YouTube icon
is available with the entire guide on popular e-commerce payment options.
Popular Mobile Wallets
The popularity of mobile wallets has exploded the last few years in popularity as researchers anticipate that the market for mobile payments to be $273.1 billion by 2028. It is a challenge for online retailers to juggle a wide variety of payment options. An appropriate e-commerce platform can enable you to take advantage of the most well-known mobile wallets. However, if you are working independently to keep up to date with new mobile payment options Here are a few of the top contenders:
- PayPal Its PayPal platform reported 435 million customers in 2022.
- Google Pay: Globally, Google Pay has over 150 million active users and accounts for 14.9% of the local market portion.
- Apple Pay: The Apple Pay platform was estimated to have 45.4 million customers 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 online companies.
Online Credit as well as Debit Card Payments
Debit cards account for 12.3 percent of online shopping. These cards act like cash, taking money straight from the bank account of the buyer after purchases. The branding on the customer's credit card may be contingent on the issuing bank The majority of debit cards operate through Visa and Mastercard. More specifically the most well-known debit cards include:
- Visa (54.42% market share)
- Mastercard (22.14 percent market share)
- Debit cards for domestic use (15.54 percent market share)
- Private label cards (7.56% market share)
- ATM cards (.34% market share)
Credit cards account for 22.8% of e-commerce transactions. These cards use money paid directly by a bank account of the purchaser, and your customer is contracted to repay on a future date. Credit cards give customers more spending power at your store. According to Shift the following are the four main credit cards your online shop must accept:
- Visa (52.8% market share)
- Mastercard (31.6% market share)
- Find (8.1 percent market share)
- American Express (7.5% market share)
The Growing Importance of Pay Now and Buy Later
Almost any payment method can be combined with a purchase today, pay later (BNPL) platform--like Klarna, Afterpay, and Affirm. This payment method is popular and allows consumers to control what they purchase and how it is matched with the amount of their pay.
The pay now, buy later plan is a one-time, interest-free installment loan. Across popular platforms, customers are only charged by BNPL services for missed loans and for extended terms. According to Yipitdata one of the most popular BNPL platforms is Affirm with 40% of US market share. Overall, the most popular purchase now and pay later options include:
- Acfirm (40 percent market share )
- Klarna (19.6% market share)
- afterpay (16.4 percent market share )
- PayPal Pay In 4 (11 percent market share )
A majority of these purchase now, pay later platforms split the purchase of the buyer into four installments. The initial payment is due in advance when the customer makes a payment at your shop. The subsequent 3 installments are scheduled out, often every two weeks.
It is easy to see why the buy now pay later choices are rapidly becoming the preferred option for many e-commerce buyers.