Payment Methods; Explore Various Ways to Get Paid 

Long gone are those days when we could only pay for our day-to-day necessities with cash and cards.

Now, our payment options are plentiful.

Modern payment methods such as digital transfers, mobile payments, etc., are becoming more popular by the day.

We can make payments with our watches, smartphones, cards, and even car keys.

In the current era, businesses have to be aware of and accept payments differently, as customers desire security, ease, and a choice of payment methods.

Throughout this article, we will discuss plenty of payment options and some alternative online payment methods you can use for your business.

What are Payment methods?

Payment methods are the variety of ways you (Merchant) can collect payments from your customers, such as credit cards, digital wallets, direct debit, offline payment, etc.

If your customers are purchasing something at a store, maybe they use cash, a credit card, or a mobile payment method. 

When shopping online, at checkout, they probably find a dropdown menu with all the payment options, such as credit card, bank transfer, and e-wallet.

Having multiple payment options is beneficial for your customers and your business. And surprisingly, there are 200+ types of payment methods available today.

Here are some of the primary payment methods among them:

Different types of payment methods

Let’s look at the payment methods on top of the ladder.

Cash

As we all know, cash is king. There are a lot of customers out there who prefer to pay by cash, plus there are no additional charges you ever need to pay to accept cash payments.

However, when customers run out of cash, they might have to visit ATMs or their bank several times, ​​which may be inconvenient.

In the case of a large purchase, customers prefer to use online payments or card payments. 

Summing cash and storing it is time-consuming and risky. 

Cheques

Cheques are vouchers linked to the holder’s bank account, frequently used to pay bills. The use of cheques is dwindling as more and more high-end payment technologies are getting introduced.

However, one can use a cheque to make payments but must have sufficient funds in their accounts for it to clear.

Credit Card payments

A bank issues a credit card that allows its holders to borrow funds for purchasing goods and services from merchants. 

Credit cards can be handy, but they come with a catch: one has to repay what is borrowed with interest.

However, spending more than one can afford and getting stuck with the debt is a risk. Most credit cards do not incur interest if the debt is paid in whole before the deadline.

Debit card payments

A debit card is linked to one’s bank account and serves as an alternative to carrying cash. 

When someone uses their debit card to purchase goods or services, the money is debited from their account.

Debit cards often have daily purchase restrictions, so making a substantial purchase may not be possible. One should be aware of their debit card limit as well.

Electronic bank transfers

Electronic funds transfer (EFT) is the electronic transfer of money from one bank account to another, either within a single bank or across multiple banks, via the payments infrastructure, without the direct intervention of bank staff.

Prepaid cards

To use a prepaid card, one needs to initially recharge the card, top it up with some money and then access it to pay for essential things.

One can only use this card until it runs out of money, and then it needs to be recharged again.

The advantage of prepaid cards is that they allow setting a spending limit. 

Online Banking

To access online banking, one should sign up on the bank’s website. 

Once this step is complete, one can leverage online banking to make payments for all sorts of purchases.

Online banking considerably decreases the banks’ operating costs by lowering bank branch dependence and saving time.

It grants one the ability to execute banking transactions even when branches are closed.

Mobile Payments

Mobile payment is one of the latest payment methods and is rising in popularity by the day. 

As the name suggests, it means transactions that one can make over a mobile phone. 

A user can make these payments both online and face to face. 

They are a convenient payment option that uses biometrics, making it more secure than traditional payment methods.

Also, contactless payments are accessible using QR codes and NFC tags. When a QR code gets scanned via mobile, it leads the user to a payment terminal.

Alternative Online Payment methods

Customers nowadays want faster, varied, more secure, and accessible payment methods. 

So, what payment options should you offer your customers during checkout? 

Here are some of the best online payment methods you can choose for your business.

PayPal

The company facilitates payment processing, allowing you to send and receive funds online. 

You can open a personal online account or an online business account on PayPal.

Buyers don’t need to pay any fees when making purchases. However, if you accept PayPal payments, you need to pay the necessary transaction fees.

Variables like transaction amounts, currencies used, and type of account impact the rules and fees.

Amazon Pay

Amazon launched its payment services back in 2007. It is an online payment service that enables shoppers to pay for goods and services on third-party websites using their Amazon payment.

Amazon Pay utilizes a shopper’s Amazon account credentials and provides a quick checkout experience to complete the transaction.

Google Pay

Google introduced its online payment platform that users can access via smartphones, watches, and tablets.

Google Pay allows customers to check out quickly and easily on third-party websites by selecting from a list of stored payment options in their Google account.

Both your customers and you can use this online payment service for free.

eBay Managed Payments

With eBay’s payment system, customers can enter payment information and have it processed without being directed to a third-party website.

If you sell products on eBay, nothing can be much better than giving customers world-class payment methods like credit/debit cards, Apple Pay, GPay, etc., integrated into the platform.

Apple Pay

Apple Pay is a mobile payment and digital wallet service provided by Apple Inc. that allows users to pay using their phones, iOS apps, and Safari on the web. 

There is no support for it on devices that Apple does not make, and it is only available on iPhone, Apple Watch, iPad, and Mac.

Users can authenticate purchases using Apple’s Touch ID fingerprint sensor.

Both your customers and you can use this online payment service for free.

E-wallets

An e-wallet is an online payment service that allows your customer to make electronic transactions with you by exchanging currency digitally for goods and services.

If users want to make payments via e-wallet, they must link their bank account. 

Also, users can add money to their e-wallets and use it to purchase items.

How to accept different payment methods altogether without hassle?

The ultimate answer is to opt for a payment gateway service that integrates your website with the payment methods mentioned above. 

Payment Gateway takes care of all transactions end-to-end; all the data gets encrypted to ensure data security.

When you utilize a payment gateway, it will expose your business to a new market. 

Thousands of customers from around the world can easily access your store and transact with trust.  

Collect payments 24 hours a day with ease and security.

Conclusion

Online transactions are becoming increasingly common. Using the internet, users can make purchases, pay their debts, and access regular banking services.

The traditional ways of paying for purchases are thus getting replaced by several alternate methods using mobile devices and web-based apps. 

Hence, the new technology-driven payment mechanisms are slowly diminishing the existence of cash, cheques, and even card payments.

The world is going digital, so should your ways to accept payments.