5 Payment Methods your E-Commerce Business Must Have

5 Payment Methods your E-Commerce Business Must Have

It’s no secret that e-commerce is on the rise. Millions of individuals began to prefer online shopping to traditional retail stores due to its convenient benefits, including time savings, access to better product options, and ease of purchase without ever leaving home. Now, you need to stand out and make an impression among everyone else. So it’s no surprise that more and more businesses have now adapted and are now turning to online sales as their primary source of income.

There are a lot of payment options that are a must-have for an online business. You need to make sure that your customers have a lot of choices, so that they can remain happy and will continue to use your service.

What are payment methods, and why does my business need them?

When people shop online, one of the things that customers dread is not being able to complete purchases right away as they do not have access to the available payment method. Payment methods are the different ways you can pay for the goods that you have ordered along with certain services. Consumers are presented with various ways of payment methods, and each  and each has its own advantages and disadvantages.

Here are five payment methods you should include on your e-commerce website:

1. Cash on Delivery

Customers usually opt to pay for their purchased packages in cash instead of using e-wallets, a credit or debit account. COD–or cash on delivery, is an excellent option for customers who find dealing with banks and credit card companies a hassle. This payment method can also be used as a means to attract customers who refuse to use online payments. Accepting cash on delivery gives them a convenient way to pay for their purchases without having to deal with other processing of payment options.

2. E-wallets

E-wallets have increasingly gained popularity over the last few years, especially in developing countries. They allow customers to digitally store their money in an online account and then use it to make purchases. E-wallets are a great way to attract customers who do not have the luxury to afford nor own credit cards or PayPal accounts. And since they’re becoming more popular, customers can choose from several different e-wallet providers. In India, customers can use providers like Paytm, Google Pay, and Cashfree.

3. Bank Transfer

Transfers are a standard payment method that many e-commerce websites use. This transaction takes place between the merchant’s and the consumer’s bank account. The advantage of this method is that it’s secure and easy to send money directly from your bank account to the e-commerce site. The disadvantage is that it can take a few days for the funds to reach the e-commerce site, but nowadays, there is such a thing as instantaneous transfers, which allows banks to process these transfers in minutes, if not within 24 hours.

4. Credit Card Processing

If you’re running an e-commerce business, credit card payments are an absolute must. Although it comes with its advantages and disadvantages, paying via card is one of the most common methods customers use, and it’s a great way to keep them happy through its benefits. You can use apps like Stripe or PayPal to allow your customers to securely proceed with their payment on your website with the use of a credit card.

5. Payment Gateways

A payment gateway is an online system that authorizes a payment to be completed between an e-commerce website and a payment processor. It accepts payment information from a customer and sends it to the payment processor for approval and processing of the payment. 

Many e-commerce websites use payment gateways as they provide a more secure way to process the payments rather than just processing them through a regular bank. Another advantage of using a payment gateway is that they offer fraud protection which helps protect buyers and sellers from credit card theft. Some disadvantages include higher transaction fees than regular bank transfers and the inability to conduct instant transactions through real-time payment systems. 

When accepting payments on your e-commerce website, you want to make sure that you are offering your customers various and flexible options. You also want to ensure that you are always keeping security measures in mind, as this transaction involves confidential information. With these 5 payment methods we’ve listed, you now have an insight on their differences, how each method works, and which are the most suitable for your existing & potential customers.

Cash on delivery is the first method of payment that we mentioned. With a logistics partner like Borzo, you can easily make use of cash-on-delivery when you book our service. Our trusted couriers will collect your customers’ payments for you, and remit it straight to your e-wallet or bank account within 24 hours. Learn more by talking to our sales team, who are more than happy to help you with any inquiries that you might have.

Book a Borzo courier via our website (available on desktop or mobile browser) or via our app!

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