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The variety of payment options is 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 website should be accepting
Payment Type: Credit Cards vs. Digital Wallets
Payments come in several forms--including credit cards, debit cards, as well as digital wallets. Which of these options do customers prefer when shopping on the internet? This 2021 Global Payments Report from Worldpay provides the payment method 2020 details for e-commerce so that you'll be able to determine which method customers prefer the most:
- Mobile and digital wallets: Digital/mobile wallets--such as Apple Pay, Google Pay and PayPay--have risen to the top place as the most used payment option for consumers globally with a share of 44.5% of online sales.
- Credit Card: In the second position, credit cards made up 22.8 percent of all online transactions.
- Debit Card transactions were third in frequent option and accounted for 12.3% of global internet-based purchases.
The top three options for payment were the most popular choices for transactions, then Bank Transfers (7.7%), Cash on Delivery (3.3%) and Charge & Deferred debit card (3.3%), Charge & Deferred Debit Card (3.3 %) and Buy Now, Pay Later (2.1 percentage) Direct Debit (1.2 percent) and Pre-Paid Cards (1.1 percent), PostPay (0.9 percent) and PrePay (0.4%) and other (0.4 percentage).
So, if you're interested in using the most popular payment option, Digital and Mobile Wallets is the right way to go!
What Digital Wallet is the Most Popular?
The competition to become the most popular digital wallet has been a tight one, and there's no definitive winner yet. It's a fairly new technology on the market, the reports on digital wallets vary starkly among sources. There are currently no solid, reliable metrics that are consistent for user numbers or volume of transactions. But a survey published by Investor's Business Daily worked to uncover which digital wallets are most popular with customers. Here's what they found:
- Apple Pay was one of the most used digital wallet with a rating of customer satisfaction of 78.7 percent.
- Zelle came in second place, with a the highest customer satisfaction score of 76.3 percent.
- Amazon Pay was the third most popular digital wallet, with a customer satisfaction rating of 73.5%.
- PayPal followed closely by achieving a high satisfaction rating of 73.0%.
- Google Pay took fifth place with a customer satisfaction rating of 71.1%.
All over the world, people seem to flock toward the most convenient payment methods. As an example, Apple Pay is popular for iPhone users, whereas Samsung Pay is well-liked by Samsung customers. There is also a possibility that many customers who purchase online have accounts on several payment options.
What's the importance of the Payment Method?
So, how important is the payment selection you offer? Of course, accepting the customer's preferred payment method will make the sale easier--leading to more profits for you. But why is this? Here are the top reasons that your customers prefer to pay with their preferred method of payment:
- Customers may be reluctant to look at other payment options, or even sign up for a new payment system.
- The more time a buyer thinks about the purchase The longer they think about their purchase, the more likely likely to drop their order. After all, impulsive online shopping is a billion dollar industry, according to finder.com.
- In certain cases, clients may not be able to use restrictive payment methods--for example, in the event that you can only accept payment through a website that is unavailable in their country.
Each payment method that your company accepts opens possibilities of new revenue sources as well as audiences and customers. With the help of a payment processor it, you have the option of incorporating multiple payment options that can accommodate the various preferences of your clients.
How Do You Incorporate multiple payment methods?
If you are building an online business It's important to find a selling platform that accepts a diverse selection of payment methods. It can, for instance, give customers access to Stripe, Apple Pay, Google Pay, Visa, Discover, Mastercard, American Express (Amex), PayPal, and more!