When it comes to small or medium-sized companies, offering customers the facility of online payment systems is a must. As we enter a new digitised era where everything is contactless, businesses have no alternative but to match pace.
Now, why do businesses need to scale up technologically and embrace these newer methods? If you, as an eCommerce store, do not accept your customers’ preferred payment methods, they will shift their business elsewhere. Hence, to increase the scalability of your business, adopting online payment systems is a must.
With that in mind, let us look at the six best online payment options you must integrate today
Top 6 Types of Payment Methods Online: A Walkthrough
- Direct Debit: Direct debit is a bank-to-bank transfer conducted, ensuring end-to-end encryption and customer data security. One of the best online payment options, in this case, payments are directly debited from the customers’ accounts. The customers can also make scheduled payments on the payment due date. For a business, it takes three working days for payments to clear. However, an instant-bank pay feature ensures payments are instantly received. Direct debit safeguards your interests by guaranteeing you do not receive late payments.
- Card Payments: Most of the transactions made by customers are through card payments as most prefer using cards for payments. At 68%, Visa has the lion’s share of the Indian card market. Debit cards are an online payment method tied to the customer’s standard bank account. Whenever a customer pays using a debit card, the payment amount gets deducted from their bank account. Neteller, Skrill, and Masterpass are a few debit card companies popular in India.A regular credit card is a form of unsecured credit provided to a customer by a bank. When customers use their credit cards, they borrow from the bank to spend on various requirements. Usually, a period of one month of credit is provided by credit card companies for customers to make payments. MasterCard, Visa, Diners Club and American Express are some of India’s famous credit card companies.
- Cash on Delivery: The customer pays cash upon receiving the ordered items from the eCommerce store. For you, as an eCommerce store, this is the cheapest method of receiving payments. There are, however, the risks of customers cancelling products after delivery, causing you money.
- Contactless Payment Options: This includes making payments through apps, smart watches etc., at the point of sales in stores or hypermarkets. The upper limit in such transactions is generally limited to Rs 5,000 for transactions made without a PIN. The customer holds their device close to the POS machine and enters a PIN to activate the trade.
- Online Payment Methods: Transacting from home and buying most of the requirements is very common in India, especially after the Covid-19 epidemic. When an online transaction is made, different payment methods, including credit card, PayPal, PayU, and Paytm are used to make payments for the purchases. There is an added advantage of using online modes of payments as many incentives such as cash backs, rewards and incentives are offered.
- Direct Bank Transfer: Transferring money directly from bank to bank has become instantaneous due to the advancement of technology. Banks transfers are hassle-free online payment methods; all one needs to do is enter the recipient’s bank details, and transfers will be done instantaneously. Some banks permit using WhatsApp and text messages to make bank transfers.
With an array of options, payment methods are available for every business type. However, which payment option you want to choose depends on your business and customer requirements. That being said, it is vital to remember that we are all living in the digital era. Hence, to increase customer satisfaction, you must have different payment methods.
If you want help accessing the correct, secure technology for smooth and seamless on-demand settlement of customer payments, making refunds to customers for your eCommerce store, and completing international transactions like a pro, PayU is the place to be!
The cash-on-delivery payment method carries the least amount of fees. However, it also comes with its own set of challenges, especially in cases where your customer cancels after the order is delivered. As the business owner, it is you who covers the costs.
It would help if you offered all payment methods. However, the final decision about which payment method is best rests on location, omnichannel approach and your business model.