6 e-commerce payment options for secure and customer-friendly online payments
You must be able to receive payments from your consumers if you operate an online store. Receiving payments is the center of your entire business.
Your payment gateway needs to be a top priority, no matter if you already have an online store or are creating one from scratch. This article will assist you in selecting the best e-commerce payment options from the vast array available.
What are the many ways to pay online?
You gathered the funds to fuel your business idea and hunted down your angel investor. Congratulations, your journey has begun! The first thing to do is secure reliable and user-friendly payment options.
Services that process payment information on e-commerce websites are known as online payment methods. Making purchases has become much easier and quicker thanks to digital selling. Customers can choose things online and pay for them using payment methods.
There are many different payment options, and each one might offer a different set of services. However, the main purpose of payment methods is to facilitate smooth payment processing. They typically involve:
- Payment gateways: They offer the user interface via which clients submit their payment details. Payment gateways connect your online store to the site of a payment processor.
- Payment processors: Receiving customer information, confirming that the customer has funds, and making a request for payment to the customer’s bank are all tasks that fall under the purview of processors. The customer receives payment and deposits it into your merchant account if they have the necessary cash. However, the processor will let you know if there are no funds.
- Bank providers: These are the well-known, conventional banks where consumers have accounts. Insufficient funds in the customer’s bank account are reported to the processor by the bank provider, who also settles the payment request.
- Merchant accounts: Your account is a merchant account because you operate an online store. Here is where you will find the money that was charged to the clients once a transaction went through.
As you can see, there are several procedures involved in effectively accepting an e-commerce payment. But it’s your responsibility as the owner of an online store to make sure the procedure is quick and easy for customers. This is due to the fact that an excessively drawn-out or difficult payment process may cost you sales and revenue.
Why is it crucial to have a range of payment options?
It will be very challenging to anticipate the needs of all of your clients as more and more payment options become accessible on the market. That being said, it makes sense to offer a number of payment methods in your online store, just like you would offer many packaging options.
When an online store doesn’t take Apple Pay or PayPal at checkout, it will quickly appear outdated, just as it does today when a store doesn’t accept bank card payments. If their preferred payment method is not offered, 50% of customers will cancel their order.
The best e-commerce payment options for your online store
Debit or credit card
The majority of contemporary payment mechanisms for e-commerce are built around credit and debit cards. Customers frequently fund alternative payment methods like digital wallets with credit cards. They might even use money they already had to authorize debit card payments through their bank.
The common preference of B2B clients for reliable payment methods is another factor making this option a worthwhile consideration. American Express, Visa, and MasterCard are just a few of the card issuers and payment processors that have been around for a while.
Since they are trusted by small businesses and other B2B buyers as a result, e-commerce merchants should include them. However, don’t forget that many card payments require strong customer authentication – SCA.
PayPal
With operations in more than 200 nations, PayPal is the biggest online payment service in the world. The fact that 17 million businesses also use PayPal shows how widely popular it is with both businesses and consumers.
PayPal claims that users of the service have an 82% greater conversion rate, but it’s also important to take into account the costs involved. Each transaction processed by the payment provider is subject to a fee of 30 cents plus 2.99%. Overall, PayPal makes a strong business argument, which explains why it’s so well-liked throughout the world.
Apple Pay
Apple Pay is the company’s mobile payments platform. The process functions as a contactless payment system for physical stores that uses a digital wallet. Additionally, it offers one-click checkout on e-commerce websites, enabling users to complete purchases using straightforward touch identification.
If your customers are among the 64% of US adults who own an iPhone, Apple Pay is likely to appeal to them. The service also uses strong security measures. To secure clients, it employs tokenization, which swaps out customer payment information for arbitrary tokens. In addition, retailers can use the service for free, which is a significant benefit.
Google Pay
Google Pay gives online shoppers freedom and convenience by using its excellent technology and user base. Due to the fact that hundreds of millions of users have already saved their payment information to their Google accounts, Google claims that their payment service may be quicker and simpler than others.
Therefore, by offering this payment option, e-commerce business owners may be able to increase user friendliness and quickness. Additionally, Google Pay is compatible with PayPal and Visa Checkout, a Visa payment service. Like Apple Pay, Google Pay is free for both you and your customers to utilize.
Amazon Pay
Amazon is one of the biggest B2C marketplaces in the world and already has a significant global presence. The corporation simplifies payments between its hundreds of millions of users by introducing a payment solution. Amazon Pay targets mobile commerce, just like Apple Pay and Google Pay do.
As is customary for them, Amazon makes it very simple to integrate with Amazon Pay. The Express Integration feature of the service enables merchants to get going quickly. Additionally, they can integrate by means of the service’s API, which takes more time but offers better customization choices. Each transaction on Amazon is subject to a cost of 30 cents plus 2.99%.
Stripe
Despite only having been established in 2010, Stripe is currently a well-known online payment processor. The platform offers feature-rich payment services that allow for the processing of payments from a variety of sources, including internet transfers, credit cards, digital wallets, and more. Therefore, Stripe is useful for companies who desire to integrate different payment methods into a single solution.
With just one line of JavaScript, Stripe enables non-programmers to build the service into their online store. Additionally, the platform offers a strong API that enables deeper customization for vendors with higher technical aptitude. When using domestic credit cards to make a payment, Stripe costs 30 cents + 2.99%.
In conclusion
We hope that our little blog about e-commerce payment options has helped you to choose your solutions. All you need to do is ensure that you utilize a payment gateway and shopping cart solution that can meet everyone’s requirements.
All of our 6 suggestions are top choices with reasonable costs and all you need to do is choose the one you find most convenient for both you and your clients.