If you have established an ecommerce business, you must be aware of your customer’s expectations of a fast and easy-to-use checkout process. With the advancement of technology and growing competition in the market, every ecommerce business is trying to provide their customers with a smooth checkout process along with an attractive interface.
Are you wondering how you can keep up in this stringent race of cutthroat competition and enhance your customer’s shopping experience? Well, don’t worry! Now you can simply satisfy your customers by giving them access to multiple ecommerce payment methods.
In this article, we will give you a comprehensive list of ecommerce payment systems to consider for increased revenue.
What is Ecommerce Payment System?
Ecommerce businesses use electronic payment methods to receive money in exchange for their products or services. These online payment systems have completely revolutionized the online business process and made it easy for both the businesses and customers.
An online payment system works by connecting a digital storefront to the payment processing network of your choice using a payment gateway. This processing network further works with your bank to clear your funds.
An easy-to-use payment gateway cuts out the need to enter card details or personal information again and again. Instead, they function with the help of third-party processing to smoothen the checkout process.
A List of Ecommerce Payment Systems
1. Credit Card
As we all know, credit cards are the base of modern ecommerce payment systems. Consumers use credit cards to fund other payment options like digital wallets. This is one of the most trusted payment systems because payment processors like Visa, American Express, Mastercard, etc., have been around for quite a while and are trusted by businesses.
2. Debit Card
Just like a credit card, a debit card is also a small plastic card with a unique number. It is important to have a bank account before getting a debit card. The primary difference between a debit card and a credit card is that in a debit card, the amount gets deducted from the bank account, which is supposed to have enough balance. This, however, is not the case with a credit card.
The E-Wallet can be simply understood as a prepaid account that allows customers to store numerous debit cards, credit cards, etc., in a secure environment that eliminates the need to enter the information every time the customer wants to make a payment. The use of E-Wallets is rising with each passing day.
4. Smart Card
Smart cards are somewhat similar to debit and credit cards in terms of appearance. However, it has a microprocessor chip embedded in it. It contains the capacity to store money and a person’s personal as well as work-related information. Smart cards provide faster processing at lower rates.
Customers can easily make purchases by directly paying through their bank accounts. This ecommerce payment system does not require a customer to have a debit card for payment purposes, but they still require registering with their bank for a net banking facility. For making a purchase, the customer simply needs to enter their net banking id and pin, and they are good to go.
Razorpay Provides Access to Multiple Ecommerce Payment Systems
Whether you are just starting your ecommerce business or already have a fully established online footprint, payments are always a core component in order to stay and succeed in the market.
The cart abandonment issue is on the rise, and one of the reasons is that customers do not find their preferred ecommerce payment system. With Razorpay, you can enable different ecommerce payment systems to enhance customer experience. If by any chance one payment system fails, your customer can immediately switch to another without feeling stuck.
Frequently Asked Questions
What is an e-commerce payment example?
An example of an e-commerce payment is when a customer purchases a product online and completes the transaction by using their credit card or a digital wallet. The customer provides their payment details, such as card number or wallet credentials, and the payment is securely processed through the e-commerce platform’s payment system. This allows the customer to complete the purchase and the merchant to receive the payment for the product or service rendered.
What are the different types of e-commerce payment systems?
There are various types of e-commerce payment systems available to cater to different customer preferences and merchant requirements. Some common types include:
Credit Card Payments: This is one of the most widely used methods, where customers enter their credit card information to make a payment.
Digital Wallets: These systems store payment credentials securely and allow customers to make payments by simply logging into their wallet accounts.
Bank Transfers: Customers can initiate payment transfers directly from their bank accounts to the merchant’s account.
Cash on Delivery (COD): In this method, the customer pays for the order in cash upon delivery.
Mobile Payments: Using mobile payment apps, customers can make payments by scanning QR codes or using near field communication (NFC) technology.
How do I add a payment system to my e-commerce website?
To add a payment system to your e-commerce website, follow these general steps:
Choose a Payment Gateway: Research and select a reputable payment gateway provider that suits your business needs and integrates well with your e-commerce platform.
Set Up an Account: Sign up for an account with the chosen payment gateway provider and complete the necessary registration and verification processes.
Integrate the Payment Gateway: Follow the integration instructions provided by the payment gateway provider to connect their system to your e-commerce website. This typically involves adding code snippets or using plugins/modules provided by the payment gateway.
Test Transactions: Conduct test transactions to ensure the payment system is working correctly. This allows you to identify and resolve any issues before going live.
Go Live: Once you’ve completed the testing phase, make the necessary configurations to switch the payment system to live mode, enabling your customers to make real transactions on your website.