If you have an e-commerce business, you know how important it is to have a reliable payment system. Customers need to buy your products easily and securely, and a digital payment system is the best way to make that happen.
Gone are the days when cash and cards were the only options for brick-and-mortar businesses. Then it became the primary mode of payment for brick-and-click companies, too. But with the advent of digital payment methods, customers can explore more convenient and innovative ways of paying for goods and services online.
So, if you’re in the market for an upgrade to your payment system, look no further. Here are the five best digital payment options for e-commerce businesses:
#1 — Digital Wallets
Google Wallet (Android) and Apple Pay (iOS) are two options that allow your customers to store their credit card information on their phones so that they can make purchases in stores or online with just a tap! The best part is that these methods never require sensitive information, like social security numbers or bank account numbers.
This can also save time because all they need to do is enter a 4-digit PIN code when making payments using this method. That means your customers don’t have to fumble through their wallets looking for their credit cards anymore. So, they can pay for your products quickly and easily.
Of course, this method might not be available everywhere just yet. But if you have a high-end smartphone or tablet, your customers can still pay using the NFC technology, which refers to Near-Field Communication, built into the device. So, they don’t have to wait for Google Wallet or Apple Pay to become widely adopted by merchants everywhere.
#2 — Online Banks
If your business does a lot of international transactions, then an online banking option might be best. These are popular options for companies that get orders from many countries or have customers with international credit cards. You can find banks worldwide that offer competitive, multi-currency exchange rates and low transaction fees.
Mobile banking is also very beneficial because it saves your customers time and effort to get on with their lives while you handle the business of payments. This allows everyone to focus on their tasks and get more done.
However, note that some online banking options might not involve currency exchanges. That means you’ll need to ensure your international customers know which currency the purchase amount will be displayed in when they pay.
#3 — Alternative Payment Methods
You might be surprised to learn that the most successful alternative payment options for e-commerce shops are mobile apps like Venmo and PayPal. These allow you to turn your phone into a mobile credit card terminal so that customers can pay with their phones.
But customers can also use their digital visa cards to pay with mobile apps, which is incredibly convenient for people who might not have their actual cards on hand. Other options include balancing payments between bank accounts, buying prepaid cards from supermarkets, and using coupons or gift vouchers.
Alternative payment methods can boost your business because they offer a level of convenience that people expect from the digital age. They’re also very affordable and easy to set up.
#4 — Cryptocurrency
An option that has become more common is a cryptocurrency, like Bitcoin. This is an excellent option for international transactions because it can save you significant amounts of money in transaction fees. It can also provide more security because it’s decentralized, which means no one else has access to any sensitive information about your customers.
Decentralized finance or Defi is a growing trend being adopted by more and more businesses! DeFi means using digital currency as a means of payment instead of fiat currency, which is traditional money. So, you should definitely consider cryptocurrency as a payment option for your business.
#5 — An Integrated Payment System
This is the best option if you want to avoid having several systems and keep everything in one place. This way, you can lower costs and streamline your business without worrying about compatibility issues.
For example, you might want to use a payment system that’s connected to your e-commerce shopping cart, your customer management system, and your website hosting service. Make sure you shop around for all of these services when finding one payment system to rule them all!
The most important thing to remember is that the best way to make e-commerce payments is whatever works with your business. The right payment system has the features you need and your customers are comfortable with.
People are more likely to use these digital payment methods when shopping online, which is why they’re a great way to make customers happy and increase the number of sales you make. So, before you decide which one to use, consider your business’s needs and the benefits each option offers to your customers.
Meta title: How to Choose the Right Payment Option for Your Online Shop
meta desc: Choosing the right digital payment option for your e-commerce business can be overwhelming since many choices exist. Here are five of the best options to consider!