We are talking about the most important step here. Choosing the best payment methods for eCommerce.
One step, where your customer is most anxious, and just a step away from making a purchase.
Over the years, new and advanced online payment methods of eCommerce have been introduced. And in this guide, I’ll be taking you through the best payment options that you can get for your eCommerce in 2023.
The article is divided into two important sections.
If you are just getting started, I’ll recommend you thoroughly learn about the options. That being said, let us get started with this insightful guide.
Types of Payment Methods for Ecommerce
There are mainly 7 types of payment methods for eCommerce based on how they store and transfer money.
Credit/Debit card payments
Credit or Debit card payments were generally one of the most common and trusted payment methods of eCommerce.
In order to make a purchase, the customer would have to add in the card details, CVV number, and the OTP they receive before confirming the purchase.
It is still considered one of the most secure payment methods, which is why almost every payment gateway has an option of card payments for eCommerce.
Prepaid card payments
Prepaid cards are like credit and debit cards but much more brand-centric. These are the cards that can only be used for one brand, or just a group of brands.
Customers will have to recharge these cards in order to use them later. Prepaid cards weren’t very popular, but slowly they see some popularity among the audience.
These are a great way to increase brand loyalty, as once the customer has made the recharge, they are likely to spend that money with the brand.
One of the best examples of prepaid cards is Starbucks. They successfully created an eco-system where customers could recharge the card, get rewards on using it and make sure the customer comes again and again.
Cryptocurrency might be the future of all online payment methods for eCommerce. But truthfully, we are still in the early stages, making it not a great fit for everyone right now.
In saying that, if your brand or eCommerce is positive with the trend of cryptocurrencies, and if you are open to the risk, you can even start accepting Bitcoins, Ethereum, or any other form of crypto at payment in 2023.
Mobile payments are a new way through which many online payments are being processed today.
Just from 2016 to 2021, the average annual growth rate of mobile payment volume was 62%.
And the reason is the ease of doing the transaction. Customers can link their cards with any mobile payment option they choose.
During the transaction, customers can simply choose their payment option and they can make the purchase right from their mobile phone. Some of the most common mobile payment options are Apple Pay, Google Pay, etc.
Bank transfers are not the most common payment method of eCommerce today. They used to be the only methods to transfer money, but it required a lot of time and effort, compared to other options we discussed.
Still, if we are talking about wholesale eCommerce, where large amounts of transactions take place, a bank transfer is one of the most secure and trusted payment methods for eCommerce.
E-wallets are a perfect balance between prepaid and mobile payment. Here customers signup with a payment merchant and add money to their online wallet, also known as E-wallet.
Now during the transaction, customers can simply pay through the E-wallet. Rather than running the whole transaction through a bank account.
The transaction happens faster, and much more easily.
When we talk about payment methods for eCommerce, Cash On Delivery is still among the top payment methods. It is a great way to build trust among the customers, but it comes with its own cons.
The risk of theft with no guarantee of an actual sale is always there. That being said, Cash On Delivery, does not necessarily always mean actual cash. You can set up online payment during the delivery of the product.
Best Online Payment Methods For Ecommerce
Now that have learned about the types of payment methods for eCommerce, let’s look at the best options. Here are the 5 best online payment methods for eCommerce.
PayPal is one of the most popular online payment methods for eCommerce. It has been around for a long time and has built trust among the customers and eCommerce owners.
Paypal for eCommerce allows you to accept payment in form of:
- Credit cards
- Debit cards
- PayPal Credit
Standard pricing is 2.9% + $0.30 per transaction. For eCommerce which is just getting started and wants to build trust among the customers, adding PayPal as a payment option would be a great idea.
Stripe is among the most versatile online payment method, making it among the top-performing platform in use.
It is easy to integrate, has a great interface, and supports various kinds of payment options as well.
Stripe even support subscription services, so if you are running a subscription-based eCommerce business model, Stripe would definitely be among the best online payment methods for eCommerce.
Stripe for eCommerce allows you to integrate various kinds of payment methods including:
- Credit Card
- Debit Cards
- Bank Transfer
- Mobile Payments
Standard pricing will cost eCommerce 2.9% + $0.30 for every card charge.
Stax aims towards making the online payment methods for eCommerce simpler. Unlike other popular payment gateways, Stax doesn’t charge you per transition. Rather, you pay a fixed monthly fee.
Hence even if you are making high profits with sales, you don’t have to pay a cut out of it.
The pricing starts from $99 per month which includes analytics, a free terminal or mobile card reader, ACH processing, and more.
Wise is among the fastest-growing online payment methods for eCommerce. It is a platform that is making online transactions quick and most importantly cheaper.
The cost is usually 19x cheaper than other popular payment options in international payment which is substantially huge.
Wise easily integrates with and can handle all kinds of transitions in eCommerce very easily.
2CheckOut is considered one of the most reliable online payment methods for eCommerce options especially when handling international transactions.
It is a platform that takes care of all the online transaction hustle including global payment, payment processing, taxes, and other eCommerce payment needs.
You can start selling in over 200 countries, with no upfront fees. You only start paying once you start selling online.
Standard pricing will cost eCommerce 3.5% + $0.35 on each transaction.
With more and more people moving towards online shopping, building trust, as well as robust online payment methods for eCommerce, is very important. These payment gateways that we just discussed are definitely among the top choices.
Gateways focus on easy integration and delivering the best experience to your customers.
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