Payment methods have evolved significantly over the past few decades. Bank transfers and cards have become obsolete, and we now have digital solutions that are more suitable for the digital era. Businesses are adapting to this new situation, adding innovative payment systems and methods to their list, including cryptocurrencies.
This has become crucial for a business to succeed. Companies do much research to learn what their customers choose to pay. While most stick to a single payment method, the online finance industry is ever-changing, with new payment methods emerging among the most popular options.
What Drives the Popularity of Payment Methods?
In simple words, online businesses and technology drive the popularity of certain payment methods. Take e-wallets for example. You might not have heard a lot about them unless online casinos promoted them. Neteller or Skrill are a popular payment method among the users, and they’ve both been built specifically for online gaming. Yes, you can use them at retail stores on the web, but they’re mostly known as a gaming payment system.
The online gambling network is vast, and it has promoted these two options and many others as a viable solution for players and spenders. E-wallets are fast, secure, and convenient, especially because you don’t need to link them directly to your bank account or cards. With the help of Neteller or Skrill, you can play your favourite slots and casino games, without worrying about your details.
Per researched data, security is the most important factor that determines which payment method consumers use. Over half of people who use popular payment methods such as e-wallets put security over everything else. Convenience, transaction speeds, and fees are other factors that drive the popularity of online payment systems.
Age has got a lot to do with it. Statistics show that people over 60% mostly select payment methods because of their strong security, while younger people consider speed and fees more important.
Cards Hold the Lead
Card payments remain the favourite for most when it comes to online payments. They’re convenient and easy to use, and it’s safe to say nearly everyone has at least one card in their wallet. Visa and Mastercard are the two most popular choices, and they work together with banks to issue the cards to all of the bank’s customers.
If you check recent data, you’ll see that nearly half of consumers have used their debit cards online. Around 28% of the survey participants have used their credit cards online in the past month. Those numbers are huge, but e-wallets are slowly creeping up.
Their popularity is going up annually, with the same survey showing that around 11% of the participants have used digital wallets in the past month. What’s interesting is that bank transfers still hold ground, with 17% of people reporting using this payment method online in the past month. The reason behind that is simple – top-notch security. Bank transfers might be slow and expensive in terms of fees, but nothing beats a bank in security.
Another thing that influences the popularity of payment methods is what they’re used for. For example, casino and gambling fans use digital wallets instead of cards, while those who shop at online retail stores prefer credit and debit cards. When paying for services, most stick to bank transfers.
How Businesses Should Respond When Priorities Shift?
Payment method shifts happen all the time, and businesses should respond quickly. They often conduct research on their own to see what they need to implement in order to adapt to the wants and needs of their customers. This means going through a variety of factors, which include clear communication, a variety of payment methods, and quick, easy, and fee-free payouts.
Customers will abandon shopping carts online when their favourite payment method isn’t there. This means adding new payment methods to the list should become a priority. Global businesses must adapt to the new finance options, including digital wallets and even cryptocurrencies if need be. This is especially important for certain businesses. For example, online casinos should stick to cards, while retail stores need to broaden their horizons with innovative new payment methods that include prepaid vouchers.
If you’ve never heard of these vouchers, they’re easy to find online or in retail stores. You don’t need a bank account or even share your name to buy them. You’re simply getting a voucher with money on it, which can be redeemed at an increasing number of stores and businesses online by entering its PIN code.
Vouchers such as Paysafecard come in numerous denominations up to $200, but you can also buy several and use them to pay as much money as you want. For many users, prepaid vouchers are the future, as they’re easy to get and built for anonymous and contactless transactions.
What Does the Future Hold?
In the near and far future, businesses and companies will further adapt to new and innovative payment systems. Many of them have already started accepting cryptocurrencies, which are widely hailed as the future of payments online. The blockchain is an exciting and future-proof technology that enables these transactions, which are already seeing widespread uses at online casinos and retail stores online.
Mobile payment systems are growing more popular by the day. It’s a use-now-pay-later type of system, which you can use to pay for services that are then processed on your next monthly payment. This gives users a lot of flexibility, although the amount they can actually use will be more than limited. Plus, withdrawals are impossible with this payment system, which warrants using another.
New technologies will likely pave the way for even better payment methods and systems in the future, and businesses will have to adapt. If the payment systems of the future are good, they will undoubtedly make it on their lists. Cryptocurrencies are often hailed as the future of online payments, but make no mistake – the industry never sleeps, and we’ll see innovative payment systems before long.