Successful e-commerce stores all have one thing in common, a seamless checkout method. Without an effective means of getting paid, your e-commerce store cannot offer value to customers, which means you won’t make money either.
Consequently, it’s important to prioritize payment while setting up your e-commerce store. However, picking the most suitable payment solution can be more difficult than it seems as there are many factors to consider including the availability of the payment method in your region, its suitability to your business need, ease of use, and appeal to customers. There’s also the problem of selecting from the hundreds of payment methods littered across the globe.
Not to worry though, we have curated the top payment method you should have when building an eCommerce store.
Top Payment Methods in Ecommerce
There are many popular payment methods and they include:
Credit Card Payment
This is the most popular payment method in e-commerce. They are easy and safe to use and only require the input of card details to complete a transaction. All credit cards have CVV (Card Verification Value) a feature that enables a bank to detect fraudulent activities.
Beyond being simple to use and secure, credit cards offer other value including reward programs and discounts. Users can also profit from credit card usage in credit scores.
Debit Card Payment
Like credit cards, debit cards are also widely known and used. Although the payment method is the same as a credit card, debit cards only allow users to make purchases using the savings in their linked bank account. But for credit card payments, payments are made after the purchase is done, usually at the end of the billing period.
Because of the payment structure of credit cards, users often spend more than they can pay. Thus, debit cards are better for people with low credit limits.
Shoppers who make bank transfers are more prone to hackers and fraud, thus many are less hesitant to use the payment method. However, bank transfers are safe, as each transaction requires the customers’ approval. On the downside, it is slower and takes more time than other payment methods.
Digital wallets or electronic wallets offered by popular service providers are changing how customers make purchases. This is because e-wallets are faster and easier to use as it requires only one or two clicks to complete a transaction.
Digital wallets function as both customer data and fund storage centres. Once the e-wallet has been linked to the customer’s bank, subsequent payment will be redirected to the e-wallet page, where the customer only needs to enter their password to complete a purchase.
By removing the need to reenter credit/debit card information and credentials each time you wish to purchase an item online, the digital wallet has become an all-time favourite of customers.
According to findings by Forbes, 21% of Millennials and 17% of Gen Z use BNPL regularly. If these are your target audience, then you should prioritize this payment method when building your e-commerce store. Besides, BNPL is also gaining ground with merchants, with a 45% increase in their Average Order Value (AOV).
Buy Now Pay Later (BNPL) enables customers to buy a product and pay later. The system is a short-term loan offered to customers at the point of purchase. While it’s similar to a credit card, it’s different in that shoppers do not need a credit card to use the service. It may also attract interest rates if the customer defaults on payment.
Payment gateways provide business services for customers. Because of how efficient the service is, the e-commerce industry is filled with tons of payment gateway providers that provide a fast and safe connection between banks, merchants, and customers.
While the cost of implementing and maintaining a payment gateway isn’t cheap, yet, the return on investment is mostly satisfactory. Fortunately, there are tons of payment gateways to choose from including ecommpay.
Consider building an eCommerce store that supports cryptocurrency. This is because cryptocurrencies are becoming more popular as they are without taxes or chargebacks and are anonymous. With the increase in the rate of cryptocurrency transactions, governments are looking to establish some regulations, yet, cryptocurrency remains the currency with the least fees.
To attract and retain customers to your e-commerce store, it is necessary to offer ease and convenience. When it comes to making payments, people don’t all have the same preferences. Thus, it is important o provide as many options as possible. Fortunately, we have listed all the popular payment methods, so keep them in mind while developing your e-commerce website.