When setting up an online store, it is vital to choose the right method to achieve profitability among the e-commerce payment methods available out there. Here’s a short list of five most popular types of payment methods for e-commerce business.
Credit cards are the most popular way for customers to pay online and has become a global payment solution. Integrating a payment gateway into their business, merchants can participate in international market with credit cards. Credit card users are mostly from the Europe, and North America.
Mobile payments offer a quick purchasing solution on e-commerce websites. This is a popular payment method in countries that credit cards and banking penetration are not so popular. Mobile payments are commonly used on browser games, donation portals, and social media networks. Mobile payments are done mostly in the Asia Pacific.
Those who are enrolled in an internet banking facility can pay for online purchases by doing a bank transfer. A bank transfer makes sure that customers’ funds are safely used as each transaction needs to be authenticated by the customer’s internet banking credentials.
An e-wallet stores a customer’s personal data, which are then used to purchase online. Signing up for an e-wallet is easy. Customers just need to submit their information once for purchases. E-wallets can also function in combination with mobile wallets by suing smart technology such as NFC devices. Tapping on an NFC terminal, mobile phones can transfer funds stored in the phone instantly.
Direct deposits mean customers instruct their banks to pull funds out of their accounts in order to complete payments for online stores. Commonly, customers inform their banks on when funds need to be pulled out of their accounts by setting a schedule through them. A direct deposit is a popular payment method for subscription-type services like online classes or purchases that are made with high prices.