Globally And Locally, The Most Popular Online Payment Methods
Online shoppers expect different payment options, so you need to ensure your ecommerce site has capabilities to support those payment means which are most popular online.
Discerning shoppers expect to pay in the way that suits them best. Offering as many payment modes as possible will improve your conversion rates and keep customers coming back for more.
Credit & Debit Cards
Cards are still one of the most popular payment methods in the world, with more than 2.5 billion credit and debit cards issued worldwide. In some regions, cards have been around for centuries, while in others they have only been introduced in recent years. However, they all share the same purpose: to act as a safe and secure payment method for customers.
Cards’ popularity as online payment methods was built on the protection features offered – card transactions have been regulated for many years by global or regional compliance standards and also by consumer protections issued by payment processors, such as those upheld by American Express, Mastercard and Visa.
Credit cards have a slightly more marked preference in Western markets vs debit cards, given some of their additional features. For example, some shoppers are incentivized to use credit cards to have access to the bank’s reward programs. In the US, more so, credit card spending impacts the user’s credit scoring and serves as an extra motivation to opt for it as an online payment method.
Today, more than ever before, eCommerce merchants are embracing digital payment modes like eWallets as a part of their strategy.
With the rise in popularity of mobile commerce, the need for alternative payment methods has grown exponentially. The world has changed and so have the needs of consumers: they are now more connected than ever before and expect to be able to shop anytime, anywhere.
As such, the use of eWallets is on the rise in B2C eCommerce all over the world. Some reports are even finding that use of eWallets has overpassed that of cards last year on a global level – in some markets, Asia Pacific, for example, this online payment method had a share of almost 60% of transactions in 2019.
This alternative payment method works like a prepaid credit account (although there are different types), and stores the customer’s personal data and funds. When using an eWallet, the user no longer has to input his bank account details to complete the purchase; instead he is redirected from the checkout to the eWallet’s page where he simply has to log in with his username and password to conclude a purchase.
This online payment method involves the customer paying from their banking account with their own funds. It is perceived as having an extra layer of security, as transactions require authentication through the customer’s bank. Basically, when chosen as payment method during checkout, a bank transfer redirects the user to their internet banking portal, where they have to login and authorise the transaction.
Bank transfers are usually processed within 24 hours after your order has been placed and paid for. Your order will be shipped once the payment has been received by us.
Buy Now, Pay Later
An online payment method that has gathered attention lately and which has registered a 162% growth in the past two years is Buy Now Pay Later. This is a form of instant lending which more and more young consumers are turning to, as Teen Vogue also reports. When choosing this option, shoppers have the option to pay later, over time, without having to open up a credit card for this. Availability of this option during checkout has been reported to persuade 30% extra buyers to finalise a purchase they wouldn’t have otherwise.