According to studies, e-commerce is an industry that grows every year. More people prefer to shop online, especially after COVID-19. Hence, businesses in any industry that establish an e-commerce presence are future-proofed and protect themselves from unforeseen events. One way to achieve more efficiency is to use electronic payment systems for e-commerce payment methods.
What is the e-payment system?
An e-payment system in e-commerce allows your customers to pay for products and services online. It is a system that works with a buyer, merchant, the buyer’s bank, merchant’s bank, payment processor, and payment gateway.
In simple words, this payment method is a way to transact and perform all payment activities like paying, transferring, depositing, withdrawing money, etc. over the internet.
The payment gateway in e-commerce acts as an intermediary to conduct online cash flow transactions with links to the commercial banks or online banking systems of account users.
What is the e-payment system in e-commerce?
Based on the electronic payment method, the e-payment system can be divided into:
- Cash payment system which includes direct debit and e-cheque.
- Credit payment systems including credit cards and e-wallets.
No doubt, cash will always be around. But according to studies, the global share of e-payment transactions which include credit cards, debit cards, and mobile wallets will increase to 83% by 2022.
How can an e-payment system help your business to earn more?
Any business can benefit to some degree from using the best electronic payment system solutions available, such as:
Each e-payment method offers more flexibility. You can also offer special promotions and discounts or make quick price changes based on your latest marketing insights to get the most out of deals.
You have access to the latest technology to keep transactions as secure as possible. Also, these systems have very high standards for e-commerce fraud detection and prevention. With the right approach, these technologies can serve as cost-savers by detecting fraudulent transactions.
When electronic payment processing is done automatically, there is no room for human error. It also saves a lot of time and effort for the business and allows them to organize recurring payments in the form of membership programs.
Add new audience
Easy, safe, and secure payment gateways can attract more customers. You can make your business available to a new audience by accepting payments from around the world or by including some of the e-commerce payment methods that are popular in your target areas.
More revenue opportunities
This is probably the biggest advantage. The e-payment system is providing customers with a variety of options for making payments, thereby opening up more opportunities for revenue collection. When easier and more diverse buying options are available, your income is more likely to grow.
5 best e-commerce payment methods for businesses
Today, customers also want multiple payment options on the e-commerce website so that they can choose their desired payment mode. Some popular e-commerce payment systems can help you identify what would be ideal for your business.
The credit card is one of the most popular forms of online transactions and is considered a global payment solution. It is the default payment option on a majority of e-commerce websites. Besides, it is very convenient.
A customer has to enter some card details like the card number, card expiry date, and the card verification value, abbreviated as CVV. This payment option is supported by every e-commerce platform.
Like the popular credit card, a debit card is also a widely accepted online payment method and is highly popular. This mode of payment is ideal for those customers who prefer to spend within their financial limits.
Some people prefer debit card payments. It allows customers to pay with their saved money in their bank account, unlike a credit card where the amount is billed and needs to be paid at the end of the billing cycle.
Netbanking, also known as the internet and online banking, is also among the widely used e-commerce payment methods. The process works like a debit card where the amount debits instantly from the customer’s bank account.
The difference is that the netbanking customers do not need to enter their card details. They only have to register for the netbanking facility with their bank.
Once they are registered, they can choose the netbanking option on the payment page and make the payment by specifying the netbanking ID or customer ID and the pin.
Digital or e-wallets allow customers to pay without their cards. They have to link their bank account to the e-wallet once, details are stored and remain inside that wallet. After the checkout, the e-wallet automatically fills in the user’s information on the payment form.
The users must enter their unique password to activate their e-wallet. Thus, they don’t have to fill in the information again as details are in the database and updated automatically. Examples of e-wallets are PayPal, Amazon Pay, and Google Pay.
The mobile payment option is an easy and quick solution for customers to make a payment via their smartphones. All that a customer needs is a mobile payment app, like Paytm, which can be downloaded from the play store.
After this step, they need to link their bank account with that app, following which they can add money to their wallet and pay, or make the payment directly from their bank account.
If a customer wants to pay using that app on an e-commerce website, a payment request is sent to that app, which when approved, completes the payment.
How does an e-payment system improve customer experience?
The e-payment method comes with many benefits. Some of the benefits from your customer’s point of view include:
A simple process
It provides solutions where all customers need to do, is push a button to buy whatever they need. This creates a new level of convenience for customers. If your business supports these types of solutions, you will make it easier for your customers to buy products and services.
If your existing system still requires customers to enter their personal information each time they make a purchase, you can optimize this process. For example, with an e-wallet, there is no need to re-enter details for the next order.
Get instant notifications
Using electronic payment systems in e-commerce allows customers to receive instant notifications on whether a transaction has been completed and when they receive the product.
Reducing human contact
It creates an additional layer of convenience when you set up your electronic payment system to provide the customer with all necessary functions, such as balance, credit information, or transaction history, without having to contact your team members.
Providing different options
It is not only a revenue driver but also a way to improve the customer experience. When you let your customers choose between credit cards, bank transactions, mobile payments, and more, they will be loyal.
Of late, the use of online payment methods is gaining popularity. Integrating payment methods into various online businesses is common. The need for accepting online payments for products and services is constantly increasing. Moreover, the list of e-payment methods is long.
Know which types of electronic payment systems are beneficial for your business and integrate them on your website. Having multiple payment options is a great way to boost your e-commerce sales. For assistance, you can contact a software development firm that has expert professionals to guide you well.