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Diverse payment options are essential to earning customers and promoting sales. So which online payment methods are most popular? This article will help you select which payment method you should allow for your business online.
Payment Type: Credit Cards vs. Digital Wallets
The payment method is diverse, consisting of credit cards, debit cards, as well as digital wallets. What is the one that consumers prefer to shop online? The 2021 Global Payments Report from Worldpay provides the payment method 2020 details for e-commerce so that you'll know which one the majority of buyers choose:
- Mobile and Digital Wallets Mobile and digital wallets, such as Apple Pay, Google Pay and PayPay - topped the list. position as the top method of payment for customers around the world, accounting for 44.5 percent of sales made online.
- Credit Card: In the second place, credit cards accounted for 22.8% of online payments.
- Debit Card transactions were third in frequent option, accounting for 12.3% of global purchase made online.
These three top payment methods accounted for a majority of purchases, being followed by bank transfers (7.7 percent), Cash upon Delivery (3.3 percent) and Charge & Deferred debit card (3.3%), Buy Now Pay Later (2.1 percent), Direct Debit (1.2 percentage), Pre-Paid Card (1.1%), PostPay (0.9%) PrePay (0.4%), PrePay (0.4%)), and Other (0.4 percentage).
Also, if you're looking to make use of the most popular payment option, Digital and Mobile Wallets is the right option to choose!
Which Digital Wallet is the Most Well-liked?
The battle to be the most popular electronic wallet is a tense one. There isn't a clear winner yet. As a relatively new feature on the market, the reports on digital wallets vary starkly between sources. The current state of affairs is that there are no reliable, consistent metrics for user numbers or payment volumes. But a survey released by the Investor's Business Daily worked to uncover which digital wallets are most popular with customers. Here's what they discovered:
- Apple Pay was among the most used digital wallet with a rating of customer satisfaction of 78.7%.
- Zelle took second place with an overall satisfaction rate of 76.3%.
- Amazon Pay was the third most used digital wallet with a rating of customer satisfaction of 73.5 percent.
- PayPal followed closely by achieving a high approval rating of 73.0 percent.
- Google Pay took fifth place with a satisfaction score of 71.1 percent.
All over the world, people tend to gravitate towards their most convenient payment options. For example, Apple Pay is popular for iPhone users, whereas Samsung Pay is most popular with Samsung users. It also seems that many customers who purchase online have accounts on various payment services.
How Important is the Payment Method?
What is the payment option that you provide? Naturally, accepting a customer's preferred payment method will make sales easier, resulting in more profits for you. Why is that? Here are the top reasons that your customers prefer their favorite payment method:
- Users may be reluctant to consider alternatives to payment or sign up for a new payment system.
- The more time a buyer spends thinking about their purchase The longer they think about their purchase, the more likely they will be likely to drop their order. After all, impulsive online shopping is a multi-billion dollar industry, according to finder.com.
- In some cases, customers might not be able to accept strict payment procedures, such as if you only accept payments through a website that is accessible in your country.
Each unique payment method your business uses opens possibility of new revenue streams, audiences, and customers. With this the ability to include different payment options that can accommodate all your customers' favorites.
How Can You Integrate multiple payment methods?
When building your online business, it is important to find a selling platform that accepts a diverse selection of payment methods. It can, for instance, provide customers with access to Stripe, Apple Pay, Google Pay, Visa, Discover, Mastercard, American Express (Amex), PayPal and many other payment options!