Online payment methods are currently undergoing a transformation. The EHI study “Online Payment 2022” shows that purchase on account is now only just in first place in the ranking in Germany. This is because the online payment service PayPal has caught up considerably in terms of payment for online shopping: PayPal already accounts for 28.2 percent of sales in e-commerce , putting it virtually on a par with purchase on account (28.3 percent). Direct debit and credit card payments are well behind at 17.4 percent and 11.4 percent respectively.
So that you can actually offer your customers relevant online payment methods, in this article we will introduce you to the most popular ones and show you how you can integrate them into Shopify. You will also learn when local payment methods can be worthwhile for your business.
That’s why you should offer several online payment methods
Different customer groups have different preferences – even when it comes to payment methods when shopping online. To offer visitors to your store the best possible shopping experience, you should provide them with various payment systems.
What online payment methods are available?
To give you a quick overview of all common payment methods, philippines email list we summarize the most important information in the following table.
Reading tip: Incorporating popular payment options strengthens customer trust in your shop. We’ll show you what else this includes in this article.
Online payment methods in detail
PayPal, improve email content and design to make purchase on account or prepayment? Online shops now offer a variety of payment methods. But which online payment method is the best and what else should you look out for? To give you an answer, we have described the above payment systems in detail.
- Classic payment methods (direct debit, invoice or advance payment)
- card payments (credit cards)
- e-wallets (PayPal)
- Mobile payments (Google Pay, Apple Pay)
- direct transfer systems (Sofortüberweisung, Giropay)
- payment simplifications (Amazon Pay, Shop Pay)
Classic payment methods (direct debit, invoice or advance payment)
Security and habit are highly valued when buying online – this is especially true for the German market. The classic payment methods such as direct debit, purchase on account and advance payment are therefore still very popular.
purchase on account
When purchasing on account, your customers can simply wait until the order arrives and only pay for what they actually keep. In addition, buyers do not have to disclose their bank details, which is a big plus for many. However, cyprus business directory if the customer does not pay, it is then up to you as the shop operator to send reminders or even hire a debt collection agency. There are usually no additional fees for purchasing on account.
Direct debit
Although direct debit payments are unusual in shopping, they are essentially convenient and cost-effective for customers and retailers. SEPA direct debits can be reversed for up to 8 weeks. However, despite the automation, there is a small risk of non-payment for you as a retailer. SEPA direct debit mandates incur fees of between €0.10 and €2.00, as well as percentage amounts of 1-3 percent of the transaction amount.
advance payment
With prepayment, consumers pay for the order before the retailer ships it. Delivery only takes place once the money has been received in the account. As a retailer, this is attractive because the payment is received before you have to take any action. The risk of default is therefore extremely low. For buyers, of course, this means that they may have to wait a little longer for their order. There are no additional costs for prepayment.
card payments (credit cards)
Card payments are also very popular today because paying with a credit card or debit card is quick and easy.
credit card
When paying by credit card, you only have to enter your card details and the item is paid for immediately. The financial risk for consumers is also low, as they can easily object to debits that they have not authorized. For retailers, there is at least a small risk of fraud, but this is reduced by the 3D Secure process, which shifts liability in the event of fraud and holds the credit card user accountable. The fees for credit card transactions vary depending on the provider.
