Amidst the eCommerce boom, with over 26.6 million websites worldwide, creativity and strategic thinking are the key to standing out and surpassing competitors in the online shopping realm
The first step to starting an e-commerce store is designing a user-friendly website. Your e-commerce site is the heart and soul of your e-commerce store.
An ecommerce website not only will show directions to your customers but also help them complete the checkout process without any friction.
There are many factors involved when designing an e-commerce store website, including online payments.
To run a successful e-commerce store, you need to accept online payments from your buyers.
If you don't have e-commerce payment methods set up on your site, then the main goal of running a business online will go down the drain. Yes, you guessed that right. We're talking about generating revenues and driving conversions.
If you have questions regarding the checkout step of your conversion funnel and available online payment methods, you have come to the right page.
In this post, we'll walk you through different online payment methods available for ecommerce websites. So let's begin.
What Are Online Payment Gateways?
An online payment gateway is a service that facilitates online transactions by securely authorizing the transfer of funds between a customer's bank account and the merchant's account.
They have become an integral part of the e-commerce industry. Today, many companies offer these services to online merchants and customers.
The goal of payment processors is to connect you and your customers to third-party institutions, such as banks.
What online payment gateways do is make your ecommerce checkout process fast and stress-free. How? Let us explain.
Present-day customers hate waiting. The average cart abandonment ratio is around 70%, and interestingly, this figure includes those people who showed clear intent to buy a product or a service at the start.
Benefits Of Using Online Payment Gateways
One of the biggest barriers to conversion is limited or complex payment methods. With online payment gateways, you can ensure your buyers complete the checkout without the hassle.
Moreover, these payment gateways also offer encryption to keep your buyer's sensitive information safe and protected.
Why Is It Essential To Offer Multiple Payment Options?
Did you know many customers abandon their carts last minute only because they couldn't find their favorite online payment method listed on the site?
While there is no hard and fast rule as to how many online payment methods you can have on your site, giving your customers choices is definitely a good idea.
Multiple online payment options allow customers to seamlessly checkout by logging into their favorite payment gateway. In some cases, they don't even have to log in if their details are already stored on their devices.
Different Types Of Online Payment Methods
If you want to take your e-commerce store to the next level in 2024, you may consider using some of these online payment methods.
Credit/Debit Card Payments
Gone are the days when you needed a wallet full of cash to pay for your transactions. Today, customers prefer cashless transactions over anything else.
Card payments have especially gained massive momentum in recent years. Many people use their credit cards to make payments online. Credit cards are not only easy to use and secure, but they also allow customers enough time to repay their bills.
Debit cards are another popular e-commerce payment method that is ideal for buyers who want to shop online without crossing their financial limits.
Bank Transfers
Bank transfer is another fail-safe online payment method preferred by many online customers these days. With bank transfers, customers can make online payments without having to pay for debit or credit cards.
E-Wallet
E-wallet is another trending online payment method that requires registration from both the seller and the customer.
Once an e-wallet account is open, both the merchant and buyer have to connect it with their bank account to receive and process payments.
You can even link an e-wallet to your mobile wallet via NFC to further streamline the payment method.
Cash Payment
Although modern customers are inclined more towards making cashless payments, cash is still the king when it comes to ecommerce payment methods.
This online payment method is specifically popular in developing countries, such as Brazil and India.
Also, cash payments are the only option for those who don't have cards.
Prepaid Cards
Prepaid cards are another effective alternative to credit/debit cards that come in varying stored values.
This option is usually adopted by minors and those customers who don't have a registered bank account.
Direct Deposit
With direct deposits, customers can transfer the money directly to the merchant's account.
Since there is no third-party involvement, direct deposit is a fast and efficient way to transfer money online.
Electronic Checks
Electronic checks, popularly known as E-checks, work more or less like regular bank checks. Using them enables the buyers to authorize the transfers directly from their bank accounts. This method is widely popular in Europe.
Mobile Payments
Mobile payments are another fast and secure way to transfer funds online. To set up a mobile payment system, you simply download software and link it with your credit card.
Top 10 Online Payment Methods (Tools) For E-commerce Sites
No matter what e-commerce payment method you choose for your store, it is critical to invest in the right tools to ensure maximum safety and convenience for your customers.
1. PayPal
Paypal is a famous American company that helps more than 17 million businesses with payments and other credit solutions.
The official company website has more than 254 million active users. Paypal enjoys a reputation that speaks for itself.
If you're starting out, PayPal is certainly the best online payment solution, in terms of reliability and ease of use. It also gives your customers a sense of security that the world's renowned payment company has their back for payment security.
Paypal allows e-commerce store owners to accept credit/debit cards, Venmo, and Paypal/Paypal credit. The payment fee isn't much either. Each transaction will cost you up to 2.9%+$0.30 per transaction.
2. Payoneer
There is no online payment option as effective as Payoneer for international funds transfers.
Although Payoneer is not as popular as Paypal, it is still used by millions of people worldwide - especially those who're working with international suppliers.
We all know how costly international payments and wire transfers can be. That's where Payoneer steps in. The platform allows users to receive payments in varying currency units, including USD and EUR.
The only downside is that Payoneer doesn't offer a merchant account. That means you can't accept debit/credit card payments using this e-commerce payment method.
As far as service charges are concerned, Payoneer charges a flat 29.95/year fee along with a $1 or $3 transaction fee depending upon how quickly you want your transaction to be processed.
3. Google Pay
Google is an American multinational company offering many internet-related services and products, including Google Pay.
According to Google, millions of users have already saved their financial data on their Google accounts. By using Google Pay, those people can save a lot of effort and time making online payments.
What makes Google Pay stand out is that it comes with top-notch encryption and targets mobile and web users.
The platform also enables online sellers to launch loyalty programs and other attractive deals. Currently, Google Pay is working with other popular payment platforms, such as PayPal and Visa Checkout, to maximize its reach.
And now, the most exciting part is that Google Pay doesn't charge you a penny for using its services.
4. Amazon Pay
There are millions of Amazon users worldwide, making Amazon Pay one of the best e-commerce payment solutions available.
Integrating this online payment option into your site will make it stress-free for Amazon users to shop from your e-commerce store.
In addition to that, Amazon's payment mechanism works wonderfully for mobile and web users.
Amazon offers Express integration to integrate its payment option on your website. Alternatively, you can use their API, allowing you to customize settings according to your needs.
5. Square
If you run a brick-and-mortar store along with an e-commerce platform, Square can be your safest bid.
The platform is known for its excellent POS system that seamlessly blends with its payment systems.
Square is just for you if you also plan to open a physical retail outlet alongside running an online shop.
What we loved about this online payment solution is that it also comes with a stellar website builder.
You can use many user-friendly features to provide a safe user experience to your customers.
Square charges you 2.9%+$0.30 per transaction.
6. Stripe
Stripe ranks among one of the top online payment solutions because of its versatility and ease of use.
Many e-commerce sellers favor this e-commerce payment method as it seamlessly integrates with their e-commerce stores and offers the payment security your customers deserve.
If you offer multiple products and services, no solution is as reliable and effective as Stripe.
The platform supports both online and in-person payments. That means you can use Stripe if you already have a physical store alongside an online shop or if you plan to open one in the future.
7. Apple Pay
Apple Pay is a lesser-known payment solution. However, it is a perfect option for those who want to make payments using their Apple devices.
You can also use Apple Pay as your mobile wallet when you're out. It's a one-click payment method that users can use to make secure payments online.
The platform also uses tokenization to keep users' information safe. To use Apple Pay, you need only use their API on your online store.
Similar to Google Pay, Apple also doesn't charge any fee from its customers for using this service.
8. Masterpass
Masterpass is another secure online payment solution that works more or less like American Express and Visa.
Your Mastercard users can easily check out using their Masterpass and that too without paying any charges.
The best part? The company doesn't charge any fee from the merchant as well.
Masterpass comes with all the advanced security options you might expect from a top-notch payment service provider.
So if providing a safe and hassle-free payment solution is your goal, Masterpass is something you need as a payment option on your site.
9. Skrill
Skrill is an easy-to-use, reliable e-commerce payment method used by millions of online sellers worldwide. It supports over 30 currencies and several other useful features to make your customer's online buying journey a breeze.
10. 2Checkout
2Checkout is an international online payment method that accepts payment in different currencies from users all around the globe.
With this platform, you can design a personalized checkout that also ensures fraud prevention.
Additionally, 2Checkout comes with a mobile-friendly design, meaning both your web and mobile users can enjoy the same experience.
2Checkout charges 2.9% + $0.30 transaction fee.
In summary, your e-commerce store has many online payment options. The key is to do your research and choose options that are trusted by your ideal clients, fit your business best, or, in other words, are the best online payment methods for your brand.
