What Type of eCommerce Payment Solutions Exist & How to Choose the Right One

Payment solutions in the eCommerce realm exist to automate various web-based businesses' payment and purchasing processes and make online transactions easier for online shoppers. Many different payment solutions are available in the eCommerce market, so it's easy to become confused about which payment gateway will benefit your business the most. The best-fitting payment solutions will potentially provide a safe and easy way to conduct transactions online for your customers.

As various instances of cybercrime have compromised consumers' personal data, one of your primary concerns when deciding to implement an eCommerce payment solution ought to be safety and security. In other words, you must consider which platform will protect your buyers' personal information (such as their bank account information) the best? 

Now more than ever, it is critical to build trust with your eCommerce payment gateway solutions and maintain transparency to inspire consumer trust.

Users want to have personal control over their personal information. They want to see clearly outlined policies that are easy to understand and explain exactly how their data will be used and secured. So, be sure to have concrete policies ready and address any consumer concerns preemptively. Here, we’ll provide you with an in-depth analysis of different payment solutions to help you determine which platform works best for your online business. 

What Are the Different Payment Solutions for Platforms and Marketplaces?

Online payment options assume more forms than ever in today's digital age. They exist to automate bank transfers, mobile payments, and more for eCommerce websites, crowdfunding sites, and online stores. 

With online payment solutions, customers enjoy the ability to use their credit cards, direct debit capabilities, and alternative methods such as digital eWallets, buy-now-pay-later solutions, and network tokens of digital cryptocurrency. 

Some popular options for payment methods include (but are not limited to):

• Stripe
• Square
• PayPal
• Authorize.net
• Amazon Pay, Google Pay, Samsung Pay, and Apple Pay
• Braintree
• WePay
• 2Checkout
• MangoPay
• Dwolla

Advantage of Payment Solutions for Marketplaces and Platforms

As a business owner, there are various benefits to using online payment solutions for your eCommerce business, eCommerce store, or other online business. Perhaps the most pertinent benefit of online payment marketplaces and platforms is the fact that they make online shopping transactions more accessible and versatile with automated and customized features. These features may aid in helping someone enter their payment information, but overall tend to speed up the online purchasing and checkout processes. In turn, this tends to lead to increased sales. Here are ways these payment methods make that possible: 

• The possibility of creating synergies: Online payment solutions are often inclusive, meaning that they combine multiple technologies that work cohesively to enhance the buyers' experience. This can simplify your entire payment process and save you a lot of time that may be better spent elsewhere. 

• Improved positioning and visibility: Consumers at eCommerce businesses everywhere enjoy simple and pleasurable transaction experiences with online payment solutions. If you can provide a simple and easy experience, people will be more likely to continue shopping with your business and inviting other people to shop with your business, and your visibility will improve. Businesses in which transactions are arduous tend to lose out as people find better options. 

• Cost reduction: eCommerce payment solutions decrease your company’s need for office supplies and tend to decrease administration costs. This is especially since online payment solutions and platforms can save so much time by automatically allowing transactions, cutting out the need for an employee to maintain these services. 

• Flexibility in payment management: You can easily customize your options to manage payments in the best way for you and your records with an online payment solution.

• Transparency: This all-important concept is easier to manage as you can provide straightforward information directly to your consumers about their transaction process and how the payment solution will use their personal information.

• Improved return policy: Stating your return policy clearly and visibly has never been easier than with an online payment solution.

• Security certificates: Digital payment methods have evolved considerably, offering many options to improve security in which to protect each transaction which helps build trust with consumers

• Quality seals: These awards granted to payment methods ensure a consumer that your payment method is verified as secure and valid

• Contact information: The information provided to you for a transaction including contact information easily transfers into a database, giving you the means to contact the consumer in a variety of ways in the event it is necessary. 

• Variety of payment methods: Users love the versatility of online payment options and having more options will improve your sales. There are even payment portals that can instantly transfer currency from one medium to another at the point of sale, making it easier than ever for purchasers to use their preferred type of currency. 

Alternative Payment Methods (Pros and Cons)

A few new technologies have become prevalent in recent years that have provided an alternative to traditional payment methods. As a business, it is vital to stay ahead of new technologies and understand them so that you can evolve with the times. 

Cryptocurrencies

Digital currency is taking the world by storm. 

Pros

• Added security as blockchain technology is built with that in mind.
• Offers a new legal form of currency for transactions.
• Comparably low transaction costs.
• Anyone with online access can use it.
• Decentralized governing means it won't fluctuate with traditional currencies.
• Transparent despite the anonymity of users.

Cons

• Third parties don't always have the same security.
• The value of cryptocurrencies is volatile.
• Only accepted by particular vendors, although this is increasing exponentially.
• The lack of a centralized government means that no one can step in if necessary.

eWallets

These digital wallets can make sting, transferring, and completing transactions much easier, but also boast some disadvantages. 

Pros

• Limits the number of cards you have to carry as you can pay with your phone
• Can choose which card you prefer immediately for a specific transaction
• Offers increased security options as opposed to a physical wallet
• Typically charge flat fees

Cons

• Wallet payment options are not universally accepted
• Can be a security risk from cyber attacks, although security is improving
• As transactions are seamless and simple, it can prove a temptation for those without budgeting skills
• As a new method, it takes some education to understand how to best use this technology

PayPal

PayPal has become a payment juggernaut. Here's what you need to know about the pros and cons of using this online payment platform: 

Pros 

• Easy to set up and use.
• Easy to monitor invoices and transactions.
• Long standing reputation of reliability. 
• Safe consumer data encryption.
• Mobile-friendly.
• Allows you to send money to friends and family at no cost.
• Rewards loyalty with discounts and rebates.

Cons

• Approximately 3% of your profits go to transaction fees.
• If its algorithms detect what it considers suspicious activity, it can freeze your account without warning, halting transactions.
• Often a target for scams.
• Some banks require a fee when dealing with Paypal.

Virtual POS

Cloud-based technologies are becoming more prevalent in the digital age, and Virtual POS systems are no exception.

Pros

• Protects information in the event of an outage or crash.
• Offers real-time, easy-access analytics.
• Makes it easy to scale your business as you can add on features as needed.

Cons

• Expensive subscription fees.
• Rare instances when functionality ceases due to internet connectivity issues.
• Requires more intense training for employees.

FAQs

FAQ: What Is a Virtual Payment Solution?

A virtual payment solution is one in which software allows a consumer to enter manual credit card information online to perform a transaction. This method enables businesses to accept remote payments.

FAQ: What is the Best Payment Solution for Small Businesses 

Sadly, there is not just one best option. Researching online will show you that any list of top payment solutions is varied and there's no clear leader. What is best for you depends on how your business works and which methods are most convenient for you and your staff, and your customer base. 

Shop around to determine which platform best meets your needs and budget. 

FAQ: How Do Payment Solutions Work?

The payment portal sends a request to the consumer's bank to verify whether they have the funds to complete a transaction. If that answer is yes, it sends back approval and tells your merchant bank to credit that amount to your account. 

FAQ: What Are the Three Methods of Payment?

The three typical payment methods are cash, credit, or a system of bartering called in-kind trading, which involves transferring one good directly for another. 

FAQ: Which Online Payment System Is Best?

The answer to this question is subjective and depends heavily upon your priorities and needs as an online merchant. Online payment portals offer superior versatility, but each payment system is tailored to different needs. Therefore, you should research what method will best satisfy your customer and business demands. 

The Bottom Line

It's essential to build trust and transparency with your customer base and provide a variety of payment options to be able to accept a higher volume of payments. It’s also crucial to prioritize security in your chosen payment options and facilitate pleasing and straightforward transactions. 

Finding a payment portal that satisfies those requirements and is tailored to your business is paramount for increasing profits and enhancing your visibility. By spending extra time researching the best online payment platforms for your business, your time spent can pay increased dividends as you make your choice.