A complete guide for Online Payment Method

by Elna Abara Payment Service Provider

Here is the most common online payment method, and choosing the suitable payment method for your business is the key to a successful online business.

In the digital age, customer expectations for speed, ease of use, and variety of choices at website checkout pages are on the rise. Therefore, it is crucial to offer customers their preferred payment method which is vital for any successful business. Unfortunately, as per the global Statista survey, over two-thirds of shopping carts are abandoned at the checkout page. The lack of preferred payment options is a primary reason for shopping cart abandonment.

Many online payment methods are available; we share some examples of popular payment platform methods in regions worldwide to support you with international expansion.

Credit card and Debit card payments

Credit and Debit card payments are the most popular online payment method worldwide. If you need to collect instant payment or payment from across the globe, then cards are the best option. However, to accept credit card payments, you need to set up a merchant bank account and use a payment gateway to receive the payment. In addition, a high transaction fee is often associated with credit and debit cards, and there is a risk of payment failure, resulting in lost revenue and customer interest.

Direct Debit payment

Direct debit allows your business to withdraw amounts directly from a customer's account. Direct debit payments are commonly used for recurring payments like subscriptions and instalments. Before setting up a direct debit, customers must fill out a direct debit mandate to authorize the price and should receive a notification regarding upcoming payments.

Instant bank transfer

For an instant bank transfer, consumers can pay straight from their bank account at checkout through their internet banking without a card. Transferring funds is instant in this transfer. Once the consumer selects the instant bank transfer option and gives consent, a third-party provider initiates the payment to the business on behalf of the customers.

Digital wallets

Digital wallets have become popular recently, and they store bank account details, credit cards, and gift cards in one place. It saves customers time as it is speedy and convenient. Consumers do not need to enter lengthy card details for each transaction.

Gift cards

A gift card is a closed loop card particular to a single retailer or affiliated group. Gift cards are similar to prepaid cards; they contain a specific spending value. Gift cards differ from general prepaid cards, which can be used anywhere the issuing company accepts. A gift card cannot be used again.

Buy now, pay later

Buy now, pay later allows your customers to purchase with interest-free credit. Customers purchase and pay for their items later rather than the total upfront. Keep in mind that buy now pay later providers will charge the retailer a fee per transaction, and there are hefty fees for late payments.

Cash on Delivery (COD)

Cash on delivery is straightforward; it allows yur customers to pay for their shopping by cash to the courier at the time of delivery. Cash on delivery is prevalent, especially in countries where cash payments are still dominant. Cash on delivery guarantees the customers that they will receive their goods and can check the product for any damage or missing item before paying for it.

Conclusion

Offering customers their preferred method of payment platform is the key to a successful online business. DPO Group is a leading African payment service provider that helps speed up the purchase process, gives satisfaction, and increases e-commerce conversion rates.