The Most Popular Types of Electronic Payment Systems Explained
Retailers who are interested in boosting their sales should certainly consider expanding their online payment options. In the past, there was just one source of payment online and that’s why retailers used one Payment System. But, today things are changed.
According to the latest statistics, credit cards have become the most used method of purchase in the world. The same sources say that around 85% of online transactions are made with the help of credit cards. Selecting the right method of payment and provider for your online shop will make your company more popular and credible in the eyes of potential buyers. In other words, the use of different types of electronic payment systems will help you become a credible and popular online retailer.
The list of electronic payment systems is long and in this article, we will focus on the most popular ones.
1.Credit/Debit Cards
As we have mentioned before, credit cards and debit cards are still the most used form of payment on the Internet. This system is working perfectly for individuals who have working credit cards issued by banking institutions. On the other hand, debit cards are linked to the personal checking account of customers. This means that whenever they are paying online their personal balance is reduced. Almost every online store today accepts credit and debit card payments.
2.Digital wallets
Another popular form of electronic payment system is the one that includes digital wallets. The reason why they are called wallets is simple – they work in a similar fashion like ordinary wallets used in brick and mortar stores. Similar to a debit card, a digital wallet, also known as an e-wallet, is typically connected to a person’s checking account and other sources of stored data. In many cases, popular web browsers like Chrome and Firefox will ask online buyers to save information like shipping address or personal billing address. Thanks to this option, returning customer can proceed with their transactions quickly after a few clicks of their mouse instead of typing the same information over and over again.
Electronic Payment Systems Explained
Mobile web shopping
Now here’s another electronic payment system that works in a similar way like digital wallets. Of course, this time the information is stored and shared through a mobile device (smartphone or tablet). The emergence of this type of payment systems has made online shopping much easier and simpler which resulted in increased popularity of this type of activity.
3.EFT (Electronic Funds Transfer)
The EFT represents a specific form of payment in which the exchange of a certain amount of money from one bank account to another is conducted via computer-based systems. Some of the most commonly used EFT transactions include payment of bills like car notes, utilities, insurance debts and mortgages over the Internet. In most cases, customers rely on EFT when an online store doesn’t support payment via debit or credit card or when they are charging a significant fee for this type of transactions.
4.Payment Service Providers
Finally, there is another popular electronic payment system that is used worldwide today – payment service provider system. These providers represent 3rd party network that allows online shoppers to connect different types of money they have into a single source. In this way, they can protect themselves against fraud and identity theft in a better way. By transferring their funds to their PSP account, online shoppers can enjoy shopping without worrying about their safety. Some of the most popular payment service providers today include PayPal, Skrill, Payoneer and Payza.
Hopefully, this article will help online retailers understand the advantages of using different types of electronic payment systems.
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