Methods of payment through e-marketing

With technology developing at an unprecedented rate, the way we make payments and purchases is also developing rapidly. As traditional payment methods such as cash on delivery are used when the goods are in short supply, although some e-commerce stores still accept bank transfers as a form of payment. This is also becoming scarcer due to being less reliable than other methods available today.

When deciding to shout out an online marketer it is imperative to know what types of payment methods to use, as this is essential for your business. And not only because there are different types to choose from, but certain types have been optimized to maximize revenue opportunities.  Here is a short checklist to help you figure out what types of payment methods will work best for your e-commerce business.

Pay by credit card

As a global payment solution, credit cards are the most popular way for customers to pay online. Merchants can access the international market with credit cards, by integrating a payment gateway into their business. Whereas, credit card users are predominantly from North America and Europe, and Asia-Pacific has followed suit.

Pay by mobile phone

This method is most prevalent in areas with lower rates of credit card use and banking services, mobile payments give customers a faster solution than any other method, mobile phone payments offer a quick solution for customers to buy from e-commerce sites. 

Mobile phone payments are also commonly used in donation portals, browser games, and social networks such as dating sites, where a customer can pay using SMS. Most of the mobile payments are made in the Asia Pacific region.

Pay by bank transfers

Customers registered in an online banking facility can make a bank transfer to pay for online purchases. Bank transfer ensures customers can use their money safely, since every transaction needs to be authenticated and approved first with the customer’s online banking credentials before the purchase takes place.

Payment via e-wallets

The electronic wallet stores the customer’s personal data and funds, which are then used to make purchases from online stores. Signing up for an e-wallet is quick and easy, as customers are only required to submit their information once to make purchases. In addition, electronic wallets can also work in conjunction with mobile wallets through the use of smart technology such as NFC devices (near field communication). By clicking on the NFC terminal, mobile phones can instantly transfer money stored on the phone.

Prepaid Cards

An alternative payment method, commonly used for (very young) minors or clients who do not have bank accounts. The prepaid cards come with different stored values ​​for customers to choose from. And online game companies usually use prepaid cards as the preferred payment method, with virtual currency stored in prepaid cards for the player to use for in-game transactions. 

Some examples of prepaid cards are (Mint, Ticketsurf, Paysafecard, and Telco Card). And age rather than income appears to be the trait affecting the adoption of prepaid cards, according to Troy Land’s research.

Direct deposit

Direct deposits are made when customers require their banks to withdraw funds from their accounts to complete online payments. Clients usually inform their banks of when to withdraw funds from their accounts, by setting a schedule through them. Whereas, direct deposit is a common payment method for subscription type services such as online classes or high-priced purchases.

Cash

Fiat, or physical cash, is a payment method often used for physical goods and cash on delivery transactions. And paying cash comes with many risks, such as not ensuring the actual sale during delivery and theft. There are different types of payment methods to choose from. But by understanding how each works and knowing who your target audience is (especially, where they are), it can help you decide which payment methods to incorporate.