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3 min read

Picking the Right Payment Options for eCommerce

customer giving credit card to sales associate

Payment options for online and in-store have evolved and changed the way our customers interact with brands. Learning the right combination of services can be costly if you are not paying attention to what each transaction is costing you. Exploring payments now is much different from before due to the variety in payment options. We will review available options, benefits, and preferences.

At the end of the day, the goal is about satisfying your customers by delivering a positive checkout experience. +his means that the process to checkout is smooth, secure, and includes the customers. preferred method of payment.


The current leading payment preference is to checkout through a payment gateway. This method enables the merchant to use their eCommerce platform to handle credit card and debit card transactions. This method works by directly connecting the ecommerce platform to a dedicated credit card payment processor. When selecting a payment processor, make sure to note which type of cards are accepted and realize that there is only a portion of mobile device users that rely on credit cards for purchase through their mobile device.

The second is to redirect gateways where your customers are taken off your site to process their payment. Once the payment transaction is completed the customer is then taken back to your site, for example, PayPal.

The third is where your customer completes the checkout on your site but then handles the transaction off of your site, one of the larger service providers that work this way is Stripe.

Evolved Online Payment Services

Credit cards are still in the top tier of payment options; however, ease of use is the new expectation. Although customers are accustomed to paying without having to enter a load of information to purchase a product, they now rely on the ease of stored payment methods and third-party solutions.

Here is a list of the most popular online payment services:

Buy Now Pay Later

This method was previously only popular when paying utility bills. But has since taken off like a rocket and is now found as a common method of payment.

A few providers are Klarna, PayPal's Pay in 4, and Afterpay. These services allow the customer to break the cost of their order into bite-size payments, as opposed to paying everything all at once. Once the option is selected at checkout, an email is sent, then click the button in the email message to complete your bill transaction.

The Click to Pay payment option an addition has also been added, known as Buy Now, Pay Later. So, you can now pay with one click and opt to pay in installments.

Gift Cards

The gift card is still a brilliant payment option that is paid for upfront and, in most cases, leads to a larger sale than what is available on the gift card. Gift card services are available within your POS, or through a third-party gift card company. The benefit to customers is that they never expire. However, a benefit to the retailer is many customers never redeem gift cards and when they do there is often more in the basket than the total amount on the gift card.

Digital Wallets

Sitting right next to credit cards and debit cards are digital wallets, here are the leaders in this space for 2021. 

  • PayPal currently has a larger population with 392 million users as of Q1- 2021, with 4.4 billion dollars in payment transactions and 42.2 payment transactions per active account. 
  • Apple Pay - Over 500 Million account holders on a fast, secure, and mobile-centric platform.
  • Amazon Pay - 33 million users, leveraging your customers Amazon existing credentials might make sense for you, there are currently over. 150 million Prime users, and a study has shown that they are the preferred shopping App in the United States.
  • Google Pay - Over 39 million account holders and counting.

With so many accounts be sure to add one or more of these options within your checkout.


Customer Preferences 

Understanding the preference of your customers It is important to research what options your audience is looking for. Understanding the distinctions of your customers, such as psychographics and demographics, will clarify which options you should consider providing.

For example, Gen Z (born 1996-2010) and Millennials (born 1981-1995) have pretty much grown up with a mobile device in their hands or during a rapid period of technological advancement, so mobile payments and payment apps are preferred. On the other hand, Baby Boomers (born 1946-1964) and Generation X (born 1965-1980) adapted to mobile devices later in life but have a history with debit cards and credit cards. They also trust online payment gateways such as PayPal and appreciate using gift cards.

Just remember that whichever payment options you include on your site, make sure to clearly display them in your site's terms and conditions and include badges indicating your payment security certificates.


Virid's Expertise

Virid helps retailers select and integrate payment providers to add to the website based on their benefits and demand. While some of these are included on your ecommerce platform, many of these are additional integrations and separate features.