it is still how 35% of Filipinos prefer to pay. Instead, use OTP verification, handling fees, and order limits to reduce fake orders while keeping the option available.
4. Display trust signals on checkout: Show the PayMongo badge, SSL certificate icon, secure payment logos (Visa, Mastercard, GCash, Maya), and customer reviews on your checkout page. Trust is critical for Filipino online shoppers who are wary of scams.
5. Send instant payment confirmation: When payment is received, immediately send a confirmation via SMS, email, or Messenger/Viber. Filipino shoppers want instant reassurance that their payment went through and their order is being processed.
6. Optimize for mobile checkout: 78% of Filipino shopping happens on mobile. Ensure your checkout is fast, simple, and mobile-optimized. One-tap GCash payment from a mobile app is the gold standard.
7. Consider installment options: For products above ₱3,000, consider offering buy-now-pay-later options. Filipino consumers are increasingly receptive to installment payments for higher-value purchases.

FlexiCommerce + PayMongo = Complete Payment Solution

FlexiCommerce comes with PayMongo pre-integrated out of the box. No coding, no plugins, no complex API configuration — our team sets up everything for you. Here is what you get:

• PayMongo fully configured with all payment methods (GCash, Maya, Cards, GrabPay, Bank Transfer)
• Cash on Delivery with OTP verification and handling fee (built-in)
• Internal wallet system (Flexi Coins) for store credit and refunds
• Gift card and voucher support
• Abandoned cart recovery with direct payment links via SMS and email
• Automatic payment status updates and order confirmation notifications
• VAT 12% tax calculation (automatic, configurable)
• Multi-vendor payout management (Business plan)
• Detailed payment analytics and sales reports

All of this is included in the FlexiCommerce platform — no additional fees, no per-transaction commissions from our side. You only pay the standard PayMongo transaction fees. Platform starts at ₱1,499/mo + hosting from ₱799/mo (SSL, CDN, backups included in hosting). All platform features included — no extra fees.

Frequently Asked Questions