The importance of ecommerce is growing rapidly. Consumers prefer to purchase products online because they can do so anywhere at any time. For an ecommerce site to grow, it is essential to have a good pricing system in place. When a customer tries to pay online and the transaction fails, customers often choose a different payment method, whereas some customers abandon their cart. Customers who abandon their cart do so because they’ve had a negative experience as they find the payment method complicated and confusing. If a business chooses to have only one type of payment method, it will most likely not provide the expected level of customer service. Providing various payment methods allows potential shoppers to select the payment method that best suits their needs and boosts your ROI.

Payment gateways

There are many third-party payment gateways, such as Braintree, Stripe, and Square, that manage the online transaction processing for businesses. Businesses can collaborate with payment gateway providers to manage their transactions.

Payment gateways typically do not handle gift cards.

Other payment methods

There are various payment methods in the market, including:

  • Credit and debit cards (Mastercard, Visa, and American Express)
  • Electronic wallets (Apple Pay, Google Pay, PayPal, and Afterpay)
  • Interbank transfers
  • Mobile payments
  • Gift cards
  • Subscriptions

Online payments

Benefits of online payments include:

  • Easy shopping experience for customers
  • Swift and hassle-free payment
  • Less effort required by the customer
  • Multiple payment options increase customer experience
  • Secure gateway—security is a vital point in payments because customers will only proceed to complete their transaction if they feel safe to do so

Businesses still need to select payment methods and the payment gateway by analyzing aspects like customer preference, setup costs, ongoing costs, and security and business requirements. All businesses are different, have unique requirements, and is in a different phase (crawl, walk and run). The business requirement and the phase play a major role in pricing strategy.