Every year, online commerce expands quickly, creating opportunities for other platforms to grow as well. Online shopping and e-commerce websites are more than just a simple business because they also cover other areas. As a result, as online stores grew, so did payment methods, giving merchants a ton of opportunities to offer their customers a variety of payment options and enhance their experience. When a customer visits an online retailer, they have a variety of options. They can pay in full right away or use consumer financing, which is made available by several Fintech companies. These options include POS financing, BNPL, and products from conventional financial institutions like credit cards or installment loans for large purchases.
We selected four major payment options to discuss among the many that merchants can use in their local or online stores.
1. Card Payments
Card payments are second only to cash in terms of acceptance among small business owners worldwide, according to research from QuickBooks. Since everyone uses a credit or debit card these days, traditional bank cards remain one of the most widely used payment methods. These two are used in other ways as well:
· Debit Cards
Debit card payments are straightforward; the customer’s bank account is simply debited for the amount, and on top of that, it is one of the fastest payment methods that merchants can provide to their customers. However, there are no financing options available, and the money must be available on the account at the point of sale.
· Credit Cards
The method is the same for credit cards as it is for debit cards, but using a credit card also offers consumers access to a form of consumer financing; if there are no credits available at the time, the price is loaded from the bank and the buyer must pay it back over time. Since credit cards contain fees and can negatively affect credit scores when used to purchase lesser goods, consumers are using them less frequently.
2. Mobile Payments
Mobile devices, like smartphones or tablets, are used for mobile payments. It may include a variety of payment methods. Mobile payments enable transactions using a payment method, such as credit cards or electronic funds transfers. Payment apps are used for mobile transactions; the most well-known ones include Apple Pay, Google Pay, Samsung Pay, and other banking programs. Mobile payment has many benefits, including a quick and smart buying experience, and is one of the safest payment options available. Though perhaps not as widespread as bank cards, mobile payment is growing every year, and an Insiderintelligence study projects that by 2026, the average amount paid per user via mobile applications will be $7,827.
Although cryptocurrency payments may not be among the most popular payment options, their popularity is rising quickly because they offer the safest method of transaction and more and more people are buying various cryptocurrencies. Some online stores have already accepted cryptocurrency payments, and this trend is expected to continue in the future to allow cryptocurrency users to make payments with ease.
4. BNPL (Buy Now Pay Later)
The two payment methods with the quickest growth over the past few years have been Buy Now Pay Later and point of sale financing. When offered by well-known organizations, it comes with no fees and, in most circumstances, has no effect on credit score, thus people prefer using it over credit cards. ChargeAfter, Affirm, Klarna, and other Fintech firms are the top suppliers of BNPL lending. After implementing the Waterfall financing system and BNPL white label services, which give merchants the ability to use consumer financing under their branded names and grow in popularity among customers, ChargeAfter’s financing platform has become one of the most popular lending platforms.
In the approaching years, more people are anticipated to use BNPL. According to a Forbes poll, the majority of consumers are happy with BNPL’s loan services, and more are likely to use them in the future. Since BNPL and POS finance now provides significantly better terms for consumer lending, it has the potential to outperform traditional banking services.
ChargeAfter is a leading multi-lender platform for Buy Now Pay Later (BNPL) Consumer Financing. It connects businesses with the most reliable lenders, enabling them to offer customers the greatest financing solutions. With the best system of Waterfall Financing, ChargeAfter guarantees BNPL lending to every shopper, by matching the most relevant lender to every client. Using the unique consumer financing technology, ChargeAfter provides all parties, merchants, lenders, and consumers, with the best shopping experience. Phoenix, MUFG, VISA, Bradesco, BBVA, Synchrony, PICO Partners, CITI, Propel Venture Partners, Plug and Play, and other companies worldwide are among the investors of ChargeAfter.