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It’s hard to believe, but 2023 is just around the corner. That means it’s time to start thinking about any changes you’ll be making to your website, including if you want to update what checkout methods you’ll be offering your customers in the coming year. There are many different options available to eCommerce businesses these days, and it can be tough to decide which ones are right for you. In this blog post, we’ll discuss the most popular checkout methods currently available and help you decide which ones will work best for your business!
The Basics — Credit and Debit Cards
Of course, the vast majority of businesses will still accept credit and debit cards in 2023. This is by far the most popular method of payment both online and in brick-and-mortar stores. Credit cards offer customers the ability to pay for their purchases over time, while debit cards give them the option to pay with funds they already have in their bank account.
There are a few things to keep in mind if you plan on accepting credit and debit cards as a form of payment in 2023:
- You’ll need to make sure you have a secure system in place to process these payments. This means investing in a good quality point-of-sale system that can encrypt customer data and prevent fraud.
- You’ll also need to stay up-to-date on the latest security measures, such as 3D Secure and EMV chip cards.
- Another thing to consider is the fees associated with credit and debit card payments. These can vary depending on your payment processor, but they typically range from 2-3% per transaction. This is something you’ll need to factor into your pricing if you plan on accepting credit and debit cards as a form of payment.
PayPal
One of the most popular checkout methods available to eCommerce businesses is PayPal. PayPal is a secure and easy-to-use payment processing system that allows customers to make payments using their credit cards or bank account. PayPal also offers buyer protection, meaning that if something goes wrong with an order, the customer can get their money back. This makes PayPal a popular choice for both businesses and customers alike.
If you’re considering using PayPal as a checkout method, there are a few things to consider:
- You’ll need to sign up for a PayPal Business account. This account gives you access to all the features and benefits of PayPal, including the ability to accept payments and process refunds.
- You’ll also need to make sure your website is set up to accept PayPal payments. This typically involves installing a PayPal plugin or adding a few lines of code to your existing checkout process.
- Another thing to consider is the fees associated with PayPal. For standard PayPal checkouts, the fees are 3.49% plus a fixed fee that varies based on the currency used by the buyer in relation to you, the business.
Digital Wallets — Apple Pay, Google Pay, Amazon Pay
Another popular option for eCommerce businesses is to accept payments via Apple Pay, Google Pay, or Amazon Pay. These are digital wallets that allow customers to store their credit card information and make payments with just a few taps on their mobile devices. This is a convenient option for customers who don’t want to enter their credit card information every time they make a purchase. In 2021, digital and mobile wallets accounted for 49% of global eCommerce payment transactions; this share is set to increase to over 53 percent in 2025.
If you’re considering using a digital wallet option as a checkout method, there are a few things to keep in mind.
- You’ll need to make sure your website is set up to accept these payments. Like PayPal, this typically involves installing a plugin or adding a few lines of code to your existing checkout process.
- You’ll need to make sure your payment processor supports the digital wallet you’re adding. Not all processors do, so this is something you’ll need to check before signing up.
- Fees for digital wallets are the same as credit card and debit card transactions, which typically range from 2-3% per transaction.
Buy Now Pay Later Methods
In addition to the traditional checkout methods like credit and debit cards, eCommerce businesses can also offer ‘buy now, pay later’ payment plan options to their customers. This gives customers the ability to spread out the cost of their purchase over time, making it more affordable for them. This option is becoming increasingly popular, especially with younger shoppers, with 75% of all BNPL users coming from Gen Z or the Millennial generation.
If you’re considering offering BNPL payment plans to your customers, there are a few things to keep in mind:
- First, you’ll need to sign up for an account with a payment plan provider. Afterpay, Affirm, and Klarna are all popular providers that offer BNPL options to eCommerce businesses.
- You’ll also need to make sure your website is set up to accept payments via the chosen payment plan provider. This typically involves installing a plugin or adding a few lines of code to your existing checkout process.
- Fees for payment plan providers can vary, so you’ll need to check with your chosen provider to see what their fees are and if that is something you’re willing to undertake.
Local Payment Methods
If you do business in a specific country or region, you may want to consider offering local payment methods to your customers. This allows them to pay for their purchase using a method that is familiar and convenient for them. Some examples of local payment methods include:
- Alipay (China)
- iDEAL (Netherlands)
- Boleto (Brazil)
- Konbini (Japan)
Considerations for local payment methods are similar to Apple Pay or Google Pay i.e. making sure your site is equipped to handle the new payment platform and the fees associated with each platform.
Cryptocurrency
Cryptocurrency is a digital or virtual currency that uses cryptography for security. Cryptocurrencies are decentralized, which means they are not subject to government or financial institution control. Bitcoin, Litecoin, and Ethereum are all examples of cryptocurrencies.
Cryptocurrency is currently growing faster within the consumer world — with 40% of 18-35 year old’s planning to pay for goods and services with digital currency in 2022 — than it is within the merchant world — only 23% of which say they aim to accept cryptocurrency as a method of payment by 2024.
If you’re considering accepting cryptocurrency as a payment method, there are a few things to keep in mind:
- You will need to set up a cryptocurrency wallet to store your coins. There are many different wallets available, so you’ll need to research which one is right for you.
- Not all payment processors support cryptocurrency, so you will need to check if your current processor supports this or switch to a payment processor that does.
- Be aware of the volatile nature of cryptocurrency prices. The value of cryptocurrencies can fluctuate greatly, so you’ll need to be prepared for the possibility that the value of a coin could drop significantly between the time a customer pays and the time you receive the payment.
- Fees for cryptocurrency payments are typically lower than credit card and debit card fees, which can be a benefit for businesses. However, you’ll need to weigh that against the volatile nature of cryptocurrency prices.
Bottom Line
Overall, offering a variety of payment options is a good way to make sure your eCommerce business is prepared for the future. There are many different checkout methods available to eCommerce businesses, and the right mix of methods will vary depending on your business and your customers. By offering a mix of traditional and newer methods, you can provide your customers with the most convenient and affordable options for their needs.
Need help setting up a new checkout method? EYStudios is happy to help. We’re a full-service eCommerce agency that specializes in helping businesses reach their goals. Contact us today to learn more about our services.