eCommerce success is built on its ability to be flexible. With the internet available in most corners of the globe, your customers could be anywhere, in any time-zone, using any number of banks or payment methods to purchase your product. No matter where you find your customers, you want to ensure that no purchase is ever abandoned due to a lack of payment options or methods, but how do you know, in a world of different banks and payment methods, which ones will work for you and your customers?
- eCommerce sites and their evolution
In general, there are 6 types of eCommerce: Business-to-Consumer (B2C), business-to-business (B2B), consumer-to-consumer (C2C), consumer-to-business (C2B), business-to-administration (B2A) and consumer-to-administration (C2A). Ecommerce first appeared 40 years ago, growing to a multi-billion dollar industry in under a century. The COVID pandemic gave the market a 77% increase over 2019, making eCommerce one of the strongest markets in the world.
- What Are Online Payment Methods?
Simply put, online payment methods are any electronic method of submitting payment through the internet (both mobile and PC). By 2023, eCommerce will account for more than $6.5 trillion in sales, 22% of all global retail sales.
- Why Should You Offer Different Payment Methods?
Every country in the world has different banks, financial institutions, and payment methods. For example, 1.7 trillion Chinese customers use programs like WeChat or AliPay to make online purchases. These programs are not popular in any other country, yet to ignore them would be cutting out a huge potential market before you’ve even had a chance to succeed. It’s important that you offer as many different payment methods as possible, to take advantage of any and all growth opportunities, even those you didn’t know were there.
- How to Choose the Best Payment Method for Your eCommerce Store?
The best payment methods for your eCommerce store will depend on your market, your location, and your product. For example, if you want to build a market in a different country, choose the most convenient payment option for that particular country. The name of the payment game is trust and reliability, so make sure that no matter what you sell or where you sell it, you are enabling the use of the most secure and simple payment methods.
- What Are The Most Popular Payment Methods in eCommerce?
Let’s explore a few of the most popular payment methods in eCommerce, and how they are used.
- Credit Card payments are common in most countries and with most customers, as credit cards provide an added layer of fraud protection for customers.
- Debit Card payments are also quite popular worldwide, but less common than credit card payments due to the potential for fraud.
- Bank Transfer is one of the most universal or secure ways to accept or disperse online payments but has seen a drop-off in popularity lately due to the ease of use of credit or debit cards.
- Direct Deposit allows customers to transfer money directly into the seller’s account, and can even be set up to send regular payments. No intermediary is needed, making this a fast and simple solution.
- Cash is the most recognizable payment method but has been reduced in popularity, as it limits where purchases can be made and how much you can spend.
- Cryptocurrency is an incredibly safe way to send and receive money – provided you have the right wallet set up. While you certainly don’t want to incorporate all of them, you might want to make a few available to customers as a payment option.
- E-Wallets or digital wallets (Google Pay, AliPay, and Apple Pay) are becoming more popular as a payment method, for their ease of use and their security.
- What is a Payment Gateway and How Does It Work?
Customers use these gateways daily, accustomed to putting in their information, including debit or credit card numbers, billing, and shipping information before they complete their purchase. Payment gateways are great for eCommerce because they offer the most payment options, with very little setup required.
- Benefits of including Payment Gateways for Your eCommerce business?
First, reputable payment gateways are trustworthy and backed up by financial institutions that guarantee their accuracy and stand behind them. In addition, they operate across borders and take payments in all forms on a daily basis. Payment gateways are built to be easy to use and have automatic functions that can be integrated with third-party technology, to ensure all your data is safe, and automatically input when needed.
Finance and payments can be a complex issue, meaning many businesses choose to work with professionals for Credit union strategic planning, a process that gives you a clear and honest assessment of any competitive advantages, with info straight from the experts.