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is here with the entire guide on popular e-commerce payments.
Popular Mobile Wallets
Mobile wallets have exploded in the last few years in popularity and researchers are expecting that the market for mobile payments to grow to $273.1 Billion in 2028. This leaves online businesses struggling to juggle a wide variety of payment options. An appropriate e-commerce platform can allow you to accept the most well-known mobile wallets. If, however, you're working independently to keep current with the most recent mobile payment options, here are some of the most popular options:
- PayPal Platform: The PayPal platform has reported 435 million people using it in 2022.
- Google Pay: Globally, Google Pay has over 150 million active users and is responsible for 14.9 percent of the regional market share.
- Apple Pay: The Apple Pay platform had an estimated 45.4 million users in 2022.
With the millions of people who use mobile wallets each day, it is easy to see why the compatibility of these payment options is crucial for businesses that operate online.
Online Credit and Debit Card Payments
Debit cards are responsible for 12.3% of e-commerce purchases. These cards act like cash, removing money directly from a buyer's bank account when they make a purchases. While the branding of the card of a buyer may depend on the bank that issued it The majority of debit cards can be processed by Visa or Mastercard. More specifically The most frequent debit cards are:
- Visa (54.42% market share)
- Mastercard (22.14% market share)
- Domestic debit cards (15.54 percent market share)
- Private label cards (7.56% market share)
- ACH cards (.34 percent market share)
Credit cards account for 22.8% of e-commerce transactions. They use funds directly from a buyer's bank--which the customer has to repay on a future date. Credit cards give customers more spending power at your retail store. According to Shift the following are the four main credit cards online stores ought to accept:
- Visa (52.8 percent market share)
- Mastercard (31.6% market share)
- Find (8.1 percent market share)
- American Express (7.5 percent of market share)
The Growing Importance of Buy Now, Pay Later
Almost any payment method can be paired with a buy now, pay later (BNPL) platform like Klarna, Afterpay, and Affirm. The most popular option for payment allows consumers to control what they purchase and how it is matched with their paychecks.
The buy now, pay later structure is a short-term, interest-free installment loan. Across popular platforms, customers are only charged by BNPL services for missed repayments and loan terms that are extended. According to Yipitdata one of the most popular BNPL service is Affirm which holds 40% of US market share. The most well-known options for buy-now, pay-later choices include:
- Reaffirms (40% market share )
- Klarna (19.6% market share)
- afterpay (16.4% market share )
- PayPal Pay In 4 (11 percentage market share )
The majority of these buy-now pay later and buy now platforms divide the order into four separate payments. First, the payment is paid in advance when the customer is able to check out of your online store. The following 3 payments are scheduled out, often every two weeks.
It is easy to see the reason why pay now and buy later options are quickly getting popular with the majority of online shoppers.