Most Popular Online Payment Options For Ecommerce
With new technology and increasing demand for e-commerce, consumers are searching for payment options that are both convenient and affordable.
Consumers alarming alarming online shopping habbits have retailers turning to various new credit solutions to attract more consumers.
Knowing which types of payment methods to use for your online store is essential for your business because there are so many different types to decide on and choosing the right types will optimize revenue opportunities. We have shortlisted various types of payment methods we found will work best for your e-commerce business
The most popular method of payment used by consumers worldwide is credit cards. With the common use and global prevalence of credit cards, they enable global reach by integrating credit card payment gateways. The most prolific credit card users are from North America, Europe, and the Asia Pacific.
Some merchants (or merchant solution providers) allow the customer to split payment of the purchase over months. However, the interest charged for this type of purchase is very expensive
Countries with a low credit card and banking networks have innovative mobile payment technologies. Mobile payments offer efficient transactions for customers to purchase on eCommerce websites. Donation portals, game portals, prepaid services, and social media often use this type of pament system. Mobile payments are the most popular in developing countries such as Africa, Asia Pacific, and South America.
Although not the most efficient method of payment, customers whose banking institutions offer online/internet banking can use bank transfer to pay for online purchases.
The use of this method of payment for online purchases is on the decrease, but where credit cards and other forms of payment are not available, this may be the last resort.
However, bank transfers are arguable safer since each transaction must be authenticated and approved by the customer’s internet banking credentials first before a is concluded.
Payment Methods with Credit Options
Of the various popular payment methods mentioned above, only credit cards (potentially) offer the customer the option to buy on credit without the merchant carrying the cost and (most of the) risk.
The disadvantage with this is that the interest I usually very expensive for the customer.
With the advent of new technologies, there is now an emerging trend method that is becoming increasingly popular.
Its called Point Of Sale Financing (also known as consumer financing).
What is POS financing?
POS loans (Credit Loans/Consumer Loans) has been around for a while.
For instance, installment loans for car purchases, or large appliances and furniture.
New credit finance technologies developed by ChargeAfter.com for merchants have revolutionized Point Of Sale lending and installment loans are now available at online checkouts, and it is quick too!
Consumer financing provide immediate installment loan solutions with clear repayment terms before the loan is finalized.
With advances in technology, point of sale loans offer easy, efficient point-of-sale finance (installment loans) These advances have also made it easier for point-of-sale finance to be offered by all retail sectors.
Point of sale financing enables the merchant (including e-commerce retailers) to offer their customers a quick financial solution (loan) with third party lenders at the point of purchase/checkout.
The installment loan can be applied to small and large purchases alike.
Purchases could be as low as $50 (or less) or a few thousand dollars