Payment methods types
Choosing a payment method for your customers may appear to be a simple process, but in reality, it isn’t. There are numerous options available to you. Which ones should you select depending on what your customers want and what would benefit them the most? Here are a few of the most popular payment methods:
Cash is a traditional payment method that involves the exchange of physical currency, such as paper bills and coins, to make a payment. It is a widely accepted form of payment and is often used for small transactions, such as purchasing goods or services at a retail store
Debit Cards, Credit Cards, Prepaid Cards – they are all payment cards that can be used to make purchases or withdraw cash.
Mobile Payments (Peer to peer)
P2P payments are payments made directly between individuals, without the involvement of a financial institution or another intermediary. P2P payments can be made using a mobile app or through a mobile wallet.
Electronic Bank Transfers
Let clients send money directly from one account to another without having to use a card or any other form of payment at all.
A mobile wallet is a digital wallet that allows a user to store and manage payment card information and other types of personal and financial information on a mobile device. This enables the user to make payments, both online and in-store, using their mobile device instead of a physical payment card.
They are payment methods that you can use to promote your brand and attract new customers. They usually don’t work as a standalone payment method and are partial payments for the order.
Buy Now Pay Later is a payment method that has been gaining popularity in the last few years. It’s comparable to using a credit card or getting a soft loan. Shopping with “Pay later” allows you to buy items online and pay for them in instalments over a certain period, such as a few months. Usually, the customers don’t pay an extra fee. If they do, the cost is still lower than by credit card.
Although some online retailers and merchants accept cryptocurrencies as a form of payment, their use as an online payment method is still relatively limited compared to traditional options such as credit cards, debit cards, and PayPal. This is partly because cryptocurrencies are not yet widely accepted as a form of payment, and their value can be volatile, making them a risky choice for some merchants. Despite this, it is possible that cryptocurrencies could become more widely used as a payment method in the future, as the technology behind them continues to evolve and improve.
Do payment methods affect Conversion Rates?The answer is yes. If you provide many payment options that clients prefer, it may reduce cart abandonment and revenue loss. With today’s modern technologies, buyers use various online payment methods that they are accustomed to them. They expect the store to have the payment option they like the most. Allowing all customers to pick their preferred payment online is crucial for appealing to a diverse consumer base and increasing conversions. Because various payment systems have varying price rates and payment processes, they might affect different categories of customers. Offering alternative payment systems allows you to sell to a diverse demographic group across many geographic locations and reach the broadest potential audience. Working with multiple firms and offering their products as payment options for your eCommerce store will also improve brand loyalty and trust.
How to choose payment methods to the eCommerce store?
- Choose payments methods that are safe for online transactions
- Check the costs
- Consider your customers’ preferences, take local market conditions into account
Check out the top payment methods.
- Don’t be scared of revolutionary solutions
List of most popular payment methods by region
Card Payments (visa and master card)Credit and debit cards are widely accepted for online payments in Europe. Most major card companies, such as Visa, Mastercard, and American Express, are accepted at most online retailers in Europe.
PaypalPayPal is a popular online payment system that allows users to send and receive payments online. It is accepted at many online retailers and is available in most European countries. PayPal: PayPal is a popular online payment system that allows users to send and receive payments online. It is accepted at many online retailers and is available in most European countries.
Google PayGoogle Pay is a digital wallet and online payment system developed by Google. It allows users to make purchases online and in-store using their mobile device.
Apple PayApple Pay is a digital wallet and online payment system developed by Apple. It allows users to make purchases online and in-store using their iPhone, iPad, or Apple Watch.
Amazon PayAmazon Pay is a payment service provided by Amazon that allows users to make purchases on other websites using their Amazon account information.
StripeStripe is a popular online payment processing platform that enables businesses to accept payments online and in-app. It is available in most European countries.
iDealiDEAL is a popular online payment method in the Netherlands that allows users to make secure online payments using their online banking account. It is available to customers of most major banks in the Netherlands.
GiropayGiropay is a German online payment system that allows users to make secure online payments using their online banking account. It is available to customers of most major banks in Germany.
SofortSOFORT is an Austrian online payment system that allows users to make secure online payments using their online banking account. It is available in several European countries, including Austria, Germany, Belgium, the Netherlands, and Italy.
KlarnaKlarna is a Swedish payment service provider that offers customers the ability to pay for their purchases later or in instalments. It is available in several European countries.
EPSElectronic Payment Standard is an online payment system developed by Austrian banks that allows users to make secure online payments using their online banking account. EPS is a popular online payment method in Austria, where it is accepted by many online retailers and merchants. However, it is not as widely used or accepted as other online payment methods, such as credit cards, debit cards, and PayPal, which have a more global reach. So it is not as popular as some of the other online payment methods in Europe.
In North America (USA and Canada)
Card Payments (Visa, Mastercard, American Express, Discover (USA)As in Europe, cards are a popular payment method. In the USA, apart from Visa, Mastercard and American Express, Discover cards are also very popular.
Interac (Canada)Interac is a popular online payment system in Canada that allows users to make secure online payments using their bank account. It is available through a mobile app or through participating financial institutions. Interac is widely accepted by online retailers and merchants in Canada, and it is also accepted at some physical stores and ATMs.
PayPalAs in Europe, PayPal is eagerly used in the American and Canada market because it is a convenient, secure, and easy-to-use online payment system.
Apple PayApple Pay has a large user base in the United States and Canada due to the widespread popularity of iPhone devices in these countries, potentially even larger than in Europe.
SquareSquare is a financial services, merchant services aggregator, and mobile payment company based in the United States. It offers a range of payment solutions, including an online payment platform that allows businesses to accept payments online and in-store.
Payment methods for small or medium business
It’s esensial to consider the specific needs of your business when deciding which payment methods to accept. You’ll want to offer a variety of payment options to make it easy for customers to purchase from your online store. It’s also a good idea to consider the fees associated with each payment method, as well as any security and fraud protection measures that may be necessary.