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Diverse payment options are essential for attracting customers as well as promoting sales. So which online payment methods are the most popular? We are here to assist you select which payment method your online business should accept
Payment Type: Credit Cards vs. Digital Wallets
The payment method is diverse, consisting of debit and credit cards, digital wallets and even debit. So which of these do consumers prefer to shop on the internet? In 2021, the Global Payments Report from Worldpay provides the payment method 2020 information for online shopping, so you can see which option customers prefer the most:
- Mobile and Digital Wallets Mobile and digital wallets, such as Apple Pay, Google Pay and PayPay - topped the list. position as the top payment option for consumers globally with a share of 44.5 percent of sales made online.
- Credit Card: In the 2nd place, credit card were responsible for 22.8 percentage of payments made online.
- Debit Card: Debit card payments were the third most popular option with 12.3 percent of all purchase made online.
The top three options for payment made up the majority of purchases, followed by Bank Transfers (7.7%) and Cash on Delivery (3.3%) as well as Charge and Deferred Credit Card (3.3%) and Buy Now Pay Later (2.1 percentage), Direct Debit (1.2%) Pre-Paid Card (1.1 percent), PostPay (0.9 percent) and PrePay (0.4%), PrePay (0.4%)) and other (0.4 percentage).
If you'd like to use the most popular method of payment, Digital and Mobile Wallets are the best option to choose!
Which Digital Wallet is the Most Well-liked?
The race to become the leading digital wallet was a close one. There isn't a clear winner as of now. As a relatively new feature on the market, the reports about digital wallets differ starkly among sources. It is not yet possible to establish credible, uniform metrics in terms of user or payment volumes. A recent study released by the Investor's Business Daily worked to uncover which wallets on the internet are preferred by customers--here's what they found:
- Apple Pay was the most used digital wallet having a satisfaction score of 78.7%.
- Zelle came in second place, with a the highest customer satisfaction score of 76.3%.
- Amazon Pay was the third most used digital wallet with a customer satisfaction rating of 73.5 percent.
- PayPal followed closely with a customer satisfaction rating of 73.0%.
- Google Pay took fifth place with a customer satisfaction rating of 71.1 percent.
In general, consumers are overwhelmingly drawn to the most convenient payment methods. As an example, Apple Pay is popular with iPhone customers, while Samsung Pay is well-liked by Samsung customers. There is also a possibility that many online buyers have accounts with several payment options.
How Important is the Payment Method?
So, how important is the payment option you have available? Of course, accepting the customer's preferred payment method will make sales easier, resulting in more revenue for you. What's the reason? We've collected the top reasons that your customers prefer the payment method they prefer:
- Users may be reluctant to look at alternatives to payment or sign up for a new payment system.
- The longer a customer thinks about the purchase the more likely they will be to abandon their cart. Since impulsive online shopping is a multi-billion dollar business, according to finder.com.
- In certain cases, clients might not be able to accept restrictions on payment options, for example, when you accept only payments from a platform that is accessible in your country.
Each unique payment method your company accepts opens doors to new revenue, audiences, and customers. With the help of a payment processor it, you have the option of incorporating multiple payment methods to account for every one of your customers' favorite options.
How Do You Incorporate multiple payment methods?
If you are building an online business It's important to select a sales platform that can accept a wide variety of payment options. For instance, it can give customers access to Stripe, Apple Pay, Google Pay, Visa, Discover, Mastercard, American Express (Amex), PayPal and many other payment options!