Day 15 Name five different online payment methods.
Most modern online payment services offer easy-to-use, fast and secure ways to pay Here’s a list of some of the most popular online payment services:
Digital Wallet ( E wallet)
A digital wallet refers to software, an electronic device, or an online service that enables individuals or businesses to make transactions electronically. It stores the payment information of users for different payment modes on various websites.
PayPal is one of the most dominant payment methods available today. over 20 million UK shoppers use PayPal each year in the UK and 7 million businesses worldwide use their platform to accept payments. PayPal is an eCommerce payment processing company that allows users to set up a PayPal account and pay a fee for each cash transaction. Many customers prefer to checkout with PayPal because it’s so simple and quick to use.
Amazon Pay is another big name in the online payment space. Similar to PayPal, Amazon Pay is a digital payment processing service that allows customers to pay online using their Amazon payment methods on third party websites.
Amazon Pay uses the details already stored on the shopper’s Amazon account to complete the transaction and provide a speedy checkout experience.
eBay Managed Payments
eBay’s managed payment program allows the marketplace to process the payments directly by enabling customers to enter payment information and process payments without having to travel to a third-party site and leave the eBay interface. customers can benefit from a payment experience all through a single site, which includes multiple payment options including credit and debit cards, Google Pay, Apple Pay and even PayPal if they choose.
Google pay is a digital wallet platform and online payment system developed by Google to power in-app, online, and in-person contactless purchases on mobile devices, enabling users to make payments with Android phones, tablets, or watches. Google Pay lets shoppers choose from saved payment methods in their Google account in order to checkout quickly and smoothly on third-party sites. customers can also store branded gift cards, loyalty cards and offers with Google Pay.It's completely free for both merchants and customers to use.
Apple Pay is a mobile payment and digital wallet service by Apple Inc. that allows users to make payments in person, in iOS apps, and on the web using Safari. It offers your customers an easy, secure and faster alternative to traditional credit and debit card payments, as it skips the need to enter long card details and operates with a one-click payment process. The service also allows customers to authenticate their purchase using Touch ID fingerprint sensors on Apple devices, and like Google Pay, it’s completely free for both merchants and customers to use.
Direct debit payments
Direct debit payments are most commonly used for B2B transactions as they allow for recurring, automated payments to be made. The biggest plus of direct debits is the fact that payment is almost instant, so no need to wait for customers to pay an outstanding invoice. On top of this, it’s really convenient for customers as they don’t have to approve payments or remember to pay; the money is simply taken from their account automatically once the direct debit has been set up. This online payment method would work best for regular invoices such as monthly retainers or subscription-based business models.
However, despite the fact that online shopping is at an all-time high, consumers still have concerns about security when handing over card details & prefer a bank transfer.
The main benefit of bank transfers is that customers don’t have to disclose any financial details to you in order to make a purchase. bank transfers used for eCommerce payments are only set to grow due to open banking initiatives like PSD2 (Payment Services Directive 2); a legislation to allow non-banks, i.e. retail merchants, to initiate payments without the intervention of traditional card brand networks.
Prepaid cards are often used by adolescents or digital shoppers who don’t yet have a bank account. Different from gift cards, prepaid cards are a type of debit card issued by a bank or credit card company and ‘loaded’ with a certain amount of money. The card’s limit is determined by the amount deposited onto the card, and once the balance has been exhausted, the card is worthless until more funds are added.
Similar to prepaid cards, gift cards contain a certain amount of money, however they are mainly offered by retailers and, more recently, by major credit card providers such as Visa, Mastercard and American Express. The most common type of gift card is technically known as a closed-loop card, meaning it can only be used with a particular retailer, although some retail groups will allow the same gift card to be used at other affiliated stores.
Once the sum of the gift card has been spent it can no longer be used, unlike prepaid cards which can be ‘reloaded’ with funds again and again.
‘Buy now pay later’ instant financing
The term ‘buy now pay later’ is used to refer to interest-free credit providers.
Platforms such as Afterpay and Klarna, offer customers a way to spread the cost of their purchase or simply pay for their items at a later date, rather than pay in full upfront.
Cash on delivery (COD)
Quite simply, cash on delivery (COD) allows the customer to pay for their goods by cash/card in person directly to the courier at the time of delivery. COD is a popular choice for online shoppers, particularly in countries where cash payments are still dominant, such as India, Bangladesh and Thailand.
One of the main benefits of this payment method for your customers is the guarantee that they will receive the goods they paid for, and not risk losing or wasting any of their money.
They can check the product for any damage before handing over their cash, so it’s possible to return it without paying anything in the first place. In addition to this, customers don’t have to give their financial details to the merchant in order to make an online purchase – something a lot of shoppers prefer as it means they’re not at risk of any online fraud.