Best eCommerce Payment Methods You Should Check Out Right Now

Online payments have become an integral part of every eCommerce website or online store. However, these online payment methods are offered even before the website or online store is launched. Therefore, choosing the right payment methods for an eCommerce website is crucial to ensure that the business runs smoothly.

There are many types of electronic payment systems in eCommerce. However, choosing the right payment system completely depends on the kind of eCommerce website you are choosing. An eCommerce business owner must understand that the more attractive the payment methods are, the better the chances of the payment being successful.

Another reason for offering electronic payment methods instead of old-fashioned cash payments is the advancement in technology. There are many online payment methods available like UPI, mobile wallets, etc. – this has seen a huge change due to the pandemic. People are trying every possible way to avoid physical contact. Therefore, e-payment systems are a real option in the current scenario.

Types of Electronic Payment Systems in E-Commerce

1. Credit Cards and Debit Cards

The use of credit cards and debit cards is the most widely used e-commerce payment method across the world. Being a globally accepted payment method, e-commerce business owners can offer credit card and debit card payments to spread the reach of their businesses internationally.

Paying with a credit card is practical and secure. When paying with a credit card, the customer only needs to enter the card number, expiry date, and CVV.

Debit cards are usually preferred by people who shop within a budget. The only difference between credit and debit cards is that money is first transferred to the merchant, and later paid to the bank in the first option. Yet, in the case of a debit card, the payment is made from the money already present in the bank account.

In both cases, CVV is mandatory as it helps in detecting fraud by comparing the customer details and CVV number.

2. Prepaid Card Payments

Prepaid cards can be used to pay for things. These cards are usually purchased with cash. Prepaid cards can be purchased from many stores and e-commerce sites. Prepaid cards are more convenient than debit cards or credit cards as you do not need a bank account to use them. Also, prepaid cards do not require a good credit history for any transaction. Therefore, prepaid card payment options can be considered helpful for e-commerce platforms.

3. E-Wallets

E-wallets or electronic wallets are the latest payment option that is being used extensively. These digital wallets allow one party to transact with another party by exchanging digital currency for goods and services. Apart from this, rewards, loyalty cards, gift cards, etc. can be stored in e-wallets. Therefore, e-wallets can be used to make online payments on e-commerce platforms.

E-wallets require a sign-up form for both the merchant and the customer. Once the e-wallet account is created and linked to a bank account, the customer can deposit and withdraw money from the e-wallet.

E-wallets are considered as an instant online payment method, and can be merged with mobile wallets using NFC. Prepaid e-wallets also store details of multiple bank accounts of a customer. It requires a one-time registration, and hence, the customer does not have to enter his information every time while making a transaction. Therefore, e-wallets are one of the best payment methods for e-commerce platforms.

4. Mobile Payments

Mobile payments are payments made with the help of a portable electronic device; it can be either a cell phone or a tablet. Mobile payments can be made by downloading a mobile app and linking it to a bank account so that when making a payment, the funds are transferred directly from the bank account to the merchant.

Here, the customer makes the payment, and the funds are deducted directly from the bank account instead of a secondary e-wallet. This is a straightforward and hassle-free option and, therefore, a must-have option for every e-commerce website.

5. Bank Transfer

Although this payment option has fallen out of fashion nowadays, it is still considered a must-have payment method for e-commerce. Customers enrolled in internet banking can make a bank transfer for their online purchases.

Although bank transfer is the least popular payment method, it is still the safest, as it requires the transaction to be approved and authenticated by the customer.

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