Top payment methods for e-commerce sites
Offering various payment solutions on your online store is like translating your product descriptions into different languages. Both help as many people as possible make a purchase without barriers getting in the way. Which payment methods are used most in the digital era? Which should you provide on your e-commerce site? And why is it so important to offer multiple payment methods? We answer your questions below…
Why provide various payment solutions?
There are many benefits to offering multiple payment methods:
- You develop your international e-commerce activity (by providing payment solutions used in your target countries)
- You streamline the payment process
- You boost consumer confidence (by offering secure payment methods)
- You reduce your cart abandonment rate (one of the most important key performance indicators)
- You always offer the client an alternative (to prevent disappointment if one payment method fails)
Top payment methods for e-commerce sites
You won’t be surprised to hear that the most popular payment method worldwide is the credit card.
However, alternatives are gaining ground. Voice assistants and sales via social media are becoming more popluar along with contactless payment via smartwatches.
But today, we’re going to focus on which payment solutions you should provide on your e-commerce site in 2023!
1. Card (Visa, Mastercard, American Express)
Payment by bank card (Visa, Mastercard, American Express) is the most popular method in the USA, Europe, Latin America and India.
Card is also the main option used by young people!
According to a study, 97% of millennials regularly deploy this payment method. You could say the bank card is the payment solution that all ages of internet users prefer.
Bank card benefits:
- Widely accepted by e-commerce merchants and used by the public;
- Secure payment (especially with PSD2 strong customer authentication in the European Union);
- Quick process (especially if the website can store payment details for next time 🔒).
2. SEPA transfers
SEPA bank transfers are very convenient. Clients can use them to pay repeat bills or for a subscription.
Imagine you’re selling dog food and a client can select a subscription, choosing how often they want deliveries to arrive.
If the client needs the dog food every two months, they select this option and will get deliveries every 60 days. You just debit the client’s bank account without them having to return to your website.
SEPA transfer benefits:
- Thirty-seven countries are eligible for SEPA transfers
- Better control over payments for creditors
- Retain clients for your e-commerce site
3. PayPal (and other digital wallets)
PayPal is a digital wallet frequently used in Europe and across the world. With this payment solution, you buy online without giving the seller your bank details.
If a website doesn’t seem entirely legitimate, it can be reassuring to use PayPal.
PayPal also saves a lot of time. There’s no need to go find your bank card and enter the details one by one. Buyers just have to provide their email address and log into PayPal. The payment is made in a few clicks.
PayPal benefits:
- Secure, quick and easy
- If there is a dispute, PayPal will arbitrate and try to find a solution
- Bank details aren’t shared
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To add PayPal as a payment method on your e-commerce site, just create a professional PayPal account and link it to your online store. We suggest you ask your website provider about the exact process to follow!
4. Google Pay, Samsung Pay, Apple Pay
Google Pay, Samsung Pay and Apple Pay are the most common mobile payment systems, and they can also be used to order online.
In fact, 25% of students used Apple Pay for everyday purchases in 2022, which was a 56% increase from 2021.
For e-commerce merchants, the benefits of these payment methods include:
- Easier mobile payment
- Authentication using a fingerprint or Face ID
- Very popular among young people
5. Buy Now Pay Later
Less widely known are “Buy Now Pay Later” apps which allow consumers to purchase products now and pay for them later on. This is handy, especially for clothes and/or shoe stores.
Zalando is also now offering this payment method on its app and website.
For retailers and e-commerce merchants, Buy Now Pay Later is an excellent way to win over clients. You allow them to return items that don’t suit them (meaning they don’t have to pay for them) or confirm they want to keep items (and pay for them). This clever way of selling products plays the same role as fitting rooms in shops, but clients can do everything from home and try new purchases alongside ones they already have.
- Improved buying experience
- No extra charges or interest for the consumer to pay
- Clients tend to spend more and increase their average basket
Payment methods for e-commerce sites: key takeaways!
The payment stage is crucial. If payment fails, the process is too complex,or payment methods are lacking, consumers can feel frustrated and abandon their cart.
As a merchant, it’s your job to offer multiple payment methods on your e-commerce site:
1️⃣ Bank card
2️⃣ SEPA transfer
3️⃣ PayPal
4️⃣ Google Pay, Samsung Pay, Apple Pay
5️⃣ Buy Now Pay Later
Even if you offer multiple payment methods on your online store, you still need to have a legible and user-friendly web page. The aim is to improve the overall buying experience on your e-commerce site.
Want to boost your online sales? These 10 marketing trends may interest you! 🔥
