Best online payment methods for faster transactions

The popularity of online payments has grown tremendously over the past years. The online payment methods market share is expected to account for over 53% of global ecommerce payment transactions by 2025. Fast, secure, and convenient online payment options make it easy to shop from ecommerce businesses. 

In today’s competitive digital environment, businesses must offer the best online payment methods for increased safety, cost-effectiveness, and accessibility. Explore some of the most popular payment solutions that meet these criteria. 

Online payment method benefits

When making an electronic payment through a bank card, electronic checks, or alternative payment methods, you send money over the internet. The payment information you provide is enough to enable the money transfer at checkout or when paying an online service fee. 

Whether you rely on a bank transfer method or alternate payment methods, you make a safe and timely payment. These are just two of the advantages of online payment methods. Let’s dive deeper and explore how these types of payments benefit you whether you’re a customer ora large or small business.

Convenience

Online payment services make it easy to purchase goods and services from anywhere, at any time. They eliminate the need for cash payments and streamline international payments. Both customers and business owners can easily track their payment history and balance over time and see how much they’ve spent or earned. Moreover, with mobile payment services, it’s easier than ever to shop online.

Speed

Any customer values a fast payment process these days. Online payment solutions enable you to pay instantly and gain immediate access to services and products. The checkout process can take seconds once you choose your preferred payment method and save it on your device. Your payment method details will be safely stored so you won’t have to enter them again the next time you shop. 

Cost-effective 

Online payment fees are sometimes lower compared to traditional payment methods such as credit cards or bank transactions. Therefore, any customer can potentially save some money while shopping online. 

Global reach 

Among the best practices for payments, you’ll find global reach. This means ensuring that any customer, regardless of their country can purchase your product or service. With online payment methods, this is possible. Ambitious businesses that have an international consumer base can make hundreds of millions of dollars by selling their products online worldwide. 

Different online payment methods

There are numerous online payment methods in ecommerce, such as credit cards, wire transfers, digital wallets, open banking, etc. With so many payment providers, it’s hard to make a choice. Each has its pros and cons, and it’s worth taking time to compare several options beforehand. Here is an overview of the most popular online payment methods for small businesses and large ones. 

Payoneer

Payoneer is one of the most reputable online payment methods worldwide. It is fast and cost-efficient due to its low transaction fees, which make it ideal for small online businesses. Payoneer relies on modern encryption technology to secure transactions and keep customers’ data safe. 

Another advantage of this online payment method is its global reach. Users can transfer funds in seconds from anywhere around the world. Payoneer supports various currencies and offers a competitive conversion rate.

Key features:

• Fast online payments through a global platform
• Direct deposits in over 190 countries
• Cards powered by Mastercard® for online purchases and ATM withdrawals
• Payoneer offers a great way to receive payments from online businesses and marketplaces 

PayPal 

With over 250 million users, PayPal is beyond doubt one of the most famous payment methods around the world. 

With PayPal, you can easily make B2B payments or transfer money from one person to another in seconds. This is among the most used online payment solutions in ecommerce and, in general, in the online environment across a wide spectrum of business activities.

PayPal protects its users’ transactions and data through advanced encryption technology. It offers low fees and fast processing time, and enjoys a good reputation.

Key features:

• A popular alternative to traditional payment methods
• Fast and secure money transfers for online purchases or peer-to-peer transfers
• Compatible with different payment options such as debit and credit cards, bank transfers, and PayPal balance transfers
• Offers users protection for eligible transactions

Google Pay 

Powered by one of the world’s most famous tech giants, Google Pay offers a simple way to send or receive money instantly. It also enables users to track their spending and earn rewards with each purchase. Google Pay uses robust security measures and is available worldwide.

Key features:

• Popular digital wallet available almost everywhere in the world 
• In-app payments and tap-to-pay purchases
• Loyalty cards and peer-to-peer transfers

Direct debit payments

This secure payment method allows users to transfer funds from their bank accounts to make purchases online. It enables them to easily automate recurring payments to save time. Direct debit payments don’t involve third-party services, and the fees are usually low compared to other payment methods.

Key features:

• Easy to authorize withdrawals from bank accounts
• Ideal for recurrent payments like subscriptions and bills
• oOffers the convenience of automatic payments

Bank transfers

Bank transfers remain among the safest business payments for in-store and online purchases. This traditional approach to payments involves transferring funds directly from a bank account. The benefit of bank transfers is that they are safe. Banks use different methods to secure their data. 

Moreover, bank transfers are generally processed within a few days, so the customer can receive their products soon after purchasing them. The average payment time depends on the account holder’s bank and location, so do the bank fees.

Key features:

• Account holders can pay online, through mobile apps, or at the bank
• Funds are transferred electronically from one bank to another
• Suitable for larger, one-time payments

Prepaid cards

These online payment solutions are an alternative payment method for those who don’t have a bank account. Young people and online shoppers often use prepaid cards. These are issued by banks and credit card companies. Each card has a predetermined amount of money. After the user spends it, they need to top up the card. Prepaid cards offer different advantages, including flexibility and the ability to limit your spending.

Key features:

• Users can easily top-up the card with the desired amount
• Suitable for withdrawals and purchases
• A simple alternative to credit cards

Gift cards

Just like prepaid cards, gift cards hold a predetermined amount of money. Most commonly, they are issued by big retailers and can only be used in their shops and associated stores as closed-loop cards. Major credit card companies such as Visa, American Express, and Mastercard also issue gift cards.

Key features:

• Can be used at specific stores or chain stores
• Users can easily top them up
• Can be used as a marketing strategy

Digital currencies

Digital currencies like Bitcoin are modern alternative online payment methods. These decentralized payment methods are not governed by financial institutions. They eliminate the need for credit or debit card transactions or any other traditional payment method. The funds are transferred instantly over the internet. 

However, due to security concerns and their high volatility, these epayment solutions might not be suitable for all customers. Young online shoppers usually appreciate this payment alternative. So, it’s a good idea to offer them as additional payment methods

Key features:

• A public ledger known as blockchain records the transactions 
• They rely on cryptography to validate transactions and generate new units

Payment method	Description	Fees	Popularity
Payoneer	A global online payment platform	A 1% transaction fee on top of the currency conversion rate	High
PayPal	An online payment system that enables electronic money transfers	A 2.9% transaction fee + $0.30 for domestic transactions, and a 4.4% + fixed fee for international transactions	High
Google Pay	A digital payment system and wallet created by Google	No transaction fees for Google Pay users,various fees for merchant transactions	High
Apple Pay	Apple’s digital wallet and online payment solution.	No transaction fees	High
Amazon Pay	Amazon’s online payment system.Amazon’s online payment system.	A 2.9% transaction fee + a $0.30 domestic transaction fee, and a 3.9% + a fixed rate international transaction fee	High

Factors to consider when choosing online payment methods

Here are the main aspects businesses should factor in when choosing online payment solutions. 

Security

Keeping your customers’ data safe should be your top priority when looking for an online payment service. Choose secure payment services that offer advanced encryption technology and fraud protection. 

Convenience

Customers value a payment solution that’s easy to access and processes payment requests fast. 

Fees

Choose the most cost-effective option by comparing the fees of different payment solutions providers. 

Customer preference

Any customer should be able to make purchases from your ecommerce store, whether they prefer e-wallets, credit card payments, or other payment methods. Learn to listen to your customers and offer the payment solutions that best suit them. 

Choose the best payment method for your business today

There are many payment options available for business owners today. In many cases, businesses choose to combine methods to keep customers happy. 

When considering your options, Payoneer is a natural choice for many business owners, no matter their size. With the ability for customers to make global payments and businesses to make direct payments from their earnings, Payoneer is a safe, fast, and reliable option.

Frequently Asked Questions

Disclaimer: All content forming the basis of the comparisons made herein is content published by Wise on their website www.wise.com, PayPal on theirpaypal.com and  businessinsider.com, Google Pay 

pay.google.com and https://support.google.com/googlepay, Apple Pay https://developer.apple.com and Amazon Pay https://pay.amazon.com/us on 16.12.2022