When a consumer goes online to purchase goods or services from a trusted merchant, the single most important factor that often determines whether they will complete the purchase is whether that website accepts their preferred payment method at the checkout.
Let’s dive straight in to discover why e-commerce businesses today should accept multiple payment methods instead of just one or two.
What exactly does e-commerce mean?
E-commerce is essentially the act of purchasing or selling goods or services digitally/electronically on websites from a Wi-Fi/internet-connected smartphone, tablet, desktop computer, smartwatch, smart TV, or laptop. In other words, it’s any form of business transaction carried out online in the digital realm.
Why should online businesses accept multiple payment methods?
There’s nothing worse than spending ages carefully scouring the internet to find the best deals and taking ages filling up your digital trolley on a website, only to find that when you get to the checkout on that website to pay for everything you have just added to your trolly that it DOESN’T accept your preferred payment method.
It can be frustrating when this happens, and it means you have to take your business elsewhere. This is the number one reason why online business owners should accept multiple payment methods because not everyone likes using Visa debit cards or PayPal, which are commonly accepted almost everywhere.
Therefore, business owners with e-commerce websites must provide a selection of internationally recognised global online payment solutions at their checkouts for their customers to choose from.
It means the customer won’t have to go to another rival website to purchase the same item(s). It can lead to increased sales and additional revenue simply by adding more payment methods.
What are the most popular online payment types in 2024?
Take trusted sites like Amazon, 32Red Hu, Walmart, eBay, ASOS, Shopify, and Target, for example, as well as most iGaming sites, online grocery stores, music/movie streaming sites, and other market-leading online businesses that accept payments.
These trusted brands cater to almost everyone by accepting a wide range of payment methods to suit all types of consumers’ needs. Examples include the following:
- Credit cards
- Debit cards
- Direct/instant bank transfers
- Buy Now, Pay Later (BNPL)
- Electronic wallets (open wallets that can be used on multiple sites, also known as eWallets, web wallets or digital wallets)
- E-commerce payment gateways (closed wallets, which are specific to certain sites only)
- Mobile app payments (Scan to Pay, QR codes, Mobile Wallets, Pay by Phone, etc.)
- Direct deposit
Additionally, some online merchants accept things like Cash on Delivery (CoD or cash/money couriers), physical bank cheques, eCheques, direct/instant bank transfers (also known in some regions as UPI and Net Banking), and Prepaid Cards/Prepaid Vouchers.
You can also now find a growing number of online merchants that allow consumers/customers/registered members to purchase goods or services on that website across the blockchain network using one of several cryptocurrencies, like Bitcoin, Ethereum, Tether, Ripple, DogeCoin, Cardano, Solana, Tron, Litecoin, Polkadot, Avalanche, and Bitcoin Cash, to name a few.
Why are there so many different payment methods, and which ones should online merchants accept?
Some people feel more comfortable using their credit card to pay for goods and services online, whereas others would never dream of entering their credit card details on website checkouts.
Similarly, some more technically-minded people today like to buy, hold, and sell cryptocurrencies and prefer the anonymity, enhanced security, speed, and convenience of using cryptocurrency to pay for things.
These people prefer using their Bitcoin balance to purchase things, whereas some people would never dream of dabbling with cryptocurrencies.
In other words, everyone is different in terms of how they like to pay for things, which is why businesses need to cater to as many people as possible by accepting a range of credit & debit cards, mobile payment methods, eWallets, and other globally accepted online payment solutions.
It could help them generate more revenue, creating a more convenient and user-friendly experience for the customer, who is also more likely to return to buy things from that website in the future.