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is now available as a complete guide to popular e-commerce payment methods.
Popular Mobile Wallets
The popularity of mobile wallets has exploded popularity in recent years and researchers are expecting the industry of mobile payments to reach $273.1 Billion by 2028. It is a challenge for online retailers to navigate a myriad of possible payment methods. The right e-commerce platform will enable you to take advantage of the top mobile wallets. If, however, you're trying to work on your own to stay up to date with new methods of mobile payments Here are a few of the best options available:
- PayPal Its PayPal platform had reported 435 million customers in 2022.
- Google Pay: Globally, Google Pay has over 150 million users, and it is responsible for 14.9 percent of the regional market portion.
- Apple Pay: The Apple Pay platform boasted an estimated 45.4 million customers in 2022.
With the millions of people who use mobile wallets every day, it is easy to see why the compatibility of the various payment options is vital to online businesses.
Credit Card Online as well as Debit Card Payments
Debit cards account for 12.3% of e-commerce purchases. They function as cash, taking money straight out of a bank account upon the purchase. Although the design of a customer's card might depend on the bank that issued it the majority of debit cards can be processed by Visa and Mastercard. In particular the most well-known debit cards are:
- Visa (54.42% market share)
- Mastercard (22.14% market share)
- Debit cards for domestic use (15.54% market share)
- Private label cards (7.56% market share)
- AACH cards (.34 percent of market share)
Credit cards make up 22.8% of e-commerce transactions. Credit cards are used to pay directly to the bank of the buyer, which your customer is contracted to repay at a later date. Credit cards offer customers greater purchasing power when they shop at your shop. According to Shift, there are four major credit cards that online shops must accept:
- Visa (52.8% market share)
- Mastercard (31.6 percent of the market)
- Find (8.1 percentage market share)
- American Express (7.5 percent market share)
The Growing Importance of Buy Now, Pay Later
Any payment method could be combined with a purchase now pay later (BNPL) platform like Klarna, Afterpay, and Affirm. The most popular option for payment gives consumers more control over how their purchases align with their earnings.
The pay now, buy later arrangement is a short-term, interest-free installment loan. Through the various platforms, consumers will only be charged by BNPL services for late payments and extended loan terms. According to Yipitdata the most widely used BNPL service is Affirm with 40% of the US market part. Overall, the most popular purchase now and pay later options include:
- Acfirm (40% market share )
- Klarna (19.6% market share)
- afterpay (16.4 percent market share )
- PayPal Pay In 4 (11% market share )
The majority of these buy-now pay later and buy now platforms split the purchase of the buyer into four installments. The initial payment is due at the time the purchaser checks out from your online shop. The next three payments are made every two weeks.
It's easy to understand the reason why pay now and buy later is quickly becoming the preferred option for the majority of online shoppers.