Electronic payment is the most convenient, and most importantly, safe way to pay for goods and services online. However, with all its advantages, choosing between the types of electronic payment systems may be challenging for online store owners since this system should meet the customers’ preferences, be safe and beneficial. In this article, we decided to dwell on the main types of electronic payment systems in e-commerce and the ways to choose the right one for your business.
Electronic Payment Systems Definition
According to the Compendious Study of Online Payment Systems “The online payment system is a comprehensive term, portraying various scopes of delivery through electronic multichannel. Its use for various purposes offers an amplified imprecision of characterizing online payment in literature. Online payment can be seen from its capacities as e-banking, m-payment, e-cash, internet banking, online banking, e-broking, e-finance, and so on. All things considered, recent researchers have demonstrated a few endeavors to come up with a definition of online payment”.
Simply put, the concept of an electronic payment system covers all the situations when a user is paying for the goods or services online using digital money for it. There are a lot of payment services providers, so looking for the right one for your business, you should carefully consider their usage policies plus take the expectations of your customers, as well as their geolocation into account. Further, we are going to explain how to choose the best electronic payment system for your eCommerce project.
What Are the Benefits of Using E-Payment Systems
You may choose from several types of electronic payment systems, however, each of them will have significant benefits for your business and customers. Online payments are:
What Are the Types of Electronic Payment Systems?
So, let’s proceed to the types of electronic payment systems in e-commerce you may choose from. What is more, it would be wise to offer your customers several payment options for better user experience.
Credit/debit cards | This is the most popular and one of the most convenient payment system. However, providing your users with the opportunity to pay for the goods or services with the help of credit and debit cards, pay a lot of attention to data security. Since you will gather and store their personal and financial data, there is a need to protect it with the help of anti-fraud solutions for e-commerce. |
Bank Transfers | Bank transfers are the ways to make payments in the B2B segment, and here the issue of data safety is still relevant. Compared to credit and debit cards, bank transfers need more time to be completed. |
E-Wallets and mobile payments | E-Wallets and mobile payments are also quite popular mainly because mobile shopping is on the rise as well. |
PayPal and other gateways | There are also a lot of third-party payment services providers. PayPal, Stripe, and Braintree are one of the most popular and reliable ones. |
Surely, there is also an option to pay with cash after the order is delivered, however, in this case, we only may talk about the eCommerce transaction but not the online payment.
What Payment Systems Are Popular in Certain Regions?
Deciding on the electronic payment system your eCommerce store will be powered with, the first thing you need to pay attention to is your geolocation and geolocation of your users. For example, even the most popular PayPal is not supported in all counties. What is more, the users from the USA and Europe prefer a completely different e-payment system too. The picture below shows it clearly.
Hint! Make sure to research the popularity of this or that payment system if you are going to enter the foreign market. The inability to pay for the services certain users are used to may become one of the reasons to abandon a purchase from your website.
Criteria for Choosing the Best Payment System
How to choose the best Electronic Payment system for an e-commerce project? The best solution is the one that:
How Much Certain E-Payment Systems Cost?
On average, the usage of the most popular e-commerce payment system costs from $500-1000 per month. Each of them has its own pricing policies and fees per transaction that maybe sometimes overpriced for corporate clients. That is why it is necessary to carefully analyze all the tricks before deciding to embed a certain system to your e-commerce store.
What is more, if none of the options is suitable, there is an option to develop a custom payment system that will carefully meet the requirements of your business and the expectations of your customers. Surely, this solution will cost more compared to any of the popular payment software integration, however, the specific customization features have solid chances to overpay the price for the development.
Conclusion
Surely, the modern e-commerce store can’t be considered a full-fledged one without a possibility to pay for the goods or services online. However, this opportunity should be equally beneficial for you as a business owner and your customers. That is why, you may need a competent advisor nearby to suggest the best electronic payment system for your business, or a reliable development partner to create the one for you from scratch.