4 Types of Payment Methods Your Business Should Offer Nowby Sahil Verma SIFIPAY
Gain a competitive advantage in any market by offering a variety of payment options to meet the needs and preferences of your customers.
Ecommerce continues to grow in popularity and necessity around the world, and the need for businesses to reach a global consumer audience is greater than ever. If your company sells internationally or plans to expand globally in the future, it's critical that you understand the various online payment gateway, payment methods, and where they are most popular.
Types of Payment Methods
While COD accounts for 5% of global eCommerce, there are other ways to accept cash payments that pose far less risk to the merchant.
A customer can choose a product online and print a voucher or receive a QR code on their phone using voucher payment methods. They take the voucher or code to a participating store, redeem or scan it, and pay cash for their purchase. This option allows funds to be transferred digitally to the merchant, who then ships the product, all while the payment is verified by the store accepting the payment.
A bank transfer allows a customer to complete a transaction by transferring funds directly from their bank account to your settlement account or bank account.
Platforms enable customers to authenticate their payments in their online banking environment, allowing merchants to receive payments faster while protecting against credit card chargebacks. Bank transfers are also popular for real-time peer-to-peer payments and many business-to-business transactions.
Debit & Credit Card Payments
Cards, whether in the form of a bank debit or credit card, are likely the most common online payment method available to consumers today. In addition to the global giants Visa, Mastercard, and American Express, each region have its own popular card network.
It's also important for businesses to understand that many cards are only valid for domestic purchases. To accept these transactions, businesses must work with a partner who has a local presence in the regions where they do business.
eWallets have grown in popularity in recent years, with merchants and mobile providers offering opportunities to link bank account information or store money or payment card details inside the ewallet to be used to pay for purchases on demand.
A market that was once barely permeated is now booming, which means merchants must use discretion when deciding which ewallets to offer customers in their respective regions.
Four Advantages of Offering Different Payment Methods
More transaction opportunities with more customers in more countries result in increased revenue. According to some studies, credit card-based transactions account for only about half of all online payments. Various payment methods or the best online payment gateway are used by nearly half of the total consumer audience. Customers are less likely to abandon their cart when they have a variety of payment options available to them, especially when they cater to regional payment method preferences.
Time & Money Saved
Offering a variety of payment methods can be intimidating. Using a single payment processing platform that automatically offers customers preferred payment methods based on their location eliminates that headache and makes expanding your addressable market faster and easier than ever. A unified platform also saves you the time and money spent on managing multiple payment method integrations and navigating regional regulations and compliance requirements.
Greater Customer Loyalty
When the purchasing process is simplified, there is a higher volume of customers and a higher frequency of transactions. Customers will return if you offer a variety of payment methods that reduce payment friction.
Created on Aug 1st 2022 04:52. Viewed 114 times.