YouTube icon
is here with the full guide to the most popular online payment options.
Popular Mobile Wallets
The popularity of mobile wallets has exploded the last few years in popularity, with researchers expecting the mobile payment industry to grow to $273.1 billion in 2028. It is a challenge for online retailers to juggle a wide variety of possible payment methods. An appropriate e-commerce platform can allow you to accept the most well-known mobile wallets. However, if you are doing it yourself to keep up with the latest methods of mobile payments These are the top contenders:
- PayPal: The PayPal platform had reported 435 million people using it in 2022.
- Google Pay: Globally, Google Pay has over 150 million users, and it makes up 14.9% of the local market part.
- Apple Pay: The Apple Pay platform boasted an estimated 45.4 million users in 2022.
With millions of customers using mobile wallets daily It is simple to see why the compatibility of the payment methods is essential to online businesses.
Online Credit and Debit Card Payments
Debit cards are responsible for 12.3% of e-commerce purchases. These cards act like cash and remove money from a buyer's bank account after purchases. Although the design of the card of a buyer may depend upon the bank which issued the card, most debit cards operate through Visa or Mastercard. In particular the most well-known debit cards are:
- Visa (54.42% market share)
- Mastercard (22.14% market share)
- Debit cards for domestic use (15.54 percent of market share)
- Private label cards (7.56% market share)
- ACH cards (.34 percent of market share)
Credit cards make up 22.8 percent of all transactions on e-commerce. Credit cards are used to pay directly by a bank account of the purchaser, and customers are contracted to repay at a later date. Credit cards provide customers with more buying power in your online retail store. According to Shift, there are four major credit cards that online shops ought to accept:
- Visa (52.8% market share)
- Mastercard (31.6% market share)
- Discover (8.1 percentage market share)
- American Express (7.5 percent market share)
The growing importance of Pay Now and Buy Later
Almost any payment method can be combined with a buy now, pay later (BNPL) platform--like Klarna, Afterpay, and Affirm. This popular payment option allows consumers to control what they purchase and how it is matched with the amount of their pay.
The pay now and buy later plan is a one-time instalment loan that is interest-free. On the most popular platforms, users are only charged by BNPL services for late repayments and loan terms that are extended. According to Yipitdata the most widely used BNPL platforms is Affirm which holds 40% of the US market part. Overall, the most popular options for buy-now, pay-later choices include:
- Affirm (40 percent market share )
- Klarna (19.6% market share)
- Afterpay (16.4% market share )
- PayPal Pay In 4 (11 percent market share )
Most of these buy now pay later and buy now platforms break up the customer's purchase into four separate payments. The initial payment is due in advance when the customer checks out from your online shop. The subsequent 3 installments are scheduled out, often each two weeks.
It's not difficult to comprehend the reason why pay now and buy later choices are rapidly being embraced by most online buyers.