Flex Your Payment Options Muscles: Offering multiple payment methods caters to diverse customer preferences, reducing cart abandonment and capturing sales. It's crucial for reaching different markets and keeping customers happy with convenient payment choices.
Don't Be Outshopped!: Payment Choices Matter: Customers may gravitate towards competitors offering easier payment options. To avoid losing sales to the competition, it's essential to provide preferred payment methods that appeal to your target audience.
Happiness is Choosing How You Pay: Customer satisfaction increases with trusted payment methods, especially in international transactions. Offering familiar options reduces friction and builds confidence, enhancing your brand's trustworthiness and appeal.
Stop Cart Abandonment in Its Tracks: Flexible payment options, like digital wallets and BNPL, streamline the checkout process. This helps minimize cart abandonment, improve user experience, and increase conversion rates for your online store.
Boost Sales with Payment Variety: Accepting various payment options maximizes sales opportunities and meets customer expectations. It's more than convenience; it encourages larger purchases and can increase the average order value.
Imagine finding the perfect ugly Christmas sweater for your cat—Gary, we’ll call him—and you’re ready to enter your payment information, only to learn the online retailer only accepts Discover cards and cash-on-delivery (COD).
Ugh. The search for the coolest feline winterwear continues elsewhere.
Eighty-five percent of shoppers abandon their carts if their preferred payment method isn’t offered (as we hypothetically just did).
Yet, preferred payment methods can vary from region to region, and growing ecommerce websites tend to serve many markets.
This means that you can’t just offer one or two online payment options and expect anything other than continually abandoned carts (sad and lonely and unloved).
You gotta have multiple types of payment methods and choose them based on your customers’ particular payment penchants (couldn’t resist the tongue twister).
So, let’s talk payment methods—the why of it all, the prevailing trends, and the best ones for you and your customers.
Why Should You Accept Multiple Payment Options
This one is easy.
Your customers have money they are dying to give you. You can digitally reach out and take that money from them, if only you accept certain forms of payment that they like using.
Otherwise, they might just go to another store, where it’s easier for them to pay.
While it’s nice to think that your product is super special and unique, your competitors think the same—and they offer the online payment methods your churned customers prefer.
Many ecommerce businesses have learned this the hard way.Brandon Hartman, founder of BeyWarehouse, sums it up:
After just a few years of operating our business, it became clear to us that diversifying our payment methods is one of the ways we can entice and retain more customers.
We operate in a hyper-specific niche, and every single customer counts.
If you’re losing customers because they can’t pay the way they want to, that’s not just frustrating—it’s a missed opportunity.
But don’t feel like you need to offer every possible payment method. James Tiltman, the VP of Product, Merchant Payments at Paysafe puts it bluntly:
Customers want choice, but they really want their choice. The trick is to offer the most prevalent payment methods in each market.
That means doing your homework and offering the options that really matter to your customers, without cluttering your checkout with stuff they don’t use.
Why does it matter so much?
- Trust and convenience. When customers recognize a trusted payment option, they’re more likely to feel confident making a purchase. This is especially important for international sales, where unfamiliar payment methods can create friction.
- Reduce cart abandonment. Ever bailed on an online purchase because the checkout process was annoying? Same goes for your customers. Offering flexible options like digital wallets or BNPL helps smooth out the process and keeps people from ditching their shopping cart, thus increasing your conversion rates.
- Boost average order value. Tools like BNPL make it easier for customers to say yes to bigger purchases because they can spread payments out over time.
Accepting multiple payment methods is not just about convenience—it's about maximizing sales and keeping up with customer expectations.
And if you don't, your competitors surely will.
Trends in Ecommerce Payment Methods for 2025
Before diving into the best payment methods for your customers, let's review the trends shaping our recommendations.
Much of this data comes from a slick report from WorldPayGlobal.
Digital wallets continue their dominance
Digital wallets—such as Apple Pay, Amazon Pay, and Google Pay—are rapidly becoming the preferred payment method, particularly in ecommerce and point-of-sale (POS) transactions.
By 2027, wallets are expected to account for over 60% of global transaction value for ecommerce (and nearly 50% for POS payments).
Their convenience, security, and speed drive this growth, especially in regions like Asia-Pacific, where they already represent over 70% of ecommerce payments and continue to rise.
Brian Yiu, Manager at Getstarted LTD, reflects on this:
We suspect emerging payment trends include the continued rise of Buy Now, Pay Later (BNPL), wider adoption of digital wallets, and increasing interest in decentralized finance (DeFi) and blockchain-based payments.
This reinforces the importance of wallets as consumers seek faster, more secure ways to pay.
Buy Now, Pay Later (BNPL) evolves, maybe?
BNPL continues to be popular, particularly with Gen Z and Millennials, who appreciate the ability to make purchases without immediate payment.
However, the rapid rise of BNPL is now facing new challenges. Paysafe’s James Tiltman highlights this shift:
BNPL had greater traction and noise around it 5 years ago, but we’ve seen regulatory change and consolidation across smaller BNPL, and I think the bubble has burst.
Larger players like PayPal offer the feature, and established BNPL providers like Klarna are moving into offering broader payment propositions.
It’s still relevant, but not as it was and not across all verticals.
As we’ll discuss more later, while this payment method is keeping pace with global growth, it isn’t doing much more than that.
Despite the market’s evolution, BNPL remains important for higher-value purchases and for consumers who prefer flexible payment terms.
As the sector matures, expect major players like Klarna to integrate BNPL into more comprehensive payment ecosystems.
Contactless payments gain ground
Contactless payments—whether via tap-to-pay cards, mobile wallets, or wearables—account for over 60% of in-store transactions in 2024.
This growth is driven by the speed, hygiene (looking at you, COVID), and security that contactless offers, making it a favorite among both consumers and merchants.
On this, Yiu added that “Biometric payments, such as fingerprint or facial recognition, are expected to gain traction for seamless and secure online transactions.”
One major example that speaks to the rise of this technology is palm scan payments from Amazon One popping up in Whole Foods across the US.
Now, your unique palm can do the paying.
As biometric technology integrates into mobile wallets and devices, contactless payments are becoming even more secure and convenient.
Cryptocurrency and decentralized finance (DeFi) gain attention
While still niche, cryptocurrency payments are gaining traction, particularly as blockchain technology and DeFi become more mainstream.
These technologies allow for faster, more transparent payments, and stablecoins are making crypto a more viable option for everyday transactions.
Brands like Overstock and Shopify have already embraced cryptocurrency payments, allowing customers to pay with Bitcoin and other digital currencies, which has opened up new customer segments.
The decentralization offered by crypto appeals to tech-savvy consumers seeking alternatives to traditional financial systems.
Again, Yiu said that there is “increasing interest in decentralized finance (DeFi) and blockchain-based payments, including stablecoins,” though the mass adoption of these methods may take more time.
The decentralization offered by crypto removes middlemen like banks, which can lower transaction fees and provide faster cross-border payments—an attractive option for international ecommerce merchants.
Crypto explainer for the uninitiated:
Stablecoins are a type of cryptocurrency designed to have a stable value by being tied to a currency like the US dollar, making them more reliable for everyday transactions.
Decentralized finance (DeFi) refers to financial systems built on blockchain, allowing for peer-to-peer transactions without intermediaries like banks.
Peer-to-peer (P2P) and account-to-account (A2A) payments rise
P2P platforms like Venmo and Zelle allow customers to transfer money directly from one person to another, simplifying the checkout process.
They continue to gain popularity, especially with younger consumers.
Meanwhile, A2A payments are starting to challenge traditional card payments by enabling bank-to-bank transfers without needing card networks, reducing fees and streamlining the payment process.
By bypassing card networks, A2A payments often come with lower transaction fees—sometimes saving merchants up to 1-2% per transaction compared to credit card processing fees.
For ecommerce merchants, offering P2P and A2A payments can not only reduce costs but also improve the customer experience, making them important tools in today’s competitive landscape.
6 Best Ecommerce Payment Methods for You and Your Customers
The customer is always right. At least, that’s what they like to think. When it comes to payments, you should endeavor to please them (being that they intend to give you money).
Let’s look at the most popular payment methods out there.
1. Digital wallets and mobile payments
Globally, digital wallets accounted for 50% of the ecommerce transaction value in 2023, and this share is only expected to grow.
Customers love the convenience, speed, and security of storing cards in mobile wallets, which is why these e-wallets are becoming the top payment method worldwide, even surpassing credit cards.
The rise of mobile payments is a clear signal—you’ve got to make it easy for customers to pay with their phones. If you don’t accept mobile payments yet, that’s a missed opportunity.
In our infinite ecommerce wisdom, we rounded up the best mobile payment tools. Here are the top 10 picks from that roundup:
2 & 3. Credit cards and debit cards
Plastic is still a great way to pay, despite the emergence of all the fancy digital options.
Right now, most of us could pull something out of our wallet with the logo for Visa, MasterCard, or American Express on it.
While digital wallets have overtaken credit cards as the top dog in payments, credit card payments still command 22% of global transaction value. Debit card payments account for another 12%.
Combined, they still represent a hefty portion of global payments, especially for older generations who may be slower to adopt mobile payments.
But, here’s the catch—these payment methods are projected to shrink to 15% and 8%, respectively.
As customers increasingly switch to wallets and more digital solutions, your reliance on card payments will need to shift, too.
4. Account-to-account (A2A) bank transfers
A2A bank transfers are rapidly growing in regions like India, Brazil, and Poland, accounting for 7% of global transaction value in 2023, with further growth expected.
Known as open banking, this method lets customers pay you directly from their bank accounts without involving card networks.
In regions like the UK and US, A2A adoption has been slower due to the dominance of card networks and mobile wallets, but as real-time payment systems improve, this could change.
Yet, many merchants can’t ignore other international markets.
A2A the only other ecommerce payment method projected to grow in the next few years (up to a respectable 8%).
James Tiltman from Paysafe notes:
If you look at the majority of non-card payment methods, they are predominantly account-to-account.
I believe this is where the growth will be... fueled by faster, real-time payment rails and PSD3 regulation in Europe.
For ecommerce merchants looking to expand internationally, especially in regions like Europe and Asia, A2A payments could be a key way to reduce fees and provide a more efficient payment experience.
5. Buy Now, Pay Later (BNPL)
When buying big ticket items, there’s no better way to purchase for those strapped for cash than buy now, pay later (BNPL, for short).
Just as the name says, your customer buys something now (receiving it as quickly as it can be shipped), you get paid in full (woohoo!), and they pay later (in a few equal installments).
According to a recent report, which we’ve already referred to above, BNPL has grown its share of the global ecommerce spend to $316 billion in 2023, accounting for 5% of the total.
It’s predicted to maintain this share through keeping pace with ecommerce growth over the next few years.
As Tiltman pointed out earlier, BNPL has gone through some changes, with smaller players consolidating and major names like PayPal and Klarna stepping up.
It’s still relevant, but it’s important to be strategic about which BNPL provider you partner with to ensure it fits your business.
For those of you selling big ticket items and harboring a desire to increase your sales, your next step would be to find the best BNPL platform to start offering it.
We rounded up the best options out there and here’s the top 10 from that list:
6. Cryptocurrency
Cryptocurrency payments are gaining slow but steady traction.
While not yet mainstream, crypto offers merchants a way to attract tech-savvy, blockchain-friendly customers.
Becky Leighton, Content Head at Coin Insider, explains it well:
Crypto is growing in popularity... but it’s not for every business.
It works best with more tech-savvy audiences, and there’s always a risk of user errors that could break down trust.
However, crypto has potential as a borderless payment solution, allowing easy, low-cost international transactions.
If your customer base spans multiple countries, accepting Bitcoin or Ethereum could cut down on hefty cross-border fees and delays.
Cryptocurrencies can be volatile, which may affect transaction values.
Additionally, user errors or fraud risks can arise, especially for businesses and customers unfamiliar with the technology.
If you’re hesitant about diving into crypto, consider starting small by accepting stablecoins like USDC, which are tied to a traditional currency and avoid the volatility of Bitcoin.
Top Ecommerce Payment Solutions For Excellent CX
We do a fair bit of talking about software here. We also like making lists.
Some may call us obsessive, but I’d just say we’re “in the zone” and think that B2B SaaS tools are “really cool, man.”
Anyway, in that spirit, we’ve done some thinking about the absolute best ecommerce payment processors that enable you to offer the right kind of payment options for your customers.
The full post includes pricing and other feature comparison so you can find the right solution for your brand.
Here are the 10 we think are the cat’s pajamas and/or the bee’s knees.
How To Decide Which Ecommerce Payment Methods To Offer
Being in the weeds with your brand, you probably already have some inkling of what payment methods your customers want. But, it still doesn’t hurt to do the work to find out for sure.
Here’s how you should suss out your ideal payment methods.
Customer preferences
This is the no-brainer. Your choices should be led by customer preferences because, ultimately, you want to make it as easy as possible for them to give you money.
Dig into your data—check surveys, social media feedback, and even customer service inquiries to see what they’re asking for.
For example, a review of customer feedback might show that many are asking for Apple Pay, signaling a shift toward mobile payments.
If your audience skews younger, they may lean toward digital wallets and BNPL. If your base is more traditional, credit cards could still reign supreme.
Transaction fees
What you pocket isn’t what the customer paid—that’s just the nature of the game. Payment providers take their cut, but not all fees are equal.
Some methods, like credit cards, have higher transaction fees, while A2A payments or cryptocurrency can offer lower-cost alternatives.
Take a close look at your sales data and calculate how much different payment methods are costing you. It might be worth experimenting with lower-fee options like A2A or cryptocurrency to see if they can reduce your overall processing costs.
Weigh the trade-offs between customer convenience and the hit to your margins.
Security and fraud prevention
This one’s critical—not only for protecting your small business, but also for building customer trust.
When evaluating payment methods, prioritize security features like tokenization, multi-factor authentication, and end-to-end encryption.
These safeguards protect both your business and your customers.
Each payment option should offer strong fraud prevention measures, like biometric authentication for contactless payments or blockchain verification for cryptocurrency.
Research each provider’s security features and choose the methods that keep both you and your customers safe.
Compatibility with ecommerce platform
Not every payment method is a breeze to integrate. Check if the payment options you're considering are easily compatible with your ecommerce platform.
Some platforms have plug-and-play integrations for digital wallets, while others may require additional development for methods like cryptocurrency or A2A payments.
A seamless experience benefits both you and your customers.
Demographics of target audience
Your audience’s age, tech-savviness, and spending habits all influence which payment methods make the most sense.
For example, BNPL appeals to younger buyers who want flexibility, while credit cards might be the go-to for older customers.
Understanding your audience’s financial habits is crucial in providing the right options.
Geographical location of customers
As James Tiltman puts it: “Attitudes and behaviours are always culturally driven and will vary across countries and regions. There often isn’t a one-size-fits-all.”
This is why you need to understand each market you’re addressing.
Payment preferences vary greatly—A2A bank transfers may be the preferred method in Europe, while digital wallets are dominant in Asia-Pacific.
Tiltman adds that leveraging your payment service provider's expertise is key:
They often have boots on the ground in regions and markets who themselves are domestic payers and can advise.
The right local insights can help you offer payment options that resonate best with each unique audience.
Start Offering Your Customers What They Want (More Payment Options)
At this point, your brain is chock-full of valuable information about the payment methods you want to start offering. Don’t bend over, or it all may fall out of your head.
Instead, take a look at what you already have, what your customers want, and what ecommerce payment processing solutions you need to bridge the gap.
My biggest tip is to choose based on your customer experience, as that’s where the money is.
As you know, we’ve got suggestions on the best software. So, come back any time to find what you need to know.
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Ecommerce Payment Methods FAQs
You thought we were done? Never forget about the FAQs! Let’s see what we got…
What is the most secure payment method for ecommerce?
The most secure payment methods for ecommerce are those that use tokenization, biometric authentication, multi-factor authentication, and end-to-end encryption.
As Alan Bavosa, VP of Security Products at Appdome, says:
“Certainly, systems that use tokenization, biometric or multi-factor authentication, and end-to-end encryption are safer for mobile brands and consumers. (Translation: stay away from direct credit card entry in apps, single-factor authentication, or payment methods that lack end-to-end encryption).”
Simply put, security is all about layering these protections-making it harder for fraudsters and easier for your customers to trust you.
How do I choose the right payment processor for my online store?
Choosing the right payment processor for your ecommerce store depends on a few key factors: transaction fees, integration ease, supported payment methods, and security features.
Look for a processor that integrates smoothly with your platform, offers robust security, and supports the payment methods most relevant to your audience. You’ll also want to balance competitive transaction fees with the convenience and reach of the service. And don’t forget customer support-when issues arise, you want a processor that has your back.
What are the fees associated with different ecommerce payment methods?
Fees vary depending on the payment method, and it’s important to know what to expect so you can make informed choices:
- Credit and Debit Cards: Typically around 2.9% + $0.30 per transaction. This rate is common for major payment processors and covers both online and mobile payments.
- Digital Wallets (e.g., Apple Pay, Google Pay): Usually match the fees for credit cards, around 2.9% + $0.30 per transaction, since they use linked credit or debit cards.
- ACH Bank Transfers: Generally more affordable, often around 0.8% per transaction, with a cap (e.g., max of $5). Some processors charge 1% with a small minimum fee, making it a good lower-cost option.
- Buy Now, Pay Later (BNPL): Providers like Afterpay and Klarna typically charge higher fees-usually 4-5% per transaction plus a small flat fee (e.g., $0.30). This reflects the convenience and flexibility offered to the consumer.
- Cryptocurrency: Fees vary but usually fall between 1-3% per transaction. Keep in mind that crypto can come with added variability due to fluctuating exchange rates.
Knowing these fee structures helps you balance cost against customer convenience-so you can make sure you’re not only meeting your customers’ needs but also keeping your bottom line in check.
How can I integrate multiple payment methods into my ecommerce platform?
Integrating multiple payment methods usually requires working with a payment gateway or processor that supports a broad range of options.
Many popular ecommerce platforms have built-in integrations for major gateways like Stripe, PayPal, or Square, which can cover options from credit cards to digital wallets to BNPL.
If you need something more niche, you might need a developer to help with the integration or consider an all-in-one payment solution provider that can manage multiple methods seamlessly.