6 Types of Payment Methods For Your eCommerce Store
- etaily Team
- August 10, 2022
- 5 minutes reading
The checkout process is considered one of the most crucial steps when making online purchases.
Nowadays, technology has become a vital part of human activity. Developments such as software, apps, and media platforms are some of the tools that have helped reimagine the way people conduct their businesses online. One industry that particularly gained massive success over the years because of these technological advancements is eCommerce.
The beauty of eCommerce comes from its overall convenience, and this may very well be the result of the industry’s laser focus on providing a quality customer experience. This involves offering a huge selection of items in the catalog and delivering goods to the user through fast shipment options.
Ultimately, it’s important to look at each step of the buyer’s journey and be able to provide your audiences with choices to cater to their vast preferences. The checkout process is considered one of the most crucial steps when making online purchases, as 9 in 10 shoppers say that seamless and flexible payment options affect their purchasing decisions.
Want to learn more about the other eCommerce payment methods you can utilize for your online business? Read on to find out!
6 Types of Payment Methods You Can Offer in Your eCommerce Store
One of the most common modes of payment for eCommerce shops is cash-on-delivery (COD). Often, it’s a primary choice by buyers and sellers alike because of its low risk of payment fraud, considering it doesn’t involve any online activity that requires personal data collection.
In the Philippines, cash is still king for eCommerce transactions. Despite the rapid digitalization in the country, data indicates that the COD method is used in 37% of online purchases compared to bank transfers which are at 29%.
COD is deemed convenient as it provides the consumer more time to fund their purchases, and the business receives no delay in receiving their sale.
2. Credit card
Another popular payment method for eCommerce is via credit card. Upon checkout, this incredibly convenient approach only requires the buyer to input their name and credit card information. Although some may be skeptical of adding their personal data online, integrating a verification process makes these transactions more secure.
Singaporeans are considered avid card users within Southeast Asia, which also applies to their online purchases. Their credit card transactions made up 45% of the country’s total eCommerce payments in 2020.
Including credit cards as one of your payment options allows your eCommerce business to stay competitive with other brands. Including the logos of the credit cards you accept on your site can also legitimize your operations.
3. Debit card
In an eCommerce store, the debit card payment option offers the same ease and reliability as credit, but it does make for a great alternative to prevent large debts.
Since utilizing a debit card means paying with the money one already has in their account, consumers who are conscious of their spending habits can still make their purchase without having to draw cash for COD transactions.
Cards are typically accepted worldwide, so if you’re considering bringing your business outside your local area, it’s essential to include debit cards as one of your payment methods.
4. Bank transfer
For customers who are reluctant to provide their card information, a bank transfer is another option to ensure safety and convenience when buying goods online. Buyers don’t have to worry about their personal data being leaked since bank transfer purchases have an authentication process approved by the customer’s banking credentials.
It may not be as well-known as the other payment methods, as it often requires users to open a new browser tab or pull up a new app to make the payment. However, it’s still an important mode for your eCommerce business to cater to people who have difficulty navigating online shopping. In Malaysia, nearly half (46%) of the country’s online transactions are done via bank transfer.
5. Digital wallet
Digital wallets are another great alternative for fast and easy online transactions. These e-wallets allow users to connect their bank account to the app and cash in money they can use for any purchases.
Despite the need to link to a source to top up, digital wallets are safe to use because your actual account information is not relayed during the transaction. Instead, a token is generated that holds the data to complete the transaction.
An example of a common digital wallet used for eCommerce payments is Paypal, which now has over 429 million active users worldwide. In the Philippines, some of the famous e-wallets consumers are subscribed to are GCash, Maya, Coins.ph, and GrabPay.
A concept that not everyone may understand, cryptocurrency is slowly rising as a popular payment method in the eCommerce industry.
Cryptocurrency is a virtual payment method that’s not regulated by any bank or government, giving it the lowest fees in the market. Additionally, it provides more security than other methods for consumers since it’s impossible to break through a blockchain and withdraw funds from your account without your consent.
Today, the top cryptocurrencies globally include Bitcoin, Ethereum, and Tether.
A Matter of Diversity
When running a business, it’s always good to have plenty of options to offer. This concept is particularly applicable for eCommerce stores—from the products they sell to the payment methods they offer. The point of all this is to close more sales, improving the company’s overall numbers.
A lot of work is required to set up various payment methods for your online business and ensure that they all are working accordingly and securely. The need to pick the right partners is also an important step in this process, which can be a stressful task in and of itself.
That’s why etaily is here to provide you with premium services that will enable you to stay on top of your operations and ahead of the competition. etaily is an eCommerce enabler that provides innovative and expert end-to-end solutions that will help e-tail your business to success.
Ready to get started? Contact us today to learn more!